LoneStarMike
Topic Author
Posts: 2802
Joined: Sat Jul 01, 2000 1:02 pm

St. Joe & WN End Guarantee Program At ECP

Tue Jul 03, 2012 7:29 am

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]
 
QANTAS747-438
Posts: 1660
Joined: Mon Jan 22, 2001 7:01 am

RE: St. Joe & WN End Guarantee Program At ECP

Tue Jul 03, 2012 8:18 am

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.
 
FlyPNS1
Posts: 5272
Joined: Wed Dec 01, 1999 7:12 am

RE: St. Joe & WN End Guarantee Program At ECP

Tue Jul 03, 2012 1:24 pm

It also frees WN to add service at PNS however it likes. The agreement with St. Joe restricted adding service at nearby markets.
 
LoneStarMike
Topic Author
Posts: 2802
Joined: Sat Jul 01, 2000 1:02 pm

RE: St. Joe & WN End Guarantee Program At ECP

Tue Jul 10, 2012 3:41 pm

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