the audit

Swallowing the Corporate Pitch — Hook, Line and Sinker

May 27, 2005

Yesterday two Texas congressmen introduced a bill to repeal the Wright Amendment. In 1979, to promote the then-new Dallas-Fort Worth International Airport (DFW), Congress passed restrictions on flights from Love Field, Dallas’ older airport. Currently, airlines can only fly from Love Field to cities in Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Mississippi and Alabama.

As you might guess, the proposal to repeal that restriction is part of a showdown between two of the nation’s largest airlines — Southwest Airlines and American Airlines.

Southwest Airlines is the nation’s sixth largest airline and its home base is Love Field.

American Airlines, by contrast, moved its operation to Dallas-Forth Worth when the new airport opened in 1979 and has since grown into the nation’s largest carrier.

Currently, neither airline flies out of its competitor’s home airport.

Southwest, which maintains a website lambasting the Wright amendment, naturally has applauded the two congressmen seeking abolition of the amendment. American Airlines, just as naturally, strongly opposes the legislation.

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Like any company that has suddenly found itself on the defensive, American issued a statement listing reasons as to why the repeal is not in the best interest of the people of Dallas-Forth Worth. And like most press releases, American’s conveniently cuts-and-pastes the facts.

It’s the press’ job to fill in the holes. Alas, neither the Dallas Morning News nor the Associated Press are up to the task. Each passes along American’s corporate talking points without comment. Both outlets ended their news reports with this statement by an American executive VP quoted in the press release: “This push by Southwest reflects the understandably selfish intentions of a company that today is roaming the halls of Congress seeking special favors.”

In truth, as the New York Times‘ Michelle Maynard points out in her coverage, “American is one of a number of airlines seeking relief from Congress that would allow them to stretch out more than $20 billion in delinquent pension obligations over the next 25 years. American plans to send planeloads of employees to Capitol Hill next month to meet with lawmakers. Southwest has not joined the airlines’ effort, although it does not oppose the proposed legislation.”

Additionally, any news outlet running that comment from American deriding Southwest’s lobbying effort ought to point out that American has benefited for years from a “special favor” from Congress. That favor — the Wright Amendment itself.

–Thomas Lang

Thomas Lang was a writer at CJR Daily.