Well, Brian said he saw a blog entry coming, so I feel obligated.
My whole point of this overly long post is we had a pep rally at work today for “Wright is right”. I went, but didn’t wear my sticker, didn’t chant or cheer. I hate being told what to think. I respect those who think for themselves. Corporate and political propaganda are tools to manipulate simple minds.

If you’re interested in the Wright Amendment, read on. Otherwise, well, you got the gist of my post.

First of all, a mini-U.S. government/aviation industry history lesson for those of you not involved (i.e. those who don’t care, go read something else more interesting!).

Over the last several decades as the airline industry grew, major cities shut down small regional airports and built bigger international airports a little further outside the city. Thirty years ago, Dallas and Fort Worth decided to do the same and build DFW International Airport, now one of the busiest in the world. They both agreed to shut down their smaller airports. Fort Worth did so. But Dallas did not because a small startup airline just getting going at the time legislated to stay at Love Field (I don’t know exactly why, maybe they saw it as the best place for themselves, they still tend to fly in/out of smaller regional airports which have lower fees).

This airline, Southwest Airlines, ended up getting the U.S. Congress to pass a law specifically for Love Field (wow, and we thought micro-management was new with Terri Schiavo’s case…nooosir!). It basically says it can stay open if and only if flights from it go only to adjacent states and in Texas if they have 50 seats or more. (Smaller flights can fly anywhere).

Fast forward thirty years. Southwest is now mounting a campaign to repeal or amend what is known as the Wright amendment. American Airlines and DFW Airport are against this. There’s lots of pros and cons on both sides.

The airline industry is not currently operating under free market principles. Which say if a company doesn’t make money it goes bankrupt and is liquidated unless it is likely that a debt restructuring will make it profitable. Right now 70% of U.S. capacity is in bankruptcy and the courts keep the profitless airlines afloat by forcing debt restructuring. Essentially with aging infrastructures the airlines are worth just slightly more kept alive then they are liquidated for investors. What this means is the airline industry stagnates in a limbo between free market and regulation. Few profitable companies, no extra cash to do major innovations or investments, and no room to incentivize employees with significant raises. Unfortunately it looks like the airline industry will be this way for the foreseeable future, probably at least 2-5 years more.

In a free market, Love should be opened up entirely and the market would decide it and DFW’s fate. In this weird bankruptcy life support market, it’s hard to say what is the right thing to do. The Wright Amendment is a silly, stupid law. However, I do believe American and DFW’s points that if it is repealed and Southwest expands at Love, there will be more congestion on the small roads leading to Love, more noise pollution, American will divert DFW traffic to Love and will thus have fewer connecting flights at DFW. Studies indicate major cities with more than one airport actually have fewer flights per capita. It will also hurt American financially as well as DFW Airport.