JetBlue Airlines 2012 Annual Report Download - page 24

JETBLUE AIRWAYS CORPORATION-2012 10K20
PART I
ITEM3Legal Proceedings
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 offi ces, generally have terms ranging
from less than one year to fi ve years, and contain provisions for periodic
adjustments of rental rates, landing fees and other charges applicable under
the type of lease. 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 providing
for the non-exclusive use of runways, taxiways and other airport facilities.
Landing fees under these agreements are typically based on the number
of aircraft landings and the weight of the aircraft.
Our focus cities include New York, Boston, Long Beach, Orlando, Fort
Lauderdale and 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; 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 benefi cial occupancy of this terminal, and we have a
one-time early termination option fi ve 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 (our original base of operations at
JFK) adjacent to our operations at Terminal5 for a term of fi ve years, which
provides certain use and development rights. In 2012, we commenced
construction on an expansion to Terminal5, or T5i, which will be used as
an international arrival facility.
Our operations at Boston’s Logan International Airport, or Logan, are
based at TerminalC where we operate 17 gates and 42 ticket counter
positions. In 2011, Massport completed work connecting two concourses
within TerminalC, centralizing the security checkpoint and providing our
customers the convenience of 14 contiguous gates.
Our West Coast operations are based at Long Beach Municipal Airport,
or Long Beach, which serves the Los Angeles basin. We operate four
gates at Long Beach. In 2010, the Long Beach Airport began work on
redevelopment efforts, including a new parking structure and new terminal,
which opened in December 2012.
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 eight domestic
and one international gate. In Fort Lauderdale, we operate from Terminal
3 with seven domestic gates.
Our operations in San Juan, Puerto Rico are based at Luis Muñoz Marin
International Airport, or San Juan. In June 2012, we relocated our San
Juan operations to a newly renovated Terminal A with preferential use of
seven gates.
We lease a 70,000 square foot aircraft maintenance hangar and an adjacent
32,000 square foot offi ce 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. During 2012, we moved to Hangar 8 in Boston,
a total of approximately 80,000 square feet of space, which includes an
aircraft maintenance hangar and offi ce space. The ground lease for this
site expires in 2017.
We also occupy a training center at Orlando International Airport which
is equipped with seven full fl ight 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-fl ight 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-fl ight satellite
television systems and aircraft maintenance. The ground leases for our
Orlando support facilities expire in 2035.
As of December31, 2012, our primary corporate offi ces were located in
Long Island City, New York, where we occupy space under a lease that
expires in 2023. Our offi ce 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 fi nance 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 offi ces,
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. Other than as described under Note 12-Contingencies
to our consolidated fi nancial statements included in Part II, Item 8 of this
Annual Report on Form 10-K, we believe the ultimate outcome of these
proceedings to which we are currently a party will not have a material
adverse effect on our business, fi nancial position, results of operations
or cash fl ows.
ITEM4. Mine Safety Disclosures
Not applicable.