JetBlue Airlines 2009 Annual Report Download

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2009

Table of contents

  • Page 1
    2009

  • Page 2
    ... our commitment to New York by combining our corporate offices into one main support center in Long Island City, Queens. Disciplined Growth In the short span of ten years, JetBlue has grown to serve 23 million customers annually, operate 151 aircraft, serve 60 cities and achieved annual revenues of...

  • Page 3
    ...-Can-Jet pass promotion offering a month of unlimited travel for $599. This was by far the most successful promotion in our company's history, generating tremendous media attention and introducing a significant number of new customers to JetBlue. We also remain focused on building customer loyalty...

  • Page 4
    ...fleet, innovative revenue initiatives and cost discipline, we believe we have laid a foundation for future sustainable growth. We will continue to make prudent investments in our brand designed to generate more revenue. For example, we recently transitioned to a new customer service and reservations...

  • Page 5
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  • Page 6
    ... as of June 30, 2009 was approximately $1,068,690,000 (based on the last reported sale price on the NASDAQ Global Select Market on that date). The number of shares outstanding of the registrant's common stock as of January 31, 2010 was 291,722,138 shares. DOCUMENTS INCORPORATED BY REFERENCE...

  • Page 7
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  • Page 8
    ... Area ...Our Industry ...Competition ...Route Network...Marketing and Distribution ...Customer Loyalty Program ...Maintenance ...Aircraft Fuel ...LiveTV, LLC ...Government Regulation ...Risk Factors ...Risks Related to JetBlue ...Risks Associated with the Airline Industry ...Unresolved Staff...

  • Page 9
    ... from those expressed in the forwardlooking statements. Potential factors that could affect our results include, in addition to others not described in this report, those described in Item 1A of this report under "Risks Related to JetBlue" and "Risks Associated with the Airline Industry." In light...

  • Page 10
    ... priced optional upgrades. JetBlue operates primarily on point-to-point routes with its fleet of 110 Airbus A320 aircraft and 41 EMBRAER 190 aircraft - the youngest and most fuel-efficient fleet of any major U.S. airline. As of December 31, 2009, we served 60 destinations in 20 states, Puerto...

  • Page 11
    ... our competitive unit costs are: • High aircraft utilization. By scheduling and operating our aircraft efficiently, we are able to spread our fixed costs over a greater number of flights and available seat miles. For the year ended December 31, 2009, our aircraft operated an average of 11.5 hours...

  • Page 12
    ... them informed about JetBlue events and soliciting feedback for ways to improve our service, teamwork and employees' work environment. Well-Positioned in New York Metropolitan Area - the Nation's Largest Travel Market. Since 2000, the majority of our operations have originated in New York City, the...

  • Page 13
    ... currently 15 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. Seven of the largest major U.S. airlines have adopted the traditional "hub and spoke" network route system...

  • Page 14
    ...in our competitors having a more rationalized route structure and lower operating costs, enabling them to compete more aggressively. Price competition occurs through price discounting, fare matching, increased capacity, targeted sale promotions and frequent flyer travel initiatives, all of which are...

  • Page 15
    ... mobile marketing programs. Our targeted public and community relations efforts promote brand awareness and complement our strong word-of-mouth channel. On January 29, 2010 we began the implementation of a new integrated customer service system, which includes a reservations system, website, revenue...

  • Page 16
    ...member has enough points to exchange for the value of an open seat. However, the number of points needed to acquire travel is variable based on market conditions. The number of travel awards used on JetBlue during 2009 was approximately 302,000, representing 3.7% of our total revenue passenger miles...

  • Page 17
    ... Panasonic is currently providing in-seat live television. In the voice and data communication services market, LiveTV's primary competitors are Aircell, Row 44, Panasonic, OnAir and Aeromobile. LiveTV has agreements with eleven other domestic and international commercial airlines for the sale and...

