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Module 10: Detailed Analysis of the Financial Statements Regional Airlines - jetBlue

Module 10: Detailed Analysis of the Financial Statements Regional Airlines - jetBlue. Michelle Kelly. Background. Low Budget Airline Modeled after Southwest Difference: jetBlue aims to be low cost but high quality. Headquartered in Queens, NY Major Airport: JFK Market Share: 5.1%

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Module 10: Detailed Analysis of the Financial Statements Regional Airlines - jetBlue

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  1. Module 10: Detailed Analysis of the Financial StatementsRegional Airlines - jetBlue Michelle Kelly

  2. Background • Low Budget Airline • Modeled after Southwest • Difference: jetBlue aims to be low cost but high quality. • Headquartered in Queens, NY • Major Airport: JFK • Market Share: 5.1% • Serve 84 destinations in 24 states

  3. Deferred Taxes • Net Deferred Tax Liability of $485

  4. Deferred Taxes – Note 9 • There is no implied additional liability/asset

  5. Property, Plant and Equipment

  6. Property, Plant and Equipment • No Individual Note • Only direct information provided is from Note 1- Significant Accounting Policies

  7. Property, Plant and Equipment • Gathered more information from other notes and MD&A

  8. Other Assets • Not a huge part of overall assets • Little information in the Notes about this section • Added available details from notes

  9. Other assets

  10. Long Term Debt

  11. Long Term Debt – Note 2

  12. Revenue

  13. Revenues • From MD&A: “The primary component of other revenue is the fees from reservation changes and excess baggage charged to customers in accordance with our published policies. We also include the marketing component of TrueBlue point sales, on-board product sales, transportation of mail and cargo, Charters, ground handling fees of other airlines and rental income. We additionally include the revenues earned by our subsidiary, LiveTV, LLC, for the sale of in-flight entertainment systems and on-going services provided for these systems on other airlines in Other Revenue.”

  14. Revenues – Note 8 LiveTV • Through December 31, 2013, LiveTV had installed in-flight entertainment systems for other airlines on 461 aircraft and had firm commitments for installations of in-flight entertainment and Ka broadband connectivity on 196 additional aircraft scheduled to be installed through 2015, with options for nine additional in-flight entertainment installations through 2016. Revenues in 2013 and 2012  were $72 million and $81 million 

  15. Revenue • Breakdown of Revenue by Geographic Location provided in Note 16

  16. Operating Expenses

  17. Operating Expenses • A lot of detail about expenses on the Income Statement • Biggest area of uncertainty is Salaries, Wages, and Benefits

  18. Operating Expense

  19. Operating Expenses

  20. Information That Would Have Been Nice… • A more comprehensive breakdown of the assets which make up PP&E • A breakdown of the Air Traffic liability

  21. Questions?

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