dalneighbor
Posts: 589
Joined: Mon Oct 03, 2005 12:04 pm

Another Wright Lie

Tue Jan 31, 2006 7:36 am

So this go round, Wright supporters say there is mismanagement at DAL and that the city is subsidizing WN operations. Here is a good read from the Dallas Business Journal regarding DAL landing Fees: http://dallas.bizjournals.com/dallas/stories/2006/01/30/story2.html

Some excerpts:
Any perception the field needs the money is wrong, says the Dallas-based airline and the city's largest taxpayer.

Opponents of a steep hike -- including the city's aviation department director -- warn that landing fees must avoid generating a big profit.

Staffers say the fee must capture no more than a "reasonable" amount toward paying airport expenses. Otherwise, the airport would violate promises it made in return for federal money to build and improve its infrastructure.

If that fails, the airline will formally complain, said Bob Montgomery, Southwest's vice president of properties. "The only reason to go higher is to harm us or to penalize Southwest," he said. "It's certainly not justified by the costs."

"It's real easy to think, 'it's only 20 cents.' But it represents a huge increase in our costs of $1 million a year," Montgomery said. "When prices go up, fares must ultimately go up. Love Field is a short-haul marketplace. Of all our markets, it's more price-sensitive. If fares go up $10, then there are passengers who would say, 'Well, I've got a new satellite radio in the Hummer, so Austin here I come.' "

Hunt, elected last June to Love Field's District 14, has said that rate would bring the city an additional $5 million a year.

Love Field has $48.3 million in cash on hand ...

Excess revenue at Love in years past has actually subsidized shortfalls at city-owned Dallas Executive Airport and the downtown Heliport.

Defending the rates and charges, longtime city council member Ed Oakley of District 3 said the council has routinely been briefed on such charges over the years. "Our practices were on target," Oakley said.

By 2011, the officials say, debt-free Love would score revenue excesses: $5.2 million in 2011 and $9.34 million in 2012. That may not satisfy the city council, but Montgomery believes it justifies no more than a 20-cent hike now. "People look at average landing fees and the temptation is to say, 'Why don't we just change to the average?' " Montgomery said. "But that creates an inordinate profit forbidden by law."
Wright Amendment = Federally Engineered AA Price Gouging

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