[House Report 109-600]
[From the U.S. Government Publishing Office]
109th Congress Rept. 109-600
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
WRIGHT AMENDMENT REFORM ACT
_______
July 26, 2006.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 5830]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5830) to amend section 29 of the
International Air Transportation Competition Act of 1979
relating to air transportation to and from Love Field, Texas,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.
Purpose of the Legislation
The Wright Amendment Reform Act (H.R. 5830) would implement
a compromise agreement reached by the City of Dallas, Texas;
the City of Fort Worth, Texas; American Airlines; Southwest
Airlines; and Dallas-Fort Worth International Airport (DFW) on
July 11, 2006, regarding air service at Dallas Love Field.
Background and Need for the Legislation
THE WRIGHT AMENDMENT
After decades of deliberation and at the strong urging of
the U.S. Civil Aeronautics Board (CAB) and the Federal Aviation
Administration (FAA), the City of Dallas and the City of Fort
Worth agreed to construct a new regional airport, DFW, in the
early 1960s. Shortly thereafter, in 1965, the cities formed a
regional airport board and adopted a Bond Ordinance to finance
the construction of DFW.
The central component of the Bond Ordinance was that Dallas
and Fort Worth agreed to phase out passenger air service at
their existing airports, including Dallas Love Field. With the
exception of Southwest Airlines, which began operating solely
intrastate service from Love Field in 1971, the interstate
carriers using the Dallas- and Fort Worth-area airports agreed
to move their operations to DFW, which opened in 1973.
Southwest Airlines' decision to stay at Love Field led to a
decade of protracted litigation between the airline and cities.
In several related decisions, the courts held that the Bond
Ordinance provisions did not apply to Southwest because the air
carrier only served intrastate markets. As a result, Dallas,
Fort Worth, and DFW were unable to fulfill the Bond Ordinance
objective of consolidating passenger service at DFW, and
Southwest continued to offer intrastate service from Love
Field.
Shortly after Congress deregulated the airline industry in
1978, Southwest applied for the necessary regulatory approvals
to provide interstate service between Love Field and New
Orleans, Louisiana, in contravention of the intention of the
Cities as expressed in the Bond Ordinance. This action
threatened yet another round of litigation regarding air
service at Love Field.
In order to put an end to the dispute and resolve all legal
challenges, Texas Congressman Jim Wright negotiated a
settlement agreement among the interested parties. To make this
unique and unprecedented locally-crafted agreement binding,
Congressman Wright included language codifying this agreement
in section 29 of the International Air Transportation
Competition Act of 1979 (Pub. L. 96-192), which became commonly
known as the ``Wright Amendment''. The Wright Amendment allowed
Love Field to stay open instead of being closed down to
commercial aviation as originally intended, but limited direct
commercial air service out of Love Field to points in Texas and
the four adjacent states--New Mexico, Louisiana, Arkansas, and
Oklahoma.
In addition, the Wright Amendment permitted 10 interstate
charter flights each month to and from Love Field and allowed
flights by ``commuter airlines operating aircraft with a
passenger capacity of 56 passengers or less''.
Legislative history indicates that the provision was
intended to provide ``a fair and equitable settlement'' and was
agreed to by representatives of ``Southwest Airlines, the City
of Dallas, the City of Fort Worth, DFW Airport Authority, and
related constituent groups.''
The conferees, at that time, also attempted to make clear
that the Wright Amendment was to supersede any Federal Aviation
Act provision that might have, or could in the future, be
construed to permit interstate commercial service from Love
Field.
In addition, those same conferees indicated that the Love
Field situation was unique and that the compromise offered by
the Wright Amendment was not to be construed ``as a harbinger
of any similar proposals for any other airport or area.''
Since 1979, Congress has made two legislative changes to
the Wright Amendment. The first change was an amendment to the
Fiscal Year 1998 transportation appropriations act (Pub. L.
105-66) offered by Senator Richard Shelby. The Shelby amendment
allowed direct commercial air service from Love Field to an
additional three states--Alabama, Kansas and Mississippi--and
unrestricted flights on aircraft with less than 56 seats. The
second change was an amendment to the Fiscal Year 2006
transportation appropriations act (Pub. L. 109-115) offered by
Senator Christopher Bond. The Bond amendment allowed direct
commercial air service from Love Field to Missouri.
