Dallas News Blog

Southwest Airlines had its Media Day today, so expect myriad deep-think pieces in coming hours about the Love Field-based carrier's newfangled "Green Plane." Um, which is ...? Well, here's the press release that inventories all the "environmentally friendly interior materials" being used, among them Flor carpet panels, a "Life Vest Pouch" and "Passenger Seat Rub Strips," which aren't nearly as kick-ass as they sound. Then there's the time-lapse video above, which plays better if you turn down the sound and crank up -- you guessed it -- "Yakety Sax." Maybe American Airlines (oh, poor American Airlines) oughta try the same thing -- if nothing else, it'd guarantee at least one clean plane in the fleet.

Speaking of Southwest Airlines ...

The Love Field-based carrier reported this morning a $16-million third-quarter loss, which, given the current state of the aviation industry, Southwest is treating like a big victory. Hence, CEO and president Gary Kelly sunny(ish) disposition on Fox Business this morning. And a Friend of Unfair Park alerts us to this video from Air New Zealand, in which its crew is challenging Southwest to a ... um ... naked musical safety training video? Hard to say.

Not effin' around: This ad first appeared back in June of last year.

​Dallas-based Southwest Airlines releases its third-quarter financials tomorrow. Will the numbers go up? Dunno. Down? Could be. Hard to say. Kind of like whether Southwest is gaining passengers or losing money because it refuses to charge for luggage. BusinessWeek -- which spoke with Kevin Krone, Southwest's vice-president of marketing and sales -- says today that it's a little bit of both:

The Dallas-based company says it has commissioned several comprehensive market studies that show the public has not accepted baggage fees, even as it pays them. Company officials also believe that passengers are still sorting out the idea that not every airline charges a fee for luggage and they believe Southwest ultimately will benefit as public awareness spreads. "If [bag fees] were accepted, then I think we'd have to think really hard about it," Krone says. "But our research shows that people are upset by [fees]. It is emotional. It's hard to avoid it."

Meanwhile, over at Seeking Alpha, there are all kind of charts and graphs that compare and contrast Southwest, American and Continental. The spoiler:

There is no evidence to show Southwest's competitors lost passenger traffic as they increased add-on baggage fees. The real question should be how many hundreds of millions of dollars is Southwest giving up by not joining the crowd? Southwest typically gets credit for being more of an industry leader than a follower. This time, Southwest needs to do some catching up.

​So, yes, until a few minutes ago, there was quite the delay at Dallas Love Field: According to Southwest Airlines spokeswoman Ashley Rogers, "there was a white powder" found in a lower-level bathroom, which briefly prompted the closing of the main security checkpoint near the Southwest check-in area. Folks were only being allowed through the upper-level checkpoint, prompting significant delays: According to one Twitterer stuck at Love, "Spent 45 mins checking luggage. Now 45 minute wait for security."

But, oh, two minutes ago, she called to say that Dallas police had given the "all-clear," and operations at the airport have returned to normal. And if you got stuck, well, Rogers says fret not: "We are holding a few flights to make sure everyone makes it on."

Back in June of '08, we pointed your attention toward the Southwest Airlines ad at right, which first appeared in the Wall Street Journal. It was, of course, a statement: American Airlines, and the other carriers, might be charging for bags, but not your beloved low-cost Dallas-based Southwest, nowaynosir.

But during yesterday's earnings conference call, Southwest CEO Gary Kelly was asked by a Morgan Stanley analyst whether the airline might, ya know, reconsider that no-fee promise. Seeking Alpha has the entire transcript worth a look-see, but here's the relevant Q and A for our purposes:

William Greene -- Morgan Stanley
Gary, you've had some experience now with putting in place some fees. I'm wondering if you can talk at all about maybe some of the, I don't know, were there any takeaways from that? Was the customer pushback so aggressive that you wouldn't consider bag fees now? When we think about a loss in the third quarter, it would seem that bag fees could go some way to helping you in that regard.

Gary C. Kelly
A great question, Bill, and good morning. I think the reaction we've had to the pets -- which is not really a fee; that's really just offering a fare to a new category of customer, who we love and adore -- but the fee for the unaccompanied minors, our customers, I think, I wouldn't say that they've embraced it, but they certainly haven't reacted negatively. I think people understand that there's an added cost associated with serving our younger flyers. So, no, I think that so far so good.

