JetBlue Airlines 2011 Annual Report Download - page 16

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In 2011, we acquired eight take-off and landing slots at each of New York’s LaGuardia Airport and
Washington D.C.’s Ronald Reagan National Airport. We plan to begin our expanded service at each of these
airports in 2012. Further, we intend to begin service between Dallas/Fort Worth, TX and Boston in May 2012.
In considering new markets, we generally focus on those markets that are either underserved or have high
average fares. As a part of this process, we analyze publicly available data from the Department of
Transportation, or DOT, showing the historical number of passengers, capacity and average fares over time.
Using this data, combined with our knowledge and experience about how comparable markets have reacted in the
past when prices were increased or decreased, we forecast the expected level of demand that may result in a
particular market from our introduction of service and lower prices, as well as the anticipated response of
existing airlines in that market.
We are the leading carrier in number of flights flown per day between the New York metropolitan area and
Florida. We also offer service to the most non-stop destinations of any carrier out of Boston. During 2011, we
also became the largest carrier offering service in San Juan, Puerto Rico as well as in the Dominican Republic.
•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 and the largest U.S.
point of entry from international locations. We are the largest domestic airline at New York’s John F.
Kennedy International Airport, or JFK, as measured by passengers and, by the end of 2011, our
domestic operations at JFK accounted for nearly 40% of all domestic passengers at that airport. In
addition to JFK, we serve Newark, NJ’s Liberty International Airport, New York’s LaGuardia Airport,
Newburgh, NY’s Stewart International Airport and White Plains, NY’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, however, makes us susceptible to certain
operational constraints.
In October 2008, we commenced operations at our new 26-gate terminal centrally located at JFK’s
Terminal 5. Terminal 5 has an optimal location with convenient access to active runways which we
believe increases the efficiency of our operations. We believe this 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.
The Terminal 5 experience has received numerous awards since its opening in 2008, most recently of
which was being named one of the “World’s Most Beautiful Airport Terminals” by Frommer’s Travel
in 2012.
•Boston – New England’s Largest Transportation Center. We are the largest carrier in terms of
flights, seats offered, and available seat miles at Boston’s Logan International Airport, or Boston,
another important travel market in the Northeast region, offering more destinations than any other
airline. By the end of 2011, we operated from 17 gates at Boston and our domestic operations
accounted for more than 20% of all domestic flights at that airport. At Boston, we continue to
capitalize on opportunities in the changing competitive landscape by increasing our presence and
relevance to local travelers, including notably, corporate travelers, and adding routes and frequencies,
resulting in exponential growth for us over the past two years. During 2011, we continued to make
investments in our Boston infrastructure including systems, ramp and maintenance facilities and other
airport space to allow further expansion of our Boston footprint.
Our revamped TrueBlue 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 since 2008 was primarily through
the addition of new destinations in the Caribbean and Latin America, markets which have historically
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