DeLand, FL – A low-cost airline’s arrival in Daytona Beach next year will come with some county money attached.
During Thursday’s meeting at the Historic Courthouse in DeLand, the Volusia County Council unanimously approved a $300,000 incentive package for JetBlue to begin non-stop daily service from Daytona Beach to New York City in January.
A ribbon-cutting ceremony will be held on January 7th once the first JetBlue flight arrives at Daytona Beach International Airport from John F. Kennedy International Airport, according to county spokesman Dave Byron.
$190,000 in that one-time incentive package – labeled by county staff as “revenue risk mitigation support” – will come from the county’s economic development fund. Another $95,000 will come from the CEO Business Alliance and the remaining $15,000 will be from Consolidated Tomoka Land Company.
The county will pay all that money directly to JetBlue in the form of 4 quarterly payments of $75,000 each so long as JetBlue keeps flying in and out of Daytona Beach.
The $300,000 amount was negotiated between the county and JetBlue after airline officials initially requested $700,000, according to the agenda item paperwork.
The paperwork also noted that the incentive package is part of a $2.3 million package used to lure JetBlue to Daytona Beach. That package includes a $250,000 “travel bank” where prominent local business pledged money for ticket purchases for the next 2 years.
Daytona Beach will become the 7th Florida city JetBlue services and its smallest market in the state. JetBlue also flies into Fort Lauderdale, Fort Myers, Jacksonville, Orlando, Sarasota and West Palm Beach.
JetBlue is expected to generate $298,000 in revenue to the county yearly as part of its lease agreement, not including the joint use portion for the baggage claim areas. That lease runs until October 2017.
Also during Thursday’s meeting, the VCC approved a similar lease agreement with American Airlines to continue flying out of DBIA until October 2017. The county-run airport will make $289,932 yearly from American, again not including the joint use portion for the baggage claim areas.
American took over the US Airways location at DBIA in October following a merger between the 2 companies that created the world’s largest airline.
The lease for Delta Air Lines – the only other airline that flies regularly in and out of DBIA besides JetBlue and American – also expires in October 2017.
Copyright 2015 Southern Stone Communications.