JetBlue Airlines 2007 Annual Report Download

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2007

Table of contents

  • Page 1
    2007

  • Page 2

  • Page 3
    ... and other agreements. The JetBlue Experience The JetBlue brand is as strong as ever, and we continue to be recognized for our exceptional customer service. For the sixth year in a row, Condé Nast Traveler readers recognized JetBlue as the ''Best Domestic Airline'' in 2007. We also ranked highest...

  • Page 4
    ... cost distribution channel. In 2007, we increased our change fees and implemented a $10 telephonic reservation fee with the goal of increasing additional ancillary revenue while directing more revenue through jetblue.com. In addition, we introduced the Cashless Cabin platform onboard our aircraft to...

  • Page 5
    ... full-time equivalent employees, or FTEs, per aircraft, compared to 78 at the end of 2006. We expect to continue to invest in technology to improve productivity. We added new functionality on our website, and our customers can now change their travel plans online during certain irregular operations...

  • Page 6
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  • Page 7
    ...the last reported sale price on the NASDAQ Global Select Market on that date). The number of shares outstanding of the registrant's common stock as of January 31, 2008 was 224,231,762 shares. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant's Proxy Statement for its 2008 Annual Meeting...

  • Page 8
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  • Page 9
    ...Business...Overview ...Our Strategy ...Our Competitive Strengths ...Our Industry...Competition ...Route Network ...High Quality Customer Service ...Safety and Security ...Marketing and Distribution ...Customer Loyalty Program ...Pricing ...Revenue Management ...People ...Maintenance ...Aircraft Fuel...

  • Page 10
    ... Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters...Certain Relationships and Related Transactions, and Director Independence ...Principal Accounting Fees and Services ...Exhibits and Financial Statement Schedules...

  • Page 11
    ...the end of 2007, we operated over 550 daily ï¬,ights with a ï¬,eet of 104 Airbus A320 aircraft and 30 EMBRAER 190 aircraft. For the year ended December 31, 2007, JetBlue was the 8th largest passenger carrier in the United States based on revenue passenger miles as reported by those airlines. As used...

  • Page 12
    ... using our 100-seat EMBRAER 190 aircraft, for which we were the launch customer in 2005, to stimulate demand in many mid-sized markets and to further increase the frequency of ï¬,ights on our existing routes. In considering new markets, we focus on those that have high average fares. In this process...

  • Page 13
    ...of the EMBRAER 190, we have seen the dispatch reliability of this new aircraft improve significantly since its launch. Our Competitive Strengths Low Operating Costs. For the year ended December 31, 2007, our cost per available seat mile, excluding fuel, of 5.47 cents was lower than that reported by...

  • Page 14
    ... to the New York City subway system and the Long Island Rail Road. In November 2005, we entered into a 30-year lease for the construction and operation of a new terminal at JFK, which we believe, when completed in 2008, will enable us to better serve our customers and expand the JetBlue Experience...

  • Page 15
    ... by other airlines. The principal competitive factors in the airline industry are fare pricing, customer service, routes served, ï¬,ight schedules, types of aircraft, safety record and reputation, code-sharing relationships, capacity, in-ï¬,ight entertainment systems and frequent ï¬,yer programs. In...

  • Page 16
    ... cities in 2008. We are JFK's largest airline based on total passengers carried and we are the leading carrier in number of ï¬,ights ï¬,own per day between the New York metropolitan area and Florida. High Quality Customer Service We devote a great deal of time and attention to hiring employees...

  • Page 17
    ... and manages threats, records and monitors suspicious activity within the JetBlue operating system, and serves as a prime communications channel between us and our law enforcement and aviation security business partners. In addition to these voluntary measures, we comply with all TSA security...

  • Page 18
    ... awards has been minimal to date. We have an agreement with American Express, under which it issues co-branded credit cards allowing cardmembers to earn points in TrueBlue. In September 2006, we expanded our offerings with American Express to include the JetBlue Business Card, which provides small...