DALLAS-FORT WORTH AVIATION MARKET
The two largest airports in the Dallas-Fort Worth region,
DFW and Love Field, rank 3rd and 56th, respectively, among U.S.
airports in total passenger enplanements. Each airport can
claim to be the home of one of the nation's 10 largest
airlines, with American based at DFW and Southwest based at
Love Field.
Between April 2005 and March 2006, the most recent period
for which data is available from the Bureau of Transportation
Statistics (BTS), DFW enplaned 51.5 million passengers, while
Love Field enplaned about 6 million passengers.
According to the BTS, American is the nation's largest
airline, controlling a 15-percent-share of the U.S. market.
Southwest, which controls about 10.9 percent of the U.S.
market, is the nation's most profitable airline and one of a
very small number of airlines that has remained profitable
since the terrorist attacks of September 11, 2001.
American is the dominant air carrier at DFW. According to
the BTS, between April 2005 and March 2006, approximately 85
percent of all passengers at DFW boarded American flights.
Delta Airlines accounts for about 2.78 percent and the next
largest air carrier share is United Airlines at about 2
percent.
Southwest is the dominant air carrier at Love Field.
According to the BTS, between April 2005 and March 2006,
Southwest had a 95 percent market share at Love Field.
Continental Express accounted for roughly 4.5 percent of the
passengers. American, which leases three gates at the main
terminal, accounted for 0.5 percent of the passengers. Most of
the airline traffic in the Dallas-Fort Worth market is
controlled by these three air carriers.
LOCAL COMMUNITIES BROKER WRIGHT AMENDMENT COMPROMISE AGREEMENT
In light of decades of litigation and contentious debate
among local communities, airports and airlines over the
establishment and development of DFW, the subsequent use of
Love Field, and proposed legislative changes to the Wright
Amendment, earlier this year, a group of Congressional leaders
urged the local communities to work toward a consensus on a
proposal that would eliminate Wright Amendment restrictions on
air service at Love Field.
In order to reach a consensus, the local communities sought
diligently to gain the support of the dominant carriers at Love
Field and DFW, Southwest Airlines and American Airlines,
respectively. The local communities approached each carrier
separately and proposed a number of potential concessions
designed to facilitate a compromise proposal that would be
agreeable to the other carrier and the local communities.
After months of deliberations between the local communities
and each air carrier, the local communities successfully
persuaded Southwest and American to agree to concessions that
ultimately proved to be agreeable to the other carrier and the
local communities. Consequently, a consensus proposal was
developed to effectively repeal the Wright Amendment. This
consensus is reflected in an agreement dated July 11, 2006
(``July 11 agreement'').
NEED FOR H.R. 5830
Given the unique history of the development of DFW and the
unprecedented, locally-initiated agreement that was codified by
Congress in the Wright Amendment over a quarter-century ago,
the Committee believes that H.R. 5830 is necessary and
appropriate to implement the July 11 agreement and permanently
end decades of litigation, uncertainty, and acrimony by the
parties. In the spirit of the Wright Amendment, H.R. 5830 is
crafted narrowly to codify only those aspects of the July 11
agreement that require changes to federal law.
In addition to assuring the end of litigation and
uncertainty over the scope of commercial air service in the
Dallas-Fort Worth market, the Committee believes that the July
11 agreement will benefit the traveling public by allowing
additional markets to be served from the Dallas-Fort Worth
area. On July 11, the FAA testified before the Aviation
Subcommittee on the impact of repealing the Wright Amendment on
aviation safety and the flow of air traffic in the Dallas-Fort
Worth area. In its testimony, the FAA stated that it: (1) will
never compromise its safety standards to accommodate increased
demand at Love Field or any other U.S. airport; and (2) does
not expect that the efficient use of airspace in the Dallas-
Forth Worth region will be compromised if the Wright Amendment
is repealed.
