beachmouse
Beach Fanatic
It really doesn't go with their usual expansion plans. Sounds like something of an experiment for the company and a 'use it or lose it' sort of proposition.
CEO calls NW Florida a ?very large, underserved, overpriced (airline wise) tourism gem.?
SW will offer at least two daily flights each to four destinations for eight flights a day. Service will launch in May and they will begin selling flights in December. ?All the details about our destinations, fares and flight times will be available in December.?
CEO also called it a ?significant risk? from a business perspective.

So did they commit themselves to PC w/ flights to be announced, OR was this just a media event and they can still decide to go to PNS or VPS?![]()
SOUTHWEST AIRLINES TO SERVE NORTHWEST FLORIDA'S NEW INTERNATIONAL AIRPORT
Jacksonville, Florida, October 21, 2009 -- The St. Joe Company (NYSE: JOE) and Southwest Airlines (NYSE: LUV) today announced a strategic alliance providing for the commencement of air service to Northwest Florida's new international airport near Panama City Beach, Florida in May 2010. The airport, currently under construction, is the first international airport built in the U.S. in the last 16 years. Southwest's service at the new airport will consist of at least two daily nonstop flights from Northwest Florida to each of four destinations for a total of eight daily nonstop flights.
St. Joe is the largest landowner in Northwest Florida with hundreds of thousands of acres in the service area of the new airport. Specifically, St. Joe owns approximately 71,000 acres of land surrounding the new airport. Millions of tourists are drawn each year to Northwest Florida beaches, some of the most beautiful in the world. The region is also home to important defense aerospace economic clusters anchored by U.S. Air Force, Navy and Army installations.
"The entire Northwest Florida region can be proud of its efforts to secure service from the nation's premier low-fare airline," said St. Joe's CEO and President Britt Greene. "Southwest service, combined with the economic development potential of the new airport, will be instrumental in the long-term success of the region. The region now has a truly meaningful catalyst to help drive growth in the coming years."
St. Joe intends to aggressively leverage Southwest's service at the new international airport to drive tourism, economic development and job growth in the region and real estate absorption in the company's projects across Northwest Florida.
"History has shown that the 'Southwest Effect' can have a dramatically positive economic impact on a market and a region," said Greene. "We believe Southwest's entry into Northwest Florida will be the foundation from which growth will emanate for future decades. This will truly provide a catalyst for us to create value for our shareholders for many years to come."
"In the past, Northwest Florida's economic growth has been hampered by limited service and some of the highest airfares in the country," Greene said. "Southwest, with its legendary Customer service, extensive network and competitive fare structure, greatly improves our competitive position for economic development prospects and dramatically raises this region's profile."
Given the current state of the U.S. economy and the airline industry, new airline service must be positioned as an economic development initiative with broad regional support. St. Joe has been working alongside a number of regional organizations to secure the financial commitments to support this new air service: Coastal Vision 3000, the Bay County Tourist Development Council, the Beaches of South Walton Tourist Development Council and the Panama City - Bay County Airport and Industrial District.
St. Joe and Southwest have entered into a strategic alliance agreement to facilitate air service to the new airport. As part of the agreement, St. Joe has agreed to reimburse Southwest if it incurs losses at the new airport during the first three years of service. It also provides for any profit from the air service during the term of the agreement to be shared with St. Joe up to the amount of St. Joe's prior payments.
The Agreement provides for conditions to the commencement of the air service to the new airport, including the timely completion of the airport and Southwest reaching satisfactory agreements with the local airport authority regarding the use of the new airport and agreements with regional tourism groups regarding coordinated marketing efforts.
Additional information regarding the terms of the Agreement, including conditions to the proposed air service, termination rights and air service exclusivity provisions, may be found in St. Joe's Form 8-K to be filed today with the Securities and Exchange Commission, which will be available on our web site at Florida Real Estate - Land, homes, condos and commercial property for sale | The St. Joe Company.
Southwest Airlines CEO Gary Kelly officially announced Wednesday the low-cost carrier will begin service to the new Northwest Florida-Panama City International Airport when it opens in May. Tickets will go on sale in December. Kelly’s announcement came shortly after 1 p.m. Wednesday live via “streaming video” as part of Southwest’s media day from Dallas, about 15 minutes after the start of the a Panama City briefing attended by local business leaders and government officials. Kelly said the airline will bring an all-Boeing 737 fleet.
The local leaders were meeting at the airport for the expressed purpose of hearing an update on construction progress and airline marketing efforts, but Southwest’s announcement had been anticipated.
The new airport is set to open in May, and Kelly’s confirmation answers one of several questions still remaining, such as whether a low-cost carrier like Southwest Airlines is coming to the West Bay location.
Officials and business leaders in Pensacola, Okaloosa County and Panama City have been courting the coveted carrier for months, citing lower fares that can bring in more tourists and businesses.
“The Panhandle has so much to recommend it,” said U.S. Sen. Bill Nelson, D-Fla. and a leading advocate of the new airport serving the region. “I know that as more and more people and businesses learn about the area, we’ll attract even more jobs and opportunities.”