With respect to fees in general, Bill, which I know is really the essence of your question, you know my personal feelings about bag fees. And I think in this environment we've got to be open minded to anything, quite frankly.

You shouldn't interpret from that that we've made a decision to charge for bags because we have not. But I do think that now that the landscape has settled down and most all of our competitors are charging bag fees, it just puts us in a position where we can evaluate results, compare to ours and make an informed judgment about that. The one thing that we know is that our employees will likely not support bag fees if our customers don't, so if we are going to make a change we'll need to do it in the right way.

Kelly goes on about that point, but you get the gist of it.

It looks like this, courtesy John Benson, a passenger on that Southwest Airlines 737 that made an emergency landing Monday night when a hole suddenly appeared in the fuselage, prompting the Dallas-based carrier to inspect 200 planes overnight. Benson shot the video with his cell phone, but you get the point. And, yes, looks like he picked the wrong week to quit smoking.

Gloria Levario

'Round 3 yesterday, one of my oldest friends called from Dallas Love Field with the breaking news: The airport was shut down, no one allowed in our out -- including my friend, who'd put his son on a Southwest flight bound for Corpus Christi mere moments before Dallas police descended and locked the doors. Turns out there'd been a bomb scare in baggage claim courtesy a bomb-sniffing pup who got a little too excited over a big bag of nothing; my friend received updates from his son stuck on the tarmac, very Die Hard 2. By 5:30, it was back to business as usual, after dozens of delays.

Our great photographer Gloria Levario was out at Love Field during the clampdown and returned with these photos -- and this note.

Hundreds of people were standing in line behind stantions while Southwest officials gave updates via bullhorn. Lots of DPD in specialized uniforms and gear. Around 5:30 they started lining up people in the lobby to resume flights. An employee of the airport said that there had been a bomb scare and everyone was evacuated when a suspicious bag was found. Bomb squad came and took it away. Police said that there was actually no bomb in the bag. It was noticeable that there were many fathers who were traveling with children.

More photos after the jump. And, later today, the tale of one Dallas Observer photographer who went to an airport yesterday for a very special event and wound up with far more than photos.

Back in March, CNN and The Wall Street Journal profiled David Holmes, at right, otherwise known as the rapping Southwest Airlines flight attendant -- and one of the stars of Saturday night's SWA employee banquet at the downtown Sheraton, where, from all appearances, the airline spent far more than peanuts despite last week's notes of caution concerning an expected drop in June revenues for the Dallas-based carrier. (Among the featured performers: an American Idol and Saturday Night Live's "Weekend Update" anchor Seth Meyers.) The video of Holmes's appearance Saturday night follows.

According to the U.S. Department of Transportation, American Airlines pocketed $278 million in bag fees last year, putting it at the top of the list of airlines making extra scratch by charging to lose your luggage. But Dallas-based Southwest Airlines insists it still won't go there: Southwest CEO Gary Kelly told National Public Radio this morning that, look, it may make the Fort Worth-based carrier and other competitors some nice coin in the short run (as in, $1.1 billion), but over time it could run off potential passengers. "Find me one example of somebody who likes paying a baggage fee," Kelly tells Wade Goodwyn. "If you look at our customer traffic for 2008, as we were forced to raise prices last year, our numbers fell off."

In October 2007, the Dallas City Council's Transportation and Environment Committee took up the issue of a proposed passenger facility charge for folks flying out of Love Field. The reason? The council was looking for ways to fund the capital improvements as part of the Love Field Modernization Program, and, as the committee noted in the fall of '07, "Memphis, Omaha, Houston Bush Intercontinental and DAL are the only Large or Medium Hub airports that have not implemented a PFC," meaning that "passengers are already paying for other airports' capital improvements." Which is why, on October 10, 2007, the council imposed a passenger facility charge of $3 per enplaned passenger at Love Field with the Federal Aviation Administration's OK.

