I wonder what effect the provision below between Southwest and St Joe (Panama City) will have on the perspective acquisition considering Pensacola is about 110 miles from the new Panama City airport. Is such a thing even legal in the eyes of the FAA/DOT?
Southwest has agreed that it will not commence air service to any airport within 80 statute miles of the new airport during the term of the agreement. In the event Southwest starts service to any airport that is more than 80 statute miles but within 120 statute miles from the new airport during the term, Southwest and St. Joe will either negotiate a modification to the terms of the agreement to accommodate the impact of such service or the minimum revenues used in the annual break even calculations under the agreement will automatically be increased by 10%. In such event, Southwest has agreed that the air service to the new airport in Bay County would not be diminished.
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