The Wrong Amendment

After years of remaining neutral on the Wright Amendment — that law that restricts flights from Dallas’s Love Field Airport — Southwest Airlines is now calling the rule “anticompetitive” and “outdated”.
It’s about time.
The Wright Amendment was enacted in 1979 to facilitate the success of the then new Dallas-Fort Worth International Airport, which was built in a rural area in the northern part of the Metroplex between Dallas and Ft. Worth. Dallas’ other airport — Love Field — enjoys a near-downtown location. In order to funnel air traffic to DFW, the Wright Amendment banned interstate service from Love Field on jets with more than 56 seats to all but seven states near Texas.
When DFW was built, Southwest did not want to move to DFW and has never had any service at the bigger airport. DFW is the dominant hub of AMR Corp.’s American Airlines, which has enjoyed the respite from competitive pressures that the Wright Amendment provides. That anti-competitive effect has been part of the reason why American has been slow to adapt to the rapidly changing airline industry, in which discount carriers such as Southwest have brought an era of lower fares and additional seats. The “legacy airlines” such as American, Delta, and United are reeling as a result.
The Wright Amendment — which was questionable policy at best at the time it was enacted — is clearly obsolescent. The area around DFW is no longer rural and the airport is now literally in the center of the northern part of the Metroplex. Moreover, Southwest is now a national airline, and it is inhibited from servicing that national network of flights from its hub at Love Field.
At DFW, Delta Air Lines recently announced that it is abandoning its unprofitable hub, which is cutting 250-plus daily flights to about 45. Although that move will increase American’s dominance at DFW in the short run, industry observers expect some of the discount carriers to make a play for some or all of Delta’s old gates at DFW.
Nevertheless, Southwest contends that it is going to remain at Love Field despite the galling Wright Amendment restriction on long haul flights from that airport. But Southwest is using Delta’s exit as proof that DFW does not need the Wright Amendment’s protection anymore. Southwest notes that many cities — including New York, Chicago, Houston, and Los Angeles — enjoy the benefits of two airports without any need of the “protections” afforded to DFW by the Wright Amendment.
As you would expect, American Airlines disagrees. In a statement issued Friday, American stated that the Wright Amendment is just as relevant today as it was when it first passed and helps preserve DFW’s position as the principle aviation gateway for North Texas.
Folks, that type of thinking is a big part of the reason why American Airlines is in the poor financial shape that it currently finds itself, particulary in comparison to that of Southwest. It will be interesting to watch the politicians line up in regard to this particular issue. The issue will be a good barometer for determining whether a particular politician is attempting to protect the public’s best interests or simply interested in keeping the money flowing into a campaign chest from legacy airlines such as American. Stay tuned.

2004 Weekly local football review

Colts 49 Texans 14. In a game that was not as close as the score indicates ;^), the Texans reinforced the fact that last week’s debacle at Denver was no aberration. Peyton Manning toyed with the Texans secondary as he threw five TD passes in the first three quarters. He would have had a couple more had the Colts not called off the dogs. On the other hand, David Carr continued his up and down season with a horrid performance (22-41/215 yd./3 picks) behind an offensive line that looked like a sieve against one of the weakest defenses in the NFL. Carr spiced his poor performance by giving up a fumble and an interception that were returned for TD’s. Meanwhile, the Texans’ defense would have had a hard time stopping a hard charging marching band as Manning sliced and diced them for 320 yards on just 18 completions. Things do not get any easier for the 4-5 Texans as the red-hot Packers come to town next week for the ESPN Sunday night game at Reliant Stadium. That could be very ugly.
Eagles 49 Cowboys 21. In another game not as close as the final score indicates, the Eagles overwhelmed the hapless Cowboys at Texas Stadium, again increasing the chances that the Big Tuna will explode at any time. The Eagles’ 35 first-half points were more than they had scored in any game this season as Eagles’ QB Donovan McNabb was 15-of-28 for 345 yards with four TD passes and no interceptions. It was the Cowboys’ fifth loss in six games, and they have lost the last three by 21, 23 and 28 points. The Pokes now get the pleasure of going to Baltimore next Sunday to have Ray Lewis and the Ravens defense hand their hat to them.
Texas Longhorns 27 Kansas 23. For the second straight week, the Horns flirted with a disastrous upset loss, but pulled it out with a last minute TD drive spiced by QB Vince Young‘s incredible 22 yard run for a first down on 4th and 18. The game was spiced with controversy as the Horns benefitted from an offensive pass interference call that forced the final Kansas punt and allowed the Horns one more chance at pulling it out. Based on the following post-game comments, Kansas Coach Mangino did not think much of the offensive pass interference call:

“You know what this is all about, don’t you? The BCS. That’s right. That’s what made the difference today in the game. That’s what made the difference on the call in front of their bench ? dollar signs.”

After conferring with the Kansas Athletic Director and his investment banker over the probable amount of the fine from the Big 12 Conference stemming from those comments, Coach Mangino issued the following “public statement” later on Saturday afternoon:

“After an emotional loss, in our seniors’ last home game, I made remarks that I regret. Any implications that BCS standings played a role in Saturday afternoon’s game was inappropriate. I have always supported the BCS system and will continue to do so.”

At any rate, the 9-1 Horns are now off until their annual rivalry game with the Aggies on the day after Thanksgiving. I do not expect the Horns to play as soft against the Ags as they did in parts of their last two games. If they do, then the Aggies have enough firepower this year to beat the Horns.
Texas Aggies 32 Texas Tech 25 OT. In a hugely entertaining game, the Aggies played their third overtime game in their last four in finally beating the Red Raiders, who have tormented the Ags in recent seasons. Everybody was betting the over before this game (it was 66), but these two high-powered offenses combined for 13 points in the first half, and only 19 through three quarters, so the under bet looked golden. Then, almost as if each team turned on a switch, both offenses started scoring almost at will in the fourth quarter and, as the overtime commenced, the over bet looked within reach. Alas, Tech’s offense sputtered in overtime, handing the Ags the win before a delirious crowd of over 82,000 in College Station. The 7-3 Aggies (5-2 in the Big 12) are now off until their annual showdown with the Horns in Austin on the day after Thanksgiving. The Aggies have lost four straight games to the Longhorns and seven of the last nine, but this one is shaping up to be a serious battle. I give the Horns the edge because of their superior defense and running game, but the Ags will likely make a game of it.
UAB 20 Houston 7. You can stick a fork in the Coogs. Even though they must endure one more beating at the hands of high-powered Louisville at Robertson Stadium next Saturday, the Coogs have packed it in. The probable 3-8 mark in Coach Art Briles‘ second season is highly disappointing, and will be the subject of much soul searching over at UH.
UTEP 35 Rice 28 OT. The Owls almost pulled off the upset of their season against the Mike Price-rejuvenated Miners, but a fumble near the goal line in the second OT doomed the Owls’ hopes. The game was played in a cold drizzle and the finish was a madhouse. After UTEP grabbed a 35-28 lead on the first play of the second overtime, the Owls appeared to have tied the game again when the Owls’ Ed Bailey was tackled at the goal line by his facemask. However, the official closet to the play ruled Bailey was down inches from the end zone even though Bailey clearly hit the pylon following the infraction on the UTEP defender. On first and goal, the Owls handed the ball to Bailey again and he appeared to cross the goal line, but he fumbled on the play and UTEP recovered. The refs ruled it a fumble and that was the game. The 3-7 Owls now have a week off before finishing their season on the Saturday after Thanksgiving at Rice Stadium against Louisiana Tech.
And Kevin Whited has his weekly Big 12 wrap-up over at PubliusTx.net

Check out “Hairspray”

If you are looking for a fun evening in the next week or so, I highly recommend checking out the Tony Award-winning Broadway musical Hairspray, the latest event in Houston’s Broadway Series at the Hobby Center. Even the Chronicle’s notoriously tough theatre critic Everett Evans gave the performance a hearty thumbs up.
My wife, daughters and I attended Friday night’s show, and we all thoroughly enjoyed ourselves. Although the entire cast and production is magnificent, Keala Settle‘s peformance in the lead role is absolutely incredible — she sings and dances with a dynamic combination of clarity, agility, and spunk that is truly infectious. Don’t miss it.