  • Page 18
    ... adversely affected. We are also subject to state and local laws and regulations in a number of states in which we operate. Airport Access. In January 2007, the High Density Rule, established by the FAA in 1968 to limit the number of scheduled flights at JFK from 3:00 p.m. to 7:59 p.m., expired. As...

  • Page 19
    ... routes to U.S. carriers is regulated by treaties and related agreements between the United States and foreign governments. We currently operate international service to The Bahamas, the Dominican Republic, Bermuda, Aruba, the Netherlands Antilles, Mexico, Colombia, Costa Rica, Jamaica, Barbados...

  • Page 20
    ... regulations at locations where we operate and the regulations of various local authorities that operate the airports we serve. Civil Reserve Air Fleet. We are a participant in the Civil Reserve Air Fleet Program, which permits the United States Department of Defense to utilize our aircraft during...

  • Page 21
    ... to service our current or future fixed obligations. As of December 31, 2009, our debt of $3.30 billion accounted for 68% of our total capitalization. In addition to long-term debt, we have a significant amount of other fixed obligations under leases related to our aircraft, airport terminal space...

  • Page 22
    ...serve and increasing flight connection opportunities. In 2006, primarily due to higher fuel prices, the competitive pricing environment and other cost increases, we began modifying our growth plans by deferring some of our scheduled deliveries of new aircraft, selling some used aircraft, terminating...

  • Page 23
    ... conditions, negative public perception of New York City, terrorist attacks or significant price increases linked to increases in airport access costs and fees imposed on passengers. In an effort to reduce delays and modernize the airport, the FAA and the Port Authority of New York and New Jersey...

  • Page 24
    ... replace or upgrade systems successfully. We are currently transitioning to a new customer service system, which includes a reservations system, revenue management system, revenue accounting system, customer loyalty management system and website, which we implemented in late January 2010. While the...

  • Page 25
    ... state, we may face a situation in which a number of employees choose not to relocate. In that instance, we may be faced with the necessity to hire a number of employees in a relatively short time period and our company culture may suffer as a result. One of our competitive strengths is our service...

  • Page 26
    ..., a constrained credit market, housing-related pressures, and increased business operating costs can reduce spending for both leisure and business travel. Unfavorable economic conditions could also impact an airline's ability to raise fares to counteract increased fuel, labor, and other costs. It is...

  • Page 27
    ...series of passenger protection rules that we believe may have a significant effect on our business and operations and which are scheduled to take effect at the end of April, 2010. These rules provide, among other things, that airlines return aircraft to the gate for deplaning following tarmac delays...

  • Page 28
    ... to purchase aircraft at a future date. In February 2010, we amended our Airbus A320 purchase agreement by deferring delivery of six aircraft previously scheduled for delivery in 2011 and 2012 to 2015 in addition to canceling seven purchase options. Additionally, in July 2009, we extended the lease...

  • Page 29
    ... counter positions. Our operations at Washington's Dulles International Airport were based at Terminal B where we operated 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...

  • Page 30
    ...West Airlines, Inc., with his final position at America West as Vice President, Controller of The Leisure Company, their vacation packaging subsidiary. He is a Certified Public Accountant and a member of the AICPA. Rob Maruster, age 38, is our Executive Vice President and Chief Operating Officer and...

  • Page 31
    ...finance the expansion of our business. Any future determination to pay cash dividends will be at the discretion of our Board of Directors, subject to applicable limitations under Delaware law, and will be dependent upon our results of operations, financial condition and other factors deemed relevant...

  • Page 32
    ...December 31, 2009, the AMEX Airline Index consisted of Alaska Air Group Inc., AMR Corporation, Continental Airlines Inc., Delta Air Lines, Inc., Gol Linhas Aereas Inteligentes, JetBlue Airways Corporation, US Airways Group Inc., Lan Airlines SA, SkyWest Inc., Southwest Airlines Co., Ryanair Holdings...