But on Wednesday, the council will likely give the okee-doke to ask the FAA to up the passenger facility charge to the maximum amount allowed by the agency: $4.50. The council, facing a mammoth budget deficit, needs every last penny it can raise given that the guesstimated cost of the LFMP is now set at around $519 million, with completion of the multiphase project timed to the 2014 full repeal of the Wright Amendment. (Though, as I seem to recall, we were told 2017 was a more realistic due date.) And per the council's Wednesday agenda, the project will be paid for using "federal grant funds, Department of Aviation capital funds, bond proceeds, and PFC revenues." Says the agenda item, the increase in facility charge will bring in $304 million in revenues, though it doesn't say how the city arrived at that figure. I've got a call into Assistant City Manager Ramón F. Míguez, who handles aviation issues.

Southwest Airlines announced this morning that it's living up to that old motto, offering nearly every single employee what CEO Gary Kelly calls an "early out" in the wake of a first-quarter net loss, the Dallas-based carrier's third straight decline. Southwest today announced a first-quarter '09 net loss of $91 million, compared to net income of $34 million last year, prompting the buyout offers, a hiring freeze and wage freezes for the airline's officers and senior management, which were also announced in this morning's press release.

Among the reasons for the losses: "a rapid weakening in passenger demand," says Kelly, and a drop in the value of its fuel-hedging program. And he expects it to get worse before it gets better, just as Love Field's about(ish) to undergo a $500-million expansion over which Southwest will have substantial control. Says Kelly:

"We have significantly reduced planned capital spending by approximately $1.4 billion for 2009 and 2010 combined by deferring aircraft deliveries, accelerating aircraft retirements, and suspending plans to grow our capacity. As announced to our Employees earlier this morning, we intend to reduce and align headcount to current capacity needs by offering a systemwide voluntary early-out program. Virtually all Employees are eligible under the early-out program and must make their election to participate by June 19, 2009. We also have a hiring freeze in place and have frozen pay for our officers and senior management. While our balance sheet is strong, we believe these actions, along with our previous decision to suspend growth plans, and our ongoing efforts to bolster our cash reserves, will enable us to weather the current financial storm and remain strong."

Assistant city manager Ramon Miguez, at left, is having no fun today at the council's Transportation and Environment Committee briefing.

If you want to drive yourself insane, dial up the Dallas City Council's Transportation and Environment Committee meeting, where, at this very moment, the committee is discussing the Love Field concessions expansion. Because, in case you weren't aware, Love Field's getting a makeover, part of which will including adding more than 15,000 square feet in retail and restaurant-bar space. And, far as assistant city manager Ramon Míguez is concerned, the city will be best served by bringing in new concessionaires to work alongside the so-called "incumbent concessionaires." Because, look, competition's awesome, right?

Depends who you ask. DeSoto-based State Rep. Helen Giddings doesn't think so. She just got through saying as much as she spoke to the committee. Then again, she's had several concessions out there for years. Carolyn Davis also doesn't agree; neither do Pauline Medrano, who wants one local concessionaire to run the whole show, or Ron Natinsky, who says that "after 40 years in the private sector I'm having a rough time accepting the logic" of competition amongst vendors at the airport. Míguez long ago lost his patience: "Bottom line here is, what we're saying is ... it's in the city's best interest to provide a competitive environment." Says you.

Pardon, but light of yesterday's announcement that American Eagle has flown the coop at Dallas Love Field till the dust settles, city officials would like to clear up any misconceptions concerning the forthcoming extreme makeover scheduled at the airport. Construction's scheduled to occur sooner than later and end just in time for the Wright Amendment's last rites. So, with that, the city's official statement:

The City of Dallas is collaborating with Southwest Airlines in developing the Love Field Modernization Program to modernize the airline terminal facilities in preparation for the full repeal of Wright Amendment flight restrictions in 2014. This development program will provide modern facilities to accommodate the projected increase in passenger traffic.

The City and Southwest Airlines agreed in June 2008, to a project budget of $519 million, to be financed with Special Facility Bonds which will be backed by Southwest Airlines' credit, and a development schedule which will complete the public areas of the airport by 2014. The program development has progressed through the preliminary design phase and is on schedule. It is not anticipated that City general obligation or airport revenue bond funding will be used for this project.