To ensure that H.R. 5830 will not compromise air safety or
impede the flow of air traffic, Section 8 states that the
legislation will not take effect until the FAA notifies
Congress that increased aviation operations in Dallas-Fort
Worth airspace resulting from repeal of the Wright Amendment
will not have an adverse impact on safety and airspace usage in
the Dallas-Fort Worth airspace. The Committee expects that FAA
will comply with this one-time notification requirement as soon
as practicable.
Section 2 would expand service opportunities from Love
Field by repealing permanently all existing Wright Amendment
restrictions eight years after the date of enactment, and
allowing immediately ``through-ticketing'' from Love Field,
under which incumbent carriers could market and provide
connecting commercial air service from Love Field to cities
outside the Wright Amendment's geographic area. In addition,
section 5 of H.R. 5830 sets forth procedures to ensure that
non-incumbent air carriers seeking to provide service out of
Love Field are accommodated, and ensures that existing Federal
Aviation Administration oversight of such procedures is
continued.
At the same time, section 5 ensures that implementation of
the July 11 agreement will not adversely affect communities:
(1) that are currently receiving air service from Love Field or
DFW; (2) that wish to secure access to Love Field or DFW in the
future; or (3) within an 80-mile radius of Love Field in
seeking to develop their airport infrastructure, obtain Federal
grants or other Federal funding, obtain Part 139 certification
or meet other Federal requirements to obtain commercial air
service. Moreover, it is the intent of the Committee that H.R.
5830 would not apply to any amendment or modification of the
July 11 agreement executed by the parties after July 11, 2006.
Section 5 also expresses the understanding of the Committee
that costs associated with the reduction of the number of gates
available for service at Love Field to 20 gates are permissible
airport costs, and such costs will not be considered as revenue
diversion under title 49 of the United States Code. It is the
intent of the Committee that no Federal funds or passenger
facility charges may be used to remove gates at the Lemmon
Avenue facility at Love Field.
While the Committee has decided to codify the key
components of the locally-initiated and locally-approved July
11 agreement in H.R. 5830, it recognizes that Love Field is
part of the National Airspace System (NAS).
Consequently, the Committee believes that DFW and the rest
of the parties to the July 11 agreement should be subject to
all other federal laws and regulations. Accordingly, section 5
of the bill ensures that the parties continue to be obligated
under the programs of the U.S. Department of Transportation
(DOT), FAA, Department of Homeland Security (DHS) and
Transportation Security Administration (TSA) relating to
aviation safety and security, labor, environment, national
historic preservation, civil rights, small business concerns
(including disadvantaged business enterprise), veteran's
preference, disability access, and revenue diversion. The
Committee expects that non-incumbent carriers will be given the
same opportunities to start air service at Love Field as such
carriers would be afforded at other U.S. airports, and that FAA
oversight of such matters at Love Field would continue under
H.R. 5830.
Summary of the Legislation
Sec. 1.--Short title
This Act may be cited as the ``Wright Amendment Reform
Act.''
Sec. 2.--Modification of provisions regarding flights to and from Love
Field, Texas
Subsection (a) amends section 29 of the International Air
Transportation Competition Act of 1979 (the ``Wright
Amendment'') to allow air carriers serving Love Field to offer
for sale and provide through service and ticketing to or from
Love Field and any United States or foreign destination,
through any point within Texas, New Mexico, Oklahoma, Kansas,
Arkansas, Louisiana, Mississippi, Missouri and Alabama.
Subsection (b) repeals section 29 of the International Air
Transportation Competition Act of 1979 on the date that is
eight years after the date of enactment of this Act.
Sec. 3.--Treatment of international nonstop flights to and from Love
Field, Texas
This section prohibits nonstop commercial air service
between Love Field and foreign destination, and prohibits the
Federal Government from designating Love Field as an initial
point of entry into the United States or a last point of
departure from the United States.
Sec. 4.--Charter flights at Love Field, Texas
Subsection (a) limits charter flights at Love Field to
destinations within the United States.
Subsection (b) limits charter flights at Love Field beyond
the States of Texas, New Mexico, Oklahoma, Kansas, Arkansas,
Louisiana, Mississippi, Missouri and Alabama to no more than 10
per month per air carrier.
Subsection (c) requires that charter flights operated by
air carriers leasing gates at Love Field depart from and arrive
at a leased gate.
