For visiting public and private sector leaders from Tampa who came to South and Central Florida on Monday to tour Brightline’s higher-speed rail system, a conductor’s announcement like that would be music to their ears. They traveled from Miami to Orlando for one reason: They want the line extended to their town, more than a decade after the idea for higher-speed rail service was sidetracked amid partisan politics.

The group of 50 officials led by Tampa Mayor Jane Castor flew to Miami, met with Miami-Dade County Mayor Daniella Levine Cava and Brightline executives, then toured Brightline’s MiamiCentral station downtown. They boarded a train for a midday tour of the West Palm Beach station, which is expected to be “similar in scope for a future Tampa station,” the company said in a statement. They resumed their trip with a ride along Brightline’s new 170-mile extension to Orlando International Airport, where they were met by Kevin Thibault, the Executive Director and CEO of the Greater Orlando Aviation Authority, Orlando city Commissioner Jim Gray and other community leaders.

The rail line, which started operations in 2018 and now serves Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm Beach and Orlando, is fast becoming a showcase for the future of regional higher-speed rail in the United States.

Late last month, U.S. Transportation Secretary Peter Buttigieg took a southbound ride out of West Palm Beach to highlight the billions of dollars the Biden Administration is making available for new rail development and rehabilitation projects around the nation. Although Brightline is mainly funded with private money, federal grants have flowed to the rail line for safety projects, and high-speed rail projects now on the drawing boards elsewhere are looking to Washington for funds.

They are the types of dollars — $2.4 billion to be exact — that former Gov. Rick Scott rejected in 2011 for a high-speed rail project between Tampa and Orlando. After Scott derided the idea as “Obamarail” and a potential burden on state taxpayers, the federal money was reallocated to other states.

During Monday’s tour of the West Palm Beach station, it didn’t take much prompting to elicit regrets over what could have been from Castor, now in her second term as Tampa’s mayor. or from her predecessor, Bob Buckhorn, who is helping to advance the cause for an Orlando-Tampa extension.

“I’m not sure that I’ll ever get over that,” Castor told the South Florida Sun Sentinel. “Where we could be right now had we accepted that federal high-speed rail funding years ago … but I try not to dwell on the past.”

Buckhorn, a two-term former Tampa mayor who served from 2011 to 2019, is working for a law firm that advises Brightline on community relations.

“I lived through Gov. Scott canceling the high-speed rail and bemoaning that fact.,” he said. “Now we have the opportunity to do it. This ends up in a strange perverse way as a win for the state and a win for Tampa, for sure.”

Model for transit-oriented development

Before the station tour, West Palm Beach Mayor Keith James took to a lectern to declare Brightline as an important catalyst for his city’s downtown redevelopment.

He spoke of a once-desolate area that is now anchored by the Brightline station and surrounded by a walkable neighborhood filled with condos, apartments and offices.

“We basically called it the donut hole because there was nothing there,” James told the visiting dignitaries. “Literally, no development, a few rundown buildings, the street lighting was horrible, and you would take your life into your own hands if you tried to walk from CityPlace, which was a bustling outdoor retail location.”

“What I can tell you is that nothing would have happened without this Brightline station,” he added. “This particular station is perfectly situated in the heart of our business district. You look behind me and you can see city hall where the dome is and some other buildings going up. It’s the perfect place for the growing economic base of workers and visitors. And the station is within walking distance of a number of classy office spaces, dozens of fine restaurants, and our outstanding waterfront.”

In an interview, Castor said local groups in Hillsborough County are coalescing into a working relationship that will ultimately bring rail service to Tampa from Orlando along the busy 83-mile I-4 corridor, which is routinely clogged with visitors and commuters.

“It’s nice that we can actually see that light at the end of the tunnel and have that Orlando to Tampa connection done in the next few years,” Castor said. “The impact it would have on our economy is remarkable.”

Buckhorn agreed.

“What we see here in West Palm is what we hoped back then would happen” in Tampa, he said.  “We were in support of this in the early days. We wrote letters on behalf of Brightline as they were constructing this (South Florida) leg of it. Now, it’s our turn.”

For visiting public and private sector leaders from Tampa who came to South Florida on Monday to tour Brightline’s higher-speed rail system, a conductor’s announcement like that would be music to their ears. They traveled to the tri-county area for one reason: They want the line extended to their town, more than a decade after the idea for higher-speed rail service was sidetracked amid partisan politics.