  • Page 33
    ... thereto included elsewhere in this report. 2009 Year Ended December 31, 2008 2007 2006 (in millions, except per share data) 2005 Statements of Operations Data: Operating revenues ...Operating expenses: Aircraft fuel and related taxes ...Salaries, wages and benefits (1) ...Landing fees and other...

  • Page 34
    ... 937 2009 Year Ended December 31, 2008 2007 2006 2005 Operating Statistics (unaudited): Revenue passengers (thousands) ...Revenue passenger miles (millions) ...Available seat miles (ASMs)(millions) ...Load factor ...Aircraft utilization (hours per day) ...Average fare ...Yield per passenger mile...

  • Page 35
    ... miles. "Operating expense per available seat mile, excluding fuel" represents operating expenses, less aircraft fuel, divided by available seat miles. "Average stage length" represents the average number of miles flown per flight. "Average fuel cost per gallon" represents total aircraft fuel costs...

  • Page 36
    ... to customer service that offers competitive fares primarily on point-to-point routes. Our value proposition includes operating a young, fuel efficient fleet with more legroom than any other domestic airline's coach product, free in-flight entertainment, pre-assigned seating, unlimited snacks, and...

  • Page 37
    points expirations can be extended. Based on extensive customer surveys, we believe this enhanced program will make our product more appealing to the business customer. On January 29, 2010 we implemented a new integrated customer service system, which includes a reservations system, revenue ...

  • Page 38
    ... will in the future. Our maintenance costs will increase significantly, both on an absolute basis and as a percentage of our unit costs, as our fleet ages. Other operating expenses consist of purchased services (including expenses related to fueling, ground handling, skycap, security and janitorial...

  • Page 39
    ... to our new customer service system. Results of Operations Unfavorable economic conditions contributed to the continued weakened demand for domestic leisure and business air travel. Throughout 2009, many airlines were aggressive with fare sales, particularly during offpeak travel periods, which...

  • Page 40
    ...average full-time equivalent employees. The increase in average full-time equivalent employees is partially driven by our policy of not furloughing employees and additional staffing levels in preparation for our new customer service system implementation in January 2010. Cost per available seat mile...

  • Page 41
    ... versus 2008, operating out of eight additional cities in 2009, and increased costs due to preparations for our implementation of our new customer service system in January 2010. Other operating expenses include the impact of $1 million and $23 million in gains on sales of aircraft in 2009 and 2008...

  • Page 42
    ...36% of our operating expenses in 2008 and 2007, respectively. Cost per available seat mile increased 42% primarily due to higher fuel prices. Salaries, wages and benefits increased 7%, or $46 million, due primarily to a 4% increase in average full-time equivalent employees and increases in pay rates...

  • Page 43
    ... fares. We book the majority of our reservations through a combination of our website and our agents. Maintenance materials and repairs increased 19%, or $21 million, due to 12 more average operating aircraft in 2008 compared to 2007 and a gradual aging of our fleet. Cost per available seat mile...

  • Page 44
    ... (benefit) ...Net income (loss) ...Operating margin ...Pre-tax margin ...Operating Statistics: Revenue passengers (thousands)...Revenue passenger miles (millions) ...Available seat miles ASM (millions) ...Load factor ...Aircraft utilization (hours per day) ...Average fare...Yield per passenger mile...

  • Page 45
    ... for current and future operations. At December 31, 2009, we had one line of credit secured by all of our ARS, which was fully drawn, totaling $56 million. Investing Activities. During 2009, capital expenditures related to our purchase of flight equipment included $313 million for 11 aircraft and...

  • Page 46
    ... institutions secured by six aircraft, (5) proceeds of two lines of credit totaling $163 million collateralized by our ARS, (6) reimbursement of construction costs incurred for our new terminal at JFK of $138 million, (7) the financing of four spare engine purchases of $26 million, (8) the sale and...

