JetBlue Airlines 2003 Annual Report Download - page 12

All of our aircraft are equipped with leather seats in a comfortable single class layout. The Airbus
A320 has a wider cabin than both the Boeing 737 and 757, two comparable types of aircraft operated
by many of our competitors. The EMBRAER 190 is expected to feature 100 leather seats, which will
be wider than those currently in use in our A320s, in an all-coach, two-by-two seating configuration
with free LiveTV and 32 inches between rows of seats. We also continually search for ways to improve
our operating performance and safety features. For example, we have equipped our fleet with life rafts,
life vests and high frequency radios, which often enables us to avoid weather-related congestion on the
East Coast by flying farther out over the Atlantic Ocean between New York and Florida.
Strong Brand. We believe that we have made significant progress in establishing a strong brand
that helps to distinguish us from our competitors by identifying us as a safe, reliable, low-fare airline
that is focused on customer service and that provides an enjoyable flying experience. We were voted
the number one domestic airline in both the Conde Nast Traveler 2003 and 2002 Readers’ Choice
Awards out of all U.S. airlines and received the highest score of any airline in the Conde Nast Traveler
2003 Business Traveler Awards ‘‘coach-only’’ category. During 2003, we were also named the number
two domestic airline in the Travel and Leisure 2003 World’s Best Awards and the ‘‘best value for cost’’.
To further enhance our brand loyalty, we implemented our customer loyalty program, TrueBlue Flight
Gratitude, in June 2002, which had over 1.1 million members as of December 31, 2003.
Strong Company Culture. We believe that we have created a strong and vibrant service-oriented
company culture, which is built around our five key values: safety, caring, integrity, fun and passion.
The first step is hiring people who are friendly, helpful, team-oriented and customer-focused. We
reinforce our culture through an extensive orientation program for new employees and by explaining to
our employees the importance of customer service and the need to remain productive and keep our
costs low. We communicate actively on a regular basis with all of our employees, keep them informed
about events at the company and solicit feedback for ways to improve teamwork and their working
environment. We also provide extensive training for our employees, including a leadership program,
which we began in 2003, and other training which emphasizes the importance of safety.
Well-Positioned in New York, the Nation’s Largest Travel Market. Our primary base of operations at
New York’s JFK airport provides us access to a market of over 21 million potential customers in the
New York metropolitan area and approximately six million potential customers within 15 miles of the
airport. Our location at JFK allows us to provide reliable service to our customers. JFK generally only
experiences congestion from the late afternoon to the early evening when international traffic and the
domestic traffic that feeds it are at their peak. This period, from 3:00 p.m. to 7:59 p.m., is regulated by
the FAA’s High Density Rule, which requires a slot or slot exemption for every landing and takeoff.
While we have 75 daily slot exemptions at JFK that allow us to fly during this congested period, we
schedule approximately two-thirds of our JFK flights outside of this period.
JFK’s infrastructure, which includes four runways, larger facilities and a direct light-rail connection
to the New York subway system and Long Island Rail Road with the recently opened Airtrain, provides
us with operational efficiencies which we believe have contributed to our profitability. We currently
plan to start limited service out of LaGuardia Airport, which will increase our access to the New York
market, but will result in more flight delays due to the greater congestion associated with this airport.
Proven Management Team. We are led by a management team with significant airline industry
experience, including experience at successful low-cost, customer-focused airlines, such as Southwest
Airlines. The average airline industry experience of our top four executive officers is in excess of
20 years. Our Chief Executive Officer, David Neeleman, was the president and one of the founders of
Morris Air, a successful low-fare start-up airline that was acquired by Southwest Airlines in 1993.
Mr. Neeleman was also instrumental in developing the Open Skies reservation system and in founding
WestJet, a leading low-fare airline in Canada. David Barger, our President and Chief Operating
Officer, was vice president in charge of Continental Airlines’ Newark hub from 1994 to 1998, and has
9