When Southwest Airlines launched they took advantage of two loopholes.

1. They could fly where they wanted and charge what they wanted – as long as they stayed within the State of Texas. That kept federal regulators, who used to set routes and prices, out of their business.

2. They could use Dallas Love Field which is close to downtown Dallas. The airport was going to be closed to commercial aviation. All of the existing airlines agreed to move to DFW. But Southwest wasn’t an existing airline and hadn’t agreed! Other airlines sued to stop them, but Southwest prevailed.

Southwest offered convenient, friendly and cheap service between Dallas, Houston and San Antonio – short trips that made more sense by car for businesses in downtown Dallas if they had to schlepp to and from DFW.

DFW Airport

Eventually, the spunky upstart became the incumbent and started working to block competition – pushing for the destruction of gates at Love Field that could be used by competitors, trying to get the government to block Dallas-based competitor JSX (even complaining that JSX benefits from a ‘loophole’ which is what Southwest says allowed them to launch).

American Airlines was part of that fight against JSX. They’re based at DFW airport. They used to have gates at Love Field, but had to lease those to Virgin America as part of the deal that got antitrust approval for being taken over by US Airways. They didn’t want to actually fly from Love, though occasionally they did it to block competitors – like flying all-business class Fokkers in response to Legend Airines a quarter century ago.

DFW Airport

Now Southwest and American are facing a new threat – a third Dallas airport in McKinney, Texas. McKinney National Airport is still just a general aviation airport in Collin County, Texas, that is being positioned as a potential third commercial airport in the Dallas–Fort Worth Metroplex. McKinney leaders are working to develop ‘TKI’ into a regional alternative to DFW and Love Field.

McKinney National Airport is about 30 miles north of downtown Dallas. Tise airport is more convenient to at least 1 in 8 passengers flying out of either existing airport, and ideal for customers in cities like McKinney, Allen, Frisco, Plano, and Prosper, as well as parts of Denton and Grayson counties.

It has a single runway (18/36) which is currently about 7,500 feet with plans to extend it to 8,500 feet, and it’s ILS-equipped and has a full-time air traffic control tower. Currently McKinney handles an average of 390 general aviation takeoffs and landings per day.

Credit: McKinney Airport

The city has approved plans for a 45,000 square foot commercial terminal on the east side of the airfield, initially with 3 gates but built to be expanded to 5 gates. The apron will have parking for 5 planes, as well as fuel facilities and a de-icing pad. They’re also building out 1,500 parking spaces and rental car facilities.

Prior to the pandemic, the airport reported that airlines had reached out inquiring about opportunities to bring commecial service there. That prompted an environmental assessment, which would be required for FAA signoff.

The early vision was a $300 million, 2–4 gate terminal. City leaders proposed a general obligation bond election to fund $200 million of this, but 59% of voters rejected this (out of concern for potential taxes) despite polling showing 80% of residents support commercial flights there. In response, the city proposed the current ~ $70 million plan.

In 2022, the airport’s director reported that “major national carriers” had shown interest, and said “If this is all for an Allegiant or another low cost carrier, we aren’t interested. We are going after major carriers.”

Credit: McKinney Airport

Back when Southwest was in expansion mode during the pandemic, before having their business scuttled by private equity investors, there was speculation that they could expand to McKinney instead of DFW as the requirement to give up Love Field gates for serving another airport in the area loosened in 2025. (Southwest helped limit the number of gates at the airport – gaining a stranglehold on Love Field but capping their own growth, mollifying American. The Legend Airlines terminal was demolished and is now a Lincoln deadlership.)

The Texas attorney general’s office just ruled that the airport had to release documents related to airline commitments of service at the airport. Avelo Airlines is in talks with the airport.

Credit: Colin Cooke Photo via Wikimedia Commons

City officials previously hinted that one airline would establish a “regional operations base” at McKinney. Proposed routes mentioned by the city’s mayor include Las Vegas, Orlando, Los Angeles, New York, and Denver. There is reportedly a second airline in talks with McKinney, and I’d speculate that’s Frontier.

However the FAA will first have to approve certification of the airport for Part 139 commercial operations, which means ensuring adequate safety infrastructure (e.g. crash and fire rescue services, security).

The FAA will have to issue a Finding of No Significant Impact in respoinse to the environmental impact statement before it can move forward as well.

Long-time conservative activist Paul Chabot has spun up a conservation group that’s recently applied for IRS tax exemption – the North Texas Conservation Association – to fight the airport as an environmentalist, because the National Environmental Policy Act is a fulcrum that can be used to gum up public projects. While Southwest and American are not publicly lobbying against McKinney airport, NTCA does not have to disclose its donors. Their lawsuit against the airport focuses on the environmental impact statement.

McKinney success attracting service will hinge on costs and opportunity, but also on DFW’s response. If they subsidize new service enough they could keep airlines out. DFW effectively passed through the bulk of their federal CARES Act money to American Airlines in the form of waived landing fees.