That’s sure not Led Zeppelin

When I moved to Houston over 33 years ago as a young college student, 101.1 KLOL-FM was the rock station to listen to “heavy” rock music as opposed to the “bubblegum” rock music that my little sisters enjoyed. KLOL was the rebel station — it played Jimi Hendrix while other rock stations were playing the Bee Gees. Cameron Crowe captured this rebel nature of rock and roll wonderfully in his 2000 film, Almost Famous.
My first exposure to an obscure rocker from New Jersey named Bruce Springsteen came from KLOL. Back in the early 1970’s, KLOL played some bootleg tapes of Springsteen performing his song “The Fever” at the old downtown bar, Liberty Hall, which was located on Chevenert near where Minute Maid Park stands now.
Over the years, as Baby Boom rockers aged, KLOL became more mainstream, but still retained its heavy metal and “reasonable rebel” format. Thus, as my sons reached their rebellious teenage years, they would switch the car radio to KLOL whenever they wanted to make the point that they were now listening to heavy rock music rather than say, Huey Lewis and the News. It’s fair to say that longtime Houston residents who listen to rock music considered KLOL a local institution.
Well, that all changed yesterday, as this Chronicle article reports:

In a clear signal of the growing media clout of Houston-area Hispanics, radio behemoth Clear Channel Communications has yanked legendary rock station KLOL-FM (101.1) off the air and replaced it with a format that radio insiders call “Spanglish Top 40.”
The switch took place Friday morning when the new station ? now called Mega 101 FM (with the tag line “Latino and Proud”) ? began playing 10,101 songs in a row.
The new format is a mixture of Spanish hip-hop, reggaeton and pop/dance music aimed at listeners between 18 and 34 years old. Music in Spanish by artists ranging from the rapper Pitbull to pop star Shakira will be accompanied by DJs using a combination of English and Spanish.

Shakira rather than Johnny Winter? Longtime KLOL listeners are not taking the change well:

The move caught longtime KLOL listeners by surprise.
“There was no warning at all,” said Chris Beck, a 32-year-old cook.
“I’m 35 and it’s been on the air as long as I can remember,” said a real estate salesman who did not want to be identified. “It’s quite a shocker.”
He called Clear Channel headquarters in San Antonio to complain and is encouraging his friends to do the same.

When I informed my 16 year old son of the change this morning, his response probably reflects that of thousands of other KLOL listeners from around the Houston area:

“Spanglish? — I don’t think that means we’ll be hearing Led Zeppelin in Spanish on KLOL.”

Houston’s younger bloggers are already all over this format change. Charles Kuffner reacts here, and Kevin Whited’s response is here.
As one of KLOL’s most played singers would say — “These times are a’changin.”

CIA’s “Anonymous” author hits the talk shows

This prior post reviewed one of the books by the CIA counterterrorism agent who authored two books under the alias “Anonymous” that were highly critical of the Bush Administration’s approach to battling the radical Islamic fascists.
Now, Michael Scheuer, who turns out to be Anonymous, has decided to resign from the CIA and violate the trench-coat oath by going public with his criticism of the government?s war against the radical Islamic fascists. His views are interesting, but made less credible by his decision to cash in on them at the expense of the trench-coat oath.

Interesting developments in aviation

This BBC News article describes something that Houston’s Katy Freeway commuters would support enthusiastically:

Commuters could soon be taking flying taxis to work instead of waiting in line for a street cab, experts suggest. British developers Avcen say Jetpods would enable quick, quiet and cheap travel to and from major cities.
The futuristic machines will undergo proof-of-concept flight tests in 2006 and could be ready for action by 2010.
As well as taxis, which would use a network of specially-built mini runways, there are military, medical and personal jet versions as well.
London-based Avcen say Jetpods would be able to travel the 24 miles from Woking, Surrey, to central London in just four minutes.
And because it could make so many trips, fares for a journey from Heathrow to central London could cost about £40 or £50.