And, in other airline news ... In April of last year, American Eagle dropped its Kansas City and Austin flights out of Dallas Love Field and opted instead to fly to Chicago's O'Hare. Only, for now, that too is a no-go: AMR announced today that beginning June 11, American Eagle will suspend operations out of Love Field.

For how long, well, that depends on how long it takes Love Field to wrap up a $519-and-then-some-million renovation due to begin whenever and end long after that -- because last we heard, the city didn't know who was paying for it, and nobody had even decided on a design for the terminal. But to reassure the city that it's not out for good, AMR has re-upped its lease at the airport through 2028 -- which, who knows, may be right when construction's finishing. Mayor Tom says in today's media release that "while we're disappointed that Eagle is leaving Love Field for now, we understand the reasoning behind the decision."

Says Bloomberg this morning, Southwest Airlines may do the unthinkable and ... sell food! The Dallas-based carrier doesn't know what it'll sell or when it'll begin selling it, but as the airline industry seeks new ways to make money (cough ... charging for checked luggage ... cough), Southwest figures that selling snacks as opposed to merely pitching peanuts may raise some extra dough. And, says a spokesperson, it's "intriguing." Still, at this moment the whole idea's a bit up in the air:

Southwest, the biggest low-fare airline, hasn't set a timetable to decide on whether to adopt food sales, [spokesperson Beth] Harbin said Wednesday in an e-mail. Nor has it resolved whether an in-flight menu would be sandwiches and salads, or an expanded snack lineup, she said. Harbin said that in any scenario for onboard sales, Southwest would retain some free snacks.

Speaking of Southwest Airlines ... The Federal Aviation Administration today announced that at long last it has reached an agreement with the Dallas-based carrier concerning those 46 planes that were allowed to fly despite their not having been inspected for fuselage cracks. Southwest will pony up $7.5 million in civil penalties -- an amount that "could double to $15 million if the airline does not accomplish specific safety improvements outlined in the settlement agreement," according to the FAA's media release. The announcement comes only two months after Southwest said it wasn't going to pay the fines because, look, they were unfair -- since, after all, it's not like the FAA stopped Southwest from flying the planes even after it knew of the skipped inspections.

The Consumerist has picked up WFAA-Channel 8's piece concerning the rise in thefts reported at Dallas-Fort Worth International Airport in recent years. Reports Jason Whitely, in 2003 there were 266 reports of thefts and stolen vehicles at the airport -- and 607 last year. Meanwhile, the significantly smaller Love Field hasn't seen the number top 20 during the same time period.

Says DFW spokesman Ken Capps, maybe the rise in crime is due to the fact DFW "is a place the size of the island of Manhattan with 225,000 daily residents all moving." To which one Consumerist consumer responds, "Most of that is runways and tarmac, silly hyperbolic spokesman." Another wonders whether the rise in crime is due to a rise in passengers, simple as that, but the WFAA piece comes one week after DFW officials acknowledged a $6 million drop in revenue during the final three months of 2008, the first quarter of the airport's current fiscal year. Said DFW CEO Jeff Fegan, "As passengers go down, our revenues go down as well." And the number of passengers is indeed decreasing: December 2008 saw some 150,000 fewer folks fly through the airport than hopped on or off a plane at DFW in December '07.

A good Friend of Unfair Park who receives Southwest Airlines's tweets forwards this just-Twitter'd photo announcing the Dallas-based carrier's relationship with Sports Illustrated. Having such a hard time writing a caption for this ... But you know who's probably not amused? Kyla Ebbert.

The Wall Street Journal this morning examines airlines' inconsistently, almost arbitrarily enforced rules and regulations -- you know, the kind that result in "bewildered and angry fliers." As a prime example, the paper checks in with a frequent flier who found himself subject to the whims of an American Airlines gate agent at Dallas-Fort Worth International Airport:

Frequent-traveler Mitchel Friedman always carries his small rolling bag onto flights. So when an American Airlines gate agent in Dallas insisted he check his bag because he was flying home to New York on standby, he asked why.

That's the policy, the agent insisted. When he refused, noting that the flight wasn't full and he already had an assigned seat, the agent said he wouldn't be allowed to board the flight.

