JetBlue Airlines 2008 Annual Report Download - page 27

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ITEM 2. PROPERTIES
Aircraft
As of December 31, 2008, we operated a fleet consisting of 107 Airbus A320 aircraft each powered by
two IAE International Aero Engines V2527-A5 engines and 35 EMBRAER 190 aircraft each powered by two
General Electric Engines CF-34-10 engines, as follows:
Aircraft
Seating
Capacity Owned
Capital
Leased
Operating
Leased Total
Average Age
in Years
Airbus A320 .................. 150 79 4 24 107 4.0
EMBRAER 190 ................ 100 4 — 31 35 2.2
Totals ...................... 83 4 55 142 3.6
Our aircraft leases have an average remaining initial lease term of approximately 12.7 years at
December 31, 2008. The earliest of these terms ends in 2009 and the latest ends in 2025. We have the option
to extend most of these leases for additional periods or to purchase aircraft at the end of the related lease
term. All but one of our 83 owned aircraft and all 23 owned spare engines are subject to secured debt
financing. We also own two EMBRAER 190 aircraft that are currently being leased to another air carrier and
are not included in the table above.
In January 2008, we amended our Airbus A320 purchase agreement, deferring delivery of 16 Airbus
A320 aircraft originally scheduled for delivery from 2011 through 2012 to 2012 through 2013. This
amendment also affected our A320 purchase options as follows: (1) the deferral of eight to 2013 and 2014,
(2) the conversion of eight into purchase rights for A320 aircraft delivery through 2015 and (3) the
cancellation of four. In May 2008, we again amended our Airbus A320 purchase agreement, deferring delivery
of 21 Airbus A320 aircraft originally scheduled for delivery from 2009 through 2011 to 2014 through 2015. In
July 2008, we amended our EMBRAER 190 purchase agreement, deferring delivery of ten EMBRAER 190
aircraft originally scheduled for delivery from 2009 through 2011 to 2016. As of December 31, 2008,
including the effects of these amendments, we had on order 128 aircraft, which are scheduled for delivery
through 2016 , with options to acquire 108 aircraft as follows:
Year
Airbus
A320
EMBRAER
190 Total
Airbus
A320
EMBRAER
190 Total
Firm Option
2009 3 8 11 — — —
2010 3 3 6 — 8 8
2011 5 4 9 3 11 14
2012 13 10 23 4 12 16
2013 13 12 25 7 14 21
2014 12 12 24 4 21 25
2015 9 11 20 4 20 24
2016 — 10 10 — — —
58 70 128 22 86 108
In September 2008, we executed a purchase agreement relating to the sale of four new EMBRAER 190
aircraft scheduled for initial delivery to us in the first quarter of 2009 with subsequent delivery of these
aircraft to a third party scheduled to occur immediately after such aircraft are received by us, subject to certain
contingencies. Two of these aircraft were sold in January 2009; however, due to the adverse global economic
conditions and changes in the credit markets that occurred in the fourth quarter of 2008, the sales of the other
two aircraft contemplated by the purchase agreement have been cancelled. The impact of these sales is not
reflected in the table above.
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 include ticket counter and gate
space, operations support area and baggage service offices, generally have terms ranging from less than one
18