Meanwhile, this Washington Post article reviews ongoing research into scramjet technology, which is already achieving incredible speed levels:

Next week, NASA plans to break the aircraft speed record for the second time in 7 1/2 months by flying its rocket-assisted X-43A scramjet craft 110,000 feet above the Pacific Ocean at speeds close to Mach 10 — about 7,200 mph, or 10 times the speed of sound.
The flight will last perhaps 10 seconds and end with the pilotless aircraft plunging to a watery grave 850 miles off the California coast. But even if the X-43A doesn’t set the record, it has already proved that the 40-year-old dream of “hypersonic” flight — using air-breathing engines to reach speeds above Mach 5 (3,800 mph) — has become reality.

Under NASA’s $250 million Hyper-X program, engineers at Langley Research Center here and the Dryden Flight Research Center in Edwards, Calif., designed and built three aluminum scramjet aircraft, each one 12 feet long and weighing about 2,800 pounds. . .
[The second scamjet flight] on March 24, reached Mach 6.83 (5,200 mph), shattering the world speed record for air-breathing, non-rocket aircraft, previously held by a jet-powered missile. The highest speeds by manned aircraft were achieved by SR-71, the U.S. spy plane known as the “Blackbird,” capable of flying in excess of Mach 3 (2,300 mph).

Why are there so many corporate crime laws?

If corporations are so big and powerful, then why are there so many corporate crime laws? Doesn’t it make more sense that corporations would lobby to restrict enactment of such laws?
Maybe not, according to University of Michigan law professor Vikramaditya S. Khanna. In this interesting paper (download required), Professor Khanna argues that corporate executives may reasonably believe that consenting to enactment of corporate crime laws is the least risky course:

One of the fundamental puzzles of corporate crime legislation is how does so much of it get enacted given that it targets corporations that are considered some of the most powerful and effective (if not the most powerful and effective) lobbyists in the country. My analysis suggests that corporate crime legislation may grow because it is a preferred response for corporate interests when some congressional action is inevitable. Corporate criminal liability?s growth could then be explained by the following: Some degree of ?punishment? is necessary, as a political matter, to satisfy public desires during recessions when revelations of corporate wrongdoing are numerous, and corporate crime legislation achieves that while imposing lower costs on business interests relative to other measures that could be undertaken (e.g., increasing corporate civil liability or managerial criminal sanctions).
The normative implications depend on one?s priors about the world and on which political account(s) one finds persuasive. However, one thing appears clear regardless of the preferred political account(s): If we start with the notion that corporate wrongdoing is under-deterred, then we would want to argue for curtailing corporate criminal liability and increasing the focus on corporate civil liability and managerial liability. That raises serious questions about how we regulate this area.

Jimmy Carter’s sabotage of the Democratic Party

Jimmy Carter’s laudatory remarks today about the dubious leadership qualities of Yasser Arafat reminded me of this pithy book review that the Weekly Standard‘s Noemie Emery wrote earlier this year regarding Steven F. Hayward‘s book about Mr. Carter, The Real Jimmy Carter: How Our Worst Ex-President Undermines American Foreign Policy, Coddles Dictators and Created the Party of Clinton and Kerry. The gist of Ms. Emery’s review and Mr. Hayward’s book is that, as bad as the Carter Presidency was for America generally, it was absolutely devastating to the Democratic Party.
First, Ms. Emery stands in awe of Mr. Carter’s incredible ability to take either the wrong position on a political issue or alienate those on his side even when he was on the right side of an issue:

Carter is surely one of the worst failures in the history of the American presidency, but he is a failure of a special sort: He did not overreach, as did Lyndon Johnson, or seek to deceive, as did Richard Nixon. Rather, like Herbert Hoover, he seems a well-meaning sort overcome by reality. But while Hoover was blindsided by the depression, Carter failed on a broad range of matters and faced few crises he didn’t first bring on himself. Most presidents, even the good ones (sometimes especially even the good ones) leave behind a mixed record of big wins and big errors, but with Carter, the darkness seems everywhere: He is all Bay of Pigs and no Missile Crisis, all Iran-contra and no “Mr. Gorbachev, tear down this wall.”

