Love Field to Get a Boost From Missouri Rule

Dec. 2, 2005
The change in federal law opens Love Field to major passenger markets in Kansas City and St. Louis - and Southwest Airlines Co. and American Airlines Inc. already have promised new service.

For the first time since 9-11, Dallas Love Field could soon see a boost in passenger levels.

Although secondary U.S. airports have been in vogue among low-fare carriers, Love Field hasn't gotten much attention. "You can't fly many places from there," said Michael Roach, an industry consultant based in San Francisco.

But exempting Missouri from the Wright amendment's limits on long-haul flights could mark a change in fortunes for the close-in city-owned airport.

The change in federal law opens Love Field to major passenger markets in Kansas City and St. Louis - and Southwest Airlines Co. and American Airlines Inc. already have promised new service, though without specifying destinations.

Love Field's traffic dropped more than 20 percent after the terrorist attacks and economic downturn. Unlike other airports around the country, its passenger levels haven't significantly recovered.

Passenger levels today remain 12 percent lower than before 2001 - a level airport officials say is the new "normal" without changes to Wright's restrictions on long-haul flights.

Love Field's dependence on short-haul traffic meant that it was hit especially hard by travelers who decided to drive or stay home rather than face the "hassle factor'' of new security requirements, Mr. Roach said.

The airport's decline in passenger revenue, combined with debt costs from a new parking garage, is causing the facility to lose money, a shortfall that was covered last year by the airport's reserve fund.

The city is expected to discuss the airport's finances and increases to its landing fees and other lease rates early next year.

Even without any changes to those fees, the Missouri exemption will help boost revenues, said Linda Koop, chairwoman of the City Council's Transportation and Environment Committee, adding that the city welcomes increased operations by Southwest and American.

But the promise of new flights isn't welcomed by everyone.

"This is exactly what we feared," said Pat White, co-chair of the Love Field Citizens Action Committee. Missouri's exemption "only strengthens our resolve to stop it here."

The last major boost to Love Field came in 2000, when startup Legend Airlines began flying long-haul service on modified 56-seat DC-9 aircraft. American launched similar service, using modified aircraft. Delta Air Lines Inc. and Continental Airlines Inc. initiated regional service to such cities as Cleveland and Atlanta.

While the carriers were in operation, Love Field's terminals hummed as travelers to long-haul destinations such as New York and Los Angeles joined the airport's traditional mix of business day-trippers and commuters.

But Legend's run lasted only eight months, and soon the other carriers began to pull back service.

American ceased operations there after 9-11, and Delta ended its operations there in 2003.

Continental, the only other scheduled carrier to serve Love Field, now flies only to its hub in Houston.

Around the nation, secondary airports have had something of a renaissance in recent years, largely thanks to growth among low-cost carriers.

Generally older and smaller than first-line airports, they offer new carriers lower operating costs and a way to insulate their operations from direct competition.

"It's harder for a legacy carrier to compete with a low-cost carrier at another airport than it is at the same airport," said Mr. Roach, the consultant.

Secondary airports are also typically less congested than larger airports - a key factor in Southwest's strategy to get as much flying out of its aircraft as possible.

"Every minute a plane is on the ground is wasted money," Mr. Roach said.

The growth in flights has helped drive dramatic expansions at some of these airports, to the point that they can't really be considered secondary anymore.

Chicago's Midway Airport and Baltimore/Washington International Airport, for example, are both major connections for low-cost carriers, as well as being home to some limited operations by American and other legacy carriers.

The city of Chicago recently completed a $722 million renovation of Midway to accommodate growth from discount airlines. "And BWI's traffic is on par with Washington National now," said Mo Garfinkle, an aviation consultant with GCW Consulting in Arlington, Va.

"These are no longer airports of last resort," Mr. Garfinkle said.

While the Missouri exemption will bring new passengers, Love Field's existing constraints - especially its size - are still as important today as 30 years ago.

"It's never going to be D/FW," Mr. Garfinkle said.

Staff writer Dave Levinthal contributed to this report.

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