JetBlue Airlines 2008 Annual Report Download - page 12

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any major U.S. airline. We believe that operating a young fleet, which employs the latest technologies,
results in our aircraft being more efficient and dependable than older aircraft. We operate the world’s
largest fleet of Airbus A320 aircraft, and have the best dispatch reliability of all U.S major Airbus
A320 aircraft operators. Operating only two types of newer aircraft types results in cost savings over
our competitors who operate more aircraft types as maintenance processes are simplified, spare parts
inventory requirements are reduced, scheduling is simplified and training costs are lower.
Brand Strength. We believe that we have created a widely recognized brand that differentiates us from
our competitors and identifies us as a safe, reliable, value-added airline focused on customer service and
providing a high quality travel experience. Similarly, we believe that customer awareness of our brand has
contributed to the success of our marketing efforts, and enables us to market ourselves as a preferred
marketing partner with companies across many different industries. In 2008, we were voted “Top Low Cost
Airline for Customer Satisfaction” by J.D. Power and Associates for the fourth consecutive year. We also
earned distinctions as the “Best Large Domestic Airline (economy class)”, “Best Inflight Entertainment
(domestic flights)” and “Most Eco-friendly Airline” in the 2008 Zagat Airline Survey. Additionally, the
JetBlue Experience won us “Best In-Seat Comfort-Domestic Airline” and “Best Onboard Entertainment-
Domestic Airline” from the 2008 Smarter Traveler Readers’ Choice Awards and, for the second year in a row,
the “Best Inflight Entertainment Experience in the Americas” by the World Airline Entertainment Association
Avion Awards.
Strength of Our People. We believe that we have developed a strong and vibrant service-oriented
company culture built around our five key values: safety, caring, integrity, fun and passion. Our success
depends on our ability to continue hiring and retaining people who are friendly, helpful, team-oriented and
committed to delivering the JetBlue Experience to our customers. Our culture is reinforced through an
extensive orientation program for our new employees, which emphasizes the importance of customer service,
productivity and cost control. We also provide extensive training for our employees, including a leadership
program and other training that emphasizes the importance of safety.
None of our employees are currently unionized. We believe that a direct relationship with JetBlue
leadership, and not third-party representation, is in the best interests of our employees. In November 2008, the
JetBlue Pilots Association, or JBPA, filed a petition with the National Mediation Board, or NMB, seeking to
become the collective bargaining representative of our pilots. The NMB held an election, and the votes were
counted on February 3, 2009. JBPA failed to obtain the required number of votes for union representation, and
thus the pilots, like the rest of our employees, remain non-union and retain their direct relationship with
JetBlue.
We enter into individual employment agreements with each of our Federal Aviation Administration, or
FAA, licensed employees, which consist of pilots, dispatchers and technicians. Each employment agreement is
for a term of five years and automatically renews for an additional five-year term unless the employee elects
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 of income and to continue their benefits. In addition, we provide what we
believe to be industry-leading job protection language in the agreements in the event of a merger or
acquisition scenario, including the establishment of a legal defense fund to utilize for seniority integration
negotiations. We also stipulate that stapling as part of a seniority integration plan is not acceptable and not
permitted for our pilots, dispatchers and technicians.
Our full-time equivalent employees at December 31, 2008 consisted of 1,745 pilots, 1,938 flight
attendants, 3,079 airport operations personnel, 441 technicians, whom others refer to as mechanics,
699 reservation agents, and 2,350 management and other personnel. At December 31, 2008, we employed
8,902 full-time and 2,950 part-time employees.
Our leadership team has extensive and diverse airline industry experience, and strives to communicate on
a regular basis with all JetBlue employees, keeping them informed about JetBlue events and soliciting
feedback for ways to improve our service, teamwork and employees’ work environment.
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