Welcome to JetBlue Airways Corporation's Third Quarter 2007 Earnings Conference Call. Today's call is being recorded. We have on the call today Dave Barger, JetBlue's CEO and John Harvey, JetBlue's CFO. As a reminder, this morning's call includes forward-looking statements about future events. Actual results may differ from those expressed in the forward-looking statements due to many factors and therefore investors should not place undue reliance on these statements. For additional information, please refer to the company's periodic filings with the Securities and Exchange Commission. At this time, I would like to turn the call over to Dave Barger. Please go ahead sir.

Thank you and good morning and thank you all for joining us. We are very pleased to report an operating margin of 10.3% today, our second straight quarter of double-digit operating margins. For the quarter, we realized a net income of $23 million or $0.12 per diluted share, which is a $23 million improvement over third quarter 2006. Our strong third quarter results were driven by solid revenue, better than expected cost performance. CASM was at 9.1% year-over-year, and our CASM excluding fuel increased 5.3%. In addition to solid financial results, we were again recognized for exceptional customer service. For the sixth year in a row, Condé Nast Traveller readers recognized JetBlue as the best domestic airline. We also ranked highest among major carriers in Condé Nast Business Travel awards. These awards are a true testament to our dedicated crew members who continue to do a tremendous job, delivering the JetBlue experience to our customers. And it's important for me to take this opportunity to express my sincere thanks to our 11,000 plus crew members. Now turning to our third quarter results. We are very pleased with our 9.1% year-over-year improvement in PRASM. We benefited from very strong demand during the peak travel period in July and August, which, along with rational capacity in many of our markets, helped us increase our average fare to $128.83, up from $123.41 during the same period in 2006. Yields were up 7% and load factor was up 1.6 points year-over-year. As expected, the strong revenue environment we enjoyed during the summer did not continue into September. The seasonal shift in demand along with capacity increases in our markets limits our ability to attain high yield during this timeframe. September is historically a trough month for us due to our large leisure customer base.…

Thanks Dave and good morning everyone. As Dave mentioned, we are very pleased to report a second consecutive quarter of a double-digit operating margin. Our 10.3% margin was well ahead of our projection and reflects both revenue improvement and continued cost discipline. Before we take a more detailed look at the quarter, I would like to briefly discuss our planned fleet growth. In July, we announced plans to sell three A320s this year. During the third quarter, we sold one aircraft and we plan to close the sale of the other two aircraft during the fourth quarter. In addition, we also returned one A320 to its lessor prior to the end of its lease term during the third quarter. As we've said in the past, we view our order book with both EMBRAER and Airbus as a major asset. And assuming conditions remain favorable, we expect to continue to take advantage of the strength in the worldwide aircraft market. As such, we have entered into an agreement to sell two A320s during the second quarter of 2008. That said, we also maintain flexibility with our options to accelerate our fleet growth and respond to market opportunities when they arise. Obviously, our growth decisions going forward will depend on the competitive environment. Turning now to third quarter results. Our cost per available seat mile excluding fuel was 5.24 cents, an increase of 5.3% on a year-over-year basis. This year-over-year increase can be largely attributed to a decrease in our average stage length, which was down about 2% year-over-year as well as the removal of one row of seats from our A320 fleet earlier this year. Adjusting for these two items, our ex-fuel CASM increased 2% for the quarter. Our crew members continue to work hard to improve productivity. We finished the…

Now we will begin the 30-minute question and answer session for investors and analysts. We'd like to ask everyone to please limit themselves to one or two questions with a brief follow up so that we can accommodate as many as possible. Thank you. Your first question is coming from Robert Barry with Goldman Sachs. Please go ahead. Robert Barry - Goldman Sachs & Company: Hi guys. Good morning.

Good morning.

Good morning Robert. Robert Barry - Goldman Sachs & Company: A couple of questions on the costs. It looks like things came in a lot better than you expected. I guess I am curious if you could give a little more detail on where the performance was so much better. And also I am curious why you left the margin guidance the same for the year even though the quarter seemed to track so far ahead of where you thought it would come in on costs.

