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JetBlue Prez/CEO Says Company "Taking Stock Of How We Go Forward" After Council Vote Nixes Int'l Flights From LGB, Doesn't Rule Anything Out, "Watch This Space, More To Come" He Says


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(Jan. 26, 2017, 2:55 p.m.) -- During a JetBlue conference call with investors this morning (Jan. 26), most of the questions from Wall Street firms focused on items like "RASM" (return per available seat mile) but a Deutsche Bank rep (whose first priority was first quarter forecast "RASM") had a second question. He asked the JetBlue execs about the Jan. 24 Long Beach City Council vote (8-1) to take no action on a JetBlue-sought customs facility that would have changed the city owned Airport to an international airport. [LBREPORT.com coverage here.]

The questioner said he was "curious about the underlying dynamic and how that played out and if that can be changed."

JetBlue President/CEO Robin Hayes responded in pertinent part:

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[JetBlue Pres/CEO Hayes] Look, we are extremely disappointed. I mean our government affairs team and our corporate real estate team, and all of our crewmembers based in Long Beach have worked hard for the last couple of years to make the case to open an international FIS facility in Long Beach. It has been a controversial issue locally with some of the residents who live near the Airport. We absolutely share your view that there was a very significant economic benefit to the City of Long Beach and the area to start international flying and indeed the City commissioned its own economic study that kind of laid that out. This only happened this week. We were really disappointed, surprised by the vote and, you know we're kind of, I think still taking stock in terms of how we go forward, you know, I don't rule anything out at this point, and you know, watch this space, more to come."

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As previously reported by LBREPORT.com, in a Jan. 25 statement emailed to LBREPORT.com, JetBlue Senior VP/Associate General Counsel Rob Land stated, "We are profoundly disappointed that after years of delay and a city-mandated study validating the safety, security and economic positive nature of the project, that the City Council would reject the development of a Federal Inspection Station at Long Beach Airport. JetBlue will evaluate its future plans for Long Beach, the greater Los Angeles area and California."

The customs facility was publicly requested by JetBlue in Feb. 2015, but internal Airport documents (obtained under state freedom of information act law and published in early 2014 by LBREPORT.com) showed that the City's now-former Airport management worked closely with JetBlue representatives throughout 2013 to advance the project without obtaining publicly voted Council authority or public discussion.

Now-former Airport management informed Councilmembers by memos in August 2013 and November 2013 of what was taking place -- and JetBlue Sr. VP Land cc'd now-former 5th district Councilwoman Gerrie Schipske in a letter to LGB's Director explicitly describing the company's goal. However no then-incumbent Councilmembers moved to stop Airport staff's actions or pressed for a Council vote that would have disclosed what was taking place to the public entering the 2014 election cycle (in which Garcia and Schipske were both running for Mayor.)

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The 2014 election cycle brought Councilmembers Mungo, Price, Gonzalez, Uranga and Richardson to office, and with a new Council majority in place (including Garcia as non-voting Mayor), JetBlue formally made its request for a customs facility in Feb. 2015. The action ignited grassroots opposition from residents, who voiced concern that it could lead to more flights or increase risks to LB's Airport ordinance that currently protects Long Beach from unlimited flights at all hours at all noise levels on all runways.

Long Beach Airport is at the city's center, initially a modest airfield whose runway now-former LB officials expanded to suit Douglas Aircraft when it operated an adjacent, now-shuttered aircraft manufacturing complex.

JetBlue became the LB Airport's largest tenant, attracted by LB officials in 2001, knowing that LGB was a domestic-serving facility. The City, at JetBlue's urging, built a new, expanded Airport terminal facility. In compliance with its Airport ordinance -- considered among the nation's most progressive for allowing increased flights as collective noise decreases with improved technology -- the City recently increased allowable flights to 50 per day for large commercial aircraft plus unlimited general aviation activities.

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Residents of Long Beach, L.A. County's second largest city, currently bear regional transportation burdens that include toxic air pollution from the nation's largest port complex (LB and L.A.), plus four freeways carrying diesel cargo trucks and two cargo carrying rail lines. LB Airport operations currently deposit lead and jet fuel fallout on nearby homes and schools.

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