jetBlue AirwaysBy: Rachel Andersen, Joe Bossert, Jarvez Hall, Jeff

Hensley, Brandon Kirkbride and Adam Tolman

Agenda

• Strategy• History• Competitors • Strengths/Weaknesses

• Competitive Advantage• Facts• Financials• Advertising• Future of Company

Strategy

• “Our goal is to establish jetBlue as a leading low-fare, low-cost passenger airline by offering customers high-quality customer service and a differentiated product. We strive to offer low fares that stimulate market demand while maintaining a continuous focus on cost-containment and operating efficiencies. We intend to follow a controlled growth plan designed to take advantage of our competitive strengths. Our growth has occurred, and we believe it will continue to occur, by adding additional frequencies on existing routes, connecting new city pairs among the destinations we already serve and entering new markets often served by higher-cost, higher-fare airlines.”

History

• February 11, 2001• CEO David Neeleman: “Bring humanity

back to air travel”. • Executive Team

• David Neeleman: Chief Executive Officer• Dave Barger: President & Chief Operating Officer• Thomas Kelly: Executive Vice President • John Owen: Executive Vice President & Chief

Financial Officer

More History

• First and only U.S. start-up airline to launch with more than $100 million in capital

• Began with service between New York City and Ft. Lauderdale, FL. 2000: Flies its one millionth customer and reports $100

million in flown revenue for 2000. 2001: Flies its two millionth customer. 2002: Acquired 100% of the ownership interests in LiveTV. 2003: Announces initial public offering of its common stock 2004: Launches online flight check-in. 2005: Receives FAA's highly coveted Diamond Certificate

of Excellence Award.

Competitors

• Southwest• American• Delta• Northwest• United • Continental• Pan Am• Horizon/Alaskan

Strengths/Weaknesses

• Strengths• Low Operating Costs

• 6.03 cents mile vs. 10.91 industry average

• 13.4 hrs average utilization per aircraft

• Productive workforce• Low distribution costs

• Direct Bookings

• Single aircraft• New

• Brand

•Weaknesses•Hubs•Destinations•Small Airlines•Single Class•Debt

•Floating interest rates•Additional Financing problems

•Maintenance Costs

Competitive Advantages

• Bulletproof Cockpits• Low fares• Experienced Management• Leather Seats• DirecTV• XM Radio coming soon!

FactsJETBLUE -- FIRST AND ONLY: • First and only U.S. start-up airline to launch with more than

$100 million in capital • First and only airline to offer 24-channels of live satellite

television free at every seat • First and only airline to broadcast the Olympic Games live at

every seat • First U.S. airline to introduce "paperless cockpit" flight

technology • Only U.S. airline to be 100% ticketless • First U.S. airline to install bullet-proof cockpit doors across its

fleet • First and only airline to install security cameras in passenger

cabin for customer and crew safety

FLEET: • 77 Airbus A320 aircraft , all

powered by International Aero Engines (IAE) V2500 engines

• JetBlue has orders with Airbus for a fleet of as many as 233 A320 aircraft and has placed an order with Embraer for a fleet of up to 200 EMBRAER 190 aircraft. The first EMBRAER 190 aircraft will be delivered in 2005.

• JetBlue's A320 aircraft have a single-class configuration of 156 seats, while the EMBRAER 190 will have a single-class configuration of 100 seats.

• All JetBlue's fleet is outfitted with leather seats with free DIRECTV programming® at every seat.

Facts

INFLIGHT ENTERTAINMENT

•A&E •Animal Planet •Boomerang •Bravo •CNBC •CNN Headline News •Comedy Central •Court TV •DIRECTV® FREEVIEW® •Discovery •ESPN •ESPN2 •ESPNews •ESPN Classic •Food Network •Fox Movie Channel •Fox News Channel •FX

•GSN, the Network for Games •Hallmark Channel •The History Channel •HGTV •MapQuest •MSNBC •MTV •National Geographic Channel •Nickelodeon / Nick at Nite •SCI FI Channel •Telemundo •The Learning Channel •Travel Channel •TV Land (Freeview/Specialty Events on weekends) •USA Network •VH1 Classic •The Weather Channel •WNBC

All JetBlue aircraft are equipped with an in-seat digital entertainment system (individual seatback monitors, armrest remotes with channel and volume controls) offering 36 channels of free DIRECTV® programming - no other airline offers more live satellite TV options. On flights longer than two hours, a selection of first-run movies and bonus features from FOX InFlight is also available. Over the next few months, we will be upgrading our entire fleet to include 100+ channels of XM Satellite Radio.

Cities Served• Aguadilla, Puerto Rico • Boston, MA • Buffalo, NY • Burbank, CA • Burlington, VT • Denver, CO • Fort Lauderdale, FL • Fort Myers, FL • Las Vegas, NV • Long Beach, CA (near Los

Angeles) • Nassau, Bahamas • New Orleans, LA • New York City, NY (JFK) • New York City, NY (LaGuardia) • Newark, NJ (service starts October 5,

2005) • Oakland, CA (near San Francisco) • Ontario, CA (near Los Angeles)• Orlando, FL • Phoenix, AZ • Ponce, Puerto Rico • Portland, OR • Rochester, NY • Sacramento, CA • Santiago, Dominican Republic • Salt Lake City, UT

• San Diego, CA • San Jose, CA • San Juan, Puerto Rico • Seattle, WA • Syracuse, NY • Tampa, FL • West Palm Beach, FL • Washington, DC

Financials – Cost Structure

Advertising

Amy Curtis-McIntyre, VP of Marketing

• “Advertising is the last thing you bring to the mix. You start by getting the product right, getting your attitude right, getting everyone internally understanding the mission. Then you move to telling the story through PR. You build the advertising last, and that way you can live on realistic budgets”

• Commercials

An Inside Look

• Tour

• In flight Entertainment

• Blue Cities

The Unadvertising

• Hot Shorts

• AMERICAN EXPRESS AND JETBLUE® AIRWAYS EXTEND PARTNERSHIP WITH NEW COBRAND CREDIT CARD AGREEMENT

• “Our partnership with JetBlue is another way we can offer consumers rewards products to fit their lifestyle with brands that have their loyalty.” Al Kelly, American Express.

• “JetBlue is committed to finding new and innovative ways to offer our customers more ways to save and partnering with American Express will enable us to do just that.” David Neeleman, CEO, JetBlue

You can purchase more than a flight

Stock price

Future of the Company

• Expected Increase 4-5%• Expected Operating Capacity

• 27-29%

• 15 new aircrafts• 22% fuel costs hedged at $1.17 gal.• Expected Operating Margin 7-9%

Sources

• http://home3.americanexpress.com/corp/pc/2005/trueblue.asp

• http://archives.californiaaviation.org/airport/jpg00600.jpg

• http://www.jetblue.com/• http://quotes.nasdaq.com/asp/summaryquote.asp?

symbol=JBLU%60&selected=JBLU%60• http://64.106.229.11/jetblue2004/balance.html• http://www.brandingblog.com/2004/05/

branding_at_jet.html• http://www.sjc.org/AirportReport/Mar04/

AR_content.html

•Just to end

Questions?