JetBlue Airlines 2008 Annual Report Download - page 28

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year to five years, and contain provisions for periodic adjustments of rental rates. We also are responsible for
maintenance, insurance, utilities and certain other facility-related expenses and services. We have entered into
use arrangements at each of the airports we serve that provide for the non-exclusive use of runways, taxiways
and other airport facilities. Landing fees under these agreements are typically based on the number of landings
and the weight of the aircraft.
In November 2005, we executed a lease agreement with the PANYNJ for the construction and operation
of Terminal 5, which became our principal base of operations at JFK when we began to operate from this new
635,000 square foot, 26-gate terminal in October 2008. The lease term ends on October 22, 2038, the thirtieth
anniversary of the date of our beneficial occupancy of the new terminal, and we have a one-time early
termination option five years prior to the end of the scheduled lease term.
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 nine gates and 28 ticket counter positions. Our operations at Washington’s Dulles International Airport
are based at Terminal B, where we currently operate four gates and ten 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 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 in-flight 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, at-home reservation agent supervision, disbursements and certain other finance functions. In addition
to the above, our information technology department is based in Garden City, New York, where we occupy
space under a lease that expires in 2015.
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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