(Miami, FL) – Florida may be headed into a transportation crisis with the failure of an airline and possibly the state’s passenger train service.
First Florida-based low-cost Spirit Airlines ceased operations, and now, the state’s private passenger train service, Brightline, reports it may be headed into bankruptcy because it can’t service its debts.
UCF economist Sean Snaith says Spirit Airlines’ collapse and Brightline’s inability to service its debt makes this is a challenging time for Florida’s tourism industry.
Snaith predicts this will impact Florida tourism which will be further complicated by the high price of gas and jet fuel.
Brightline reports a total of $5.85 billion in long-term debt and has been in talks with creditors on how to best address the financial situation, according to Bloomberg. The options include bringing in new investors, landing further financing or increasing revenue by expanding the customer base into Tampa.
UCF economist Sean Snaith says, “Brightline’s expansion to Tampa could be the only saving grace because it would increase ridership and therefore revenue.”
Snaith predicts this will impact Florida tourism which will be further complicated by the high price of gas and jet fuel.