Comments on: Random Quotes

By: Andrew

Andrew — Wed, 02 Nov 2005 23:33:44 +0000

$20 million is nothing in terms of what Southwest makes every year. I think their yearly tax bill to the City of Dallas is somewhere in that range.
And about investing at Love Field–it’s a good point, and one I’m not sure what the answer is. But I think it’s a moot point now because it’s only a tangential–it’s not the main issue at hand.

By: Rick

Rick — Mon, 31 Oct 2005 04:08:03 +0000

Todd,
See the way I see it, the Wright Amendment went into effect in 1979, so Southwest was fully aware of the limitations when they chose to invest those assets. They shouldn’t have invested so many assets at an airport with restrictions when they didn’t have too.
As for compensating Southwest to move to DFW for the community good, they ARE offering a compensation package which I’ve heard is worth around $20 million.

By: Todd

Todd — Sun, 30 Oct 2005 18:42:57 +0000

Rick,
Not sure where you studied economics, but corporations are in business to make money, and that’s the heart of the capitalist system.
How would you feel if you were the owner of Southwest Airlines and were told that you should abandon hundreds of millions in fixed assets at Love Field and move to DFW (throwing thousands out of work in the process), just because American Airlines and its political allies say so?
If American Airlines thinks its in the community good for Southwest to move to DFW, then it should be willing to compensate Southwest to take such action.

By: Rick

Rick — Fri, 28 Oct 2005 16:35:11 +0000

I’m also curious to hear the flip side of the argument as well, that being why a highly profitable airline like Southwest refuses to move to DFW and compete there. I hope their reasons have more to do with the community good then simply their own profits.