Sure. Really for the quarter, as we looked across all of our categories, we actually beat our guidance estimates across every singly category with the exception of deprecation and amortization. But the big drivers: salaries, wages, benefits and payroll taxes, substantial savings there. Actually, fuel came in a little bit better than forecast as well, I think a nickel better than we have thought earlier in the year. Maintenance also a good guide as mentioned earlier with respect to APUs. And other operating, even though up 17.2% year-over-year from a guidance perspective, better than forecast. With respect to why we didn't adjust the full year numbers, really, that's just a function of the math. Three quarters behind us, we can project what the fourth quarter is going to look like and at the end of the year it kind of falls out. Robert Barry - Goldman Sachs & Company: Okay. So no cost reallocation regarding maintenance or anything like that. And then just one other one, the 5% to 7% PRASM guidance for the year, I think that's a little lower than it was last time at 6% to 8%. I know you've also changed the ASM outlook. Is that what accounts for the change in the PRASM or is there some incremental weakness you are expecting in the fourth quarter?

Bob, we are still seeing... I mean I'd characterize it as steady demand in the quarter and the year-over-year comps are difficult. But really the energy that we saw in the bookings in July and August, we saw the trough period in September. We've historically had a trough period September into the October timeframe or in early November early in the December timeframe as well. So we thought that this was prudent to adjust our PRASM guidance accordingly. Robert Barry - Goldman Sachs & Company: Okay. It sounds like you are just being conservative.

Yes, I think it's... I don't know if I'd characterize it as conservative, but realistic. Clearly, we are taking a look at our route network with the announcement of the closure of two cities. And as we take a look at Kennedy with the congestion issues that are in play at Kennedy and then obviously we have the government interaction in play, overflies that are occurring in new markets. And so it takes time for new markets to mature, but these are all new markets. Now they are into the strength of the snowbird season if you will from New England and upstate down to Florida. So it's... I'd probably use the word realistic. Robert Barry - Goldman Sachs & Company: Okay, thank you.

Thanks Rob.

Thank you. Your next question is coming from Jim Parker with Raymond James. Please go ahead. James Parker - Raymond James & Associates: Good morning Dave and John.

Good morning.

Good morning. James Parker - Raymond James & Associates: I am curious about Columbus and Nashville in that obviously they weren't making money or weren't making enough money, and so you decided to leave. But you entered these markets thinking they were a pretty good... had good potential. What went on? What were the dynamics, the competition, or just in general, what caused you to back off from those two markets?

Thanks for question, Jim. Clearly, the headline was the fact that these two markets were maturing slower than what we were expecting. And when we opened 16 new markets back in 2006, an awful lot of new markets that we opened up, I think that's been a lesson for us as well to obviously open up fewer markets. So I mean these two were just... they were tied into Kennedy and they were just maturing at a slower pace than the other locations. And Jim, I think it's important to highlight that even with the announcement of these two cities, there is... we'll continue the focus. This is a dynamic environment looking and evaluating those cities that are responding to JetBlue's service. And I think it's also fair to say, Jim, that we take a look where else can we add service from our current cities. And this certainly means that 190, it will make its way out of the East Coast, whether it's into the Midwest, whether it's into the west, whether it's into the Caribbean; that will happen, but clearly stations that are, say, three flights a day are inefficient. And we are taking a hard look at those cities and their performance. James Parker - Raymond James & Associates: A second question regarding ancillaries. You've announced, I believe, a $10 charge to speak with a reservations person. What other ancillaries or other non-seat sell sources of revenue do you foresee and is this kind of just the beginning of several things in that regard?

