JetBlue Airlines 2010 Annual Report Download - page 29

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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.
Our primary focus cities include New York’s JFK, Boston, Fort Lauderdale, Long Beach, California, and
Orlando. We also have a significant presence in San Juan, Puerto Rico.
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 it 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. In December 2010, we executed a supplement to this lease agreement for the
Terminal 6 property adjacent to our operations at Terminal 5 for a term of five years.
Our operations at Boston’s Logan International Airport are based at Terminal C where we operate 13
gates and 28 ticket counter positions.
Our West Coast operations are based at Long Beach Municipal Airport, or Long Beach, which serves the
Los Angeles area. We operate five gates at Long Beach. In 2010, the Long Beach Airport began work on
redevelopment efforts, including a new parking structure and new terminal, which is expected to open in 2013.
In Florida, our primary operations are at Orlando International Airport, or Orlando, and
Fort Lauderdale-Hollywood International Airport, or Fort Lauderdale. We operate from Terminal A in Orlando
with seven domestic and one international gate. In Fort Lauderdale, we operate from Terminal 3 with six
domestic gates.
Our operations in San Juan, Puerto Rico are based at Luis Muñoz Marin International Airport, or
San Juan, where we primarily use two gates and have access to two additional gates.
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 is equipped with six full
flight simulators, two cabin trainers, a training pool, classrooms and support areas. This facility 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 also expires in 2012. We have executed a 12 year lease for our new corporate offices
in Long Island City, New York, which we plan to take occupancy of beginning in 2012. 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.
At most other locations, our passenger and baggage handling space is leased directly from the airport
authority on varying terms dependent on prevailing practice at each airport. We also maintain administrative
offices, terminal, and other airport facilities, training facilities, maintenance facilities, and other facilities, in
each case as necessary to support our operations in the cities we serve.
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
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