  • Page 19
    ... American Express OPEN small business card receive a 3% discount on JetBlue travel. Every time cardmembers holding either a JetBlue Card or a JetBlue Business Card from American Express earn the equivalent of one TrueBlue point or purchase travel on JetBlue before their points expire, all the points...

  • Page 20
    ... part of our business plan is to reward our employees by providing them with the ability to align their personal successes with those of JetBlue. Our compensation packages include competitive salaries, wages and benefits, and an employee stock purchase plan. We review our compensation packages on...

  • Page 21
    ... nor accurately predict. We use a third party fuel management service to procure our fuel. Our fuel consumption and costs were: Year Ended December 31, 2007 2006 2005 Gallons consumed (millions) ...Total cost (millions) ...Average price per gallon ...Percent of operating expenses... 444 $ 929 $2.09...

  • Page 22
    ... noise, which can include limits on the number of hourly or daily operations and the time of such operations. These limitations serve to protect the local noise-sensitive communities surrounding the airport. Our scheduled ï¬,ights at Long Beach and San Diego are in compliance with the noise curfew...

  • Page 23
    ... ï¬,ights from Long Beach Municipal Airport to nine domestic cities. Foreign Operations. International air transportation is subject to extensive government regulation. The availability of international routes to U.S. carriers is regulated by treaties and related agreements between the United...

  • Page 24
    ... selling or terminating our leases for some of our Airbus A320 aircraft. We may further reduce our future growth plans from previously announced levels. In addition, our competitors often add service, reduce their fares and/or offer special promotions following our entry into a new market. We cannot...

  • Page 25
    ... be operated under a 30-year lease with the PANYNJ. The minimum payments under this lease will be accounted for as a financing obligation and have been included in the totals above. As of December 31, 2007, we had commitments of approximately $5.27 billion to purchase 144 additional aircraft and...

  • Page 26
    ... economic conditions, negative public perception of New York City, terrorist attacks or significant price increases linked to increases in airport access costs and fees imposed on passengers. In the third quarter of 2008, we plan to commence operations out of a new 26-gate terminal at JFK, which we...

  • Page 27
    ... expire. If we are unable to operate the new EMBRAER 190 aircraft reliably, our business could be harmed. We were the first airline to take delivery of the new EMBRAER 190 aircraft in late 2005. Acquisition of a new type of aircraft, such as the EMBRAER 190, involves a variety of risks relating...

  • Page 28
    ...U.S. Bankruptcy Code to permit them to reduce labor rates, restructure debt, terminate pension plans and generally reduce their cost structure. In recent years, the U.S. airline industry has experienced consolidation and there continue to be reports of potential further consolidation in the industry...

  • Page 29
    ... government regulations. Additional laws, regulations, taxes and airport rates and charges have been proposed from time to time that could significantly increase the cost of airline operations or reduce the demand for air travel. If adopted, these measures could have the effect of raising ticket...

  • Page 30
    ... for three of our EMBRAER 190 aircraft scheduled for delivery in 2009, which are now included as firm commitments. Facilities We occupy all of our facilities at each of the airports we serve under leases or other occupancy agreements. Our agreements for terminal passenger service facilities, which...

  • Page 31
    ... 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, at-home reservation agent supervision, disbursements and credit card fraud investigation. In addition to...

  • Page 32
    ... Hnat is a member of the bar of New York and Massachusetts. Robert Maruster, age 36, is our Senior Vice President Airports Customer Services and has served in this capacity since February 2006 when he was promoted from Vice President Operational Planning, a position he had held since July 2005. From...

  • Page 33
    ... ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the Nasdaq Global Select Market under the symbol JBLU. The table below shows the high and low sales prices for our common stock. High Low 2006 Quarter Ended March 31 ...June 30 ...September 30 ...December 31 ...2007 Quarter Ended...

  • Page 34
    ... initial public offering, and ending on December 31, 2007. The comparison assumes the investment of $100 in our common stock and each of the foregoing indices and reinvestment of all dividends. 12/31/2002 JetBlue Airways Corporation S&P 500 Stock Index AMEX Airline Index(1) $100 100 100 12/31/2003...

