Your friend didn’t know he was boarding an international flight? c’mon….

Your times are off, making the Southwest case possibly more compelling. It doesn’t take any 2.5 hours to drive from Panema City to Tally despite google maps opinion (similar for FWB). Also, Dothan has a population and is at a reasonable range to PC.

Two other factors disserve consideration as well:

1) people in that part of the world are well used to traveling a considerable distance to find a reasonable air fare – I would guess they can reasonably draw in all of northwest Florida, most of south Alabama (really the same thing…) and a good bit of south Georgia at least as far as Thomasville (valdosta would probably go to Jax for their Southwest service). Example, people in tally today take Southwest out of JAX (which may not be a whole lot further than PC, I am guessing under three hours from FSU to JAX without any stops, and with reasonable attention to the speed laws) and

2) I expect they will do a lot of business supporting spring break – I believe PC is still the top US destination, though it never was Ft Laud in the 70s since Cancun had already taken business when Daytona ran spring break out.

Fort Walton may not be too much of a draw, though, since there are enough civilians traveling in and out of VPS with military connection that the flights there are usually somewhat reasonable.

Hmm, how I read the text “Southwest will share profits with St Joe” and “If Southwest loses money on these routes, St Joe will make up the difference every single quarter for 3 full years (St Joe can cancel if the payment is more than $14m the first year and $12m the second)” aren’t directly related, but per the 8k they are. Southwest only has to share its profits upto the amount of the break even payments that St. Joe has made. Separating them out makes it look like Southwest has to share its profits if it is profitable in the first quarter, which it doesn’t.

Ah, I gotcha.

Nope, I got that piece. Second bullet point.

Hmm, how I read the text “Southwest will share profits with St Joe” and “If Southwest loses money on these routes, St Joe will make up the difference every single quarter for 3 full years (St Joe can cancel if the payment is more than $14m the first year and $12m the second)” aren’t directly related, but per the 8k they are. Southwest only has to share its profits upto the amount of the break even payments that St. Joe has made. Separating them out makes it look like Southwest has to share its profits if it is profitable in the first quarter, which it doesn’t.

I know airports can lure new carriers or more service by offering lower or no landing fees for a period of time, or maybe smaller terminal least fees, etc., but is this the first time that a private land developer will pay an airline (or major airline) money to cover any short falls to cover their operating costs?

Well, I think the new Branson Airport might fall into that category, though I believe the airport is independent of any single land company. Still, most airports aren’t private, so it’s the public entity that will offer incentives.

I mean it may be a new airport, but it’s replacing one already there so their has been people flying to Panama City for a long time. The Branson airport was a whole new venture by a city to lure more visitors since the nearest airport was I believe Springfield. But this is an airport replacement so this deal just seems odd to me.
But other airports/airlines will be keeping an eye on it that’s for sure.

You’re right. The nearest airport was Springfield and that airport will continue to operate. The old airport in Panama City was hemmed in by water or swamp or whatever that is there. So expansion wasn’t really possible if they needed it. St Joe is thinking really big here, though that doesn’t mean it will work.

Nicholas Barnard wrote:

Cranky you missed one really important part from the 8K
“It also provides that Southwest’s profits from the air service during the term of the agreement will be shared with St. Joe up to the maximum amount of St. Joe’s prior break even payments.”

Nope, I got that piece. Second bullet point.

So basically St. Joe is giving them an interest free loan that is forgivable if the routes as a whole are not profitable. Basically, Southwest doesn’t have a bunch of skin in this one. but of course they want this to be profitable.

“Some folks may never lose a toe, but then again some folks will…like Cleetus the slack jawed yokel!”