PART I  ITEM 1B Unresolved Staff Comments Compliance with future environmental regulations may harm our business. Amended FAA regulations relating to flight, duty and rest regulations  and the additional operational requirements will impact our business We could be adversely affected by an outbreak of a disease or an  environmental disaster that significantly affects travel behavior. The impact of federal sequester budget cuts mandated by the Budget  Control Act of 2011 or other federal budgetary constraints may adversely  affect our industry, business, results of operations and financial position. The unknown impact from the Dodd-Frank Act as well as the rules to  be promulgated under it could require the implementation of additional  policies and require us to incur administrative compliance costs. ITEM 1B. Unresolved Staff Comments ITEM 2. Properties Aircraft JETBLUE AIRWAYS CORPORATION  -  2013 Annual Report 19 periods or to purchase the aircraft at the end of the related lease term.  All but 23 of our 134 owned aircraft and all but 30 of our 35 owned spare  engines are subject to secured debt financing. As of December 31, 2013 our aircraft leases have an average remaining  term of approximately 9.2 years, with expiration dates between 2016 and  2026. We have the option to extend most of these leases for additional  As of December 31, 2013, we operated a fleet consisting of four Airbus A321 aircraft, 130 Airbus A320 aircraft and 60 EMBRAER 190 aircraft as summarized  in the table below: None. Aircraft Seating  Capacity Owned Capital Leased Operating  Leased Total Average Age in Years Airbus A320 150 96 4 30 130 8.3 Airbus A321 190 4 — — 4 0.1 EMBRAER 190 100 30 — 30 60 5.2 130 4 60 194 7.1 The Dodd-Frank Wall Street Reform and Consumer Protection Act of  2010, or the Dodd-Frank Act, contains a variety of provisions designed  to regulate financial markets. Many aspects of the Dodd-Frank Act remain  subject to rulemaking that will take effect over several years, thus making  it difficult to assess its impact on us at this time. We expect to successfully  implement any new applicable legislative and regulatory requirements and  may incur additional costs associated with our compliance with the new  regulations and anticipated additional reporting and disclosure obligations;  however, at this time we do not expect such costs to be material to us. On April 16, 2013, the FAA imposed furloughs mandated by the Budget  Control Act of 2011, which included reduced staffing of air traffic controllers.  This action resulted in increased delays, reduced arrival rates and flight  cancellations across the airline industry and impacting the flying public for  approximately one week until Congress passed legislation allowing the  FAA to redirect other funds to cover staffing for air traffic controllers. On  October 1, 2013, after Congress failed to pass a 2014 budget, portions  of the federal government deemed nonessential were shut down. After  extending the federal debt ceiling limit, the partial government shutdown  ended on October 17, 2013, but not before delaying the delivery of two  aircraft from their manufacturers. Much of our airline operations are regulated  by governmental agencies, including the FAA, the DOT, CBP, The TSA and  others. Should mandatory furloughs and/or other budget constraints continue  or resume for an extended period of time, our operations and results of  operations could be materially negatively impacted. The travel behaviors  of the flying public could also be affected, which may materially adversely  impact our industry and our business. Any outbreak of a disease affecting travel behavior could have a material  adverse impact on us. In addition, outbreaks of disease could result in  quarantines of our personnel or an inability to access facilities or our aircraft,  which could adversely affect our operations. Similarly, if an environmental  disaster were to occur and adversely impact any of our destination cities,  travel behavior could be affected and in turn, could materially adversely  impact our business. In January 2014, the FAA’s rule amending the FAA’s flight, duty, and rest  regulations became effective. Among other things, the new rule requires a  ten hour minimum rest period prior to a pilot’s flight duty period; mandates  a pilot must have an opportunity for eight hours of uninterrupted sleep within  the rest period; and imposes new pilot “flight time” and “duty time” limitations  based upon report times, the number of scheduled flight segments, and  other operational factors. We have hired additional pilots to address the  requirements of the new rule. The new rule may reduce our staffing flexibility,  which could impact our operational performance, costs, and delivery of the  JetBlue Experience, any of which could harm our business. Many aspects of airlines’ operations are subject to increasingly stringent  environmental regulations, and growing concerns about climate change  may result in the imposition of additional regulation. Since the domestic  airline industry is increasingly price sensitive, we may not be able to recover  the cost of compliance with new or more stringent environmental laws  and regulations from our passengers, which could adversely affect our  business. Although it is not expected the costs of complying with current  environmental regulations will have a material adverse effect on our financial  position, results of operations or cash flows, no assurance can be made  the costs of complying with environmental regulations in the future will not  have such an effect. addition to the proposed EPA and state regulations, several U.S. airport  authorities are actively engaged in efforts to limit discharges of de-icing fluid  to local groundwater, often by requiring airlines to participate in the building  or reconfiguring of airport de-icing facilities.