The next step is there needs to be some consensus on how the process works. Our view is that the DOJ

Virgin America is going public Wednesday with its desire to lease two Dallas Love Field gates. If it gets them, it would offer four daily flights to San Francisco, four to Los Angeles, four to New York LaGuardia, four to Washington Reagan hertz rental car promotions specials National and two to Chicago O’Hare.
Of course, Delta Air Lines has spoken up for the gates and is selling seats on 22 flights a day beginning in October out of the Dallas airport. Southwest Airlines, which controls 16 of the 20 gates in the new terminal, also wants to pick up the two American gates.
We had an opportunity to talk to VA president and CEO David Cush, a former senior vice president at American Airlines, hertz rental car promotions specials to discuss Virgin America’s effort to get the Dallas Love Field gates. Here is an edited version of our conversation.
David Cush : One is the market impact. We would be the only new entrants coming into the markets hertz rental car promotions specials on these key routes. You look at Chicago, LaGuardia and Washington National in particular, we would be the only new entrants hertz rental car promotions specials under the two proposals hertz rental car promotions specials that have been floated as well as with Southwest. They clearly indicated they would be flying into some of these markets already. We would be a new entrant in these markets.
When you look at Delta specifically, their service that they are recommending is overwhelmingly RJ [regional jet] service. It’s inefficient use of the gates with 70-seat airplanes. Secondly, all they are doing is duplicating service they already have out at D/FW. So no new competition, no new price competition that would come from that.
Then a couple of things there before I get to the legal side. The other thing, of course, is our product is very different. hertz rental car promotions specials We would bring in a product that neither Delta nor Southwest nor, for that matter, anyone else in the industry can match, with our amenities and our high level of service.
The economic impact of us coming in would be greater than either of those carriers. hertz rental car promotions specials We would use these gates very heavily at 18 flights on two gates. That’s nine rotations per gate. But we would be doing it with mainline aircraft, with aircraft with 146 seats on them, as opposed to Delta flying it with 70-seat RJs and even Southwest flying them with smaller 737-700s [Southwest flies 143-seat 737-700s and 175-seat 737-800s]. So that’s more revenue for Love Field and more revenue for the concessions at Love Field and more importantly, a bigger fare impact because it is more new seats coming into the market than what the other two carriers could provide.
And then from an environmental standpoint, we have the quietest airplanes in the air. They are significantly quieter than the 737-700s that Southwest Airlines is flying and also significantly hertz rental car promotions specials quieter hertz rental car promotions specials than the RJs that Delta would be flying. We can have the greatest economic impact with the least environmental impact.”
Cush: Well, we’ve met with various parties around hertz rental car promotions specials the city, with most of the City Council members, and I’ve briefed hertz rental car promotions specials them on our desire to enter into Love Field and why we think it is a good move for the city of Dallas. We’ve also talked to the city mayor and other people at City Hall. They are very aware through face to face meetings with them what our proposal is why we think it’s the strongest proposal for the city.
The next step is there needs to be some consensus hertz rental car promotions specials on how the process works. Our view is that the DOJ [Department of Justice] hertz rental car promotions specials has been quite clear that the divestiture of all assets that American is divesting has to go to low-cost carriers, which per se excludes Delta. As far as we’re concerned, they’re not even eligible to operate from these gates.
hertz rental car promotions specials From the standpoint of Southwest, while they’re a low-cost carrier, there’s also a provision in the DOJ settlement hertz rental car promotions specials that says they are looking for a maverick airline to disrupt the competitive picture at Love Field. Very simply, moving Southwest from an 80 percent monopoly hertz rental car promotions specials to a 90 percent monopoly doesn’t’ fulfill that.
We believe we’re someone unique in a position to go in and fulfill the goals of the Justice Department as outlined in the consent decree between the Justice Department and American Airlines. How that ends up happening, of course, part of it depends on American and part of it depends on the city.
We also know that American has the right to sublease the gates or assign the lease with city manager approval. That’s one vehicle that could be used. Obviously, that still involves the city manager giving his approval.
But our view and our hope is that, No. 1, the city sees this as a way for American to comply with the consent decree to get that behind them, and No. 2, that they see this as a very positive thing and the best possible outcome for the citizens of Dallas and in particular the business travelers hertz rental car promotions specials of Dallas.