  • Page 35
    ... statements and related notes thereto included elsewhere in this report. 2007 Year Ended December 31, 2006 2005 2004 (in millions, except per share data) 2003 Statements of Operations Data: Operating revenues ...Operating expenses: Aircraft fuel ...Salaries, wages and benefits ...Landing fees...

  • Page 36
    ... ASM (cents) (5) ...Departures ...Average stage length (miles) ...Average number of operating aircraft during period...Average fuel cost per gallon ...Fuel gallons consumed (millions) ...Percent of sales through jetblue.com during period...Full-time equivalent employees at period end (5) ... 21,387...

  • Page 37
    ... revenue per passenger mile and expenses. ''Aircraft utilization'' represents the average number of block hours operated per day per aircraft for the total ï¬,eet of aircraft. ''Average fare'' represents the average one-way fare paid per ï¬,ight segment by a revenue passenger. ''Yield per passenger...

  • Page 38
    ... for our customers as well as reduces maintenance costs. We plan further sales and lease terminations of older aircraft in 2008, including commitments to sell six A320 aircraft in 2008. In 2007, we also amended our purchase agreement with Embraer by slowing delivery of 16 firm aircraft orders. Our...

  • Page 39
    ... routes, excluding Puerto Rico, accounted for 4% of our total passenger revenues in 2007. Revenue is recognized either when transportation is provided or after the ticket or customer credit expires. We measure capacity in terms of available seat miles, which represents the number of seats available...

  • Page 40
    ...predict. Sales and marketing expenses include advertising and fees paid to credit card companies. Our distribution costs tend to be lower than those of most other airlines on a per unit basis because the majority of our customers book directly through our website or our agents. Maintenance materials...

  • Page 41
    ... per available seat mile were (percent changes are based on unrounded numbers): Year Ended December 31, 2007 (in cents) 2006 Percent Change Operating expenses: Aircraft fuel ...Salaries, wages and benefits ...Landing fees and other rents ...Depreciation and amortization ...Aircraft rent ...Sales...

  • Page 42
    ... seven new EMBRAER 190 aircraft leases. Cost per available seat mile increased 7% due to a higher percentage of our ï¬,eet being leased. Sales and marketing expense increased 16%, or $17 million, primarily due to $11 million in higher credit card fees resulting from increased passenger revenues and...

  • Page 43
    ...per available seat mile were (percent changes are based on unrounded numbers): Year Ended December 31, 2006 (in cents) 2005 Percent Change Operating expenses: Aircraft fuel ...Salaries, wages and benefits ...Landing fees and other rents ...Depreciation and amortization ...Aircraft rent...Sales and...

  • Page 44
    ... available seat mile basis, sales and marketing expense increased 5% primarily due to higher credit card fees resulting from higher average fares. We book the majority of our reservations through a combination of our website and our agents (79% and 19% in 2006, respectively). Maintenance materials...

  • Page 45
    ... Months Ended June 30, September 30, 2007 2007 December 31, 2007 Statements of Operations Data (dollars in millions) Operating revenues ...Operating expenses: Aircraft fuel ...Salaries, wages and benefits ...Landing fees and other rents ...Depreciation and amortization ...Aircraft rent ...Sales...

  • Page 46
    ...cents) (2) ...Departures ...Average stage length (miles) ...Average number of operating aircraft during period . . Average fuel cost per gallon ...Fuel gallons consumed (millions) ...Percent of sales through jetblue.com during period ...Full-time equivalent employees at period end (2)... 5,091 5,942...

  • Page 47
    ...the SEC relating to our sale, from time to time, in one or more public offerings of debt securities, pass-through certificates, common stock, preferred stock and/or other securities. The net proceeds of any securities we sell under this registration statement may be used to fund working capital and...

  • Page 48
    ...nanced under operating leases, four were financed under capital leases and the remaining 77 were financed by secured debt. Financing in the form of secured debt or leases has been arranged for all 12 of our Airbus A320 aircraft and for all six of our EMBRAER 190 aircraft scheduled for delivery in...