PBS, whose American Experience series on the presidents has done some fascinating things with such novelistic lives as those of Reagan, Kennedy, Nixon, Johnson, and both the Roosevelts, seemed (in a two-part series first aired two years ago and now reappearing) at a loss for how to handle this long dirge-like story, and, to its credit, the program did not flinch from portraying his actual presidency as the total disaster it was.

Ms. Emery notes that Mr. Carter’s domestic policies were an utter mess:

As a domestic manager, his crowning achievement was to take the old liberal creed of big government and hitch it to the new liberal creed of “limits to growth” and create incoherence. “We have learned that ‘more’ is not necessarily ‘better,’ and that even our great nation has its recognized limits,” he scolded, taking on two hundred years of the American temperament. Thus he tried to damp down the consumption machine that drives the economy, while balking at the tax cuts that might have spurred on investment. The result was stagflation, a condition economists had once thought impossible, of soaring inflation and no growth in jobs. Interest rates soared, and Carter’s approval ratings sank into the thirties. For this he blamed the American people, for being too immature to realize the good times were over for good.

And even though Mr. Carter’s domestic policies were bad, his foreign policy was even worse:

In an address at Notre Dame on May 22, 1977, [Carter] denounced the “inordinate fear of communism” that had produced the containment theory that had kept the peace for three decades. In his first month in office he announced his intention to withdraw nuclear weapons and ground troops from South Korea, cut six billion dollars from the defense budget, cancel development of the Trident nuclear submarine, and defer construction of the neutron bomb.
All of these proposals were made unilaterally, with no effort to induce concessions by the other side. Cyrus Vance, Carter’s first secretary of state, was described by Democrat Morris Abram as the closest thing to a pure pacifist since William Jennings Bryan, and by Defense Secretary Harold Brown as a man who believed the use of force was always mistaken. Paul Warnke, Carter’s chief arms-control negotiator, held views described by George Will as “engagingly childlike”–believing that if we disarmed, the Soviet Union would follow us. . .
Even Carter’s much vaunted human-rights effort, which gave some people hope he would use it as a moral weapon against the Soviet Union, quickly lost much of its power and luster when it became evident that he intended to use it less against Communists than against the more marginal despots in the non-Communist orbit. Thus he embraced Soviet leader Leonid Brezhnev at the 1979 arms-control summit and assured an assemblage of East Europeans that “the old ideological labels have lost their meaning,” even as they remained under the Soviet boot. In Carter’s State Department, the Sandinistas were thought to be moderates and the Ayatollah Khomeini a saintlike figure surrounded by “moderate, progressive individuals” with a notable “concern for human rights.”

Ms. Emery goes on to mention many of the other debacles of the Carter Presidency that Mr. Hayward’s book addresses, but then points out that Mr. Carter has perhaps exceeded the incompetence of his presidency by being arguably the worst former president in American history:

Carter the ex-president has been more destructive than Carter the president, and, if possible, still more annoying, undermining later presidents with the ruthless ambition that marked his career.

Herbert Hoover accepted the verdict of history when he lost in 1932 to Franklin Roosevelt, keeping a profile so low he was all but invisible. Carter instead reacted as if he had retired by choice with the thanks of the nation. He did some good work for general charities, and he was useful at least twice in his international forays: in Panama in 1986 when he faced Noriega, and unexpectedly in 2002 in Cuba when he went against type to tell Castro off. He also acquired a lengthy record of criticizing, weakening, and undercutting a series of American presidents.
He publicly attacked Reagan’s morals and competence. In 1990 and 1991, as George Bush was assembling the Gulf War coalition, Carter wrote secretly to Margaret Thatcher, Francois Mitterrand, Mikhail Gorbachev, and a dozen others, asking the U.N. Security Council not to back Bush. (Bush only found out what had happened when a stunned Brian Mulroney called Dick Cheney up to complain.) Bill Clinton soured on the ex-president after Carter’s trip in 1994 to North Korea, in which he publicly embraced the dictator Kim Il Sung and negotiated a wholly worthless treaty banning production of nuclear weapons, which that country proceeded to break.
Carter of course made the same vehement objections to George W. Bush’s war on terror as he had made to his father’s war in the Gulf ten years earlier, going so far as to happily accept an award from the Nobel Prize committee that was given to him solely for the purpose of giving a black eye to America. “It should be interpreted as a criticism of the line that the current administration has taken,” the Nobel committee chairman said helpfully, “a kick in the leg to all those that follow the same line as the U.S.” Carter’s “Lone Ranger work has taken him dangerously close to the neighborhood of what we used to call treason,” Lance Morrow wrote in Time. As Hayward notes, Carter’s successors have done far more than he did for human rights and for the nation’s security. Iran and Nicaragua, the twin targets of his attention as president, turned on his watch into hell holes. And we can safely say that had he been reelected, or had his way afterward, the Soviet Union might still be in existence, and the oil fields of Kuwait and possibly Saudi Arabia might be in the hands of Iraq.

