IDA to give JetBlue Airlines $50 million for expansion

Real Estate Weekly, March 19, 2003

New York City Industrial Development Agency (IDA) chairman Andrew M. Alper announced that JetBlue Airways will receive $50 million in triple tax-exempt financing for the expansion of its operations at John F. Kennedy International Airport.

The expansion will allow the airline to preserve 30 jobs and add 195 new ones in New York City over the next three years.

"JetBlue Airways is one of New York City's great success stories of recent years," said Alper. 'The airline's long-term commitment to expand and upgrade its facilities at JFK Airport will contribute almost 200 full-time jobs to New York City, where it already employs more than 1,500 people. I am pleased the Industrial Development Agency played an important role in assisting such a highly regarded company.

The Airport Facility Bonds will enable JetBlue to renovate an existing 25,000-SF facility for additional warehouse and support operations. In addition, a second facility will be demolished for the construction of a 107,000-SF building that will include a two-bay hangar to house three Airbus A320 aircrafts. JetBlue will secure a ground lease from the Port Authority of New York and New Jersey for the project area.

JetBlue was established in February 2000 and now serves 20 cities across the United States with 40 airplanes. A low-fare passenger airline, JetBlue focuses on underserved markets and large metropolitan areas with high average fares.

The airline operates 108 flights a day, including 52 daily flights between JFK and Florida and 26 daily flights from JFK to upstate New York. Serving 5 million passengers annually from JFK, the airline wants to raise that to 20 million by 2009.

JetBlue has been honored with numerous awards for excellence from Conde Nast Travelers, Travel & Leisure, Money magazine, Zagat and Entertainment Weekly.

In a separate transaction, IDA approved issuance of $4.7 million in tax-exempt bonds to assist the non-profit Dance Theatre Workshop. The group will use the bond proceeds to finance a portion of the costs incurred to rebuild and equip its West 19th Street facility and to consolidate debt from a prior IDA transaction under a new mortgage.

In 1995, Dance Theater Workshop purchased the property on West 19th Street with IDA bonds.