  • Page 49
    ...of our leases which will expire at the end of the related lease terms. Including the effects of a January 2008 amendment to our Airbus purchase agreement, our firm aircraft orders at December 31, 2007 consisted of 70 Airbus A320 aircraft and 74 EMBRAER 190 aircraft scheduled for delivery as follows...

  • Page 50
    ... five-year term unless either the employee or we elect not to renew it. Pursuant to these agreements, these employees can only be terminated for cause. In the event of a downturn in our business that would require a reduction in work hours, we are obligated to pay these employees a guaranteed level...

  • Page 51
    ...same or similar aircraft types and our anticipated utilization of the aircraft. Changing market prices of new and used aircraft, government regulations and changes in our maintenance program or operations could result in changes to these estimates. The amortization of our purchased technology, which...

  • Page 52
    ... have been reported. Derivative instruments used for aircraft fuel. We utilize financial derivative instruments to manage the risk of changing aircraft fuel prices. We do not purchase or hold any derivative instrument for trading purposes. At December 31, 2007, we had a $33 million asset related to...

  • Page 53
    ... financial statements for accounting policies and additional information. Aircraft fuel. Our results of operations are affected by changes in the price and availability of aircraft fuel. To manage the price risk, we use crude or heating oil option contracts or swap agreements. Market risk is...

  • Page 54
    ... 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA JETBLUE AIRWAYS CORPORATION CONSOLIDATED BALANCE SHEETS (In millions, except share data) December 31, 2007 2006 ASSETS CURRENT ASSETS Cash and cash equivalents ...Investment securities ...Receivables, less allowance (2007-$2; 2006-$2) ...Inventories...

  • Page 55
    JETBLUE AIRWAYS CORPORATION CONSOLIDATED BALANCE SHEETS (In millions, except share data) December 31, 2007 2006 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable ...Air traffic liability ...Accrued salaries, wages and benefits ...Other accrued liabilities ...Short-term ...

  • Page 56
    ...) 2007 Year Ended December 31, 2006 2005 OPERATING REVENUES Passenger ...Other ...Total operating revenues...OPERATING EXPENSES Aircraft fuel...Salaries, wages and benefits ...Landing fees and other rents ...Depreciation and amortization ...Aircraft rent ...Sales and marketing ...Maintenance...

  • Page 57
    ...2007 Year Ended December 31, 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) ...Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes ...Depreciation ...Amortization ...Stock-based compensation ...Changes in certain operating...

  • Page 58
    ......Change in fair value of derivatives, net of $13 in taxes. . Total comprehensive loss ...Exercise of common stock options Stock compensation expense...Stock issued under crewmember stock purchase plan ... Balance at December 31, 2007 ... See accompanying notes to consolidated financial statements...

  • Page 59
    ... FINANCIAL STATEMENTS December 31, 2007 JetBlue Airways Corporation is an innovative, low cost passenger airline that provides high quality customer service at low fares primarily on point-to-point routes. We offer our customers a high quality product with new aircraft, leather seats, free...

  • Page 60
    ... or customer credit (issued upon payment of a change fee) expires. Tickets sold but not yet recognized as revenue and unexpired credits are included in air traffic liability. LiveTV Revenues and Expenses: We account for LiveTV's revenues and expenses related to the sale of hardware, maintenance of...

  • Page 61
    ... the time of sale. Deferred revenue for points not redeemed is recorded upon expiration. Income Taxes: We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting...

  • Page 62
    ... of operations for the years ended December 31, 2007 and 2006 of outstanding stock options and restricted stock units under our 2002 Plan and issuances under our CSPP recognized under the provisions of SFAS 123(R) (in millions, except per share data): 2007 2006 Stock-based compensation expense...

  • Page 63
    ... to be paid in a lump sum on the applicable maturity dates. The interest rate for all certificates is based on three month LIBOR plus a margin. Interest is payable quarterly. (4) In December 2006, the New York City Industrial Development Agency issued special facility revenue bonds for JFK and, in...

