Panama City Beach - Sunday Airport Discussion

America's struggling airline industry needs more travelers in more seats going to more places. That eventually could determine success of Northwest Florida Regional Airport, Pensacola Gulf Coast Regional Airport or Panama City-Bay County International Airport.

"When you have airports as close together as we are, the competition is there," said Frank Miller, the longtime boss at Pensacola's airport. "We're all going after the same passengers." Earlier this year, Pensacola added "Gulf Coast" to its name. It also has a $35 million expansion in progress.
In Valparaiso, the former Okaloosa Regional Airport now is Northwest Florida Regional.

And in Bay County, the $315 million airport scheduled for completion in 2010 has been trumpeting its "international" title for most of this year.

When you factor in the merger of Delta and Northwest airlines, it's been an interesting first year for Greg Donovan, Okaloosa County's airports director. "We need to have commercial service for military personnel, dependents and contactors. That's where the core value of our airport is," Donovan said. "The additional value is to help our region." For years, Northwest Florida Regional has been fighting the fact that people in Okaloosa County have been driving to Pensacola to get lower fares. But a recent Travelocity study of the top 20 destinations in this region shows that Northwest Florida Regional has lower fares to 11 of them. That includes Atlanta, Chicago, Colorado Springs, Colo., Kansas City, Mo., Las Vegas, Los Angeles, Memphis, Tenn., Minneapolis, Orlando, San Francisco and St. Louis. And there are other numbers Donovan likes to share. In 2007, Northwest Florida Regional's cost per enplaned passenger was $3.90, well below the Florida airports' median cost of $5.34. Likewise, the airport's debt per enplaned passenger was $45. That again was below the Florida median of $46.43. And charting the 12 months from November 2007 to November 2008, Northwest Florida Regional was the only airport in Florida to have an increase (3.8 percent) in available seats. "We have that capacity, and I need people to use it," Donovan said. "We need to solidify a level of loyalty with people here looking at this airport as community resource instead of an institution on the Air Force base."

In Bay County, airport officials are placing most of their hopes in the 10,000-foot runway, which will be able to accommodate international flights. Once completed, the new Panama City-Bay County International Airport will be the largest in Northwest Florida. The airport is set to open in May 2010, and officials say they are working to secure a new legacy airline carrier, a discount carrier and FedEx.

In Pensacola, Miller was Donovan's boss for six-plus years. Miller said he considers Mobile, Ala., Regional Airport and Northwest Florida Regional as his main competition. He points to having low-cost carrier Air Tran as an advantage Northwest Florida Regional does not. And he admits everyone still is keenly interested in securing the big prize: Southwest Airlines. "Every airport wants a carrier like Southwest, and we've got a very strong business market here besides the leisure market," Miller said. "Anybody who would get Southwest would say it's a winner." Donovan says he's been talking with Southwest and will continue to do so. Meanwhile, a $14.7 million project under way will provide a new rental car facility on 20 acres east of the airport's terminal. The expansion, which will include a fuel farm for aircraft and rental cars and maintenance and cargo building, is expected to be completed in May 2009. But a $32 million terminal expansion has been put on hold because of the economic slump, Donovan said.

I live in Nashville. Generally fairs to the coast are $700+. Not sure about other markets. We need some competition in Panama City Beach to bring prices down and increase air traffic to the area. Hopefully the Bay County Airport can land Southwest and make it happen.

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