JetBlue's Orlando lodge back on radar

More than a year after ceremonially breaking ground on a $25 million employee lodge at Orlando International Airport, JetBlue Airways has yet to begin building the facility.

Company officials insist JetBlue still intends to build the lodge, which was to serve as a centerpiece of the company's growing presence in Orlando. But after struggling through two years of profit loss and turmoil, the discount carrier is considering reworking or scaling back a project that initially was billed as a 292-room, amenity-filled "hotel" for company trainees.

Construction details are "something that's being discussed in the negotiations" with possible contractors, JetBlue spokeswoman Alison Eshelman said, though she would not elaborate.

Eshelman said New York-based JetBlue is in talks with two contractors to build the lodge and hopes to sign one up in "the next three to four weeks." That could clear the way for construction, expected to take 12 to 14 months, to begin in late summer or early fall.

That's at least a year behind the schedule company officials outlined in June 2006, when they gathered at OIA with shovels in hand to pose for cameras and "break ground" on the lodge. Chief Executive Officer Dave Barger, who was JetBlue's president at the time, and Orlando Mayor Buddy Dyer were among those on hand for the ceremony.

Intended to house employees sent to the adjacent JetBlue University training center, the Orlando lodge was to include a 4,000-square-foot meeting space, a 1,000-square-foot fitness center, two study rooms, a sports court, outdoor kitchen facilities, even a swimming pool. Company officials said it also would be designed to allow an eventual 100-room expansion.

InterContinental Hotels Group, whose brands include Crowne Plaza and Holiday Inn, was to operate the facility.

Eshelman said JetBlue decided to temporarily shelve plans for the lodge as the airline, fighting skyrocketing jet-fuel costs and weakening travel demand, sought to get costs under control.

The company had just come off two consecutive quarterly losses when it broke ground on the lodge. And matters worsened in February when the airline bungled its handling of a Northeast ice storm, stranding hundreds of passengers for hours aboard airplanes and forcing the subsequent cancellation of more than 1,000 flights.

JetBlue said it lost more than $22 million in the first quarter of 2007. Other cost-cutting moves have included selling some jets and delaying delivery of others.

Still, Eshelman said the airline is committed to building the lodge. It still has 4.5 acres leased from the airport, and backers say it's a natural extension of the 2-year-old JetBlue University, which the company built after landing a $4.4 million incentive package from Orlando, Orange County and the state.

"We are forging ahead with the project this year," Eshelman said.

Still, some analysts said it wouldn't be surprising to see JetBlue delay some construction projects even further. Barger, who was made CEO in May after company founder David Neelman resigned, announced last month that company would undergo a 60-day review of its operations.

"I assume they'll cut back on growth. There may be some postponements of capital projects," said Ray Neidl, an airline analyst for Calyon Securities. "Everything's under review, from top to bottom. That's the way you want it with a new management team."

Airport officials say they're confident the lodge will be built.

"We know JetBlue is actively working with developers to pursue their project," said airport Deputy Executive Director Chris Schmidt. "We're anxious to do our part to assist."