JetBlue Airlines 2006 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2006 JetBlue Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

Table of Contents
PART I.
Item 1. Business............................................................ 1
Overview ......................................................... 1
Our Strategy ...................................................... 2
Our Competitive Strengths ......................................... 3
Our Industry...................................................... 4
Competition ...................................................... 5
Route Network ................................................... 6
High Quality Customer Service ..................................... 7
Safety and Security ................................................ 7
Marketing and Distribution ......................................... 8
Customer Loyalty Program ......................................... 9
Pricing ........................................................... 9
Revenue Management ............................................. 9
People ........................................................... 10
Maintenance ...................................................... 11
Aircraft Fuel...................................................... 11
LiveTV, LLC ..................................................... 11
Government Regulation ............................................ 12
Item 1A. Risk Factors ........................................................ 14
Risks Related to JetBlue ........................................... 14
Risks Associated with the Airline Industry ........................... 18
Item 1B. Unresolved Staff Comments .......................................... 18
Item 2. Properties .......................................................... 19
Item 3. Legal Proceedings ................................................... 20
Item 4. Submission of Matters to a Vote of Security Holders..................... 21
Executive Officers of the Registrant ................................. 21
PART II.
Item 5. Market for Registrant’s Common Equity; Related Stockholder Matters and
Issuer Purchases of Equity Securities................................. 23
Item 6. Selected Financial Data .............................................. 25
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations ....................................................... 28
Overview ......................................................... 28
Outlook for 2007 .................................................. 30
Results of Operations .............................................. 30
Liquidity and Capital Resources..................................... 36
Contractual Obligations ............................................ 38
Off-Balance Sheet Arrangements .................................... 39
Critical Accounting Policies and Estimates............................ 39
Item 7A. Quantitative and Qualitative Disclosures About Market Risk ............. 42
Item 8. Financial Statements and Supplementary Data .......................... 43
Consolidated Statements of Operations .............................. 43
Consolidated Balance Sheets........................................ 44
Consolidated Statements of Cash Flows .............................. 46
Consolidated Statements of Stockholders’ Equity ...................... 47
Notes to Consolidated Financial Statements .......................... 48
Reports of Independent Registered Public Accounting Firm ............ 65
i