The group of 50 officials led by Tampa Mayor Jane Castor flew to Miami, met with Miami-Dade County Mayor Daniella Levine Cava and Brightline executives, then toured Brightline’s MiamiCentral station downtown. They boarded a train for a midday tour of the West Palm Beach station, which is expected to be “similar in scope for a future Tampa station,” the company said in a statement. They resumed their trip with a ride along Brightline’s new 170-mile extension to Orlando International Airport.

The rail line, which started operations in 2018 and now serves Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm Beach and Orlando, is fast becoming a showcase for the future of regional higher-speed rail in the United States.

Late last month, U.S. Transportation Secretary Peter Buttigieg took a southbound ride out of West Palm Beach to highlight the billions of dollars the Biden Administration is making available for new rail development and rehabilitation projects around the nation. Although Brightline is mainly funded with private money, federal grants have flowed to the rail line for safety projects, and high-speed rail projects now on the drawing boards elsewhere are looking to Washington for funds.

They are the types of dollars — $2.4 billion to be exact — that former Gov. Rick Scott rejected in 2011 for a high-speed rail project between Tampa and Orlando. After Scott derided the idea as “Obamarail” and a potential burden on state taxpayers, the federal money was reallocated to other states.

During Monday’s tour of the West Palm Beach station, it didn’t take much prompting to elicit regrets over what could have been from Castor, now in her second term as Tampa’s mayor. or from her predecessor, Bob Buckhorn, who is helping to advance the cause for an Orlando-Tampa extension.

“I’m not sure that I’ll ever get over that,” Castor told the South Florida Sun Sentinel. “Where we could be right now had we accepted that federal high-speed rail funding years ago … but I try not to dwell on the past.”

Buckhorn, a two-term former Tampa mayor who served from 2011 to 2019, is working for a law firm that advises Brightline on community relations.

“I lived through Gov. Scott canceling the high-speed rail and bemoaning that fact.,” he said. “Now we have the opportunity to do it. This ends up in a strange perverse way as a win for the state and a win for Tampa, for sure.”

Model for transit-oriented development

Before the station tour, West Palm Beach Mayor Keith James took to a lectern to declare Brightline as an important catalyst for his city’s downtown redevelopment.

He spoke of a once-desolate area that is now anchored by the Brightline station and surrounded by a walkable neighborhood filled with condos, apartments and offices.

“We basically called it the donut hole because there was nothing there,” James told the visiting dignitaries. “Literally, no development, a few rundown buildings, the street lighting was horrible, and you would take your life into your own hands if you tried to walk from CityPlace, which was a bustling outdoor retail location.”

“What I can tell you is that nothing would have happened without this Brightline station,” he added. “This particular station is perfectly situated in the heart of our business district. You look behind me and you can see city hall where the dome is and some other buildings going up. It’s the perfect place for the growing economic base of workers and visitors. And the station is within walking distance of a number of classy office spaces, dozens of fine restaurants, and our outstanding waterfront.”

In an interview, Castor said local groups in Hillsborough County are coalescing into a working relationship that will ultimately bring rail service to Tampa from Orlando along the busy 83-mile I-4 corridor, which is routinely clogged with visitors and commuters.

“It’s nice that we can actually see that light at the end of the tunnel and have that Orlando to Tampa connection done in the next few years,” Castor said. “The impact it would have on our economy is remarkable.”

Buckhorn agreed.

“What we see here in West Palm is what we hoped back then would happen” in Tampa, he said.  “We were in support of this in the early days. We wrote letters on behalf of Brightline as they were constructing this (South Florida) leg of it. Now, it’s our turn.”

Lt. Gov. Jeanette Nunez hinted at the issue Saturday as she spoke during the Republican Party of Florida’s “Freedom Summit” in Kissimmee. A year-long program of providing credits to motorists who frequently use toll roads is scheduled to expire Dec. 31.

“Our administration is committed to relieving some of that financial burden, relieving some of that stress,” Nunez said during the event at the Gaylord Palms Resort. “And we’re going to continue to do so by providing tax relief and toll relief.”

