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Dallas Love Field: The Wright and Shelby Amendments (CRS Report for Congress)

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Release Date Nov. 9, 2005
Report Number RL32984
Report Type Report
Authors Todd B. Tatelman, American Law Division; and John W. Fischer, Resources, Science, and Industry Division
Source Agency Congressional Research Service
Summary:

The history of the Wright Amendment dates back to the 1960s when the now defunct Civil Aeronautics Board (CAB) proposed the creation of a single regional airport in the Dallas-Fort Worth (DFW) area. To construct the new airport, the two cities entered into an agreement that required the phasing out of separate existing airports in Dallas and Ft. Worth and transferring air service to the new DFW Airport, which opened in 1974. During this time, Southwest Airlines began operating out of Dallas's Love Field as a purely intrastate air carrier. As such, Southwest was not subject to CAB regulation. Congress's subsequent passage of the Airline Deregulation Act of 1978, resulted in Southwest being allowed to operate interstate flights from Love Field, and prompted concerns from many local officials about DFW's financial stability. The Wright Amendment represents a compromise that was designed to protect the interests of both DFW Airport and Southwest Airlines. The Wright Amendment contains a general prohibition on interstate commercial aviation to or from Love Field subject to exceptions that permits Southwest's continued operations in a regional four state market. In addition, the Shelby Amendment, enacted in 1997, further expands the scope of the regional market to three additional states, but nevertheless retains the basic compromise and structure of the original Wright Amendment. The language of the Wright Amendment has been the focus of several administrative interpretations by the Department of Transportation, as well as litigation at both at the state and federal level. Each court decision to date has affirmed the DOT's interpretation of the Wright Amendment. The newest iteration of this long running issue is primarily the result of events that have occurred since the Fall of 2004. First, Delta Airlines decided in October 2004 to pull most of its service out of Dallas Ft. Worth International Airport (DFW). Next, DFW asked Southwest Airlines to consider operating long distance flights out of DFW. Southwest rejected the DFW offer and instead announced in November 2004 that it intended to seek legislative relief from the Wright/Shelby Amendments. This announcement ended what was regarded as a long standing truce on this issue. In the period since November, DFW, joined by other parties such as American Airlines, have lobbied in favor of retaining the existing Wright/Shelby restrictions on airline operations at Love Field. Southwest, and others, have, at the same time, presented their own arguments as to why these restrictions should be removed. The DFW arguments are primarily couched in the politics, legalities, and history of the regional compact that created the airport. The rationales for retaining the Amendments are primarily of local interest and origin, e.g. protecting investments and markets at DFW. The rationale for removing the restrictions is the rationale for deregulation in the first place, the unrestricted flow of air commerce. A question for policymakers then is should the exceptions to deregulation that are the Wright/Shelby Amendments be retained in the context of the existing national aviation system? Legislation affecting the Wright/Shelby restrictions has been introduced in the 109th Congress; H.R. 2932 , H.R. 2646 , H.R. 3058 , H.R. 3383 , S. 1424 , and S. 1425 . This report will be updated as warranted by events.