Love Field backers win day in court

WASHINGTON -- Legend Airlines and Continental Airlines got a boost from a U.S. Department of Transportation ruling that local governments can't impose restrictions on flight operations at Dallas' Love Field airport.

The dispute pitted AMR's American Airlines and the city of Fort Worth -- both of which have a vested interest in protecting the dominance of nearby Dallas-Fort Worth International Airport -- against the city of Dallas, start-up Legend and a handful of other carriers that would like to begin offering expanded service from Love Field.

The city of Fort Worth sued in Texas state court last year to block the introduction of new services at Love, arguing that a 1968 accord between the cities of Dallas and Fort Worth prohibited expansion of services at Love. The Love Field ruling Wednesday represents a setback for American Airlines and Fort Worth, where American is based. "Federal law does not permit the local restrictions as presently constituted on air service at Dallas Love Field," the DOT said, in a ruling signed by Assistant Transportation Secretary Charles Hunnicutt. "Restrictions sought by Fort Worth are contrary to federal law." Love Field, Dallas' original airport, is minutes away from the city's downtown district, making it a more convenient airport than DFW for business travelers based in that city. Under a 1979 federal provision known as the Wright Amendment, though, flights from Love Field were limited to destinations in Texas and the four surrounding states. Last year, Alabama Republican Senator Richard Shelby sparked a legal controversy when he attached a rider to the transportation spending bill that eased restrictions by allowing flights to Alabama, Mississippi and Kansas. Shelby's language also included a provision sought by Legend, which clarified that planes that had been reconfigured with 56 or fewer seats could fly in and out of Love Field without restrictions. Since then, several lawsuits were filed among the cities of Dallas and Fort Worth, the Dallas/Fort Worth International Airport and four airlines -- Southwest Airlines; Continental, which began flying there from its Houston hub in June; American, which began flying from there to Austin, Texas, on Aug. 31; and Legend, which wants to begin service from the airport in early 1999. The city of Fort Worth has maintained all along that the city of Dallas has a contractual obligation not to allow the additional flights from Love Field, as allowed by Shelby's amendment. American lawyers are still reviewing the DOT decision, spokesman Mark Slitt said, adding that American was "disappointed but not surprised" by the ruling. "We've said all along that we didn't even think the DOT should even be reviewing that, and that it should be resolved in the courts and not in an administrative proceeding," Slitt said. Earlier this month, a Fort Worth-based district court barred Continental Airlines from flying between Love Field and Cleveland. "Now we've got a competing decision by the DOT, some other venue needs to be used to resolve this," Slitt said. "It wouldn't surprise me if this went as far as the Supreme Court." The city of Fort Worth has already said it will appeal the DOT decision in federal court. In August, the DOT waded into the tangle of suits, with the intent of issuing a ruling that would end some of the litigation. "This ruling...confirms what Legend has been saying all along -- federal laws are not optional," said Legend President and Chief Executive T. Allan McArtor said in a statement. McArtor called the lawsuits initiated by Fort Worth and American "a useless waste of taxpayer and shareholder money for all parties involved in legal battle. Their strategy has been to protect American's DFW monopoly by using their heavily influenced state court to eliminate Legend and any other competing service at Love Field," McArtor said. Legend, which is to begin offering scheduled service in early 1999, will fly to major U.S. cities from Love Field using full-sized DC-9 jets reconfigured with fewer than 56 seats to get around the airport's restrictions. All of the seats on board will be first- class.

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