JetBlue Airlines 2006 Annual Report Download - page 30

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Our principal base of operations is Terminal 6 at JFK, which is operated under a lease with the
PANYNJ that expired in November 2006 and we are in the process of negotiating an extension of this
lease into late 2008. In November 2005, we executed a lease agreement with the PANYNJ for the
construction and operation of a new Terminal 5 at JFK. Under the lease, JetBlue is responsible for
the construction, on behalf of the PANYNJ, of a 635,000 square foot 26-gate terminal connected to
the historic Saarinen Building, a parking garage, roadways and an AirTrain Connector, all of which
are expected to be completed in late 2008. The lease term ends on the earlier of the thirtieth
anniversary of the date of beneficial occupancy of the new terminal or November 21, 2039. We have a
one-time early termination option five years prior to the end of the scheduled lease term. We will
continue to operate out of our existing facilities at Terminal 6 and a temporary seven gate facility on
the Terminal 5 site, which became operational in June 2006, until our new terminal is completed.
Our West Coast operations are based at Long Beach Municipal Airport, which serves the Los
Angeles area. Our operations at Boston’s Logan International Airport are based at Terminal C, where
we currently operate seven gates and 20 ticket counter positions. In 2007, we anticipate that we will
add one gate in May and an additional gate in November at Logan. We plan to operate up to 11 total
gates and 28 ticket counter positions at this facility by the end of 2008. Our operations at
Washington’s Dulles International Airport are based at Terminal B, where we currently operate four
gates and eight ticket counter positions.
We lease a 70,000 square foot aircraft maintenance hangar and an adjacent 32,000 square foot
office and warehouse facility at JFK to accommodate our technical support operations and passenger
provisioning personnel. The ground lease for this site expires in 2030. In addition, we occupy a portion
of a building at JFK where we store aircraft spare parts and perform ground equipment maintenance.
We also lease a flight training center at Orlando International Airport, which encompasses 80,000
square feet and is equipped with six full flight simulators, two cabin trainers, a training pool,
classrooms and support areas. This facility, which is capable of housing eight full flight simulators, is
being used for the initial and recurrent training of our pilots and inflight crew, as well as support
training for our technical operations and airport crew. In addition, we lease a 70,000 square foot
hangar at Orlando International Airport, which is used by Live TV for the installation and
maintenance of in-flight satellite television systems and aircraft maintenance. The ground leases for
our Orlando facilities expire in 2035.
Our primary corporate offices are located in Forest Hills, New York, where we occupy space
under a lease that expires in 2012, and our finance department is based in Darien, Connecticut, where
we occupy space under a lease that expires in 2011. Our office in Salt Lake City, Utah, where we
occupy space under a lease that expires in 2014, contains a core team of employees who are
responsible for group sales, customer service and at-home reservation agent supervision, and credit
card fraud investigation.
ITEM 3. LEGAL PROCEEDINGS
In the ordinary course of our business, we are party to various 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
business, financial position, results of operations or cash flows.
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