Sep 13, 2006 11:14 am US/Central
Antitrust Immunity Stripped From Wright Agreement
WASHINGTON (AP) ―
A U.S. House panel stripped antitrust protections from a bill that would lift restrictions on long-haul flights from Dallas Love Field before moving the legislation forward Wednesday.
The House Judiciary Committee, after brief debate, pushed through a bill modeled after an agreement that would eventually repeal the Wright Amendment and eliminate some terminals at Dallas Love Field.
The agreement was forged by Love-based Southwest Airlines, AMR Corp.'s American Airlines, Dallas Fort Worth International Airport and the cities of Dallas and Fort Worth. American is based at DFW.
The bill endorsed Wednesday no longer includes wording that stated the agreement complies with anti-competition laws and gave the Department of Transportation sole authority to decide claims against the arrangement.
Those provisions were opposed by Rep. James Sensenbrenner, chairman of the House Judiciary Committee. He said the claims should be decided by the courts.
"The antitrust laws are there for a purpose," Sensenbrenner said. "They are working and there should not be legislative determination about what is or is not anticompetitive. The standard antitrust standards that have been applied to commercial arrangements for over 100 years should be applied to this one as well."
An unsigned memo from the Justice Department's antitrust division and made public last month said the bill would violate antitrust laws, although the department has not taken an official position.
The agreement calls for shrinking the number of terminals at Love Field from 32 gates to 20 gates, which some argue could block other airlines from competing with incumbents American, Southwest and Continental Airlines Inc.
Last month, another House committee approved the agreement with the antritrust immunity provision included. House leaders and the Rules Committee will decide which version goes to the floor and whether to allow amendments.
California Rep. Zoe Lofgren, D-Calif., surprised Democratic colleagues in opposing Sensenbrenner's amendment because of her pro-consumer record. Lofgren said the existing arrangement is worse on consumers. Under the Wright Amendment, Southwest can only fly from Dallas Love Field to eight nearby states.
The agreement expires at the end of the year. It was reached after Southwest Airlines launched a fierce lobbying effort to repeal the 1979 Wright Amendment, named for its author former House Speaker Jim Wright.
The issue split Texas Republicans in the House, although most now support the agreement.
Sen. Kay Bailey Hutchison, R-Texas, has taken the lead in trying to pass the legislation. She is sponsoring the bill in the Senate, where the agreement also has raised concerns over whether it violates anticompetition laws.
She had anticipated the House action Tuesday and said she would continue to try to move her bill in the Senate. She also has attached the bill to the transportation spending bill.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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