The Impact of the Repeal of the Wright Amendment on the Dallas Area Air Travel Market

Abstract

This project studies the effect of the repeal of the Wright Amendment on air travel in the Dallas market. In 1979, the Congress enacted the Wright Amendment, a federal law to govern air traffic in the Dallas metropolitan area. The Amendment limited flights (with greater than 56 seats) originating from Dallas Love Field Airport (DAL) to only fly to destinations in Texas or its neighboring states. The law was fully repealed in October 2014, which allowed some airlines including Southwest Airlines (WN) to schedule flights and extend service from Dallas Love Field to the previously restricted destinations. This project mainly investigates the growth of Southwest’s operations from their hub at Dallas Love Field Airport after the Wright Amendment restrictions were removed. Additionally, the response of Southwest’s competitor American Airlines’ (AA) to this growth from their Dallas Fort Worth Airport (DFW) hub was also investigated. The study fosters a better understanding of how both airlines establish their strategic responses in this competitive environment. This poster examines pricing and capacity changes for multiple origin-destination markets originating from the Dallas area, before and after the repeal, to study the impact of the amendment’s abolishment

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