Airport executives typically spend their careers trying to attract more airlines, in order to increase passenger numbers. They often even provide massive incentives for airlines to launch service. Well, there’s an exception, as flagged by Enilria, as executives at one airport seemingly aren’t happy about the growth that they’re seeing…
In this post:
Vero Beach Airport “blindsided” by JetBlue flights
Vero Beach Airport (VRB) in Florida has a mixed service history over the years. Going back decades, the airport saw service from the regional subsidiaries of some major US carriers, but that service ended in 1996. Then tiny regional jet operator Elite Airways flew to the airport between 2015 and 2022, prior to ceasing operations.
In early 2023, something really exciting happened for the airport — or so you’d think — when Breeze Airways started operating flights there, bringing back commercial service. The airline has built up quite the nice network from the airport, and now serves over a dozen destinations.
Now Vero Beach Airport is getting even more service, and as of late 2025, JetBlue plans to operate to Vero Beach from both Boston (BOS) and New York (JFK). That’s fantastic news for the airport… right? Apparently not.
The airport’s director stated in an interview that the airport was “pretty much blindsided” by JetBlue’s announcement, adding that under federal law, the airport must allow the airline to land there, so can’t block the service. Why on earth would an airport want to block a potential “customer?” Well…
Vero Beach seemingly prefers subsidies to business
The issue here centers around government grants. When the airport hasn’t been considered a commercial facility, the Florida Department of Transportation (FDOT) has offered matching grants of 80% for the airport. This was initially at times when the airport had fewer than 10,000 passengers per year, so even when Elite Airways first started service to the airport, it stayed below that cap.
However, eventually the airport exceeded that cap. At that point, the city’s mayor successfully lobbied to have the FDOT increase the limit for qualifying for those grants from 10,000 passengers to 100,000 passengers per year.
With the current Breeze service, Vero Beach Airport sees just under 100,000 passengers per year, so perhaps the airport views that as a sweet spot — it can make money from airlines, while maximizing its government support.
Now JetBlue will certainly push the airport over the cap. With this, the state’s grants will decrease from 80% to 50%. Enilria notes that according to state records, the airport received $695,000 in grants last year. So if the grants were to decrease from 80% to 50%, the airport would lose roughly $260,000 in grants.
Now, I’m a bit puzzled, because you’d think that amount could easily be made up with the air service being added. However, I suppose some airports prefer the guaranteed revenue stream of government grants, rather than the risk that comes with relying on airline service, especially when we’re talking about point-to-point leisure routes, which could easily be cut (especially for an airline like JetBlue.
There’s something really wrong with the incentives system, though, when executives at an airport feel it’s beneficial to not get more air service, in order to maximize government grants. Like, I see where they’re coming from, but this system seems like it needs some reform.
Bottom line
Executives at Vero Beach Airport are seemingly not thrilled at the prospect of JetBlue launching service to the airport. That’s because this will increase the number of annual passengers to more than 100,000, and as a result, the government grants the airport receives will decrease.
What do you make of this Vero Beach Airport JetBlue drama?
Wait so can we imply that DeSantis is also subsidizing John Travolta?
Xenu needs money to pay for those Thetan auditors and impossible movie stunts.
FL’s governor has set up a state-level DOGE office…going after all democratic controlled city and county governments. To root out waste. Of course, since Vero Beach is ruby red this will just be ignored. The governor is too busy harassing drag queens and destroying the environment to care about this.
Vero Beach? Must be the same people who want a smaller government, angry at poor people getting government help, and pro business. Typical "only for me but not for thee."
If the JetBlue service lasts, and does well, then the airport should be able to make up for the lost FDOT gravy with some fresh PFIC revenue and incidentals from parking and concessions. This is how small airports outgrow the need for subsidies.
But that's a big "if." Airlines are famously fickle, and especially in the Southeast, and especially JetBlue.
Yeah, that Director is gone in less than a monthl.
This section of FL is one of the worst, notorious for NIMBY's and anti-growth folks. They successfully blocked a Brightline station from being built, and now years later are begging for one. While I am sure the gov't money is a big part of this, I also believe residents/the local gov't would prefer less travel options for the sake of "noise reduction" or whatever other excuse
This is obviously a misaligned incentives issue, but the stretch between PBI and MCO is growing fast and Breeze's VRB service met a real need. I would expect B6 to do well on this route. Interested to follow the development of Treasure Coast International Airport as well (https://www.yahoo.com/news/road-may-connect-treasure-coast-090630138.html), which is even more well-located than VRB to capitalize on the growth in Jupiter/Port St. Lucie/Stuart.
VRB's airport manager should be embarrassed, especially since Vero's Mayor was so positive in this article.
https://www.yahoo.com/news/articles/vero-beach-lands-jetblue-boston-153343243.html?guccounter=1
The fact that the airport manager there is annoyed at more competition, driving down fares and increasing customers, shows that they are incompetent and should not be running an airport.
Not sure why the confusion here. Executives are rightly worried about JetBlue's commitment. They are worried they are going to lose their foundational service in the form of Breeze for the shiny and distracted service of JetBlue. B6 is a mess, no matter what anyone says. Vero sees Breeze as committed and B6 as just a shiny temporary route that will cancel.
You know who's even more of a mess?
Breeze.
Wouldn't mind if jetBlue decided instead to try MLB rather than VRB. They would have no competition to NYC from there.
The issue they worry about is that the subsidies stop because of Jetblue service but in addition suppose JetBlue quickly pulls service then do the subsidies come back? Smaller airports like this are always a risk and JetBlue can't afford to burn cash hoping a route over the long run can be profitable.
Of course not saying that's right. There should be NO subsidies. An airport should survive on market forces not a bailout from the taxpayers.
nothing like sucking on the Florida tit for money and do less work and make more money.
of course. Who wants to actually work when you can live off the public dole.
Agreed Tim- super interesting that a county that’s majority republican would want to lean so much on government assistance!! Interesting hypocrites down there!
https://www.bestplaces.net/voting/city/fl/vero_beach