JetBlue and GE agree engine service contract

On June 6, 2013, JetBlue Airways and GE Engine Services entered into an engine services agreement for CF34 engines. GE is also the manufacturer of the CF34 engines, which are the engines for JetBlue’s EMBRAER 190 aircraft. The Agreement is a per-flight hour agreement providing maintenance for the CF34 engines over a 9.2 year term. This type of agreement transfers risk to third-party service providers and fixes the amount JetBlue pays per flight hour in exchange for maintenance and repairs under a predetermined maintenance program. Future payments are based on minimum flight hours and other factors, including a price adjustment matrix and changes in fleet size. Accordingly, payments could differ materially over the term of the Agreement based on actual flight hours and related factors. The Agreement contains customary supplemental work and part provisions, representations, warranties and guarantees, termination provisions and reconciliation provisions tied to fleet size.