JetBlue Signs $700 Million Deal For IAE Engines

JetBlue Airways, New York`s hometown, low-fare airline, has placed a further order with IAE International Aero Engines AG to power up to 48 additional new Airbus A320 aircraft with V2500 engines. The new contract covers 30 firm orders, options for five, and purchase rights for an additional 13.

The value to IAE of the firm order is more than $435 million, with the potential of growing to $700 million with the exercise of options.

This takes JetBlue`s total order of V2500-powered aircraft to 63 firm, 30 options and 30 purchase rights, which, combined with eight leased A320s, brings the total fleet order to as many as 131 aircraft. JetBlue has taken delivery of 14 A320s since it began operations in February 2000 and will have 21 aircraft in operation by year`s end.

“JetBlue has established a reputation very quickly for reliable, on-time and friendly service,” said David Neeleman, JetBlue`s CEO. “Our industry-leading operational performance and customer popularity can be attributed in part to our selection of the V2500. And, as we enter new markets such as Long Beach, new customers will be introduced not only to our reliability but to some of the quietest, environmentally-friendly air service anywhere.”

“We are thrilled by JetBlue`s rapid success,” said Michael P. Field, IAE Senior Vice President, Sales & Customer Support. “Our strong partnership with JetBlue has made it possible for us to work together on achieving their goals. The V2500-powered A320 aircraft are a key contributor to JetBlue`s customers` satisfaction.”


From February 2000 through March 2001, JetBlue operated 15,529 flights, with a completion factor of 99.5%, and leads the industry with an average load factor of 75.7% (or percentage of seats filled). The airline has recorded an on-time performance of 81.2%, compared to 72.6% for the top 10 airlines in the U.S, according to the DOT. JetBlue`s rate of delayed, misplaced or lost bags is less than half the majors at 2.54 per 1,000 bags handled, against 5.2 for the 10 major carriers.

JetBlue was voted #2 Best Domestic Airline for comfort and service in the 2001 Zagat Airline Survey and recently received top ranking (A grade) in an online survey by According to the Department of Transportation, as of February 2001, JetBlue has received 12 letters of complaint since starting service, which equates to less one complaint per 100,000 passengers flown.

JetBlue has carried more than 2 and a half million passengers and take delivery of a new A320 every five weeks on average. JetBlue is the only airline in the world to offer 24-channel LiveTV at every seat, free of charge to every passenger.