Guess what happened next.

Southwest Airlines's stock is taking a beating today -- down $1.90 at last check, to $7.91, following an analyst's decision to downgrade the stock to "sell" from "underperform." That follows yesterday's announcement that, for the second quarter in a row, the Dallas-based carrier posted a loss -- even though it was still up in 2008, for the 36th year in a row.

So why the downgrade? Has a little something to do with plans to "suspend indefinitely" the airline's future growth --except at Love Field, of course. Says Calyon Securities analyst Ray Neidl, the man advising investors to take the money and run, "Management faces a challenge in keeping unit costs under control as growth grinds to a halt." But in very related news: Fare wars!

Southwest Airlines doesn't feel the Federal Aviation Administration's $10.2 million fine, handed down in March and due last August, is "fair or reasonable." So, you know what, Southwest's not gonna pay it, its spokesperson tells Bloomberg News today. To which the FAA says it's "still talking with" Southwest about paying up. Them's some stiff penalties. Then again, maybe the Dallas-based carrier has a point. After all, just a month after the FAA fined the airline for flying 46 plane that hadn't properly been inspected for fuselage cracks, it was revealed that the FAA knew what Southwest was up to and didn't say so much as boo. --Robert Wilonsky

There's a small but interesting item of note on the Dallas-Fort Worth International Airport Facility Improvement Corporation Board's meeting agenda today -- and, right, whatever that is. Seems American Airlines is looking to unload one of its flight simulators. It's not for one of the big planes, though. Old Friend Tim Wagner sets us straight: "It's an American Eagle simulator for the Saab turboprops -- which we don't fly anymore. The simulator was funded by airport bonds, so it is owned by the airport. We have arranged the sale, but it has to be approved by the airport, and they get the proceeds, obviously."

Tim can't say for how much the simulator will sell or to whom it'll go (odds are, an airline that still flies those planes or a flight school). But it's too bad AA didn't at least consider trying to offload the ultimate video game in the Neiman Marcus Christmas Book, right between the Texas Stadium end zone and the people made of LEGOs. --Robert Wilonsky

A Friend of Unfair Park is rather unhappy with Dallas-based Southwest Airlines over the news today that the carrier's spending a mere $7.5 million to assume ATA Airlines' rights to operate at New York's LaGuardia Airport. The deal's still a long ways off: "Details on the commencement of service or the cities that would be served by Southwest from LaGuardia have not yet been determined." Still, says our Friend: "So, wait -- Southwest won't fly out of DFW because of the delays and the inability to turn flight[s] quickly, yet they want to fly out of LGA?? ... Southwest Airlines is full of shit." Hey, it's New York! If they can make it there ... --Robert Wilonsky

Update: After the jump, a Southwest-produced interview with Bob Montgomery, the airline's vice president of properties, concerning today's announcement.

American Airlines debuted a new ad yesterday promoting the Fort Worth-based carrier's international routes. And it features a cameo from the owner of Your Dallas Mavericks, who's now moonlighting as a financial adviser. Much less scarring than Jerry Jones' pizza ad. --Robert Wilonsky

A heads-up for those heading to Dallas-Fort Worth International Airport tomorrow: You'll be greeted by picketing American Airlines flight attendants. The Association of Professional Flight Attendants, which reps the some 20,000 AA employees, yesterday announced it has chosen four airports for its Friday fun: DFW, Los Angeles International, New York's LaGuardia and Miami International. The protest comes almost one month to the day after a New York Times writer flew from Dallas to New York with an American Airlines flight attendant crew in order to answer the question: "Is there a less-enviable, more-stressful occupation these days than that of a flight attendant?" Probably. Can't name one at the moment. Give me a second. --Robert Wilonsky

Yesterday, the case of John D. Cerqueira, Petitioner v. American Airlines, Inc. was on the docket of the U.S. Supreme Court -- which ultimately decided to not to bother. For those unfamiliar with the details of the case -- for which the NAACP offered an amicus brief in support of Cerqueira -- it involves an American citizen of Portuguese descent who was booted off a Boston to Fort Lauderdale flight in December 2003 when, he insisted in court documents, employees of the Fort Worth-based carrier decided he looked like a Middle Easterner -- which meant, like, he musta been a terrorist! Cops questioned him for two hours, then decided, um, not so much. But American wouldn't give him a ticket. So he sued -- and won $400,000, only to have an appeals court overturn the victory.