The event focused on the 2024 presidential race, with speakers including DeSantis, former President Donald Trump and other candidates. State leaders also touted actions they have taken, as the GOP has complete control of Florida government.

DeSantis, who is expected in the coming weeks to outline a proposed budget for the 2024-2025 fiscal year, discussed measures that have expanded gun rights, targeted the Chinese Communist Party by restricting land purchases by people from China and removed such things as “diversity, equity and Inclusion” programs from schools and businesses.

During her comments, Nunez pointed to a package of tax breaks that passed for the current fiscal year, and she included the toll-credit program as a way “to reduce the burden caused by the Biden administration.”

The toll program went into effect on January 1. It provides 50 percent credits to people who use SunPass or other Florida transponders and make 35 or more toll-road trips a month.

At the time, Moody’s Investors Service warned that Florida lawmakers should anticipate some “political and social” pressure when the program ends.

The financial rating agency said the program would “buoy” toll-road demand without reducing revenues because the state is offsetting lost toll dollars. But the agency also questioned what could occur when the temporary program expires.

“If individual toll roads decide to continue this program beyond its expiration or implement other major discounts without any offsetting mechanisms from the state, toll revenue will decline despite the induced demand,” Moody’s said in a report. “If roads decide to revert to full toll rates in 2024, they will face political and social pressure from drivers when the discounts expire.”

The program, approved by the Legislature during a December 2022 special session, expanded on a similar credit program that touched fewer toll roads.

Through September, the state had issued $343.4 million in credits through the current program.

For September, fares declined nationally by 13% when compared with September 2022, according to data from the U.S. Bureau of Labor Statistics. They were down 6.5% from September 2019, which was months before the COVID-19 pandemic broke out.

While consumers whipsawed by sharply higher prices are happy to be cut a break, airline managements have started to adjust their strategies for the coming year amid slippages in demand and persistently high fuel costs.

Financially, the year is becoming a turbulent one for the airlines, according to data from the U.S. Department of Transportation, which reported an industrywide net loss among 26 scheduled airlines of $1.2 billion in the first quarter and a net profit of $5.5 billion in the second quarter. But as the third quarter reporting period unfolds, the results have been mostly losses or lower profits for carriers checking in thus far, highlighted by Delta reporting a large profit while American posted a sizable loss.

South Florida-based ultra low cost carrier Spirit Airlines, which posted a $157.6 million net loss, said it would scale back its growth plans. JetBlue Airways of New York, which wants to take over Spirit, lost $153 million and forecast another deficit for the fourth quarter.

Southwest Airlines, which posted a profit that was 30% below last year’s third quarter, announced changes in its route system starting in June 2024. The plan includes the shift to Orlando of most of its nonstop international flights from Fort Lauderdale-Hollywood International Airport.

While no one is forecasting a financial washout for any of the airlines, the industry landscape is undergoing changes as the larger carriers start making things uncomfortable for the low-cost budget carriers, analysts say.

Budget carriers under pressure

“None of the budget airlines at least for now are at the risk of bankruptcy,” said Henry Harteveldt, of Atmosphere Research Group, a San Francisco-based advisory firm. “They all have cash balances and assets they can leverage to raise additional cash if necessary.”

“However, it’s very clear that larger airlines are starting to leverage their basic economy fare products more than they have in the past to compete for the customer base,” he said. “And that is going to make life more difficult for the budget airlines.”

“Southwest has been very aggressive so far this fall in offering a number of fare sales sometimes with flights starting as low as $29,” Harteveldt said.

Moreover, infrequent travelers who are “brand agnostic” are checking out amenities offered by the bigger airlines as alternatives to fee-based onboard services offered by the discount carriers.

“The airline industry is brutal when it comes to price-based competition,” Harteveldt said. “Our research shows 15% of passengers have loyalty.to some airline or alliance while 85% are making their airline purchasing decisions trip-to-trip. A lot of them divide their loyalties among multiple airlines.”

A takeover hangs in the balance

Looming in the background is the Biden Administration’s antitrust lawsuit that seeks to stop JetBlue’s $3.8 billion takeover of Spirit. The U.S. Justice Department, in concert with several Northeast states and the District of Columbia, argue the takeover would raise prices for consumers because Spirit would disappear after a deal is closed.

