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Updates about Northwest Florida Beaches International Airport (NWFBIA)

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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? :idontno:
 
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? :idontno:

Committed to PCB. Just said destinations would be available in December.
 
Was there ever any doubt?

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.
 
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This is very interesting. (and beachmouse nailed it)

The CEO says Southwest has actually formed an alliance with St. Joe that he describes as very unique. “This is an environment that makes it very difficult to contemplate even taking a risk,” he said, but the deal with St. Joe makes it possible, even given that “this is a brand new airport with no meaningful traffic history at all.”

He called the deal pretty straightforward. “(St. Joe) will subsidize Southwest in effect during the first three years of the agreement. There are safety valves for each company in case things are worse than they could be.”

Each company has an “out” after a couple of years if the venture is a disaster.

It sounds as if the extra half-cent bed tax is being funneled to either St. Joe or directly to Southwest. It will be very interesting to see how the money flows.
 
Regarding PCB getting service over PNS, CEO said the new airport represented "far and away the best opportunity to get started." PNS appears to still be in the running but there also appears to be no hurry ...
 
Bay County lands Southwest // VIDEO | panama, city, florida - News - The News Herald

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.”
 
NEWS FLASH--NEW SERVICE COMING NEXT MAY!!! | Nuts About Southwest

NEWS FLASH--NEW SERVICE COMING NEXT MAY!!!
Wed, 10/21/2009 - 13:19 — Bill Owen
It's Media Day at Southwest's Galactic Headquarters here in Dallas, and we have a LOT of news to share. 2010's first new city....expansion at a long-time Southwest destination....once again Southwest is getting creative to respond to demand for our service!

The biggest news of the day is that Southwest intends to begin service at the brand-new International Airport being built near Panama City, Florida next May. We're bringing low fares and GREAT service to the land of sugar-white-sand beaches, incredibly gentle blue waters, and an amazing variety of visitor accomodations just in time for vacation season, Summer, 2010! Up until Southwest's arrival, this part of Northwest Florida has been plagued by high fares and a lack of full-sized airline service. We're going to change that. Southwest's entry into the Panama City market will make it possible for all of America to experience the incredible beauty of Northwest Florida!

While we're not ready to announce specific service plans just yet (we'll announce all the specifics this December, so stay tuned!), the "how" of our entry into the Florida Panhandle is as interesting as the "why." For the first time ever, we've formed a strategic alliance with a corporate partner to enable Southwest to bring a new airport onto our network. The corporate ally in this venture is our friends at the St. Joe Corporation, with whom we've been talking for over a decade. Even if the St. Joe name isn't familiar, trust me, you know them. They are the largest landowner in the State of Florida, owning over a 600,000 acres of prime Florida Panhandle woodlands and beaches. They're also developing world-class resort communities in the area including the award-winning, jaw-droppingly-beautiful "Watercolor" complex.

Lots of other local groups are also actively helping Northwest Florida launch its new international airport. Both the Bay County Tourism Development Council and the South Walton Tourism Development Council have stepped up to the plate to make the new airport a success, as has Coastal Vision 3000. If you've never visited the Panama City area, believe me, you have an incredible treat in store. I'm already planning my family's vacation there next summer (whale watchers, take note....*gr*)!

In other big news about our May 2010 schedule, today Gary announced our intent to grow our St. Louis operation by adding new nonstop service in six markets, and additional flights in two others. We'll be adding two new nonstop, roundtrip flights each weekday between St. Louis and both Los Angeles and Nashville; and one daily roundtrip between St. Louis and New Orleans; Raleigh/Durham; Seattle; and San Diego. (Sidebar to all of you nascent "schedule geeks" out there--St. Louis-Nashville service may be the single most frequently requested new market between existing Southwest airports during my 16 years in Schedule Planning. So, to all of you that have asked for this service through the years, this one's for you--NOW KINDLY GO BUY A TICKET!!!!)

These additions come on the heels of our other recent St. Louis announcement that we're adding new nonstop service between Lambert and both Boston and Minneapolis/St. Paul this coming January. In fact, we're so pumped about our growth in St. Louis that we'll add a third St. Louis-Minneapolis/St. Paul flight with all of the other new service in May. All told, by next may, we plan to be operating 83 weekday departures from our gates in Lambert-St. Louis International's East Terminal (which is the newest and most modern terminal at Lambert!).

Again, all of this awesome new service in St. Louis and Panama City will begin next May, and will be available for sale this December. But don't wait until December to check out this blog again--you never know what other surprises we've got in store for you!
 
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