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Love Field case gives inside look at airline bartering

Southwest has reported growth in its unit revenues since previous year, through which it aims to report growth in its FY15 unit revenues.

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The lawsuit between Southwest Airlines and Delta is back before a federal judge. But Gate 15 is controlled by Southwest Airlines and they have told the airline they need to be out by September 30.

As it rises, Delta has one door at Love Field and applies it for 5 day-by-day air tickets.

The hearing was scheduled to resume Tuesday, with testimony by more Delta Air Lines Inc. and Southwest Airlines Co. executives. “Because of Southwest, Love Field is still here and still around”. Delta instead offered to pay United a gate rental fee of about $300,000 to sublease the two gates plus a series of gate swaps with United at other airports.

“The city, Southwest and Delta indicate that they have discussed possible methods for resolving the case but have been unable to reach agreement”, Kinkeade said in an August court filing.

Southwest is dominant at Love Field, while American Airlines is dominant at Dallas-Fort Worth global.

The deal with United gives Southwest control of 18 out of 20 gates at the airport, although one of the gates being used now by Delta is the focus of the ongoing legal battle.

Southwest further argues that Delta, which also flies out of D/FW Airport, shouldn’t be allowed to operate out of two airports in the same market. Southwest, which operates 180 daily flights there, says it needs every bit of space it can get, and it wants Delta out as early as this week.

Delta wants the judge to approve a preliminary injunction that will let it continue flying at Love Field. Kinkeade predicted that the losing airline will appeal his ruling.

Virgin America, which owns two Love Field airport gates, has also increased its daily flights to maximum gate capacity of 20.

In a July court filing, the city said it expects Southwest to win the fight at Love Field.

Delta said it has a right to be accommodated at Love Field, and said the court should act “to remedy Southwest and United’s tortious interference with Delta’s right to accommodation through a collusive and anti-competitive transaction created to block Delta’s access to the airport”, according to the filing.

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Delta thinks paying cash for gates is “illegal” and violates the city of Dallas’ competition plan and Federal Aviation Administration policies.

Love Field gate fight heats up with court hearings