The case went to trial in a Boston federal court last Tuesday.

A win for the government would likely dash JetBlue’s expansion plans, which the carrier argues are critical for it to grow and offset a so-called “Big Four” domination of the industry by American, Delta, Southwest and United. A defeat would also likely squelch JetBlue’s ambitions to expand across Florida.

South Florida’s three international airports are among the most well-served in the country by lower-cost airlines ranging from Spirit and JetBlue to Allegiant and Sun Country. At Fort Lauderdale-Hollywood International relative newcomers Avelo and Flair have entered the picture, providing consumers with travel choices to cities that were unavailable before those carriers took flight.

For its part, Allegiant Air, which is the centerpiece of a travel company based in Las Vegas, Nev., is hoping for a JetBlue court victory in Boston.

In a September deal designed to help mitigate government concerns that JetBlue’s takeover of Spirit would boost consumer prices, JetBlue agreed to transfer to Allegiant all Spirit holdings at Boston Logan International Airport and Newark Liberty International Airport. JetBlue would also turn over up to five gates and related ground facilities at Fort Lauderdale-Hollywood International “to promote ultra-low-cost carrier growth,” the airlines said.

The deal followed another by JetBlue that would shift Spirit’s holdings at New York’s LaGuardia Airport to Denver-based Frontier.

Approvals of both deals are required from local airport authorities, the FAA and DOT, and would occur after the closing of JetBlue’s buyout of Spirit in the first half of 2024.

In theory, the agreements would redistribute discounted flight services to consumers flying out of Fort Lauderdale to two other airlines — Frontier and Allegiant.

Allegiant, which along with Frontier also posted losses in the third quarter, is sticking with its strategy of providing unbundled fares off a low base price.

“Affordable fares are the foundation of Allegiant’s business model and consumers can continue to expect industry-low fares across our network,” the company said in a statement to the South Florida Sun Sentinel.

In the interim, will fares industrywide continue their downward trend?

“There is still a lot of uncertainty,” Harteveldt said. “What happens if there is a government shutdown? What happens if we have more strikes or if strikes are resolved? American and United are negotiating with the unions representing flight attendants.”

A likely outcome: Higher labor costs, and, perhaps, higher fares.

“This morning, the monorail experienced a flat tire near the Epcot parking lot toll plaza. No guests or cast members have reported injuries, and all passengers were safely evacuated,” according to an official Disney statement distributed to the media.

Photographs posted online show emergency vehicles and workers positioned beneath the rail and the halted yellow-striped train that was en route to Epcot.

An evacuated passenger told Fox 35 News that he had smelled burning rubber, heard a loud bang and saw a flash of light before the monorail stalled.

The monorail system has been a staple of Disney World since opening in 1971 when it connected the TTC with Magic Kingdom and resorts around the Seven Seas Lagoon. It expanded to include Epcot when the theme park debuted in 1982.  The areas are also accessible by Disney World buses.

dbevil@orlandosentinel.com

The administration is suing to block JetBlue’s proposed $3.8 billion acquisition of South Florida-based Spirit Airlines. The trial in federal district court in Boston could reshape the market for low-cost airlines — Spirit is by far the nation’s biggest budget carrier, and it will disappear if JetBlue wins the case.

As the trial began with opening statements from lawyers for sides, shares of JetBlue were falling to their lowest levels in more than a decade after the airline reported a wider loss than expected in the third quarter and predicted another surprisingly large loss for the fourth quarter.

Executives declined to take questions about the Spirit deal. CEO Robin Hayes said it would be inappropriate while the matter was being debated in court.

The Justice Department is fresh off victory in a previous lawsuit that killed a partnership between JetBlue and American Airlines.

JetBlue isn’t exactly the sort of behemoth that comes to mind when imagining a defendant in an antitrust case. It is the sixth-largest U.S. airline by revenue, and it is trying to buy the seventh-biggest. If it swallows Spirit, JetBlue will leapfrog Alaska Airlines but still control less than 10% of the U.S. air-travel market. It would remain far smaller than American, United, Delta or Southwest.

But if JetBlue gets its way, it will grow its fleet about 70%, repaint Spirit’s yellow planes and make them less cramped inside.

