JetBlue Airlines 2003 Annual Report Download - page 33

In August 2003, we began construction at JFK of a 70,000 square foot aircraft maintenance hangar
and an adjacent 32,000 square foot office facility to accommodate technical support operations
personnel. This construction is expected to be completed in the first quarter of 2005. We recently
executed a ground lease with the Port Authority for this site through December 2015. In addition, we
lease one building at JFK where we store aircraft spare parts and passenger supplies and we currently
rent, on a month-to-month permit, a hangar at JFK to perform overnight maintenance on our aircraft.
We also announced in August 2003 that Orlando International Airport will be the location of our
first flight training center as well as a new hangar for installation and maintenance of our LiveTV
in-flight satellite television system and aircraft maintenance. The training center will encompass 80,000
square feet with capacity for eight flight simulators and two cabin simulators, plus classrooms, a
training pool and administration areas. This facility, which is expected to be completed in late 2005, will
be used for the initial and continuous training of all our pilots and in flight crew, as well as support
training for our technical operations and customer service crew. The new Orlando hangar will
encompass 70,000 square feet and is expected to be completed by early 2005.
In connection with the commencement of our operations at Long Beach Municipal Airport, we
have made a significant investment, along with the City of Long Beach, to improve roadways, parking,
ticket counters, gate facilities, concessions and support space.
Our primary corporate offices are located in Forest Hills, New York, where we lease space under a
lease that expires in 2012. Our operations staff is based primarily at JFK and our finance and
scheduling departments are based in Darien, Connecticut.
Our office in Salt Lake City, Utah contains a core team of employees who are responsible for
group sales, customer service and at-home reservation agent supervision as well as revenue
management and credit card fraud investigation. In keeping with our commitment to innovation, the
majority of our reservation agents work out of their homes and are linked to our reservations system
through personal computers.
ITEM 3. LEGAL PROCEEDINGS
Beginning September 2003, we became aware that several lawsuits were commenced against us in
the 3rd Judicial District Court of Utah, San Diego Superior Court, the U.S. District Court for the
Central District of California, the U.S. District Court for the Eastern District of New York and the
U.S. District Court for the Southern District of Florida, alleging various causes of action, including
fraudulent misrepresentation, breach of contract, violation of privacy rights, as well as violations of
consumer protection statutes and federal electronic communications laws. These claims arose out of
our providing access to limited customer data to a government contractor in connection with a test
project for military base security. On September 22, 2003, a public interest organization filed a
complaint with the U.S. Federal Trade Commission requesting an injunction, investigation, civil
monetary penalties and other relief against us and others that supplied data to the government
contractor alleging deceptive trade practices relating to the disclosure of personal information. Other
parties, including other governmental agencies, are conducting inquiries, and may commence
proceedings or file claims with respect to this matter. Since the litigation and inquiries are in their early
stages, we are unable to determine the impact they may have upon us.
In the ordinary course of our business, we are party to various other legal actions, which we
believe are incidental to the operation of our business. We believe that the outcome of these
proceedings to which we are currently a party will not have a material adverse effect on our financial
position, results of operations or cash flows.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of our security holders during the fourth quarter of 2003.
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