Sec. 5.--Agreement of the parties
Subsection (a) provides that any action taken by the
parties that is reasonably necessary to implement the
provisions of the July 11 agreement, and the agreement itself,
is deemed to comply in all respects with the parties
obligations under title 49, United States Code, and any
competition laws.
Subsection (b) requires the City of Dallas to reduce, as
soon as practicable, the number of gates available for
passenger air service at Love Field to no more than 20 gates.
Provides that costs associated with reduction of gates are
permissible airport costs and not to be considered revenue
diversion.
Subsection (c) assures that nothing in the July 11
agreement or the legislation affects general aviation service
at Love Field.
Subsection (d) provides that no action is to be taken by
DOT or FAA that is inconsistent with the local agreement or
that challenges its legality.
Subsection (e) clarifies the scope of legal protection
afforded under Section 5(a). The legislation is not to be
construed: (1) as limiting the obligation of the parties under
DOT and FAA programs relating to aviation safety, labor,
environmental, national historic preservation, civil rights,
small business concerns (including disadvantaged business
enterprise), veteran's preference, disability access, and
revenue diversion, or as limiting the authority of DOT and FAA
to enforce the obligation of the parties under such programs;
(2) as limiting the obligations of the parties under security
programs of the Department of Homeland Security and
Transportation Security Administration at Love Field; and (3)
as authorizing the parties to offer marketing incentives that
are in violation of federal law; and (4) with respect to the 20
gates remaining at Love Field, as limiting the authority of the
FAA or any other federal agency to enforce legal obligations to
make facilities at the airport available on a reasonable and
nondiscriminatory basis to air carriers seeking to use such
facilities.
Sec. 6.--Department of transportation review
This section provides DOT with exclusive authority to
review actions taken under the legislation and the local
agreement, and actions taken to implement the agreement, with
respect to all provisions of title 49, United States Code, and
with respect to any Federal competition laws not included in
title 49, United States Code.
Sec. 7.--Applicability
This section limits applicability of the legislation to
actions taken by the parties to the July 11 agreement at Love
Field and any airport owned or operated by the City of Dallas
or the City of Fort Worth.
Sec. 8.--Effective date
This section provides that the legislation takes effect on
the date FAA notifies Congress that aviation operations in the
airspace serving Love Field and the Dallas-Fort Worth area can
be accommodated in full compliance with FAA safety standards
and without adverse effect on use of airspace in the area. The
Committee expects that FAA will complete the evaluations
required for this one-time notification as soon as practicable.
Legislative History and Committee Consideration
H.R. 5830 was introduced by Chairman Don Young, Ranking
Member James Oberstar, Aviation Subcommittee Chairman John
Mica, Rep. Eddie Bernice Johnson, Rep. Kenny Marchant, Rep. Kay
Granger, Rep. Joe Barton, Rep. Michael Burgess, Rep. Chet
Edwards, Rep. Louie Gohmert, Rep. Ralph Hall, Rep. Sam Johnson,
and Rep. Pete Sessions on July 18, 2006. It was referred to the
Committee on Transportation and Infrastructure. A full
committee mark-up was held on July 19, 2006, where the
legislation was ordered reported to the House by voice vote.
Rollcall Votes
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each rollcall vote on a motion to
report and on any amendment offered to the measure or matter,
and the names of those members voting for and against. There
were no rollcall votes during consideration of the bill.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)2 of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance with House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objective of this legislation are to
improve air service in the Dallas-Fort Worth region.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
5830 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 24, 2006.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5830, the Wright
Amendment Reform Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Robert A. Sunshine
(For Donald B. Marron, Acting Director).
Enclosure.
H.R. 5830--Wright Amendment Reform Act
H.R. 5830 would amend provisions of federal law that set
certain restrictions on commercial air transportation to and
from Love Field, an airport located near the cities of Dallas
and Forth Worth, Texas. Based on information from the
Department of Transportation, CBO estimates that enacting H.R.
5830 would have no significant impact on the federal budget.
The bill would not affect direct spending or revenues.
H.R. 5830 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act. The
bill would make the necessary changes in federal law to
implement an agreement among the cities of Dallas and Forth
Worth and American and Southwest Airlines. Any costs to those
cities or the state of Texas would be incurred voluntarily.
