JetBlue Airlines 2004 Annual Report Download - page 12

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seating capacity of 100, this new aircraft should enable us to continue to achieve the lowest
operating costs per available seat mile in the industry. Moreover, although we will lose some of
the cost efficiencies associated with operating only one aircraft type, we believe that the
additional market opportunities provided by this new aircraft will outweigh these additional
costs.
New Aircraft Fleet. By using our strong capital base, we have been able to acquire a fleet of new
aircraft. This has set JetBlue apart from most other low-fare airlines, both new and established, as
many new entrants in the airline industry during the last 15 years began flying with a fleet of used
aircraft.
We currently operate 70 Airbus A320 aircraft, all of which were delivered to us new. We are now
the fourth largest A320 operator in the world as measured by weekly departures. The A320 is
fuel-efficient and very reliable. In 2004, we completed 99.4% of our scheduled flights and our on-time
performance was 81.6%. These statistics illustrate the dedication of our employees and the reliability of
the A320 aircraft. JetBlue is the launch customer of the all-new 100-seat Embraer E190 aircraft, which
we expect to take delivery of in late 2005. The Embraer E190 incorporates advanced design features,
such as integrated avionics, fly-by-wire flight controls, efficient GE Aircraft Engines’ CF34-10 engines
and dual Heads Up Display, which will allow our pilots to monitor their instruments concurrently while
viewing the environment outside the aircraft. The Embraer E190 is expected to have a range of
approximately 2,000 nautical miles enabling it to fly a wide range of markets from short-haul to certain
long-haul markets. We view the Embraer E190 as an opportunity to augment our growth strategy by
penetrating the mid-sized market segment, which we define as those markets with between 100 and 600
local passengers per day each way, and is a significant segment of the U.S. domestic market. We
believe that many mid-sized markets are currently underserved and/or have high average fares. We plan
to use this aircraft to stimulate demand in these markets by offering our low fare point-to-point service
in addition to increasing frequency on our existing routes and between existing destinations. With the
Embraer E190 aircraft, we also expect to be able to offer sufficient frequency in new markets with the
ability to upgrade to the larger Airbus A320 aircraft as demand grows.
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 E190 will be configured with 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 either 32 or 33 inches between rows of seats. We 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. In 2004, we were
voted the best domestic airline in the Conde Nast Traveler’s Readers’ Choice Awards for the third
consecutive year, and for the second year in a row were voted the best domestic airline in the Conde
Nast Traveler Business Traveler Awards. Our strong brand is also evidenced by the enrollment of over
2.0 million customers in our loyalty program, TrueBlue Flight Gratitude. We hope to gain additional
membership through our participation in American Express’ Membership Rewards Program, which
began in December 2004.
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
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