Kurt, is that meant to imply that those are the first four cities???
I heard Nashville and Baltimore are in the first two. And rumors of St. Louis...
Thanks.
Updates about Northwest Florida Beaches International Airport (NWFBIA)
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Kurt, is that meant to imply that those are the first four cities???
I heard Nashville and Baltimore are in the first two. And rumors of St. Louis...
Thanks.
Airport, St. Joe eyeing parity: Added revenue expected from agreement on new industries | North America > United States from AllBusiness.com
The Airport Board is negotiating a "through-thefence" agreement with The St. Joe Co. that officials said will help bring parity between industries that set up shop on airport land and future aircraft-related industries on St. Joe land surrounding the airport. Such an
agreement will hammer out security and safety concerns and bring additional revenue to the airport via fees for access to the airport and its runway. Such agreements are not unusual, airport Executive Director Randy Curtis said Monday, and should benefit both the airport and St. Joe.St. Joe has announced plans to develop about 1,000 acres near the entrance of the new Northwest Florida-Panama City International Airport for industrial, commercial and services-related uses, focusing particularly on aerospace, logistics and defense-oriented technology companies.
St. Joe donated the 4,000 acres on which the airport sits, and the Airport Authority has hired a company to help market and lease the land surrounding the 1,300-acre terminal and runway areas. The lease of this property will produce needed revenue for the airport district.
Businesses off site but with access to the aiport would not contribute financially to the airport district without a "through-the-fence" agreement, Curtis said, offering a competitive advantage that would reduce the capacity of on-site companies to compete for services.
The "master developer" for the airport land, Jones Lang LeSalle, already has opened local office space and is developing a project analysis of how to market and manage the industrial and commercial development of airport land.
In September, St. Joe announced it was creating a new position to focus on companies seeking to expand or relocate to the new airport, such as aerospace, aviation, logistics and defense technology.
St. Joe, Northwest Florida's largest private landowner, owns about 71,000 acres within the West Bay Sector Plan, a state-sanctioned, land-planning blueprint for residential and business development.
In other business, the Department of Environmental Protection signed off Friday on a 1,600-foot runway extension with a letter to the Federal Aviation Administration.
The airport wants to complete the extension in time for a week-long FAA flight test in February. The extra length will bring the runway to 10,000 feet.
Airport officials still are waiting for a similar letter from the U.S. Army Corps of Engineers "concurring with the DEP findings," Curtis said.
The construction of the extension should take from six to eight weeks, so airport officials are not yet feeling time pressure about the Corps letter.
"But the sooner the better," Curtis said.
The Airport Board is negotiating a "through-thefence" agreement with The St. Joe Co. that officials said will help bring parity between industries that set up shop on airport land and future aircraft-related industries on St. Joe land surrounding the airport. Such an
agreement will hammer out security and safety concerns and bring additional revenue to the airport via fees for access to the airport and its runway. Such agreements are not unusual, airport Executive Director Randy Curtis said Monday, and should benefit both the airport and St. Joe.St. Joe has announced plans to develop about 1,000 acres near the entrance of the new Northwest Florida-Panama City International Airport for industrial, commercial and services-related uses, focusing particularly on aerospace, logistics and defense-oriented technology companies.
St. Joe donated the 4,000 acres on which the airport sits, and the Airport Authority has hired a company to help market and lease the land surrounding the 1,300-acre terminal and runway areas. The lease of this property will produce needed revenue for the airport district.
Businesses off site but with access to the aiport would not contribute financially to the airport district without a "through-the-fence" agreement, Curtis said, offering a competitive advantage that would reduce the capacity of on-site companies to compete for services.
The "master developer" for the airport land, Jones Lang LeSalle, already has opened local office space and is developing a project analysis of how to market and manage the industrial and commercial development of airport land.
In September, St. Joe announced it was creating a new position to focus on companies seeking to expand or relocate to the new airport, such as aerospace, aviation, logistics and defense technology.
St. Joe, Northwest Florida's largest private landowner, owns about 71,000 acres within the West Bay Sector Plan, a state-sanctioned, land-planning blueprint for residential and business development.
In other business, the Department of Environmental Protection signed off Friday on a 1,600-foot runway extension with a letter to the Federal Aviation Administration.
The airport wants to complete the extension in time for a week-long FAA flight test in February. The extra length will bring the runway to 10,000 feet.
Airport officials still are waiting for a similar letter from the U.S. Army Corps of Engineers "concurring with the DEP findings," Curtis said.
The construction of the extension should take from six to eight weeks, so airport officials are not yet feeling time pressure about the Corps letter.