The New York carrier argues that it needs Spirit to bulk up and compete better against the bigger airlines. JetBlue touts itself as “one of the most disruptive and innovative companies in the history of the airline industry,” and says it can bring down fares if it can go head-to-head against the Big Four on more routes.

The Justice Department argues, however, that Spirit is the disruptive force that needs to be protected.

“Consumers are better off with an independent Spirit, not a JetBlue intent on removing seats from planes and charging higher fares,” government lawyers argued in their pre-trial brief. They say the harm will fall hardest on cost-conscious consumers.

JetBlue says the vacuum left by Spirit would be filled by growth from other discount airlines. The Justice Department says that is unlikely because all airlines, including the budget carriers, face limits to growth including shortages of planes and pilots.

Spirit, which is based in Miramar, is known as an “ultra-low-cost carrier,” the name given to airlines that tout rock-bottom fares but make up for it by charging high fees for things like checking a bag or carrying one on board. Spirit even charges for soft drinks. Personal-finance site Nerdwallet said passengers should expect to pay $137 in fees on a typical one-way flight, compared with $35 or less at the bigger airlines — including JetBlue.

This isn’t the first time that the government has challenged an airline merger. In 2013, regulators sued to stop the merger of American Airlines and US Airways. The deal, which created the world’s biggest carrier, went through without a trial, however, after the airlines agreed to give up some gates and takeoff and landing rights at seven major airports.

JetBlue tried that strategy: It offered to divest gates and landing and takeoff rights and gates in Boston, the New York City area and Fort Lauderdale, to Frontier and Allegiant. The government scoffed at the offer, saying those discount carriers have pledged to fly the same routes that Spirit flies now.

The Biden administration may be having remorse for mergers that the Obama administration allowed to go through and which eliminated Northwest, Continental, US Airways and AirTran as competitors to the four largest U.S. airlines.

The new trial is taking place in the same Boston courthouse where the Justice Department prevailed against JetBlue and American, but the case is being heard by a different judge. It is expected to last until early December.

In New York on Tuesday, executives of JetBlue Airways Corp. blamed bad weather in September, air traffic control problems and rising fuel prices for the company’s $153 million loss in the third quarter — a wider loss than expected.

JetBlue forecast an adjusted loss of 35 cents to 55 cents per share and lower revenue over the last three months of the year. Analysts expected a loss of 15 cents per share, according to a FactSet survey.

The airline’s shares fell 10.5% to close Tuesday at $3.76, their lowest level since November 2011.

The events come as the Miramar-based airline girds for a U.S. Justice Department-driven antitrust trial scheduled to start Tuesday that is likely to determine the fate of its proposed $3.8 billion takeover by JetBlue Airways of New York.

In seemingly short order, Spirit has seen an encouraging rebound and expansion from COVID-19 turn sour amid decreased consumer demand and an unexpected potential problem with Pratt & Whitney engines that power a number of its Airbus jetliners.

On Thursday, the company announced a $157.6 million net loss for its fiscal third quarter, more than quadruple the net loss in the same period of 2022. The results prompted management to slow the pace of new aircraft deliveries “through the end of the decade” and ease capacity growth “in the near term,” CEO Ted Christie said in a statement.

“Softer demand for our product and discounted fares in our markets led to a disappointing outcome for the third quarter 2023,” Christie said. “We continue to see discounted fares for travel booked through the pre-Thanksgiving period. And, unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods. Given these continued trends, we are evaluating our growth profile and our competitive position.”

Inspection disruptions

In the meantime, the airline is preparing to deal with an expensive and time-consuming inspection regimen that lies ahead for a number of Airbusneo jetliners it operates, a process that is expected to last through the end of next year.

Spirit said in its financial announcement that engine maker Pratt & Whitney notified the airline “that all the geared turbofan (GTF) neo engines in Spirit’s fleet, including the engines slotted for future aircraft deliveries, for a yet undetermined period, are in the potential pool of engines subject to the inspection and possible replacement, of powdered metal high-pressure turbine and compressor discs.”

Based on an analysis from Pratt & Whitney, the company said, an average of 10 planes in the fourth quarter of this year will be grounded to accommodate engine removals and inspections.

