Panama City - Bay County Airport ranked number 18 on the Forbes list of America's rip off airports based on the average cost a ticket costs per mile.
Granted, the airport does not create the ranking. The airlines do. VPS is not on the list. Why? Because that airport is served by more airlines serving more cities, thus, creating competition. PFN is only served by 2 carriers that I know of. The only way to get that average down is to get competition in. The only way to get the competition in is to have a greater demand for service to that airport. Somebody needs to sell all those condos!
No. 18: Panama City-Bay City International Airport
Location: Panama City, Fla.
Average fare per mile: $0.35
Department of Transportation's Origin and Destination Survey
Forbes Magazine has named the current Panama City-Bay County International Airport as the 18th most expensive in the country. That will change with the new airport at West Bay, officials said Monday. Airport Executive Director Randy Curtis said Monday the existing airport is at a competitive disadvantage because of its shorter runway at about 6,300 feet, Curtis said. That limits what airlines can fly into Panama City, and airfares are all about the level of competition between air carriers, he said.
When the new airport is completed in May 2010, with its expected 10,000-foot runway, airport officials are hoping to attract not only low-cost carriers, but also a legacy airline carrier and international flights, Tannehill said. That additional competition should push prices down.
Until then, air travelers will have to make do with the higher prices. According to the article posted to Forbes.com, the writers used data from the Department of Transportation's Origin and Destination Survey. Flights originating from the Panama City airport averaged 35 cents per route mile, the article said.
That was a few pennies more expensive than airports in Pensacola and Fort Walton Beach but less than Dothan, Ala. Cincinnati/Northern Kentucky International Airport, with an average of 48 cents per mile, is the expensive in the country, according to the article. Among the country's cheapest, according to Forbes: Fort Lauderdale/Holly International Airport at 16 cents per mile and Ted Stevens Anchorage International Airport in Alaska at 14 cents.
Curtis said the Pensacola Gulf Coast Regional Airport and the Tallahassee Regional Airport traditionally have been the cheapest airports in the Panhandle, followed by the Northwest Florida Regional Airport in Okaloosa County. However, the Dothan airport's fares typically run a little higher than Panama City's, Curtis said.
"It really gets down to competition," Curtis said.
At an average of 35 cents per route mile, the Panama City-Bay County International Airport tied at 18th in the country with the Memphis International Airport, a major Northwest hub (now Delta-Northwest), and the Ronald Reagan Washington National Airport.
"They are just telling the facts," said Airport Authority Chairman Joe Tannehill. "Our airport is expensive" because it is currently served by smaller planes that can carry fewer passengers. Tannehill said airport officials should have a better idea by the end of the year about which additional carriers might be coming to the new airport.
Sample fares
A Forbes magazine article rated Panama City and other airports on airfares based on cents per route mile. We decided to do a random check Monday on Orbitz.com and found the following prices (including taxes and other fees) quoted for roundtrip fares to Washington, D.C., and Dallas, for flights leaving this Thursday and returning Monday:
To Washington:
Tallahassee Regional Airport - $264
Northwest Florida Regional Airport - $412
Pensacola Gulf Coast Regional Airport - $508
Panama City-Bay County International Airport - $637
Dothan Regional Airport - $1,060
To Dallas:
Tallahassee Regional Airport - $274
Northwest Florida Regional Airport - $474
Pensacola Gulf Coast Regional Airport- $428
Panama City-Bay County International Airport - $647
Dothan Regional Airport - $1,060
Okaloosa County officials have decided not to sue a group of Panama City airport supporters they say petitioned for the closure of the Northwest Florida Regional Airport in Washington, D.C.
"(Okaloosa County commissioners) want to give diplomacy a chance," said County Administrator Jim Curry. "They see any kind of litigation as only a last resort. The primary objective here is the county just wants any further actions and adverse comments about our airport to cease. I think we're optimistic that everyone understands that and we can put this thing to bed and move on."
While meeting with congressmen last month, Okaloosa officials learned of an effort to close Northwest Florida Regional. A delegation of four Panama City-Bay County International Airport supporters had met with the same lawmakers earlier to seek support for closing the airport based on legal grounds with the Air Force.
One of the four people who reportedly met with Washington lawmakers is Jerry Ray, senior vice president of St. Joe Co. and a member of the board of directors of Coastal Vision 3000.
St. Joe donated 4,000 acres for the new airport to be built, while Coastal Vision 3000 is a regional nonprofit organization formed in 2007 to promote Northwest Florida as a tourist destination.
Okaloosa County sent a letter to Coastal Vision 3000 last month seeking Ray's resignation from the board.
Coastal Vision 3000 Chairman Davage "Buddy" Runnels responded in a letter to the county that said Ray would not be forced to resign unless there was evidence he petitioned in Washington for the closure of Northwest Florida Regional.
"I have publicly stated that foundationally Coastal Vision will work in harmony to support all of our airports, to grow and expand all of our markets and assist all of our regional chambers, TDCs and economic development professionals goal to help each other succeed rather than competing for failure," Runnels wrote. "If it is substantiated that any board member representing Coastal Vision has violated that common commitment, I would ask the executive committee to deal with it immediately. We will not deal in innuendos or allegations, but will act upon the truth."
The law firm of Keefe, Anchors, Gordon & Moyle has offered to represent Okaloosa County for free if the county decided to take any legal action on the issue.
Instead, county officials will schedule a meeting with Runnels to discuss the controversy and how to resolve it.
County Commissioner John Jannazo wanted the board to take a more aggressive stance. He recommended at Tuesday's commission meeting that all county agencies that contribute to Coastal Vision 3000 cease their funding until Ray resigns from the group.
"I've lost all confidence in Coastal Vision 3000," Jannazo said.
None of the other commissioners supported taking such a hard line.
The 8,400-foot concrete runway under construction at the new Panama City-Bay County International Airport is almost complete. Construction officials are now just waiting for Federal Aviation Administration environmental approval to begin extending it to 10,000 feet.
"All that really is left is to groove it and paint it," Jeff Dealy, program manager for the relocation project, said Tuesday.
Dealy said the 15 inches of concrete for the $98-million runway is now about 90 percent poured out over 4 inches of asphalt and should be completed by the end of the month. In addition, the dirt work has been completed for the extension, he said.
After the FAA approval comes through, possibly by mid-April, the full 10,000-foot runway should only take about two more months to complete, Dealy said.
One major piece of the airport construction puzzle that still must be decided by the Airport Authority is whether and when to authorize the construction of a 5,000-foot crosswind runway for smaller aircraft.
The smaller asphalt runway, which should cost about $18 million, would be used by lighter commercial and private aircraft and corporate jets and could lesson congestion on the larger runway.
Pilots of larger international flights appreciate the added safety factor of having a crosswind runway, and airport officials are hoping to add international flights when the $318-million airport is completed in May 2010.
Dealy said officials with Phoenix Construction, which had the contract for the site preparation work for the new airport, are hoping for an early decision on the crosswind runway because they still have their equipment located at the site.
If another job comes up and Phoenix has to move the equipment off site, the cost of the smaller runway would rise because they would have to move their equipment back, Dealy said.
In addition, Dealy said construction on the six-building terminal complex is now about 18-percent complete. The complex will consist of a 147-foot air traffic control tower, the main terminal, a public safety building, a maintenance building, a cargo building and a rental car area.