Jim, I think it's a important to note that ancillaries are a very important stream and we'll continue that focus. But I don't want for JetBlue to be a totally unbundled product. And I think we know that the customer base that we have and a discretionary customer with an unbundled product, we want to be careful about that even though you start to take a look at that across Europe or other models now in the States or Asia. Now we just, in this quarter, we instituted the $10 reservation and airport fee. And the goal they really, part of it was ancillary revenues but also to drive behavior to the most efficient distribution channel which is jetblue.com. And last quarter, we announced and made a decision to implement the change fee. We increased... I should say increased the change fee another $10 both online and through the res center. So those are two of the initiatives. I think the most important one as we close the year in the fourth quarter is really cashless cabin. And as we've talked about in the past, Jim, this really provides the platform for our in-flight crew members and our customers to be... to experience different offerings or segment what we are doing at altitude, and that's the largest initiative for the fourth quarter. Going into 2008, the focus on ancillaries will absolutely continue at this airline. James Parker - Raymond James & Associates: Okay, thanks.

Thanks Jim.

Thank you. Your next question is coming from Mike Linenberg with Merrill Lynch. Please go head. Mike Linenberg - Merrill Lynch& Company: Yes, good morning. I guess a question for John. John, just if you can remind us if you qualify for hedge accounting and if you don't, did you take an SFAS 133 gain in the quarter and then how does that compare year-over-year? Was it a gain a charge a year ago?

We do do FAS 133 accounting for our hedges, Mike. Mike Linenberg - Merrill Lynch& Company: Okay. And do you have those numbers?

Not off the top of my head, but Lisa can provide them to you. Mike Linenberg - Merrill Lynch& Company: We can catch up on that. And then my second question, and this is to Dave, the announcement of flying from Fort Lauderdale to Bogota, it seems like you have been flying in the Caribbean for several years, but now flying, or at least aspiring to fly to South America, longer haul route, maybe slightly different market, it is a very competitive market. Can you just a maybe walk through your thinking, and maybe this is a modification of the JetBlue strategy, looking at some of these international markets where access for the most part is restricted and maybe opportunities down the road in this region?

Sure, Mike, and thanks for the question. Specifically, with our filing to Colombia, and again, it's just a filing at this point with the Department of Transportation. But, yes, you can take that as, I would say, a modification of our business plan. But as we've made inroads into the Caribbean out of New York, out of Boston and Fort Lauderdale in Orlando, results have been very positive for JetBlue. By the way, we are flying into Mexico as well today with service down to Cancun from both Boston and Kennedy. And so as we take a look at whether it's North and South America, Central America, Mexico, further expansion into the Caribbean, and again communities of interest out of the Northeast or from Florida, we think that those are very good opportunities for JetBlue. And Mike, it's worth reminding everybody that the A320 over-water equipped long range airplane, but the EMBRAER 190 over-water equipped and also close to a 2000 mile range airplane. So perfectly situated as a pathfinder down in many of those markets, say, from Florida down to the Caribbean. So we are excited about opportunities there. And it won't deviate from our home at Kennedy as a long-term strategy, but we think there are some nice opportunities there. Mike Linenberg - Merrill Lynch& Company: Okay, very good. Thank you.

Thanks Mike.

Thanks Mike.

Thank you. Your next question is coming from Gary Chase with Lehman Brothers. Please go ahead.

Good morning guys. Just a quick one for John and then one for Dave. You mentioned I think a $6.8 million pilot accrual. I apologize, could you just go over what that is?

Actually, that $6.8 million in additional salaries, wages and benefits related to changes in our crew member retirement plan as well as the pilot pay increase. You may recall earlier that we went to a guaranteed... we call it a guaranteed profit sharing, but guarantees 5% contribution of eligible salary to our crew members versus a complete profit sharing program and we also increased the company match on our 401(k) from 3% to 5%. That was the lion's share of that $6.8 million.

And that's one time to capture the stuff that you are anticipating along those lines, right?

When you do a year-over-year comparison, yes, sir, because obviously we weren't doing that last year.

Okay. Question for Dave is, I mean the company's obviously not hitting the kind of performance goals that you've laid out historically now. And I know you talked about getting through portions of the route review that led to the Columbus Nashville decisions. Could you just put a little more color for us around what is the long-term plan? Obviously, fuel presents new challenges everyday it seems. Are you done with the route review? Should we expect that there is more to come? When would we hear it? Can you just sort of flush out a little bit what the process that you are going through is and how are you going to get to the double-digit margins that I know you are targeting?