  • Page 47
    ...the related lease terms. Including the effects of the 2009 amendments to our Airbus and EMBRAER purchase agreements, our firm aircraft orders at December 31, 2009 consisted of 55 Airbus A320 aircraft and 60 EMBRAER 190 aircraft scheduled for delivery as follows: 4 in 2010, 13 in 2011, 19 in 2012, 20...

  • Page 48
    ...190 aircraft for delivery from 2011 through 2018. We can elect to substitute Airbus A321 aircraft or A319 aircraft for the A320 aircraft until 21 months prior to the scheduled delivery date for those aircraft not on firm order. In October 2008, we began operating out of our new Terminal 5 at JFK, or...

  • Page 49
    ... types and our anticipated utilization of the aircraft. Changing market prices of new and used aircraft, government regulations and changes in our maintenance program or operations could result in changes to these estimates. Our long-lived assets are evaluated for impairment at least annually...

  • Page 50
    ... aircraft fuel prices. We do not purchase or hold any derivative instrument for trading purposes. At December 31, 2009, we had a $28 million asset related to the net fair value of these derivative instruments; the majority of which are not traded on a public exchange. Fair values are assigned based...

  • Page 51
    ... to participating companies, including credit card and car rental companies. These sales are accounted for as multiple-element arrangements, with one element representing the travel that will ultimately be provided when the points are redeemed and the other consisting of marketing related activities...

  • Page 52
    ...in the price and availability of aircraft fuel. To manage the price risk, we use crude or heating oil option contracts or jet fuel swap agreements. Market risk is estimated as a hypothetical 10% increase in the December 31, 2009 cost per gallon of fuel. Based on projected 2010 fuel consumption, such...

  • Page 53
    ... equivalents ...Investment securities ...Receivables, less allowance (2009-$6; 2008-$5) ...Inventories, less allowance (2009-$3; 2008-$4) ...Restricted cash ...Prepaid expenses ...Other...Deferred income taxes ...Total current assets...PROPERTY AND EQUIPMENT Flight equipment ...Predelivery deposits...

  • Page 54
    ..., wages and benefits ...Other accrued liabilities ...Short-term borrowings ...Current maturities of long-term debt and capital leases ...Total current liabilities ...LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS ...CONSTRUCTION OBLIGATION ...DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes...

  • Page 55
    ...2009, 2008, and 2007, respectively) ...Salaries, wages and benefits ...Landing fees and other rents ...Depreciation and amortization ...Aircraft rent...Sales and marketing ...Maintenance materials and repairs ...Other operating expenses ...Total operating expenses ...OPERATING INCOME ...OTHER INCOME...

  • Page 56
    ... 31, 2009 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES ...Net income (loss) ...Adjustments to reconcile net income (loss) to net cash provided by (used in) activities: Deferred income taxes ...Depreciation ...Amortization ...Stock-based compensation ...Gains on sale of flight equipment and...

  • Page 57
    ...2008 share lending ...Balance at December 31, 2008 ...Net income ...Changes in comprehensive income (Note 15) ...Total comprehensive income ...Vesting of restricted stock units ...Stock compensation expense ...Stock issued under crewmember stock purchase plan ...Proceeds from secondary offering, net...

  • Page 58
    ...31, 2009 JetBlue Airways Corporation is an innovative passenger airline that provides award winning customer service at competitive fares primarily on point-to-point routes. We offer our customers a high quality product with young, fuel-efficient aircraft, leather seats, free in-flight entertainment...

  • Page 59
    ..., which are stated at average cost and aircraft fuel, which is stated on a first-in, first-out basis. These items are charged to expense when used. An allowance for obsolescence on aircraft spare parts is provided over the remaining useful life of the related aircraft fleet. Property and Equipment...

  • Page 60
    ..., based on points earned and redeemed, changes in the estimated incremental costs associated with providing travel and changes in the TrueBlue program. Points in TrueBlue can also be sold to participating companies, including credit card and car rental companies. These sales are accounted for...

