St. Joe ends guarantee agreement with Southwest Airlines

The St. Joe Company announced July 2nd the early termination of the strategic alliance agreement for air service between Southwest Airlines and St. Joe.  In attempts to lure Southwest to the Northwest Florida Beaches International Airport (ECP), St. Joe entered into a 3 year agreement & guaranteed to cover up to $26 million in losses during the first 3 years of operation at ECP.  Although St. Joe hasn't been required to make any payments under the agreement, it was intended to serve as insurance for Southwest while the airport got on it's feet and built up passengers. The early termination is effective July 1, 2012.  The agreement was set to expire May 2013.  Despite ending the agreement early, Southwest just extended it's lease with the airport through 2015.  Currently Southwest Airlines accounts for more than half of the passenger totals traveling through the new airport.