Sure, and thanks for the question, Gary. And you are right, a return to sustained double-digit margins for all of us in the industry become more difficult with fuel starting to touch $90 per barrel; no question about that. And plus just the competitive landscape, we have obviously new entrants in our landscape. Gary, the route review is dynamic, it's ongoing and, as alluded to previously, there are still markets that we are closely watching, new markets that we opened in 2006 regarding maturity. And so no announcement today outside of Columbus and Nashville, but that's one piece that's in play. I think as we talk about longer term strategy and how do we redeploy those airplanes, as we look to redeploy those airplanes and keep in mind that we have calmed down the growth, and John alluded to that again today with just the calming of the growth across the airline. We are starting much more a focused initiative on overflies. And whether they are seasonal or whether they remain year around such as Syracuse down to Orlando as a specific where we have been in there for a period of time, that is also part of the longer term strategy of the airline. And it's in alignment with the E190 acquisition when we discussed E190 as a board almost four and a half years ago. The number of overflies that we have in play, we have announced just between November and January 11 new routes, and 2 of them down to the Caribbean, 1 of them out West and 8 of them, from an overfly perspective, along up and down the East Coast. Only two of those routes touch JFK down to the Dominical Republic and St. Maarten. Now that doesn't mean that we are not going to grow JFK, Gary, but it's... when we look at longer term growth, congestion, what's in play with the government intervention, we will see that what means. But we have clearly had a change where actually we flew over the summer timeframe fewer flights than we did during the peak of, say, the President's weekend and Easter timeframe, Passover earlier this year. We are looking internationally as I responded to with Mike's comment, and clearly, we'll start to move the 190s into the Midwest and out west as well as we find opportunities to do so. So quite a bit of change it's really playing. And one last comment Gary, international partnerships at Kennedy. And right now, we have got... we've talked about Aer Lingus. We are optimistic about sales that will take place with Aer Lingus here and monetizing JFK, and finally making that a reality as well. So quite a bit of initiative in play, Gary, to really change the direction of the airline.

And on the cost side, anything?

Always focused. And for our crew members who listen to today's call, for the analysts and others, very,-very pleased with cost discipline, as John talked about, with the specifics on the cost discipline. But that will continue. We know there are other opportunities across JetBlue to drive unnecessary costs, and so that just has to be part of the DNA of the airline on a go forward basis.

Okay. Thanks guys.

Thanks Gary.

Thanks Gary.

Thank you. Your next question is coming from Frank Boroch with Bear Stearns. Please go ahead. Frank Boroch - Bear Stearns & Company, Inc.: Good morning. John, I was hoping maybe you could... you touched on the agreement to sell 2 A320s next year. Where does that leave your current thinking for capacity growth and I guess in CapEx as a result for next year?

We announced today that we have an agreement to sell 2 A320s in the second quarter of 2008. As I mentioned earlier, we will continue to look at additional opportunities to sell aircraft next year as long as the market remains favorable. We haven't given any indication yet to the marketplace with respect to 2008 capacity growth. We'll be doing that with our fourth quarter call to take effect January 2008. With respect to CapEx, though, I think if I recall some of our slides from Investor Day and what not, we have taken our aircraft CapEx from what was $1.2 billion to $1.3 billion. We have taken that down to closer to the $700 million to $800 million range. Frank Boroch - Bear Stearns & Company, Inc.: Okay. And given the increased focus... or the traction on cost discipline, what's your early thinking about a non-fuel CASM for next year?

Haven't given any guidance to that effect nor will I give any guidance on this call to that effect. Wait for the fourth quarter call in January. Frank Boroch - Bear Stearns & Company, Inc.: Okay, great. Thanks a lot.

Thank you. Your next question is coming from Jamie Baker with JP Morgan. Please go ahead.

Hey, good morning everybody.

