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Sat, Jul 01, 2006

JetBlue Founder Urges FAA To Block Wright Agreement

Airport Board Makes Slight Changes To Plan

Earlier this week, JetBlue Airways went on record as being against the Wright Amendment deal reached last month between the cities of Dallas and Fort Worth, TX, Southwest Airlines, and American Airlines over the future of flights from Dallas Love Field. On Thursday, founder and CEO David Neeleman upped the ante... by asking lawmakers to block the agreement.

The Dallas Morning News reports Neeleman sent a letter to the leadership of the House Transportation Committee, saying the deal would keep new airlines out of Love.

"The deal ... merely seeks to replace one outdated regulation with a series of anticompetitive provisions that eliminate competition and protect a few select carriers, while permanently destroying one-third of all of the gates at a vital airport in a major city, one that JetBlue wishes to serve if the Wright amendment is repealed," Mr. Neeleman wrote.

"It creates nothing more than an anticompetitive and discriminatory arrangement that protects two carriers by permanently excluding all competitors, ultimately at the expense of the traveling public in North Texas and across the nation," he added. "You're destroying gates and denying access to airlines that would like to serve there."

JetBlue wants two gates at Love Field if the Wright Amendment restrictions are removed. In addition to Southwest, Continental Airlines and American Airlines also currently operate gates at the inner-city airport.

As Aero-News reported last week, Northwest Airlines has also voiced its opposition to the agreement, which would immediately allow Southwest to begin through-ticketing on flights from Love, leading to the complete repeal of the Wright Amendment in 2008. As a tradeoff, the maximum number of gates allowed to operate at Love would be capped at 20.

Three low-cost carriers -- AirTran, Frontier, and Spirit -- have also objected to the plan, under the umbrella of the Air Carrier Association of America (ACAA). Those carriers' plans, if any, for Love Field weren't immediately known.

"You're destroying gates and denying access to airlines that would like to serve there," said Mr. Neeleman, whose discount carrier wants two gates at Love, if the Wright restrictions are removed.

Meanwhile, the debate continues on Capitol Hill on passage of the plan, which is null-and-void if not approved by the end of this year.

Changes Proposed

As the deal has been vetted through the city councils of Dallas and Fort Worth and lawmakers in Washington, the D/FW Airport Board last week approved a final draft of the contract -- which contains some changes from the original proposal announced June 15:

  • Airlines at Love Field would be allowed to write one-stop tickets to international destinations under the through-ticketing provision. Officials familiar with the agreement said the provision was added at the request of Continental, so it would be able to connect passengers flying from Love through Houston Intercontinental to international flights.
  • American would be allowed to keep its three gates at Love Field for four years, after which it would give up one of those gates to Southwest.
  • The cost of acquiring and demolishing the vacant Legend Airlines terminal -- which Northwest Airlines regional operator Pinnacle Airlines was said to be interested in -- would be passed onto airport users, and not Dallas taxpayers.
FMI: www.jetblue.com, www.southwest.com, www.acaa1.com

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