Skip to content
Search AI Powered

Latest Stories

fastlane

Righting a Wright wrong

It's taken nearly 35 years, but the Wright amendment will be officially repealed the fall, lifting some of the most onerous marketplace restrictions the airline industry has ever seen.

On Feb. 3, Southwest Airlines announced that starting this fall, it would offer nonstop service between Dallas's Love Field and 15 cities, including Chicago, Atlanta, and San Diego. This was a front-page story in many newspapers in the South and West. So what's the big deal? Airlines add and eliminate flights all the time to a lot less fanfare (except possibly in the cities directly affected). It turns out, this was a special case, and it's no coincidence that the launch of this new service will coincide with the expiration of the 34-year-old "Wright amendment" to the Federal Aviation Act of 1958.

To understand the significance of the timing, you need to know a little about the Wright amendment and the circumstances that led to its enactment in 1980. Back in the 1960s, concerns about the ability of local airports in Dallas and Fort Worth to handle a growing volume of traffic led the Civil Aeronautics Board to order the construction of a new regional airport. In December 1968, the local governments broke ground on the Dallas-Fort Worth International Airport (DFW), which opened in 1974. The plan was to eliminate the existing Dallas and Fort Worth airports, and all airlines serving the area agreed to move their operations to DFW.


In the meantime, a newly formed entity, Southwest Airlines, had begun intrastate operations from Dallas's Love Field and had no desire to move. Since it didn't even exist when the other airlines agreed to relocate to DFW (Southwest was launched in 1971), it was not a party to the agreement and ultimately filed suit to continue operations at Love Field. In 1973, the U.S. Supreme Court ruled in its favor.

After the passage of the Airline Deregulation Act of 1978, Southwest announced plans to offer interstate service from Love Field. To say that made DFW and the other airlines very unhappy would be an understatement. Love Field is only minutes away from downtown Dallas, and since only Southwest would be operating there, it would enjoy such advantages as less congestion, more convenient parking, and other traveler conveniences. DFW and the airline interests took their complaint to Jim Wright, representative from the 12th congressional district (which includes Fort Worth) and arguably one of the most powerful congressmen at the time. Wright sponsored an amendment that prohibited Love Field-based airlines with large or mid-sized planes (those with more than 56 seats) from serving destinations outside of Texas or the contiguous states of Arkansas, Louisiana, Oklahoma, and New Mexico. In other words, a passenger flying from, say, Dallas to Phoenix would have to change planes in one of the contiguous states, actually buying two tickets and claiming and rechecking baggage at the intermediate city. Obviously, this was not an attractive alternative to flying out of DFW.

Despite these restrictions, Southwest continued to grow and became a very viable airline. DFW by now had become congested, and in 1997, the law was amended to allow Southwest to serve several additional states—Alabama, Kansas, and Mississippi—from Love Field. Flights to Missouri were added the next year. Still, DFW opposed any further erosion of the Wright amendment. Finally, in 2004, Southwest began a full-court press to have the amendment repealed. In 2006, an agreement was reached among all parties that would lift the restrictions in eight years' time—on Oct. 13, 2014. (Through ticketing was allowed immediately, but passengers have still been forced to change planes.)

Thus, the simple announcement of new flights brings to an end what many consider to be one of the more onerous constraints to free competition in the airline industry, with most of the responsibility falling on the shoulders of influential lobbying interests and one powerful congressman.

The Latest

More Stories

legal scales and gavel

FMCSA rule would require greater broker transparency

A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.

According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.

Keep ReadingShow less

Featured

pickle robot unloading truck

Pickle Robot lands $50 million in VC for truck-unloading robots

The truck unloading automation provider Pickle Robot Co. today said it has raised $50 million in venture capital and will use the money to accelerate the development of new feature sets and build out the company’s commercial teams to unlock new markets and geographies.

The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.

Keep ReadingShow less
chart of trucking conditions

FTR: Trucking sector outlook is bright for a two-year horizon

The trucking freight market is still on course to rebound from a two-year recession despite stumbling in September, according to the latest assessment by transportation industry analysis group FTR.

Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.

Keep ReadingShow less
chart of robot use in factories by country

Global robot density in factories has doubled in 7 years

Global robot density in factories has doubled in seven years, according to the “World Robotics 2024 report,” presented by the International Federation of Robotics (IFR).

Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.

Keep ReadingShow less
person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less