Good morning Jamie.

Just a question on a 2% to 4% RASM in the fourth quarter and what might cause that to accelerate in 2008. I'm sure you are not going to give us your 2008 RASM forecast, but I'm wondering that if we could hold RASM constant, what sort of natural increase takes place on the increased EMBRAER flying in the A320 interior regauging.

Jamie, as I look at 2008 and again as we are still building and finalizing our plan for 2008, the number one issue that we are clearly dealing with is the trough periods. And this airline just it screams during the peaks. And we now that the route network is obviously more discretionary in nature, but these trough periods, and there are several of them over the course of the year, early January, then after the schools or depending where Easter and Passover is, between say the May timeframe, September, early part of October, early part of November, early part of December. Any way, are working very hard on the trough period across the airline. Number one, it's the route network and where we are deploying those airplanes. I think it's also important to raise the point that with the A320 with the 34, 36 inch pitch on that airplane, that was a cost initiative earlier this year. But there is clearly an opportunity to monetize the enhanced pitch on that airplane, specifically against competitors like Virgin American where the case might be on longer haul. We are hard at work on that, and I believe will be an early 2008 announcement as we implement it. As we talk about the opportunity, again, we are a discretionary airliner, a leisure airline by and large. But just testing refundable fares through our CompanyBlue initiative, the opportunity to mine the corporate customer, CompanyBlue, through the GDSs, the AmEx OPEN program; those are all really opportunities that we have to go after in a significant way. And so I think that that portends well from a RASM perspective as we look at 2008 and beyond, let alone our partnering with international carriers at JFK, Jamie.

Right, okay, well I appreciate the clarity. Thanks a lot.

Thanks Jamie

Thank you. Your next question is coming from Ray Neidl with Calyon Securities. Please go ahead

Yes, the JFK congestion, that only affects you during a certain small window part of the day, is that correct, the evening when the international flights are going? Most of the day is still pretty open for growth. Is that a correct assumption to make?

Ray, that is a correct assumption to make. There is... the previous slotted hours with the sunset of the High Density Rule earlier this year, 3 to 8 O'clock timeframe, that has been the historic peak. That's not to say that there is not some new peaks as a result of other growth that's played out such as in the morning timeframe. But we believe there is plenty of opportunity for growth certainly in the trough periods, if I may, over at JFK and especially with how we are looking to deploy some airplanes. I mean the longer haul airplanes that leave at early in the morning going down to the Caribbean, they are gone for quite a period of time. And we can really start to schedule those airplanes out of the slotted hours. So we are excited about the new terminal, we are excited about the government intervention and we'll clearly continue to grow JFK as we go forward.

And how about your other important hub, Fort Lauderdale, there is congestion problems particularly on the ground there. What's the update with that airport?

Yes, actually, I think Fort Lauderdale is a great example of the success story with the airlines partnering with the FAA, Broward County as well. And the use... while respecting the community as well, which is important in Fort Lauderdale, Hollywood and the surrounding areas. That problem that was there really about a year and a half ago, through the use of a third runaway down in Fort Lauderdale, which traditionally wasn't utilized during the peak timeframe. We don't see operational issues at all down in Fort Lauderdale, and in fact they are starting to expand the Southern runway down in Fort Lauderdale, and we think that enhanced capacity is certainly going to continue down there too.

Great, thank you.

Thanks Ray.

Thank you. Your next question is coming from William Greene with Morgan Stanley. Please go ahead.

Yes, hi good morning. Dave, you mentioned in your comments that there was an impact in the third quarter from Virgin America, but that it was less than your estimate. What was your estimate in the third quarter and what is it for the fourth?

I think the comments were really as we baked in into our third quarter estimate an impact from Virgin America. So I didn't quantify the number in there, Bill, and, but it's clear that there is impact with a new competitor in the market. And Virgin America we are 6 a day from JFK to LAX as well as SFO, and out of Washington, Dulles with 2 to SFO and LAX. Let's face it, there is impact on any carrier in that market including us. And so that has been baked into our fourth quarter guidance and we are continuing to evaluate the competitive situation, Bill.