  • Page 64
    ... $2 million discount), respectively, as long-term debt on our consolidated balance sheet because we have issued a guarantee of the debt payments on the bonds. This fixed rate debt is secured by leasehold mortgages of our airport facilities. (5) In March 2005, we completed a public offering of $250...

  • Page 65
    ... term expiration dates ranging from 2009 to 2025. Five of the 53 aircraft operating leases have variable-rate rent payments based on LIBOR. Leases for 46 of our aircraft can generally be renewed at rates based on fair market value at the end of the lease term for one or two years. We have purchase...

  • Page 66
    ... November 2005, we executed a lease agreement with the Port Authority of New York and New Jersey, or PANYNJ, for the construction and operation of a new terminal at JFK. Under this lease, we are responsible for construction of a 635,000 square foot 26-gate terminal, a parking garage, roadways and an...

  • Page 67
    ... price of the rights. The rights expire on April 17, 2012 and may be redeemed by the Company at a price of $.01 per right prior to the time they become exercisable. As of December 31, 2007, we had a total of 83.2 million shares of our common stock reserved for issuance under our CSPP, our 2002 Plan...

  • Page 68
    ... our assumptions used to compute the stock-based compensation expense and pro forma information for stock option grants and purchase rights under our CSPP issued for the years ended December 31. 2007 Stock Options 2006 2005 Expected term (years) ...Volatility ...Risk-free interest rate...Weighted...

  • Page 69
    ... of the prior calendar year. In no event will any such annual increase exceed 9.1 million shares. The plan will terminate no later than the last business day of April 2012. The plan has a series of successive overlapping 24-month or 6-month offering periods, with a new offering period beginning on...

  • Page 70
    ...will any such annual increase exceed 12.2 million shares. The 2002 Plan will terminate no later than December 31, 2011. The following is a summary of stock option activity for the years ended December 31: 2007 Weighted Average Exercise Price 2006 Weighted Average Exercise Price 2005 Weighted Average...

  • Page 71
    ... income tax statutory rate for the years ended December 31 for the following reasons (in millions): 2007 2006 2005 Income tax expense (benefit) at statutory rate...Increase (decrease) resulting from: State income tax, net of federal benefit...Stock-based compensation ...Non-deductible meals...

  • Page 72
    ...sharing retirement plan to provide for Company contributions, subject to Board of Director approval, to be 5% of eligible non-management employee compensation or 15% of pre-tax earnings, whichever is greater. Prior to the 2007 amendment, we contributed 15% of our pre-tax earnings, adjusted for stock...

  • Page 73
    ... Airbus A320 and for all six of our Embraer 190 aircraft scheduled for delivery in 2008. Our commitments also include those of LiveTV, which has several noncancelable long-term purchase agreements with its suppliers to provide equipment to be installed on its customers' aircraft, including JetBlue...

  • Page 74
    ... sale of tickets to individuals, mostly through the use of major credit cards. These receivables are short-term, generally being settled shortly after the sale. Investment securities, excluding fuel hedge derivatives, at December 31, 2007 and 2006 consisted of the following (in millions): 2007 2006...

  • Page 75
    ... securities beyond their next scheduled auction reset dates if a secondary market does not develop; therefore, limiting the short-term liquidity of these investments. We are exposed to the effect of changes in the price and availability of aircraft fuel. To manage this risk, we periodically purchase...

  • Page 76
    ...years ended December 31 are summarized below (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2007 (1) Operating revenues ...Operating income (loss) ...Net income (loss) ...Basic earnings (loss) per share ...Diluted earnings (loss) per share ...2006...

  • Page 77
    ... 1 to the consolidated financial statements, in 2006 the Company changed its method of accounting for share-based payments. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), JetBlue Airways Corporation's internal control over...

  • Page 78
    ... related consolidated statements of operations, stockholders' equity, and cash ï¬,ows for each of the three years in the period ended December 31, 2007 of JetBlue Airways Corporation and our report dated February 19, 2008 expressed an unqualified opinion thereon. /s/ Ernst & Young LLP New York, New...