  • Page 61
    ... of the improved TrueBlue program, we extended our co-branded credit card agreement. In connection with this extension, we received a one-time payment of $37 million, which we have deferred and will recognize over the term of the agreement. Income Taxes: We account for income taxes utilizing the...

  • Page 62
    ... changes the accounting for equity share lending arrangements on an entity's own shares when executed in contemplation of a convertible debt offering. ASU 2009-15 requires the share lending arrangement to be measured at fair value and recognized as an issuance cost. These issuance costs should then...

  • Page 63
    ... certificates is based on three month LIBOR plus a margin. Interest is payable quarterly. (3) In November 2004 and March 2004, we completed public offerings of $498 million and $431 million, respectively, of pass-through certificates to finance the purchase of 28 new Airbus A320 aircraft delivered...

  • Page 64
    ... is based on three month LIBOR plus a margin. Interest is payable quarterly. (4) In December 2006, the New York City Industrial Development Agency issued special facility revenue bonds for JFK and, in November 2005, the Greater Orlando Aviation Authority issued special purpose airport facilities...

  • Page 65
    ...price equal to 100% of their principal amount plus accrued and unpaid interest, if any, on March 15, 2010, 2015, 2020, 2025 and 2030, or at any time prior to their maturity upon the occurrence of a specified designated event. Interest is payable semi-annually on March 15 and September 15. We account...

  • Page 66
    ...scheduled semi-annual interest payments on the 5.5% Debentures, into escrow accounts for the exclusive benefit of the holders of each series of the 5.5% Debentures. The total net proceeds of the offering were approximately $165 million, after deducting underwriting fees and other transaction related...

  • Page 67
    ... Airbus A320 aircraft are included in property and equipment at a cost of $152 million with accumulated amortization of $13 million and $9 million, respectively. The future minimum lease payments under these noncancelable leases are $15 million per year through 2011, $14 million per year in 2012...

  • Page 68
    ... extended the lease on two of our aircraft, one of which was previously scheduled to expire in December 2009 and the other in March 2010. These extensions resulted in an additional $11 million of lease commitments through 2012. Total rental expense for all operating leases in 2009, 2008 and 2007 was...

  • Page 69
    ... deferred gains recorded related to this transaction. Future minimum lease payments under noncancelable operating leases with initial or remaining terms in excess of one year at December 31, 2009, are as follows (in millions): Aircraft Other Total 2010...2011...2012...2013...2014...Thereafter...

  • Page 70
    ... Project precludes us from sale and leaseback accounting; therefore the cost of these elements of the Project and the related liability will remain on our balance sheets and be accounted for as a financing. Scheduled facility payments totaled $32 million and $6 million in 2009 and 2008, respectively...

  • Page 71
    ...the rights. The rights expire on April 17, 2012 and may be redeemed by the Company at a price of $.01 per right prior to the time they become exercisable. As of December 31, 2009, we had a total of 188.1 million shares of our common stock reserved for issuance related to our CSPP, our 2002 Plan, our...

  • Page 72
    ... our Board of Directors, as well as deferred stock units to be granted to members of our Board of Directors. The 2002 Plan became effective following our initial public offering in April 2002. During 2007, we began issuing restricted stock units under the 2002 Plan. These awards will vest in annual...

  • Page 73
    ...Plan. These awards vest immediately upon being granted to members of the Board of Directors and shares are issued six months and one day following the Director's departure from the Board. During the year ended December 31, 2009, we granted 66,790 deferred stock units at a weighted average grant date...

  • Page 74
    ... terms, terminates no later than the last business day of April 2012. The CSPP has a series of successive overlapping 6-month offering periods, with a new offering period beginning on the first business day of May and November each year. Employees can only join an offering period on the start date...

