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Aug. 31, 2006

IN TOMORROW'S BUSINESS SECTION:

Is Wright deal good for consumers?


Love
LOUIS DeLUCA/DMN
By ROBERT DODGE

WASHINGTON - Lawmakers from North Texas have told their Capitol Hill colleagues that their proposal to repeal flight restrictions at Dallas Love Field should be enacted because it is a local solution.

But when Congress returns next week, the local representatives will have to answer some thorny questions: Is the local solution a good one for consumers in North Texas, as well as travelers from other cities?

Critics on Capitol Hill, as well as some antitrust experts, say the deal to bring long-haul flights to Love Field may not be a good bargain for consumers. They are concerned there will be insufficient competition between American Airlines Inc. and Southwest Airlines Co. and not enough opportunity for new carriers at Love.

Now, lawmakers on Capitol Hill must decide if the antitrust concerns trump the nearly united Texas congressional delegation.

Read the complete story in tomorrow's Dallas Morning News or at DallasNews.com.

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By Danielle DiMartino
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TOMORROW'S INSIGHTS TODAY: Danielle DiMartino

Weaker labor market could have broad impact

All bets are off if the labor market begins to unravel.

As Ed McKelvey of Goldman Sachs noted, even if you include the months after Hurricane Katrina, the last time households were as negative as they are today on the job market's prospects was October 2001, a month after 9/11 and a month before the last economic cycle bottomed.

"Setting this latest news alongside the year-to-year decline in retail payrolls and July's uptick in unemployment, one has to wonder whether conditions are starting to weaken dramatically in the U.S. labor market," Mr. McKelvey added. "If so, then the debate on Fed policy will quickly shift from whether the pause was warranted to when the first easing will occur."

It isn't only the confidence data. Thursday morning's jobless claims report showed that the four-week average of continuing claims had risen to the highest level since March.

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