JetBlue considers moving HQ to Florida

JetBlue Airways (B6, New York JFK) is considering relocating its corporate headquarters from New York to Florida, the New York Post has reported based on an internal memo. “We are exploring a number of paths, including staying in Long Island City, moving to another space in New York City, and/or shifting a to-be-determined number of [headquarter] roles to existing support centers in Florida,” the airline said. “We are now reviewing our options in the current real estate market and considering how our space requirements may evolve in a hybrid work environment post-pandemic,” spokesperson Emily Martin added, confirming that JetBlue is indeed exploring various options. The lease on JetBlue’s current headquarters in the New York borough of Long Island expires in July 2023. The airline said that its office space requirements are likely to change permanently in the wake of the COVID-19 pandemic and that the current market environment has resulted in a larger number of affordable property deals and higher vacancy rates. Coupled with this is the need to make greater cost savings. JetBlue hopes to finalise the future location of its headquarters by the end of this year. It stressed that the potential move would not impact its operating commitment to New York’s airports. The airline has been headquartered in New York since its establishment in 1998. It contemplated moving to Florida, where taxes are lower, in 2010 but was lured to remain in New York by an incentive package from the city. It currently employs around 1,300 staff at its headquarters. After the news broke, Senate Majority Leader Chuck Schumer, a Democrat representing New York, called JetBlue’s Chief Executive Robin Hayes to urge him to remain in the city. According to the ch-aviation PRO airlines module, JetBlue currently has crew bases at three airports in the New York metro area: New York JFK, New York Newark, and New York La Guardia. In Florida, it has crew bases at Orlando Int’l and Fort Lauderdale Int’l airports. The airline also has a training centre in Orlando, while its JetBlue Travel Products subsidiary is headquartered in Fort Lauderdale. Following this development, the airline has since announced it would offer a USD650 million aggregate principal amount of convertible senior notes due by April 1, 2026, to finance its general corporate purposes, including refinancing existing liabilities. The airline plans to offer purchasers options to acquire a further USD100 million of the notes within a 13-day window from the primary transaction conclusion.