"But the sooner the better," Curtis said.
Details of Southwest Airlines and St. Joe ?Partnership? | pcbdaily.com
by Jason Koertge on November 2, 2009
It was made quite clear by Bob Montgomery, Vice President of Properties for Southwest Airlines, that if it weren?t for St. Joe, Southwest Airlines wouldn?t be coming to Panama City. The discussions between St. Joe and Southwest Airlines began over a decade ago. One of the things that was explained to me a short while ago was that Southwest Airlines can go where ever they want to go; they just pick an airport, and the airport accommodates. I was told that Southwest coming to Panama City made absolutely no sense from a business perspective and the prospect encompassed more risk than a company like Southwest would be willing to take. But, what if the risk was mitigated by a third party? That was their ticket into our market.
Read on for all the facts.
Rumors were flying around over the summer that St. Joe offered to give Southwest $10 million. A comment was made here on pcbdaily.com that $10 million was peanuts for a company like Southwest. And while I don?t necessarily disagree, a little subsidy money never hurts, even if it isn?t lining the pockets of SWA.
Of course, it should be noted at this time that the agreement for Southwest Airlines to come to Panama City is more complex than St. Joe offering a little incentive. The entire arrangement is only grounded by St. Joe?s offering, but it actually consists of several moving parts and pieces (more on that another time).
So, what did it take to woo the coveted Southwest Airlines to our beaches? The commitment from St. Joe involved money to the tune of $26 million over the course of 2 years. Specifically, St. Joe agreed to pay Southwest Airlines up to $14 million the first year of operations and up to $12 million the second year. Conversely, if Southwest operated at a profit, they?ve agreed to share that profit with St. Joe.
What does all this mean? Well, to put it simply, Southwest Airlines has a fixed cost (well, it varies a little based on fuel costs) to operate its jets. Given their experience, they?ve estimated approximately how much it would cost for them to bring service to the Northwest Florida Panama City International Airport. Therefore, Southwest agreed that if St. Joe will pay up to $14 million in the first year and up to $12 million in the second year to ensure no loss in revenue, it would make sense for them to service and build a market for our area.
By now, I?m sure you read the opinion piece I wrote refuting Carlton Proctor?s Pensacola News Journal article discussing his disagreement with Southwest ?[ignoring] its long-standing and highly successful business plan,? citing that they were ?bought? by St. Joe. Bought sounds like such a nasty term, used in this context; it insinuates a negative connotation in that mitigating risk is a bad thing.
The reality is risk-mitigation is a good thing, just ask any insurance professional. If one can stand to turn a profit with little or no risk, what?s wrong with that? Isn?t that the capitalistic American Way? Southwest is a publicly traded company and has a duty to please its share-holders. An opportunity to expand market share, increase customer reach, grow the company and in turn increasing revenue all while mitigating risk sounds great to me if I was a shareholder!
But, I digress, on to the details.
St. Joe has agreed to pay Southwest quarterly payments if Southwest operates at a loss for the first 2 years of a 3 year agreement. At the end of the agreement, either party can terminate if certain criterion are met. If St. Joe has had to pay in excess of the agreed amounts they can back out. If Southwest Airlines ?actual annual revenues attributable to the air service at the new airport are less than certain minimum annual amounts established in the agreement,? they can back out. Furthermore, 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?
The idea here is to have a fair and equitable agreement that is mutually beneficial for both companies with the ultimate benefactor being Bay County and the Northwest Florida Regional Area. Sure St. Joe stands to make a profit with all of their land surrounding the airport, but shall we go back into the publicly traded company Capitalistic American Way discussion again?
It makes sense when two companies plan to increase market share and generate more revenue that if they can work together to decrease risk, that they do in fact do that. For both companies, it is about managing risk. St. Joe decreases their risk in holding all that land with the opportunity at future development by partnering with Southwest to bring more people into the market; and Southwest decreases their risk by accepting payments from St. Joe so that their cost to enter a market is little to nothing with an opportunity to grow substantial profits in the future.
Who wins with this? We all do.
by Jason Koertge on November 2, 2009
It was made quite clear by Bob Montgomery, Vice President of Properties for Southwest Airlines, that if it weren?t for St. Joe, Southwest Airlines wouldn?t be coming to Panama City. The discussions between St. Joe and Southwest Airlines began over a decade ago. One of the things that was explained to me a short while ago was that Southwest Airlines can go where ever they want to go; they just pick an airport, and the airport accommodates. I was told that Southwest coming to Panama City made absolutely no sense from a business perspective and the prospect encompassed more risk than a company like Southwest would be willing to take. But, what if the risk was mitigated by a third party? That was their ticket into our market.