  • Page 79
    ... concluded that our internal control over financial reporting was effective as of December 31, 2007. Ernst & Young LLP, the independent registered public accounting firm that audited our Consolidated Financial Statements included in this Annual Report on Form 10-K, audited the effectiveness of...

  • Page 80
    ...Equity compensation plans not approved by security holders ...Total ... 30,773,398 - 30,773,398 $12.18 - $12.18 31,625,123 - 31,625,123 The number of shares reserved for issuance under our Crewmember Stock Purchase Plan and 2002 Stock Incentive Plan automatically increases in January of each year...

  • Page 81
    ... Equity-For the years ended December 31, 2007, 2006 and 2005 Notes to Consolidated Financial Statements Reports of Independent Registered Public Accounting Firm Financial Statement Schedule: Report of Independent Registered Public Accounting Firm on Financial Statement Schedule Schedule II-Valuation...

  • Page 82
    ..., thereunto duly authorized. JETBLUE AIRWAYS CORPORATION (Registrant) Date: February 20, 2008 By: /s/ EDWARD BARNES Executive Vice President and Chief Financial Officer (principal accounting officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed...

  • Page 83
    ... Corporation-incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K dated July 10, 2003 Amended and Restated Bylaws of JetBlue Airways Corporation-incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1, as amended (File No. 333-82576). Second Amended...

  • Page 84
    .... 333-82576). Stockholder Rights Agreement-incorporated by reference to Exhibit 4.3 to our Annual Report on Form 10-K for the year ended December 31, 2002. Indenture, dated as of July 15, 2003, between JetBlue Airways Corporation and Wilmington Trust Company, as Trustee, relating to the Company's 31...

  • Page 85
    ... Global Markets Inc. and Credit Lyonnais Securities (USA) Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of JetBlue Airways Corporation Pass Through Trust 2004-1G-1-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying Agent-incorporated...

  • Page 86
    4.7(p) Schedule to the ISDA Master Agreement, dated as of March 24, 2004, between Morgan Stanley Capital Services, Inc., as Above Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass Through Trust 2004-1C-O-incorporated by ...

  • Page 87
    ... and the issuance of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Trust, Series 2004-2G-1-O, Pass Through Certificates-incorporated by reference to Exhibit 4.4 to our Current Report on Form 8-K dated November 9, 2004(3). Revolving Credit Agreement (2004-2G-1), dated as of November 15...

  • Page 88
    ...Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities, Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of JetBlue Airways Corporation Pass Through Trust 2004-2G-2-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying Agent...

  • Page 89
    ... our Current Report on Form 8-K dated November 9, 2004. Note Purchase Agreement, dated as of November 15, 2004, among JetBlue Airways Corporation, Wilmington Trust Company, in its separate capacities as Pass Through Trustee, as Subordination Agent, as Escrow Agent and as Paying Agent-incorporated by...

  • Page 90
    ...-Month LIBOR plus 2.875% JetBlue Airways (Spare Parts) B-1 Pass Through Certificate-incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K dated November 14, 2006. Revolving Credit Agreement, dated as of November 14, 2006, between Wilmington Trust Company, as Subordination Agent...

  • Page 91
    ... 8-K dated November 14, 2006. Collateral Maintenance Agreement, dated as of November 14, 2006, among, JetBlue Airways Corporation, MBIA Insurance Corporation, as Initial Policy Provider, Wilmington Trust Company, as Mortgagee, and Additional Policy Provider(s), if any, which may from time to time...

  • Page 92
    ... 31, 2005-incorporated by reference to Exhibit 10.22(b) to our Annual Report on Form 10-K for the year ended December 31, 2006. Amendment No. 24 to Airbus A320 Purchase Agreement between AVSA, S.A.R.L., and JetBlue Airways Corporation, dated July 21, 2005-incorporated by reference to Exhibit 10.1 to...

