JetBlue Airlines 2010 Annual Report Download - page 13

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Well-Positioned in the Northeast, Caribbean and Latin America
New York Metropolitan Area — the Nation’s Largest Travel Market.
Since 2000, the majority of our operations have originated in New York City, the nation’s largest travel
market. We are the largest airline at New York’s John F. Kennedy International Airport, or JFK, as measured
by passengers and, by the end of 2010, our domestic operations at JFK accounted for more than 40% of all
domestic passengers at that airport. In addition to JFK, we serve Newark’s Liberty International Airport,
New York’s LaGuardia Airport, Newburgh, New York’s Stewart International Airport and White Plains,
New York’s Westchester County Airport. JFK is New York’s largest airport, with an infrastructure that
includes four runways, large facilities and a convenient direct light-rail connection to the New York City
subway system and the Long Island Rail Road. Operating out of the nation’s largest travel market does make
us susceptible to certain operational constraints.
In October 2008, after three years of construction, we commenced operations at our new 26-gate terminal
at JFK’s Terminal 5. Terminal 5 has an optimal location with convenient access to active runways which we
believe has helped increase the efficiency of our operations. We believe this new terminal with its modern
amenities, concession offerings and passenger conveniences has also improved the overall efficiency of our
operation and, more importantly, has significantly enhanced the ground experience of our customers and has
become an integral part of the JetBlue Experience. The Terminal 5 experience has been awarded top honors in
four categories in the Airport Revenue News’ 2010 Best Airport & Concessionaire Awards, including “Best
Concessionaire Design,” “Most Unique Services,” “Best Overall Concessions Program,” and “Best Concessions
Management Team.”
Boston — New England’s Largest Transportation Center
We have been increasing our presence at Boston’s Logan International Airport, or Boston, another
important travel market in the Northeast region, and we are now the largest carrier in Boston with the most
departures and most destinations served. By the end of 2010, our domestic operations at Boston accounted for
more than 19% of all domestic flights at that airport. At Boston, we continue to capitalize on opportunities of
the changing competitive landscape by increasing our presence and adding routes and frequencies. Our
revamped customer loyalty program, the added benefits of our new customer service system implemented in
early 2010, and product enhancements have allowed us to build our relevance to business customers,
especially in Boston, where there is a significant business travel presence.
Caribbean and Latin America
The growth of our route network in 2009 and 2010 was primarily through the addition of new
destinations in the Caribbean and Latin America, markets which have historically matured more quickly than
mainland flights of a comparable distance. As of December 31, 2010, approximately 23% of our capacity was
in the Caribbean and Latin America; and we expect this number to continue to grow as we continue to seize
opportunities. Traffic from visiting friends and relatives strongly complements leisure travel in the Caribbean
region allowing for our growth and success in this area of our network. Additionally, competitive landscape
changes in San Juan, Puerto Rico have allowed us to increase significantly our presence there as one of the
largest airlines serving the Luis Muñoz Marin International Airport.
Our Industry
The passenger airline industry in the United States has traditionally been dominated by the major
U.S. airlines, the largest of which are United Air Lines, Delta Air Lines, American Airlines, Southwest
Airlines and US Airways. The U.S. Department of Transportation, or DOT, defines the major U.S. airlines as
those airlines with annual revenues of at least $1 billion; there are currently 12 passenger airlines meeting this
standard. These airlines offer scheduled flights to most large cities within the United States and abroad and
also serve numerous smaller cities. Six of the largest major U.S. airlines have adopted the traditional “hub and
spoke” network route system, or traditional network. This type of system concentrates most of an airline’s
operations at a limited number of hub cities, serving the majority of other destinations in the system by
providing one-stop or connecting service through one of its hubs.
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