And how do you respond if it starts to increase? Is it sort of something where you'd look to increase capacity there or would you pull back or how do we think about what your response should be?

Well, we start to... lot of gain theory plays in there, and there is... as we look at our strength from New York... now by the way the transcon is as I shared in my comments, were down about 4% year-over-year with the percent of our flying into transcons. But there is... we look at New York as our position of strength into the Bay area. That's not just SFO, but also Oakland and San Jose. When we look at Southern California, again from a home in New York, that's Burbank, it's Long Beach, it's Ontario, very specific airports to the area unlike an LAX if you will. And that's been a large part of the success of this airline including into the third quarter numbers as well. So from a Virgin America perspective, we are going to be prudent, but we are also going to make sure that these markets are a very important part of JetBlue on a go forward basis. And not just out of Kennedy, Bill; it's out of Washington, it's out of Boston and it's... and when we look at our product, and it's several flights a day into these markets, the opportunities to really work with that expanded cabin, which we really haven't taken credit for yet from a revenue perspective, the in-flight entertainment and the fact that it's the whole cabin that's got comfort, at least 34 inches. As opposed to a first class section, we think our model's better.

Okay. If I can shift gears to EMBRAERs [ph], as we look at some of the efforts that you have taken on the A320 front to sell some of those, should we be thinking that maybe it makes sense to try and kind of revisit the EMBRAER order in terms of size or timing of it or even sale of those aircraft? How should we think about what those will do especially in light of where fuel is?

I would take a look at the EMBRAERs from the perspective of it's the airplane as we are now... we'll celebrate two years in the November timeframe of flying the airplane. The technical dispatch for liability is now very close to the A320. We feel very good about our ability to deploy these airplanes away from the East Coast. And the growth plan that we've announced with the 320s, or excuse me the 190s previously, we stand behind that as well as we take a look at the 190s in the future, and it is a very significant part of our fleet plan. It's the ability to go in and pathfind a new market, it's the seasonality, it's the time of day, it's the point-to-point flying on a 100-seat airplane as opposed to a smaller airplane if you will. So Bill, it is and will continue to be a very important part of JetBlue on a go forward basis.

Okay. Just the last question on the terminal at JFK. If we end up in a situation where they start capping flights at either certain parts of day or even the whole day, how will that change the sort of economic logic behind the terminal? I presume it anticipates some sort of growth in the number of flights. But I'm just curious as to your thoughts on how that might have to change the strategy if we cap flights there.

Yes, sure, Bill. I'm assuming there will be some kind of caps or some type of limitation that's put in place at JFK. It's unfortunate if you think that we'd be moving through the use of technology and a way from land-based navigation systems and into satellite-based navigation. But that's not going to happen overnight. We know that that's at least a 10 year plus project. But Kennedy, assuming that some type of cap is put back into place, our schedule today... we are pretty evenly deployed over the course of the operating day without the super peaks that you tend to see with the, I would say, a domestic presence that's feeding a flag operation over to Europe where you have everything peaked in the afternoon timeframe. So we see growth at JFK and in fact we have peaked at 186 trips at Kennedy earlier this year and we've built the terminal for 225 trips. And so, as you can see, it's... we are already fairly well subscribed in our current facilities when we take a look at moving in to a brand new terminal. As we've talked about in the past, it's something that looks like about $1 per ticket to really offset the new facility with the Port Authority, so... and it's fair to say too, Bill, that we've got ramp up timeframe built into our lease with the Port Authority. And so I am glad the government's involved, it's going to rationalize things. But JFK and our home, we are going to be able to use it just fine.

All right, thanks for your help.

Thank you.

Thank you. Your next question is coming from Daniel McKenzie with Credit Suisse. Please go ahead.

Hi, good morning.

Good morning.

Good morning, Dan.

John,one house cleaning question here. What's the base crude assumption for the unhedged portion of your fuel guidance?