Read on for all the facts.
Rumors were flying around over the summer that St. Joe offered to give Southwest $10 million. A comment was made here on pcbdaily.com that $10 million was peanuts for a company like Southwest. And while I don?t necessarily disagree, a little subsidy money never hurts, even if it isn?t lining the pockets of SWA.
Of course, it should be noted at this time that the agreement for Southwest Airlines to come to Panama City is more complex than St. Joe offering a little incentive. The entire arrangement is only grounded by St. Joe?s offering, but it actually consists of several moving parts and pieces (more on that another time).
So, what did it take to woo the coveted Southwest Airlines to our beaches? The commitment from St. Joe involved money to the tune of $26 million over the course of 2 years. Specifically, St. Joe agreed to pay Southwest Airlines up to $14 million the first year of operations and up to $12 million the second year. Conversely, if Southwest operated at a profit, they?ve agreed to share that profit with St. Joe.
What does all this mean? Well, to put it simply, Southwest Airlines has a fixed cost (well, it varies a little based on fuel costs) to operate its jets. Given their experience, they?ve estimated approximately how much it would cost for them to bring service to the Northwest Florida Panama City International Airport. Therefore, Southwest agreed that if St. Joe will pay up to $14 million in the first year and up to $12 million in the second year to ensure no loss in revenue, it would make sense for them to service and build a market for our area.
By now, I?m sure you read the opinion piece I wrote refuting Carlton Proctor?s Pensacola News Journal article discussing his disagreement with Southwest ?[ignoring] its long-standing and highly successful business plan,? citing that they were ?bought? by St. Joe. Bought sounds like such a nasty term, used in this context; it insinuates a negative connotation in that mitigating risk is a bad thing.
The reality is risk-mitigation is a good thing, just ask any insurance professional. If one can stand to turn a profit with little or no risk, what?s wrong with that? Isn?t that the capitalistic American Way? Southwest is a publicly traded company and has a duty to please its share-holders. An opportunity to expand market share, increase customer reach, grow the company and in turn increasing revenue all while mitigating risk sounds great to me if I was a shareholder!
But, I digress, on to the details.
St. Joe has agreed to pay Southwest quarterly payments if Southwest operates at a loss for the first 2 years of a 3 year agreement. At the end of the agreement, either party can terminate if certain criterion are met. If St. Joe has had to pay in excess of the agreed amounts they can back out. If Southwest Airlines ?actual annual revenues attributable to the air service at the new airport are less than certain minimum annual amounts established in the agreement,? they can back out. Furthermore, 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?
The idea here is to have a fair and equitable agreement that is mutually beneficial for both companies with the ultimate benefactor being Bay County and the Northwest Florida Regional Area. Sure St. Joe stands to make a profit with all of their land surrounding the airport, but shall we go back into the publicly traded company Capitalistic American Way discussion again?
It makes sense when two companies plan to increase market share and generate more revenue that if they can work together to decrease risk, that they do in fact do that. For both companies, it is about managing risk. St. Joe decreases their risk in holding all that land with the opportunity at future development by partnering with Southwest to bring more people into the market; and Southwest decreases their risk by accepting payments from St. Joe so that their cost to enter a market is little to nothing with an opportunity to grow substantial profits in the future.
Who wins with this? We all do.
Name has changed to:
Northwest Florida Beaches International Airport (NWFBIA)
Airport authority voted 3-2 to change the name from Northwest Florida-Panama City International Airport.
Northwest Florida Beaches International Airport (NWFBIA)
Airport authority voted 3-2 to change the name from Northwest Florida-Panama City International Airport.
I 
it!
it!
Amazing that such an important decision would not be unanimous and so controversial. This 3-2 vote needs some vetting. NWFL Daily News, front page, 11-11-09 said "Bay Airport Authority Vice Chairman Bill Cramer didn't care for the new name. He said its "Beaches" moniker made the Panhandle seem too "one-dimensional."
This entire scenario is on the verge of being totally ridiculous...
I agree with that statement of airport authority vice chairman, Bill Cramer -- the new name is too "one-dimensional." I've said it all along with the group, THE Beach. That name rules out all things north of the beaches, which includes much more property than the beach areas. With the West Bay Sector's growth, I'm sure many people in the future will be questioning the name as well. In my opinion, from a marketing standpoint, the new name is still waaaayyyyy too long to roll off the tongue with ease.