The case has been pending before the Supreme Court for the better part of this year, but American's attorney -- Dallas-based Michael Powell, a partner at Locke Lord Bissell & Liddell -- argued that, look, American's crew was just doing its job: "If the pilot-in-command of an airliner concludes, based on information that comes to him, that there is or might be a safety hazard aboard his aircraft, [federal aviation law] authorizes him to act to protect the safety of the entire aircraft by removing a passenger from the aircraft before flight." Guess it could have been worse. --Robert Wilonsky

Update: Further details of the case are provided in the comments. And I've amended the first paragraph to include the phrase "he insisted in court documents," because I do aim to be fair and accurate.

About a month ago, Dallas-Fort Worth International Airport CEO Jeff Fegan acknowledged that the airport's going through tough economic times like everyone else, thus necessitating a budget freeze and a halt on future expansion plans for the time being. (That's why PETA made this suggestion, as you no doubt recall.) But, whoops, now comes the news that Fegan and other DFW execs and board members dropped some half a million in loose change on big-ticket travel -- including first-class ducats and five-star hotels. But Fegan's got a good reason for the cushy expenditures so close to budget-cutting season: He's a tall man (see?), little over six feet, and needs his "physical space," as it's hard for "people of my size to sit in coach and sleep." Probably just should have said, "Oops, my bad. Where's my checkbook?" Still, $500,000? DISD laughs at your half a million. --Robert Wilonsky

Man, American Airlines is getting the worst kind of PR imaginable today, as the Tale of Teresa Olaya spreads far and wide. And, look, the first part was bad enough: Miguel Olaya said he sent his wife's corpse from Brooklyn to her native Ecuador for burial after she died in March of cancer at the age of 57. Only, a paperwork snafu led to American's shipping the body to Guatemala instead. Same thing has happened to my luggage on more than one occasion. But the story from the Daily News details the part that most likely led to Miguel Olaya's lawsuit against the Fort Worth-based carrier:

After the mistake was discovered, the airline even wanted to charge an extra $321 to ship Teresa's body to the right place, said the director of DeRiso Funeral Home in Bay Ridge, which made the arrangements. "I said, 'This is adding insult to injury,'" said Cathy DeRiso.

Our pal Tim Wagner, I'm gonna guess, may have an official American statement he'd be happy to post in the comments. Something to do with "first checked bag" and "added fees," no doubt. --Robert Wilonsky

No, for reals. The People for the Ethical Treatment of Animals today shot Dallas-Fort Worth International Airport's CEO Jeff Fegan a money-making proposal. The organization would like to help the airport, currently in the midst of an acknowledged fiscal crunch, by providing it with restroom-stall advertisements pushing "the health benefits of a vegetarian diet." Begs PETA's executive vice president, Tracy Reiman, "Will you please consider running our ad in bathroom stalls at DFW? Not only would the ad raise revenue for the struggling airport, it would also potentially help airline passengers stay healthy and able to travel for years to come." If, that is, they can still afford it. --Robert Wilonsky

The latest issue of The New Republic wonders, quite simply, "What will happen when America can't afford to fly?" And no, surprisingly, the answer isn't, "Transporters." It's a little more doom-and-gloom-scented, as Bradford Plumer takes a look at Dallas-Fort Worth International Airport and portrays it as the center of an economy waiting to collapse:

In the '80s, Dallas-Fort Worth's status as a major air hub brought in hundreds of thousands of distribution and manufacturing jobs, along with a conglomeration of high-tech firms that now rivals Silicon Valley ... Dismal fates could await areas with high per capita concentrations of airport employment, such as Dallas-Fort Worth, Miami, and Tucson.

Dallas-Fort Worth International Airport CEO Jeffrey Fegan isn't worried about the distant future. He's just trying to make it through the fall. Autumn, I mean. "The fall" doesn't sound as good. --Robert Wilonsky