  • Page 93
    .... 29 to Airbus A320 Purchase Agreement between AVSA, S.A.R.L., and JetBlue Airways Corporation, dated December 1, 2006-incorporated by reference to Exhibit 10.22(b) to our Annual Report on Form 10-K for the year ended December 31, 2006. Amendment No. 30 to Airbus A320 Purchase Agreement between AVSA...

  • Page 94
    ...incorporated by reference to Exhibit 10.15 to our Annual Report on Form 10-K for the year ended December 31, 2003. Side Letter No. 15 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, dated November 10, 2003-incorporated by reference to Exhibit 10.16 to...

  • Page 95
    ... 30, 2005. Amendment to JetBlue Airways Corporation 401(k) Retirement Plan, dated November 21, 2006-incorporated by reference to Exhibit 10.18(a) to our Annual Report on Form 10-K for the year ended December 31, 2006. Form of Director/Officer Indemnification Agreement-incorporated by reference to...

  • Page 96
    ...22( c) to our Annual Report on Form 10-K for the year ended December 31, 2006. Amendment No. 4, dated as of October 17, 2007, to Letter Agreement DCT-026/2003, between Embraer-Empresa Brasileria de Aeronautica S.A. and JetBlue Airways Corporation. Agreement of Lease (Port Authority Lease No. AYD-265...

  • Page 97
    ... Beach Department of Public Works, dated May 22, 2001, approving City Council Resolution C-27843 regarding Flight Slot Allocation at Long Beach Municipal Airport-incorporated by reference to Exhibit 99.2 to the Registration Statement on Form S-1, as amended (File No. 333-82576). Compensatory plans...

  • Page 98
    ...material respects to the document filed as Exhibit 4.14 to our Current Report on Form 8-K dated November 9, 2004 (which exhibit relates to an above-cap liquidity facility provided on behalf of the JetBlue Airways Corporation Pass Through Trust 2004-2G-1-O) have been entered into with respect to the...

  • Page 99
    ...of the Company's management. Our responsibility is to express an opinion based on our audits. As discussed in Note 1 to the consolidated financial statements, in 2006 the Company changed its method of accounting for share-based payments. In our opinion, the financial statement schedule referred to...

  • Page 100
    JetBlue Airways Corporation Schedule II-Valuation and Qualifying Accounts (in thousands) Balance at beginning of period Additions Charged to Charged to Costs and Other Expenses Accounts Description Deductions Balance at end of period Year Ended December 31, 2007 Allowances deducted from asset ...

  • Page 101
    Exhibit 12.1 JETBLUE AIRWAYS CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (in millions, except ratios) 2007 Year Ended December 31, 2006 2005 2004 2003 Earnings: Income (loss) before income taxes...Less: capitalized interest ...Add: Fixed charges ...Amortization of capitalized ...

  • Page 102
    Exhibit 21.1 JETBLUE AIRWAYS CORPORATION LIST OF SUBSIDIARIES As of December 31, 2007 LiveTV, LLC (Delaware limited liability company) LiveTV International, Inc. (Delaware corporation) BlueBermuda Insurance, LTD (Bermuda corporation)

  • Page 103
    ... financial statements and schedule of JetBlue Airways Corporation and the effectiveness of internal control over financial reporting of JetBlue Airways Corporation, included in this Annual Report (Form 10-K) for the year ended December 31, 2007. /s/ Ernst & Young LLP New York, New York February 20...

  • Page 104
    EXHIBIT 31.1 Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer I, David Barger, certify that: 1. I have reviewed this Annual Report on Form 10-K of JetBlue Airways Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or ...

  • Page 105
    EXHIBIT 31.2 Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer I, Edward Barnes, certify that: 1. I have reviewed this Annual Report on Form 10-K of JetBlue Airways Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or ...

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    ... CORPORATION SECTION 1350 CERTIFICATIONS In connection with the Annual Report on Form 10-K of JetBlue Airways Corporation for the year ended December 31, 2007, as filed with the Securities and Exchange Commission on February 20, 2008 (the ''Report''), the undersigned, in the capacities and on the...

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