Will Halt Love Field Service In June; Plans To Return After Revamp

American Airlines signed a new 17-year lease at Dallas Love Field on Thursday, which extends the airline's commitment to the downtown airport until 2028... but then announced the carrier plans to pull its sole remaining route from the airport until a massive terminal rejuvenation project is completed.

That revamp is expected to be completed in 2013... though work hasn't started yet on the massive project, according to the Dallas Morning News. In fact, the final design for the terminal has not yet been approved. The airline is under no time commitment to return to the airport.

"We have every intention of returning service to Love Field when the new terminal is completed," said Kevin Cox, American's Vice President - State and Community Affairs, pointing out the airline wouldn't have wasted money on a new lease agreement were that not the case.

The terminal revamp gives American a graceful way out of Love, while the final years of the Wright Amendment play out. That controversial regulation -- -- which limits direct commercial flights in and out of DAL to a handful of states -- is due to expire in 2014, under terms of a landmark compromise reached in June 2006 between American, Love Field home carrier Southwest, and the cities of Dallas and Fort Worth.

As ANN reported, American returned to Love Field three years ago, for the first time since 2001. The move came after Congress added Missouri to the list of states allowed to be served from the airport -- and as work was underway on the agreement to repeal Wright. At various times since, American has served a number of Texas cities from the airport, as well as St. Louis, Kansas City and Chicago... though in recent months American has maintained but a single route to O'Hare from Love Field.

Analysts note American lost money on flights from Love, to remain competitive with air fares offered by Southwest. They point out American can charge higher fares on routes to those cities out of its main hub at Dallas/Fort Worth International Airport... which lies just 10 miles west of DAL, and is free of Wright restrictions.

The airline has admitted as much... though American said it was willing to take the hit, to maintain its presence at Love and draw at least some traffic away from Southwest. Nevertheless, several pundits expected American to reduce or even eliminate its service from Love Field once the Wright compromise was reached.

American will operate its last flight to Chicago from Love Field on June 11. The carrier says it will work to relocate affected employees within the company.

"While we're disappointed that Eagle is leaving Love Field for now, we understand the reasoning behind the decision," said Dallas Mayor Tom Leppert. "And we are clearly encouraged by American's determination to return to Love Field and the signing of its lease extension. We look forward to seeing American again in the new terminal at Love Field."

FMI: www.aa.com, www.dallas-lovefield.com