“For 2024, Spirit assumes the average number of grounded neo aircraft will climb steadily from 13 in January to 41 in December, averaging 26 grounded for the full year 2024,” the statement said. “This expectation drives a dramatic decrease in the company’s near-term growth projections. For the full year 2024, Spirit estimates capacity will range between about flat to up mid-single digits compared to the full year 2023.”

Spirit said it has started discussing financial damages with Pratt & Whitney, but the timing and form of the compensation has yet to be determined.

Spokesman Thomas Fletcher confirmed a Friday report by CNBC that the airline will soon suspend training for new-hire flight crew members because it will not be operating as many planes.

“Since we won’t be growing as quickly, we have made the decision to suspend new-hire training efforts for pilots and flight attendants beginning in November until further notice,” he said in an email to the South Florida Sun Sentinel. “This is not a decision we’ve taken lightly, but it’s necessary to ensure our crew staffing levels match our operational need given the number of aircraft we can fly.”

An unrelated problem involving aircraft last week required the reported grounding of 25 Spirit jetliners for what the FAA called “mandatory” inspections of an unidentified section of the planes. That exercise forced the carrier to cancel up to 100 flights, a number of them that were scheduled to fly to and from Orlando International Airport, according to the tracking site FlightAware.

Fletcher said that the airline has returned “to normal operations after those cancellations related to inspections. The aircraft were cleared to return to service and we’ve minimized any impact to our guests.”

Antitrust trial about to start

But the most critical event likely to steer Spirit’s long-term future is a trial now scheduled to start in Boston on Tuesday that will decide a federal government’s lawsuit that seeks to block the takeover deal with JetBlue.

Both carriers are predominant operators at Fort Lauderdale-Hollywood International Airport in terms of flights and passengers served. And JetBlue is managing the construction of a new terminal at the airport that is expected to be completed in 2026..

The federal government, which has been joined in its suit by several states and the District of Columbia, asserts that the disappearance of Spirit would leave consumers with higher fares and fewer low-cost options.

JetBlue has countered that its buyout of Spirit would create a stronger platform for competing with the so-called “Big Four” airlines — American Airlines, Delta Air Lines, Southwest Airlines and United Airlines — which collectively control 80% of the market. In a bid to soften the government’s argument, JetBlue has arranged to offload some of the routes operated by Spirit to other discount airlines.

The non-jury trial, which will be conducted before U.S. District Judge William Young, is expected to run into the first week of December, according to the court docket.

The rail company said in a news release that it is seeking proposals for a new station in either St. Lucie or Martin counties, also known as the Treasure Coast area. It said it would consider station proposals from private or public land owners along its shared railway corridor through those areas. The goal is for the new station open by the first quarter of 2028.

“We’re excited to begin the process of identifying a station location in the Treasure Coast and have seen tremendous support from the local community,” said Brightline Chief Executive Officer Michael Reininger. “Expanding Brightline into the Treasure Coast region will make Brightline one of the most accessible forms of transportation in Florida, giving access to nearly half of the state’s residents.”

Brightline extended service from South Florida to Orlando on Sept. 22. Its current stations include Orlando (at Orlando International Airport), West Palm Beach, Boca Raton, Fort Lauderdale, Aventura and Miami.

Brightline said it will discuss station proposal details with applicants on Nov. 28 and 29, with proposal submissions due by Dec. 22. St. Lucie County cities along the rail line include Fort Pierce and Port St. Lucie, while Martin County cities with station possibilities include Stuart and Hobe Sound.

“Brightline will host one-on-one meetings for eligible proposal applicants in each respective county,” the company said. “After receiving submissions, Brightline will begin evaluations with a goal of entering negotiations with the property owners in the first quarter of 2024.”

Orlando ridership on the rise

Brightline is upbeat about the ridership to and from Orlando thus far.

The service to Orlando International Airport started late last month with eight daily round trips between South and Central Florida, according to a monthly financial report for September. On Oct. 9, the service grew to 15 daily round trips “and by November we plan to increase frequency again to sixteen daily roundtrips,” the report says.

“Results to date are strong and accelerating, with 17,578 customers trying our long-distance service in September at an average fare of $84, growing to 40,219 riders paying an average fare of $91 from October 1-16,” the report says. “We believe the addition of long-distance service has fundamentally transformed our business, with average fares, ancillary revenue per passenger and ridership all increasing significantly.”

David Lyons of the South Florida Sun Sentinel contributed to this report.