I do everything nowadays based upon U.S. Gulf Coast. List will get back to you on how that converts back to crude. Everything I do now I think in Gulf Coast pricing.

Okay, got you. And then I guess another question here is hoping you can provide some more perspective on the unit revenue trends in the newly latticed point-to-point markets. And then related to that, the length of time before you'll have a view of whether they are performing to expectations.

Yes, Dan, this point-to-point flying, the latticing across airlines, and I alluded to upstate New York as well as New England, clearly in the Carolinas down to Fort Lauderdale as well. It will take a period of time before we are going to start to see if we are hitting the trends that we have built into our P&L. All that said, I mean this North-South flying is deployed right into the advance, if you will, of the snowboard... snow bird season. So peak traffic between north and south as the weather starts to get a little bit tougher up here. So we have always thought that this was an important part of our strategy. It's not unlike what we are doing nonstop out of Boston; just out of smaller locations like Buffalo, Rochester, Syracuse, Portland, Burlington. And I think we'll have greater visibility as we take a look at the next series of earnings calls.

What percent of the total flying would the newly latticed markets account for?

I think we'll have to get back to you on that. Don't have the percentage handy on that, Dan.

Okay. And then just one final quick question. How many new studies should we expect in 2008?

It's a little bit early to really give visibility on our 2008 annual operating plan. However, suffice it to say, even the announcement of Puerto Plata and St. Maarten, they are 2008 flying. And I think we have learned that it's going to... we are not going to open a whole lot of cities on a go forward basis. We are going to connect the dots. We are going to drive efficiencies and locations. We'll take advantage of the one-off markets where it's one trip a day. But I don't expect a whole lot of markets being announced in 2008, Dan.

Okay, thanks very much.

Sure.

Thank you. Your next question is coming from Bob McAdoo of Avondale Partners. Please go ahead.

Hi guys. Just... I know you don't... you haven't wanted to give guidance on capacity, but assuming you don't sell any more airplanes, can you just kind of bring us back up to speed on what deliveries are scheduled in 2008?

Yes, right now we have 12 firm A320s, 6 firm E190s, and then as I mentioned already, have agreements to sell 2 A320. So now you are looking at net 16 next year, 10 plus 6, if we don't do anything else.

Have you got just as easily off the top of your head 2009?

I believe 2009 is again 12 and 6 firm.

Okay. That's all I got. Thanks.

You are welcome. By the way, welcome back Bob.

It's good to be here.

Very good.

Thank you. Your next question is coming from Bill Mastores [ph] with Bank of New York Capital Markets. Please go ahead

Thank you. John, could you confirm that all the planned sales for the A320s do not affect any of the double ETCs?

We have not sold any aircraft that is subject to a double ETC financing to date. Correct.

Okay. And the second question I have, in the past you have indicated that you plan to manage the balance sheet very carefully against the backdrop of a 30% liquidity that is to LPM revenues if that's still the policy. Would you consider purchasing any of the convertible debt in the open marketplace kind of as a way to maybe strengthen the balance sheet a little bit more?

What I have said previously is we have a target of 25% of trailing 12 months. Certainly, my Treasurer and myself would like to see a 3 in front of that number. But we understand where we are today in our growth cycle and we look at all opportunities with respect to our convertible debt.

Thank you.

Thank you. This concludes our session with investors and analysts. With that, we will turn it over to Dave Barger for closing remarks.

Great. Thank you very much. Once again, I'd like to take this opportunity to thank our crew members for their hard work this past quarter. Our third quarter results are even more impressive, especially when we consider them against the backdrop of the operational challenges that we faced at our home in Kennedy and the Northeast. We realize there are many tough challenges that lie ahead particularly as oil pushes $90 a barrel. In closing, though, I can assure you we will continue to drive revenue and cost discipline with our goal of increasing value for our shareholders. Pam, thank you very much and we appreciate everybody joining for today's call.

Thank you. And this concludes today's JetBlue Airways Corporation's third quarter 2007 earnings conference call. You may now disconnect your lines and have a pleasant afternoon.