Tuesday, September 28, 2010
Southwest Airlines acquire Air Tran Airways What's Next?
Southwest Airlines acquire Air Tran The recent announcement by Southwest and its plans to acquire Air Tran Airlines is the number one reason I was against the repeal of the Wright Amendment.The Wright amendment was introduced as a result of then Intro State Southwest Airlines suing the City of Dallas. DFW Airport has grown because of the Wright Amendment and businesses and people have migrated to North Texas as a result of its growth.DFW Airport is the single most important financial engine for this Region. Repeal of the Wright Amendment has the potential of reducing DFW to the equivalent of one of the two medium Airports in Dallas Forth Worth as Houston Hobby and George Bush Intercontinental. AirTran leaving DFW moving to Love Field with its 628,000 passengers for the past 12 months and adding traffic to a already crowed Lemmon/Mockinbird area can not be good for anyone but Southwest Airlines. Southwest has an option to leave AirTran at DFW however with Southwest paying such a low landing fee to City of Dallas $1.35 vs.$ 7.20 I don't think they will. All the emotions surrounding the Wright Amendment repeal and promise of low fares competition and other ghost stories has materialized.The only thing that has happen is the City of Dallas is building a $60 million new terminal,Southwest is buying other Airlines,Air Fare on Southwest has not gone down and DFW has lost 22,000 passengers and will lose another 628,000 at least after the acquisition. I hope all the people who were driven by emotion and not by economic data will now realize nothing out grows its birth.