JetBlue Airlines 2005 Annual Report Download - page 12

extension of our business strategy. With a 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, which has set JetBlue apart from other airlines, both new and established.
We currently operate 87 Airbus A320 aircraft and nine EMBRAER 190 aircraft, all of which
were delivered to us new. We are now the second largest A320 operator in the world as measured by
weekly departures. The A320 is a fuel-efficient and very reliable aircraft. In 2005, we completed 99.2%
of our scheduled flights and we believe we have the best dispatch reliability of all A320 operators,
which illustrates the dedication of our employees and the reliability of the A320 aircraft. Our
completion factor was 98.4%for the EMBRAER 190, which was not unexpected given the challenges
of launching a new aircraft type. As we gain more experience with this aircraft, we expect its
reliability to improve.
The EMBRAER 190 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 allows our pilots to monitor their instruments concurrently while viewing the environment
outside the aircraft. The EMBRAER 190 has 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
190 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.
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 has 100 leather seats, which are wider than those
currently in use in our A320s, in an all-coach, two-by-two seating configuration with free LiveTV and
XM Satellite Radio, 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 better 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 provides an enjoyable flying experience. In 2005, we were
voted the best domestic airline in the Conde Nast Traveler’s Readers’ Choice Awards for the fourth
consecutive year and, for the third year in a row, were voted the best domestic airline in the Conde
Nast Traveler Business Traveler Awards. In 2006, we earned the ‘‘Passenger Service Award’’ from Air
Transport World.
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 that emphasizes
the importance of customer service, productivity and cost control to help maintain our success. 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 and other
training, which emphasizes the importance of safety.
Well-Positioned in New York Metropolitan Area, the Nation’s Largest Travel Market. Our primary
base of operations at New York’s John F. Kennedy International Airport, or JFK, provides us access
to a market of over 21 million potential customers in the New York metropolitan area and
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