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St. Joe & WN End Guarantee Program At ECP  
User currently offlineLoneStarMike From United States of America, joined Jul 2000, 3867 posts, RR: 34
Posted (2 years 5 months 2 weeks 6 days 3 hours ago) and read 2100 times:

From The Dallas Morning News:

St. Joe Co., Southwest Airlines end guarantee program on Florida airport
July 2, 2012

Quote:
...The developer and airline announced Monday that the guarantee has been terminated early, with no need to pay Southwest anything.

In the St. Joe announcement, Southwest vice president of properties Bob Montgomery said the “financial safety net provided by St. Joe was instrumental in attracting Southwest” to the new airport, which opened in May 2010.

“In every respect, the agreement with St. Joe has been a triumph,” Montgomery said. “It has fulfilled its mission and achieved its intended purpose.”

I guess if both parties are terminating the guarantee a year early, WN must be making a profit at ECP.

The article also mentioned that ECP was carrying 25% of the Northwest Florida Panhandle traffic - up from 9% before the airport opened and that WN's share at ECP was 57%

Edited to add another article from the News Herald in Panama City:

St. Joe, Southwest end financial agreement
Airline's success means pact no longer needed, officials say

July 2, 2102

Quote:
“I think this shows that Southwest is doing better than we thought,” said John Wheat, the airport’s executive director. “This is nothing but good news.”

The Northwest Florida Beaches International Airport has grown from capturing 9 percent of the Panhandle market share in 2009 to 25 percent this year, Wheat said.

Southwest has extended its lease agreement with the airport through 2015.

LoneStarMike

[Edited 2012-07-03 00:55:05]

3 replies: All unread, jump to last
 
User currently offlineQANTAS747-438 From United States of America, joined Jan 2001, 1984 posts, RR: 2
Reply 1, posted (2 years 5 months 2 weeks 6 days 2 hours ago) and read 2048 times:

Wow, that's good news for both parties. It also answers the question as to how ECP is performing for WN.


My posts/replies are strictly my opinion and not that of any company, organization, or Southwest Airlines.
User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6730 posts, RR: 24
Reply 2, posted (2 years 5 months 2 weeks 5 days 21 hours ago) and read 1844 times:

It also frees WN to add service at PNS however it likes. The agreement with St. Joe restricted adding service at nearby markets.

User currently offlineLoneStarMike From United States of America, joined Jul 2000, 3867 posts, RR: 34
Reply 3, posted (2 years 5 months 1 week 5 days 19 hours ago) and read 1246 times:

Quoting FlyPNS1 (Reply 2):
It also frees WN to add service at PNS however it likes

PNS was part of the reason, but the other reason is under the terms of the agreement, WN was required to serve the initial 4 cities with twice daily service. Now they don't. In fact, with this latest schedule release, WN has eliminated service between MCO & ECP.

Brett Snyder of The Cranky Flier had a blog on this issue today.

Southwest Rightly Kills A Successful Subsidy on the Florida Panhandle

LoneStarMike


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