Finally, Ms. Emery notes that the Democratic Party has ultimately borne the brunt of the consequences of Mr. Carter’s monumental lack of judgment:

No man has done more than he to create and empower the modern Republican party, which, when he became president, seemed down for the count. If he had been the man he seemed when he was running for president–an integrationist but a social conservative, a small businessman and ex-naval officer, a Rickover protege with a keen sense of power–he might have recreated the party of Truman and Kennedy. As it was, his incompetence and his blundering, coming after McGovern’s extremism and the implosions of Humphrey and Johnson, was the last straw for a great many Democrats, who decided the chances they were willing to give to their party had more or less run their course. Under his goading, millions who had never believed they could vote for a Republican president crossed over to vote for an ex-movie actor.

The end of the Democrats as the national majority begins with Carter–as does the end of liberalism as the national creed. A lot has been written about the maturation of the conservative movement from Goldwater to the present day, but this of course is only one half of the story. It was not enough for the Republicans to become more poised and accessible. The Democrats had to collapse, freeing millions of voters to look at an alternative. No one symbolized this collapse more than did Jimmy Carter, victim of rabbits and America’s muse of malaise.

Read the entire review. Ms. Emery and Mr. Hayward may be too harsh on Mr. Carter, who at least had the good sense to promote Paul Volker for the Federal Reserve chairmanship late in his term in office. But there is no question that his presidency was an unmitigated disaster for the Democratic Party in this country, and one from which the party is still attempting to recover to this day.

Tax reform debate

By the way, in case you have not been following the Wall Street Journal Econoblog discussion this week between Marginal Revolutions Tyler Cowen and Argmax.com‘s John Irons, do not miss today’s edition on tax reform. In my view, Mr. Cowen runs rings around Mr. Irons, but decide for yourself.

A profile of Carlos Beltran’s agent

This NY Times article profiles Scott Boras, the agent who the Stros must deal with if they are going to sign free agent Carlos Beltran. Although the Yankees can easily outbid the Stros for Beltran, the article at least suggests that some things not associated with playing baseball in New York may be more important to Beltran than the premium that the Yankees would pay for him:

Does Beltran really want Boras to put him in pinstripes or does he need Boras to create that illusion? This winter, the Yankees may come to find out that they are not the ultimate destination for players anymore, not when a World Series is no longer a guarantee, not when free agents like Jason Giambi fizzle in New York, not when Steinbrenner is the resident curmudgeon. This year, the Yankees may be artfully used as decoys by Boras – particularly in Beltran’s case.
In June, Beltran was craving anonymity, not the New York market.
“I pray to God I can be a great player, but I want to keep my life,” Beltran told Sports Illustrated. “I don’t want to be hiding from people. It would be difficult to be recognized everywhere, so that I couldn’t do things ordinary people can do. I love to go to the grocery store or the movies or go to the mall and be just an ordinary person. In Kansas City they don’t know who I am. Same thing when I’m home in Puerto Rico. I like that.”
By the playoffs, Boras seemed to be a ventriloquist for a bolder Beltran.
“When I see an owner who cares about winning, I like it,” Beltran said in an obvious reference to George Steinbrenner.
Is Beltran bluffing? Is Boras? Everyone will know in April how sentiment and comfort are rated by Boras’s clients when the Yankees and the Red Sox line up for opening day at Fenway. Will Varitek be there? Will Beltran?

My sense is that Beltran will end up in New York or Anaheim, but we Stros fans can dream, can’t we?