Cush: No, they’ve been quite professional and quite neutral. What they’ve said is they need to find the best outcome for the city of Dallas, hertz rental car promotions specials for Love Field and ultimately one that allows American to move forward with their process. But they have not been supportive or in opposition. They’ve hertz rental car promotions specials simply stated the facts that they have a process, and they’ll go through the process.
You have two situations there. We’d like to begin marketing these flights and start selling them soon. That’s important to have a good service hertz rental car promotions specials start, to have a lot of time to sell. We also have a lot of things internally we need to do in terms of hiring suppliers and hiring different hertz rental car promotions specials support companies that will help us at Love Field.
And for the citizens of Dallas, you’ve got a lot of people there who are being sold flights by Delta, we believe illegally, even though Delta does not have the authority to operate those flights from Love Field. The sooner this moves on, the sooner Delta can go in and mop up the mess they’ve created.
Cush: I wouldn’t say so. People recognize the tremendous benefit that Southwest brings to the city, and the fact that they are a very strong, not only a big taxpayer but also a very good corporate hertz rental car promotions specials citizen. I think everyone is quite aware that Southwest has done great things for the city and great things for the industry.
But at the same time, I also believe that many council members we’ve talked to think that competition at Love Field would be beneficial for the citizens of Dallas. Everyone is very sensitive and respectful to Southwest’s position, as they should be.
At the same time, I think they see this as a unique opportunity to bring some competition into Love Field, especially with the significant proposal we have to serve five of the most important markets out of Dallas.
Going in and adding the other flights, we’re talking just four or five months later, it’s just a nice way for us to grow into the full utilization of those two gates. I wouldn’t interpret as much aircraft as the fact that we’ll be throwing a lot at the people that will be running our Love Field operation. If we can phase it in in two very quick phases, that’d probably be the best way for us to do it.
The reason we won’t is because while we are successful out of San Francisco and Los Angeles, which are strong bases for us, American obviously hertz rental car promotions specials is overwhelmingly powerful, not only in DFW but also in Chicago, LaGuardia and Washington. They would have the point of origin strength at both places.
The second thing, and maybe what’s more important, is the fact that they connect so much traffic at DFW. I don’t know what the current number is, but I’m guessing maybe 55 percent of the passengers at DFW actually connect. That allows them to go in and over-schedule in these markets. They can fly whatever they have – 14 flights a day to LaGuardia and 16 flights a day to Chicago. We simply can’t compete with that type of over-scheduling that you can do in a hub in places where we don’t have that strong of a footprint.
This will allow us to go in and kind of get from American’s thumb a little bit at D/FW and move to an airport that is more of an O D-focused airport [origin and destination] where we think we can be successful.
DMN: During the debate over changes to the Wright amendment, you as an American Airlines executive spoke out strongly against opening up Love Field. Eight years later, what is your evaluation now about the impact the changes in the law will have on Dallas/Fort hertz rental car promotions specials Worth International Airport?
I think that an immediate move to open Love Field at that time would have been extremely harmful to both American and DFW. American certainly was dealing with its own issues, and DFW is heavily reliant on American.
What’s changed since then is that DFW is thriving, not only with a stronger American and a larger American, but also with a tremendous amount of new entrants, be it Middle East airlines, Asian airlines or be it Spirit. I think the airport itself has diversified its customer base and is stronger.
The final thing I’ll say is one of the underrated things about the Wright amendment compromise was the fact that everyone has had time to prepare for this. It’s not a surprise for anyone, versus the first time Southwest tried to repel the Wright amendment. That was kind out of the blue, and they were looking for something rapid. Both American and DFW have had time to go in and adjust to anticipated market changes.
hertz rental car promotions specials Inside the terminal and inside the gate area, the city went with local vendors, so you see restaurants that you would see on the streets in Dallas. That s a great move and one we’ve also done in San Francisco. And it just seems to have a very nice feel to it.
I think right now perhaps hertz rental car promotions specials it’s a little bit of a secret to some people in Dallas because there’s a limited number of places you can get to. But once the full thing is open and once there’s service all over the country out of there, people are going to appreciate what a gem they have right in the heart of Dallas.
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