  • Page 75
    ... over seven years based on the average number of aircraft expected to be in service as of the date of acquisition. Purchased technology became fully amortized in 2009. Through December 31, 2009, LiveTV had installed in-flight entertainment systems for other airlines on 416 aircraft and had firm...

  • Page 76
    ... 31 for the following reasons (in millions): 2009 2008 2007 Income tax expense (benefit) at statutory rate . . Increase (decrease) resulting from: State income tax, net of federal benefit...Stock-based compensation ...Non-deductible meals ...Non-deductible costs ...Valuation allowance ...Other, net...

  • Page 77
    ... to purchase 8 Airbus A320 aircraft scheduled for delivery from 2014 through 2015 and 74 EMBRAER 190 aircraft scheduled for delivery from 2011 through 2018. We are scheduled to receive four new EMBRAER 190 aircraft in 2010. We utilize several credit card processors to process our ticket sales. Our...

  • Page 78
    ...which has several noncancelable long-term purchase agreements with its suppliers to provide equipment to be installed on its customers' aircraft, including JetBlue's aircraft. Committed expenditures to these suppliers are approximately $37 million in 2010, $9 million in 2011, $9 million in 2012, and...

  • Page 79
    ... U.S. airline domestic flights. The rules become effective in April 2010, and will require U.S. airlines to allow passengers to deplane after three hours on the tarmac, with certain safety and security exceptions. Violators can face fines up to a maximum of $27,500 per passenger. The new rules also...

  • Page 80
    ... fuel hedging contracts that were designated as cash flow hedges for accounting purposes. Crude oil cap agreements Heating oil collars Jet fuel swap agreements Total First Quarter 2010 ...Second Quarter 2010 ...Third Quarter 2010 ...Fourth Quarter 2010 ...First Quarter 2011 ...Second Quarter 2011...

  • Page 81
    ... the next 12 months ...2009 $ 25 3 - $ - - 35 93 12 870 (128) 10 (4) 2007 - 18 5,070 12 10 (8) 2008 Fuel derivatives Hedge effectiveness gains (losses) recognized in aircraft fuel expense ...$(120) $ 48 $35 Hedge ineffectiveness gains (losses) recognized in other income (expense) ...1 - 5 Gains...

  • Page 82
    ...of December 31, 2009 (in millions). Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents ...Restricted cash ...Investment securities Auction rate securities (ARS) ...Available-for-sale securities ...Held-to-maturity bonds ...Put option related to ARS ...Aircraft fuel derivatives ... $ 902...

  • Page 83
    ... in highly liquid debt securities are stated at fair value. The majority of our receivables result from the sale of tickets to individuals, mostly through the use of major credit cards. These receivables are short-term, generally being settled shortly after the sale. The carrying values of...

  • Page 84
    ... par ARS brokered by them, which had a par value of $85 million at December 31, 2009, beginning in June 2010. Refer to Note 2 for further details on our participation in UBS's auction rate security program. Put option related to ARS: We have elected to apply the fair value option under the Financial...

  • Page 85
    ... substantially all the Company's operations in 2009, 2008 and 2007. However, our chief operating decision makers do analyze flight profitability and route economics. During 2009, we grew our route network primarily through adding new destinations in the Caribbean and Latin America, markets which, in...

  • Page 86
    ... year based on respective weighted-average common shares outstanding and other dilutive potential common shares. Note 18-Subsequent Events On January 29, 2010 we began the implementation of a new integrated customer service system, which includes a reservations system, website, revenue management...

  • Page 87
    ..., in accordance with the standards of the Public Company Accounting Oversight Board (United States), JetBlue Airways Corporation's internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control-Integrated Framework issued by the Committee of...

  • Page 88
    ...the related consolidated statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2009 of JetBlue Airways Corporation and our report dated February 5, 2010 expressed an unqualified opinion thereon. /s/ Ernst & Young LLP New York, New...

  • Page 89
    ...during the quarter ended December 31, 2009 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OTHER INFORMATION Code of Ethics We adopted...

