Position Statement on Wright Amendment Repeal

Contacts:

DALLAS, May 19, 2005 - The North Dallas Chamber of Commerce's comments on the current and future use of Dallas Love Field and Dallas/Fort Worth International Airport.

Philosophical Position:

The Dallas-Fort Worth region is fortunate to possess two premier aviation assets. Dallas taxpayers own 100% of Love Field and a 70% stake in DFW International Airport and are entitled to have these aviation assets managed locally to encourage the competition that will result in maximum benefit to the taxpayers, the region and the traveling public. Therefore, the North Dallas Chamber of Commerce Board of Directors supports phased-in repeal of the Wright Amendment.

Background:

To evaluate the best way to manage these aviation assets, the North Dallas Chamber of Commerce (NDCC) established a Task Force in December, 2004 to examine the current issues surrounding control and use of DFW International Airport and Love Field.

Over the past six (6) months, the Task Force has met with representatives of DFW, Love Field, local neighborhood groups, American Airlines, Southwest Airlines and local economists. As a result of these meetings and the review of other background materials provided by Task Force members, the North Dallas Chamber of Commerce Board of Directors makes the following findings and recommendations.

Findings:

1. Wright Amendment

a. The Wright Amendment restricts the City's ability to manage its aviation assets--specifically Love Field-to their best use or value, in accordance with the Love Field Master Plan.
b. Uncertainty surrounding the Wright Amendment's continued existence is harming the region's ability to attract new carriers.
c. High airfares to Dallas have discouraged the attraction of convention business to the city, according to the Dallas Convention and Visitors Bureau.
d. Increased competition would yield lower air fares at both airports, which would in turn increase air traffic at both airports, resulting in greater economic benefits to our region's economy and reducing each airport's dependence on any single carrier.

2. Love Field

a. The Master Plan is the principal management tool for Love Field and has been since its adoption by the Dallas City Council in 2001.
b. The current Love Field configuration (number of gates, number or length of runways) is in place and should remain, as provided in the Love Field Master Plan.
c. No argument has been advanced that suggests that any change in economic conditions generally or the aviation business specifically has undermined the validity of the conclusion reached by the Love Field Master Plan (i.e. that 32 gates maximizes economic benefit, consistent with minimal adverse effects on Love Field Stakeholders).

3. DFW International Airport

a. Financial implications of repeal may be significant, in the near-term.

b. DFW International Airport's financial health must be an assured outcome in the long-term.

c. DFW International Airport will continue to be the dominant airport for our region and the only international airport.

Recommendations:

The City of Dallas should:

1. Work with our local Congressional Delegation to re-claim control of our aviation assets by supporting a 2-5 year phased-in repeal of the Wright Amendment. A phased implementation of Wright Amendment repeal would provide the needed change, but also would insure orderly adaptation to the effects of such change.

2. Seek immediate removal of the marketing, through-ticketing and checked-baggage restrictions as currently provided in the Wright Amendment.

3. Affirm the Dallas City Council's unwavering support of the Master Plan, specifically as it pertains to thirty-two (32) gates maximum. The Master Plan should continue to serve as Love Field's management tool in the future.

4. Ensure ongoing compliance with the phased Terminal Area and Airside Development Plans contained in the Master Plan as adopted by the City of Dallas in 2001.

5. If future developments make it appropriate, re-convene the Master Plan Advisory Committee to ensure that the Plan continues to address the needs and concerns of all stakeholders (i.e. local residents, businesses, airport tenants, airlines and others affected by Love Field).

6. Ensure that the Competition Plans, as filed with the Federal Aviation Administration by DFW International Airport and the City of Dallas for Love Field, remain relevant. Consider creating an advisory committee to recommend ways to coordinate use of DFW International and Love Field Airports and to maximize support of regional economic development, including convention attraction and business relocation.

7. In anticipation of Wright Amendment repeal, develop its own plan to realize the $1 billion in regional economic impact as forecast in the Master Plan (assuming 32 gates).

Conclusion:

The North Dallas Chamber of Commerce affirms its belief that local management and stakeholder involvement in Dallas' aviation assets will yield their "best use" for the community. The Master Plan is proof that this can be done. The NDCC will remain actively involved, as we have done continuously for many years now.

About the North Dallas Chamber of Commerce

The North Dallas Chamber of Commerce is an association of businesses and individuals who come together to promote the most favorable environment for business. We are here to create a great place to live, work and grow. We promote a better quality of life for ourselves and our kids. It's that simple. The chamber is a place to talk about vital issues. It's a place to take action. It's a place to meet people and make new clients (and maybe even some new friends).

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