Southwest CEO backpedals on talk of moving headquarters

Saturday, Oct. 22, 2005 | 11:03 a.m.

Herb Kelleher, the company's iconic chairman, and President Colleen Barrett suggested it might make sense for Southwest to move because a 1979 law blocks it from flying to most of the country from Dallas Love Field. Southwest is lobbying Congress to repeal the law.

Kelly moved to squash speculation about Southwest's future when he addressed analysts and reporters Thursday.

"It's not that we're out there promoting this idea, but the question gets asked would we move our corporate headquarters," Kelly said. "Arguably there's a scenario that it just doesn't make sense to have Dallas as our headquarters, but there is absolutely no effort under way, any thought under way, to move our corporate headquarters at all."

Kelly did note, however, that Southwest has been shrinking at Love Field since 2001. It has much bigger operations in other cities, including Las Vegas and Phoenix.

American Airlines and Dallas-Fort Worth International Airport oppose Southwest's effort to expand in Dallas. They both stand to lose financially if Southwest adds long-haul flights at Love Field. Federal law limits most commercial flights to and from Love Field to Texas and seven nearby states.

Southwest has rejected offers to move to DFW Airport, saying it couldn't be as efficient at the bigger airport or compete against American and sister American Eagle, which operate about 800 daily flights at DFW.