  • Page 90
    ... Regulation S-K. Our Board of Directors has determined that Robert Clanin, the Chair of the Audit Committee, is an "audit committee financial expert" and is independent as defined under applicable SEC and Nasdaq rules. Information relating to executive officers is set forth in Part I of this report...

  • Page 91
    ... 2007 Notes to Consolidated Financial Statements Reports of Independent Registered Public Accounting Firm Financial Statement Schedule: Report of Independent Registered Public Accounting Firm on Financial Statement Schedule ...S-1 Schedule II-Valuation of Qualifying Accounts and Reserves ...S-2 All...

  • Page 92
    ... thereunto duly authorized. JETBLUE AIRWAYS CORPORATION (Registrant) Date: February 5, 2010 By: /s/ DONALD DANIELS Vice President, Controller, and Chief Accounting Officer (Principal Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed...

  • Page 93
    ...reference to Exhibit 4.1 to our Current Report on Form 8-K/A dated October 4, 2004. Amendment No. 4, dated as of June 22, 2006, to Amended and Restated Registration Rights Agreement, dated as of August 10, 2000, by and among JetBlue Airways Corporation and the Stockholders named therein-incorporated...

  • Page 94
    ... to our Annual Report on Form 10-K for the year ended December 31, 2002. Amendment to the Stockholder Rights Agreement, dated as of January 17, 2008, by and between JetBlue Airways Corporation and Computershare Trust Company, N.A.-incorporated by reference to Exhibit 4.5(a) to our Current Report on...

  • Page 95
    ...Current Report on Form 8-K dated March 24, 2004(2). Schedule to the ISDA Master Agreement, dated as of March 24, 2004, between Morgan Stanley Capital Services Inc., as Above Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass...

  • Page 96
    ...Stanley Capital Services, Inc., as Above-Cap Liquidity Provider, MBIA Insurance Corporation, as Policy Provider, and Wilmington Trust Company, as Subordination Agent-incorporated by reference to Exhibit 4.27 to our Current Report on Form 8-K dated March 24, 2004. Note Purchase Agreement, dated as of...

  • Page 97
    ...Securities, Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of JetBlue Airways Corporation Pass Through Trust 2004-2G-2-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying Agent-incorporated by reference to Exhibit 4.11 to our Current Report...

  • Page 98
    ... to Exhibit 4.20 to our Current Report on Form 8-K dated November 9, 2004. Insurance and Indemnity Agreement, dated as of November 15, 2004, among MBIA Insurance Corporation, as Policy Provider, JetBlue Airways Corporation and Wilmington Trust Company, as Subordination Agent and Trustee-incorporated...

  • Page 99
    ... Citibank, N.A., as Above-Cap Liquidity Provider, MBIA Insurance Corporation, as Policy Provider, and Wilmington Trust Company, as Subordination Agent-incorporated by reference to Exhibit 4.24 to our Current Report on Form 8-K dated November 9, 2004. Note Purchase Agreement, dated as of November 15...

  • Page 100
    ... Capital Services, Inc., as Above-Cap Liquidity Provider, MBIA Insurance Corporation, as Policy Provider, and Wilmington Trust Company, as Subordination Agent- incorporated by reference to Exhibit 4.10 to our Current Report on Form 8-K dated November 14, 2006. Note Purchase Agreement, dated as...

  • Page 101
    ..., 2006, among, JetBlue Airways Corporation, MBIA Insurance Corporation, as Initial Policy Provider, Wilmington Trust Company, as Mortgagee, and Additional Policy Provider(s), if any, which may from time to time hereafter become parties-incorporated by reference to Exhibit 4.13 to our Current Report...

  • Page 102
    ...Current Report on Form 8-K dated November 19, 2004. Amendment No. 22 to Airbus A320 Purchase Agreement between AVSA, S.A.R.L., and JetBlue Airways Corporation, dated February 17, 2005-incorporated by reference to Exhibit 10.22(b) to our Annual Report on Form 10-K for the year ended December 31, 2006...