On July 21, 2006, CBO transmitted a cost estimate for S.
3661, a bill to amend section 29 of the International Air
Transportation Competition Act of 1979 relating to air
transportation to and from Love Field, Texas, as ordered
reported by the Senate Committee on Commerce, Science, and
Transportation on July 19, 2006. The two bills are similar, and
our cost estimates are the same.
The CBO staff contact for this estimate is Megan Carroll.
This estimate was approved by Peter H. Fontaine, Deputy
Assistant Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Pub. L. 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local or
tribal law. The Committee states that H.R. 5830 does not
preempt any State, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Pub. L. 104-
1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules
of the House of Representatives, changes in existing law made
by the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
INTERNATIONAL AIR TRANSPORTATION COMPETITION ACT OF 1979
* * * * * * *
Sec. 29. (a) * * *
* * * * * * *
(c) Subsections (a) and (b) shall not apply with respect to,
and it is found consistent with the public convenience and
necessity to authorize, transportation of individuals, by air,
on a flight between Love Field, Texas, and one or more points
within the States of Louisiana, Arkansas, Oklahoma, New Mexico,
Kansas, Alabama, Mississippi, Missouri, and Texas by an air
[carrier, if (1) such air carrier does not offer or provide any
through service or ticketing with another air carrier or
foreign air carrier, and (2) such air carrier does not offer
for sale transportation to or from, and the flight or aircraft
does not serve, any point which is outside any such State.
Nothing in this subsection shall be construed to give authority
not otherwise provided by law to the Secretary of
Transportation, the Civil Aeronautics Board, any other officer
or employee of the United States, or any other person.]
carrier. Air carriers and, with regard to foreign air
transportation, foreign air carriers, may offer for sale and
provide through service and ticketing to or from Love Field,
Texas, and any United States or foreign destination through any
point within Texas, New Mexico, Oklahoma, Kansas, Arkansas,
Louisiana, Mississippi, Missouri, and Alabama.
* * * * * * *
[Effective on the last day of the 8 year period beginning on the date
of the enactment of this Act (Wright Amendment Reform Act), section 29
of the International Air Transportation Competition Act of 1979, as
amended by section 2(a) of such Act, is repealed, shown below.]
[Sec. 29. (a) Except as provided in subsection (c),
notwithstanding any other provision of law, neither the
Secretary of Transportation, the Civil Aeronautics Board, nor
any other officer or employee of the United States shall issue,
reissue, amend, revise, or otherwise modify (either by action
or inaction) any certificate or other authority to permit or
otherwise authorize any person to provide the transportation of
individuals, by air, as a common carrier for compensation or
hire between Love Field, Texas, and one or more points outside
the State of Texas, except (1) charter air transportation not
to exceed ten flights per month, and (2) air transportation
provided by commuter airlines operating aircraft with a
passenger capacity of 56 passengers or less.
[(b) Except as provided in subsections (a) and (c),
notwithstanding any other provision of law, or any certificate
or other authority heretofore or hereafter issued thereunder,
no person shall provide or offer to provide the transportation
of individuals, by air, for compensation or hire as a common
carrier between Love Field, Texas, and one or more points
outside the State of Texas, except that a person providing
service to a point outside of Texas from Love Field on November
1, 1979, may continue to provide service to such a point.
[(c) Subsections (a) and (b) shall not apply with respect to,
and it is found consistent with the public convenience and
necessity to authorize, transportation of individuals, by air,
on a flight between Love Field, Texas, and one or more points
within the States of Louisiana, Arkansas, Oklahoma, New Mexico,
Kansas, Alabama, Mississippi, Missouri, and Texas by an air
carrier. Air carriers and, with regard to foreign air
transportation, foreign air carriers, may offer for sale and
provide through service and ticketing to or from Love Field,
Texas, and any United States or foreign destination through any
point within Texas, New Mexico, Oklahoma, Kansas, Arkansas,
Louisiana, Mississippi, Missouri, and Alabama.
[(d) This section shall not take effect if enacted after the
enactment of the Aviation Safety and Noise Abatement Act of
1979.]