1. The 4I’s for SWA in 2004 Issues
Delta Airlines reduction of flights from Dallas Fort Worth (DFW) producing opening for Southwest Airlines (SWA) entry at DFW
Wright Amendment prevents SWA and other commuter/discount airlines from making long-haul flights on larger aircraft
Interests
Larger airlines, especially American
SWA employees, board, and shareholders
Smaller commuter/discount airlines who are direct competitors with SWA and who could benefit from repeal of Wright Amendment
Airport hub cities who could benefit from additional air traffic
Institutions
Congress, federal and local (Texas) governments, Commerce, Science and Transportation Committee
Air transportation lobbyists
Information
Relative gate costs between DFW and LUV
Relative revenue differences between direct / indirect flights out of LUV/DFW
Historical lobbying expenses for

2. Interest Group Spreadsheet Determining whether to lobby to repeal the Wright Amendment
Supporters
Substitutes
Group Magnitude
Per Capita Magnitude
Size
Geographic Coverage
Political Resources
Cost of Organizing
Expected Influence
Commuter airlines
Not making long flights
Medium
Small
Large
Travelers
Buses, cars, expensive airlines
Smaller airports (LUV)
None?
Opponents
Substitutes
Group Magnitude
Per Capita Magnitude
Size
Geographic Coverage
Political Resources
Cost of Organizing
Expected Influence
Large airlines
None?
Large
Large/med
Small
Large airports/DFW
Smaller airports
Medium

3. Benefits and Costs Costs Benefits
CONCENTRATED: Southwest airlines (fly unrestricted to all states)
DISPERSED: Passengers
(a) Benefited by Southwest‘s cheaper prices or competitive prices
(b) Existing passengers using LUV field as connection (inconvenienced by two tickets and check in)
(c) Passengers preferring to travel to LUV Field instead of DFW
CONCENTRATED:
DFW –loss with passengers shifting and other airlines who may follow
American Airlines – lose opportunity and low price competition
Costs
Benefits
SCENARIO I: IF Southwest does not Campaign
DISPERSED BENEFITS & CONCENTRATED COSTS --- dominate
SCENARIO II: Southwest Campaigns
CONCENTRATED BENEFITS & CONCENTRATED COSTS---- dominate

4. Using Wilson-Lowi Matrix
Benefits of Repeal of Wright Amendment (Compared to Status Quo)
Dispersed
Concentrated
Interest Group Politics
Entrepreneurial Politics
Client Politics
Majoritarian Politics
Costs of Wright Amendment
Compared to Status Quo
Concentrated
Dispersed
SCENARIO II: Southwest Campaigns: 
CONCENTRATED BENEFITS & CONCENTRATED COSTS
High costs and the benefits to both the opponents
Interest Group politics dominates
Southwest and AA & DFW combination have incentives
Both sides are likely to spend money
LIKELY OUTCOME: Determined by amounts spend on & effectiveness of campaign by each side.
SCENARIO I: IF Southwest does not Campaign:
DISPERSED BENEFITS & CONCENTRATED COSTS
Entrepreneurial politics dominates
DFW airport and AA have stronger incentive.
An entrepreneur may be required to mobilize ala MC Mehta in the CNG case
LIKELY OUTCOME: Status Quo

5. Discussion Questions
Should Southwest Airlines seek to overturn the Wright Amendment?
Yes, to the extent the American Airlines response is not overly strong
Benefits from allowing direct flights from LUV could amount up to $3MM p.a. to the extent SWA can charge non-stop / direct flight premiums
What is the effect of Wright Amendment restrictions on Southwest Airlines' prices?
Loss on revenue for longhaul passengers
Increased mileage / landing / operational costs for stopover / indirect flights
If Gary Kelly decided to try to overturn the Wright Amendment, which Senator on the Commerce, Science and Transportation Committee should he choose as the main sponsor?
Richard Shelby (R)and Tom Daschle (D) who SWA have existing relationships with.

6. Appendix
Note: 62 Flights acquired based on LUV gate limitation. Option 3 assumes only 62 daily flights acquired, but likely more can be acquired as no physical gate limitation