by Billgrant
I'm in agreement with Scott.As I understand it the benefit of Jets is not taking that final damage when leaving Tokyo. So you can overstay your welcome and still survive the ordeal.
Since the Fire Breathing dealt damage to someone else in Tokyo (Player C) both neighbors, whoever they are, take the one extra damage. That one of the neighbors happens to be yielding Tokyo is irrelevant.
The last piece is that had there only been one player in Tokyo and they yielded Tokyo using Jets then the Fire Breathing would not deal any effects. This is because the card says it deals extra damage when dealing damage. Since the Jets counter the damage the player essentially didn't deal damage and can't get the extra effect.
I'm still curious what the official ruling is but based on how I understand the rules this is how I would call it.