Delta Air Lines DAL has scored a legal victory, albeit temporarily, over Southwest Airlines LUV, in the ongoing dispute over gates at the Dallas Love Field airport. According to a U.S. district court ruling, the Atlanta, GA-based carrier will continue to operate at Dallas Love Field until the case is resolved.
Following the verdict, Delta can continue operating five of its daily flights to Atlanta using one of the twenty gates at the city-owned airport, as per an agreement with Southwest Airlines. Southwest Airlines is a major operator at Dallas Love Field and owns 18 of the 20 gates. As the agreement expired last year, Delta had asked the court to grant a preliminary injunction so that it is not booted out of the airport by the Dallas-based Southwest Airlines. The Federal judge, Ed Kinkeade, while granting Delta’s request, cited passenger convenience as the primary reason behind the ruling.
In case Kinkeade had ruled against Delta, passengers who had already booked their tickets on Delta flights to/from the airport would have needed to alter their travel schedules. Cancelation of tickets and providing refunds would have caused endless chaos. To avoid the pandemonium, the judge granted Delta’s request for injunctive relief, much to the relief of the airline and its passengers.
Although Delta and Southwest Airlines are the two major players in the drama, the dispute had also seen the entry of the California-based low cost carrier Virgin America VA last year. The carrier, partly owned by British billionaire investor Richard Branson, had supported Southwest Airlines’ stance on the controversy. Now that Delta has won temporary relief, thanks to the court verdict, investor focus will remain on the final outcome of the dispute which has already seen many twists and turns to date.
Zacks Rank
Delta Air Lines sports a Zacks Rank #1 (Strong Buy) while Southwest Airlines carries a Zacks Rank #3 (Hold). Alaska Air Group, Inc. ALK is another carrier with a Zacks Rank identical to Delta’s bullish rank.
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