  • Page 103
    ... JetBlue Airways Corporation, dated December 1, 2006-incorporated by reference to Exhibit 10.22(b) to our Annual Report on Form 10-K for the year ended December 31, 2006. Amendment No. 30 to Airbus A320 Purchase Agreement between AVSA, S.A.R.L., and JetBlue Airways Corporation, dated March 26, 2007...

  • Page 104
    ... on Form 10-Q for the quarter ended March 31, 2007. Side Letter No. 23 to V2500 General Terms of Sale between IAE International Aero Engines AG and New Air Corporation, dated December 18, 2007-incorporated by reference to Exhibit 10.3(n) to our Annual Report on Form 10-K, as amended, for the year...

  • Page 105
    ...for the year ended December 31, 2006. Amendment No. 4 to Purchase Agreement DCT-025/2003, dated as of October 17, 2007, between Embraer-Empresa Brasileria de Aeronautica S.A. and JetBlue Airways Corporation- incorporated by reference to Exhibit 10.17(d) to our Annual Report on Form 10-K for the year...

  • Page 106
    ...New York and New Jersey and JetBlue Airways Corporation- incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K dated March 24, 2004. Agreement of Lease (Port Authority Lease No. AYD-350), dated November 22, 2005, between The Port Authority of New York and New Jersey and JetBlue...

  • Page 107
    10.22* JetBlue Airways Corporation Executive Change in Control Severance Plan, dated as of June 28, 2007-incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K, dated June 28, 2007. Employment Agreement, dated February 11, 2008, between JetBlue Airways Corporation and David ...

  • Page 108
    ...Exhibit 4.4 to our Current Report on Form 8-K dated November 9, 2004 (which exhibit relates to formation of JetBlue Airways Pass Through Trust, Series 2004-2G-1-O and the issuance of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Trust, Series 2004-2G-1-O, Pass Through Certificates) have...

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    ... 5, 2010 (included elsewhere in this Annual Report on Form 10-K). Our audits also included the financial statement schedule listed in Item 15(2) of this Annual Report on Form 10-K. This schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on...

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    JetBlue Airways Corporation Schedule II-Valuation and Qualifying Accounts (in thousands) Additions Charged to Charged to Other Costs and Expenses Accounts Description Balance at beginning of period Deductions Balance at end of period Year Ended December 31, 2009 Allowances deducted from asset ...

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    Exhibit 12.1 JETBLUE AIRWAYS CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (in millions, except ratios) 2009 Year Ended December 31, 2008 2007 2006 2005 Earnings: Income (loss) before income taxes ...Less: capitalized interest ...Add: Fixed charges ...Amortization of capitalized ...

  • Page 113
    ... 21.1 JETBLUE AIRWAYS CORPORATION LIST OF SUBSIDIARIES As of December 31, 2009 LiveTV, LLC (Delaware limited liability company) LiveTV International, Inc. (Delaware corporation) BlueBermuda Insurance, LTD (Bermuda corporation) LiveTV Airfone, Inc. (Delaware corporation) JetBlue Airways Corporation...

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    ... Stock Purchase Plan of our reports dated February 5, 2010, with respect to the consolidated financial statements of JetBlue Airways Corporation, the effectiveness of internal control over financial reporting of JetBlue Airways Corporation, and the financial statement schedule of JetBlue Airways...

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    ... and report financial information; and any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. b) Dated: February 5, 2010 /s/ DAVID BARGER David Barger Chief Executive Officer

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    ...information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: February 5, 2010 /s/ EDWARD BARNES Edward Barnes Executive Vice President and Chief Financial Officer

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    ... Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of JetBlue Airways Corporation. Date: February 5, 2010 By: /s/ DAVID BARGER David Barger Chief Executive...

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