From a windswept roof atop the city’s Las Olas parking garage along the Intracoastal Waterway, city and Broward County politicians and promoters ushered in the five-day 64th Fort Lauderdale International Boat Show on Wednesday with a mutual sense that the city’s burgeoning marine industry will be delivering another round of good fortune.

“We’re going to put 100,000 people through the gates,” said Phil Purcell, president and CEO of the Marine Industries Association of South Florida, the show’s owner. “I don’t know if we’re going to do $1.8 billion of economic impact to the state but I think darn close. If you go back to (2019) we did a little over $900 million in direct sales. So we’ve got a lot to look forward to over the next five days.”

Traffic clogged the streets on the barrier island between Las Olas Boulevard and the 17th Street Causeway bridge. But it didn’t matter to local business owners as shops and restaurants filled up, sidewalks were packed with visitors, and boat show workers and visitors headed for seven venues on both sides of the Intracoastal from the Las Olas Marina to the International Swimming Hall of Fame, Bahia Mar Yacht Center and Pier Sixty-Six on the east bank, to the Broward County Convention Center and 17th Street Yacht Basin on the waterway’s west bank.

“The economic impact, as Phil said, over $1.8 billion … it’s going to be another game changer for the city,” said Fort Lauderdale Mayor Dean Trantalis, who hosted a ceremony to formally open the show.

Collaborative effort

Trantalis, who has been locked in a dispute with county leaders over his preference for a tunnel, and not a bridge, to be built over the city’s New River to accommodate growing rail traffic, invited County Mayor Lamar Fisher to cut the ceremonial blue ribbon.

“The marine industry is the life blood of Fort Lauderdale,” said Trantalis, who credited the county as a key contributor to the industry’s sustained growth. “It helps drive the economy and continues to thrive year after year as the marine industry as well as the City of Fort Lauderdale and the county continue to reinvest in this industry.”

“It sounds like a cherry on top of the sundae,” Stacy Ritter, CEO and president of Visit Lauderdale, the county’s tourism promotion agency, said of the boat show. “We’re doing well economically, knock on wood. Broward County, especially as it relates to tourism, has really blown the doors off. Last year was a record.

“But when you have the boat show, it’s not just the tourist development tax collection. It’s the sales tax collection. It’s the jobs,” she said. “It’s the restaurants that are full and they keep their people employed. That’s really the lingering effect of the boat show. It’s the start of the season for us and will just continue for us until it gets a little slower later in 2024. It’s an amazing economic bump.”

As the public officials spoke ahead of the show’s noontime opening, brokers, vendors and bankers were already patrolling the show’s venues meeting with clients, engaging in seminars, and putting the finishing touches on their exhibits for the five-day show, which runs through Sunday.

“The industry is still pretty robust from our standpoint,” said Lisa Verbit, a director and national sales executive for the global wealth and investment marine division of Bank of America. “There are still people out there who want to buy yachts.”

Based in Fort Lauderdale, Verbit and a colleague tour shows worldwide to meet with high-end clients and help them obtain financing for their next yacht purchase.

“We are going to have another historical best year in our portfolio,” she said. “We offer anything from purchase money loans for new and pre-owned yachts to construction financing”

The largest yacht loan she and her partner have done was about $260 to $270 million. Back in 1989, when she started in the yacht finance business, typical loans ranged up to $150,000.

“Fort Lauderdale attracts clients from all over the U.S. and even the world,” Verbit said. “Monaco is another big one. The Palm Beach show is very popular. Those are the three shows we focus on.”

Other industry figures agreed that they expect another strong demonstration of of interest among would-be buyers who continue to view boating as a leading form of recreation that grew during the COVID-19 pandemic and beyond. Some are seeing a demographic shift toward younger buyers entering the yachting market.

40th year for towing firm

While the public’s focus will be on new vessels and toys associated with marine recreation, the company that most boaters prefer not to call is marking its 40th year rescuing stranded mariners whose craft have run out of gas or broken down.

Founded in 1983, New York-based Sea Tow is at the show to remind stranded boaters that help is within reach through a service that mirrors roadside auto services such as AAA.

“No one ever plans or wants to be towed on the water,” said CEO Kristen Frohnhoefer, whose father founded the firm in Long Island, N.Y.  “Nobody wants to hear from us.”

