Aviationnews.net reports that “Fitch Ratings has assigned a triple B plus rating to the city of Pensacola’s series 2008 general airport revenue bonds and affirmed the triple B plus rating on approximately $30.3 million Pensacola airport revenue bonds. Bonds are expected to sell via negotiation on or about Aug. 11, 2008.”
Strengths:
Principal provider of air travel for the region;
Stable nature of the regional economy;
Presence of low-fare provider AirTran Airways, which initiated service in 2001 and subsequently stimulated considerable air traffic growth;
Modest capital needs at the airport; and
Low liquidity.
Credit concerns:
Increasing reliance of the airport on AirTran to generate travel demand,
Airport’s small base of travel that leaves the airport vulnerable to reductions in air service, and High elasticity in passenger demand due to changes in ticket prices.