FOR YOUR INFORMATION................................JULY 2, 1992
          PROPOSAL TO MODIFY RESTRICTIONS ON LOVE FIELD
      MAY CUT AIR FARES, RELIEVE CONGESTION AT D/FW AIRPORT
               FEDERAL TRADE COMMISSION STAFF SAYS
     A proposal to permit airlines to offer and advertise limited
direct and connecting flights from Dallas Love Field to destina-
tions beyond a five-state area surrounding the airport could
boost competition and relieve congestion at Dallas-Fort Worth
International Airport (D/FW), thus potentially saving consumers
both time and money, staff members of the Federal Trade Commis-
sion said in comments made public today.
     The FTC staff's analysis of the proposal was requested by
Dallas City Councilman Jerry Bartos.  In a letter signed by the
FTC's Dallas Regional Office Director, Tom Carter, the FTC staff
noted that while restrictions on flights beyond the five-state
area might have been helpful in assuring the initial success of
D/FW, the airport is now well established, and modifying the
restrictions could offer significant benefits to consumers.
     Currently, federal law prohibits commercial airlines from
providing service -- nonstop, direct, or connecting -- between
Love Field and destinations outside of Texas, Louisiana,
Arkansas, Oklahoma and New Mexico.  The proposed change would
maintain the prohibition against nonstop service to points
outside the five-state area, but allow airlines to offer and
publicize direct and connecting service from Love Field to such
destinations through points within the five-state area.
     According to the FTC staff comments, prices for tickets from
D/FW to destinations that cannot be served from Love Field are
significantly higher than fares from Houston to those same
destinations.  This suggests that loosening restrictions on Love
Field may increase competition and lower fares to consumers
flying into or out of D/FW.
                            - more -
Love Field--07/02/92)
     The staff comments also suggest that fares from Love Field
to certain destinations may be reduced.  This could result
because, under the proposal, passengers who currently must
purchase two separate roundtrip tickets to fly from Love Field to
destinations outside the five-state area would be permitted to
fly to those destinations on a less expensive single ticket.
     In sum, the staff said, "Modifying the restrictions on the
use of Love Field would likely increase airline competition,
increase airport capacity, provide added convenience, and reduce
congestion at D/FW.  As a result, consumers in Dallas, Fort Worth
and elsewhere could benefit substantially."  Those resulting
benefits could include lower airfares to certain locations from
both airports, lower parking and commuting costs, and reduced
delays, the staff said.
     These comments update the 1989 FTC staff testimony given to
the Dallas City Council's Transportation Committee on the Love
Field issue.  Any recommendation the city might make could be an
important factor in Congressional deliberations as to whether to
amend the federal law which places the restrictions on Love
Field.
     These comments represent the views of the FTC's Dallas
Regional Office and its Bureau of Economics and not necessarily
the views of the Commission or any individual Commissioner.
     Copies of the staff comments are available from the FTC's
Public Reference Branch, Room 130, 6th Street and Pennsylvania
Avenue N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-
2502.
                             # # # 
MEDIA CONTACT:      Bonnie Jansen, Office of Public Affairs
                    202-326-2161
STAFF CONTACT:      Tom Carter, Dallas Regional Office
                    100 N. Central Expressway, Suite 500
                    Dallas, Texas  75201
                    214-767-5503
V920014
(love)