“We’re there to provide the peace of mind to people,” she said. “For the unexpected that happens, you will have a local captain to respond to provide assistance and get you on your way and back home safely.”

The firm, which has a national reach, has franchised operators who run tow vessels out of multiple ports around South Florida, where 30 tow boats ply local waters. Up to 450 vessels operate nationally.

Most Sea Tow members operate vessels that are up to 35 feet long. The No 1. problem: Breakdowns that occur due to lack of maintenance, Frohnhoefer said. People who run out of gas or need a battery jump are next on the list. And newer boaters unfamiliar with local tides and shorelines are prime candidates to be rescued from unexpected groundings.

The show’s seven venues

• Broward County Convention Center (1950 Eisenhower Blvd.)
• Bahia Mar Yachting Center (801 Seabreeze Blvd.)
• Las Olas Marina (240 E. Las Olas Circle)
• International Hall of Fame Marina (435 Seabreeze Blvd.)
• Super Yacht Village at Pier 66 South (2150 SE 17th St.)
• Pier 66 Marina (2301 SE 17th St.)
• 17th Street Yacht Basin (1881 SE 17th St.)

If you go

• Tickets: Must be purchased in advance online. Visit flibs.com. (There are no onsite box office sales.)
• Parking: The Broward County Convention Center is the biggest venue with 3,000 spaces. For other parking options, visit: flibs.com/en/attend/parking.html.
• Brightline: Visitors from Miami, Aventura, Boca Raton or West Palm Beach can take the higher speed rail service to the train line’s downtown Fort Lauderdale station. Passengers will have access to a complimentary shuttle to the show.
• Fort Lauderdale Water Taxi: The service connects visitors to all show sites from numerous locations. The service will begin to operate an hour before the show opens and will discontinue an hour after the show closes. Daily tickets ($15) as well as 5-day passes ($65) are available and must be pre-purchased online by visiting watertaxi.com/flibs/.
• Free Shuttle Service: The complimentary shuttles will begin to operate one hour before the show opens and will wrap service one hour after the show closes.

“We’ve cancelled a portion of our scheduled flights to perform a necessary inspection of a small section of 25 of our aircraft,” Spirit said in a statement to the Orlando Sentinel. “While this action is being taken out of an abundance of caution, the impact to our network is expected to last several days as we complete the inspections and work to return to normal operations.”

The Federal Aviation Administration said approximately 25 of Spirit’s Airbus airplanes were removed from service for “mandatory maintenance inspection.”

“The FAA will ensure that the matter is addressed before the airplanes are returned to service,” the FAA statement added.

The website flight-tracking website FlightAware showed the inspections caused the cancellation of 11% of Spirit’s Friday flight schedule.

South Florida-based Spirit is the second-busiest carrier at Orlando International. A check of the airport’s flight status website on Friday morning showed more than 40 Spirit cancellations, almost evenly split between departures and arrivals.

The canceled flights impacted travel between Orlando and domestic cities including Atlanta, Chicago, Dallas, Kansas City and Newark as well as foreign destinations such as Columbia and the Dominican Republic.

Long lines quickly formed at Spirit’s customer service locations at the Orlando airport.

“We apologize for the inconvenience and are working to take care of affected Guests,” Spirit said in its statement. “Our Guests are advised to monitor their email and check their flight status on spirit.com or the Spirit Airlines App before heading to the airport.”

Travelers whose Spirit flights are canceled can accept a rebooking on the next available flight. Or, they can cancel their booking entirely and ask for a refund, “which may be credited back to your original form of payment or as a Spirit Airlines flight credit,” according to the personal finance website NerdWallet.

The U.S. Department of Transportation says if a traveler’s flight is canceled, and an airline cannot rebook the flier or the person decides not to travel, the customer is entitled to a full refund of the unused portion of the trip. That also includes fees charged for services such as seat selection and baggage checking.

Spirit, known as an ultra low-cost carrier, is poised to be taken over by discounter JetBlue Airways of New York for $3.8 billion.

But the Biden Administration has sued to stop the combination. An antitrust trial on the matter is scheduled to start Monday before a federal judge in Boston.

David Lyons of the South Florida Sun Sentinel contributed to this report.