JetBlue Airlines 2004 Annual Report Download - page 33

Our West Coast operations are based at Long Beach Municipal Airport, which serves the Los
Angeles area. In February 2005, we announced our plan to increase our presence at Boston’s Logan
International Airport by moving our operations to Terminal C and operating up to 11 gates by 2008.
We anticipate completing construction of a 70,000 square foot aircraft maintenance hangar and
adjacent 32,000 square foot office facility to accommodate our technical support operations personnel
at JFK in the second quarter of 2005. The ground lease for this site expires in December 2015. In
addition, we lease one building at JFK where we store aircraft spare parts and passenger supplies. We
currently rent, on a month-to-month permit, a hangar at JFK to perform overnight maintenance on our
aircraft.
In 2004, we began construction at Orlando International Airport of our first flight training center
as well as a 70,000 square foot hangar for the 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 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. Both of these facilities are expected to be completed in mid-2005.
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. While the Utah action has been dismissed with prejudice and our
motion to dismiss is pending in the consolidated actions in the U.S. District Court for the Eastern
District of New York, the litigation is in its preliminary stage and we are unable to determine the
impact it may have upon us.
In the ordinary course of our business, we are party to various other legal proceedings and claims
which we believe are incidental to the operation of our business. We believe that the ultimate 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 2004.
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