Airtran 2010 Annual Report Download - page 27

Risk Factors Related to AirTran
Future developments could affect our ability to maintain adequate liquidity. Additionally, our ability to access
alternative sources of capital could be subject to increased costs or otherwise be limited.
We may not be able to maintain adequate liquidity due to various reasons, including one or more of the following: a
pronounced increase in aircraft fuel prices, a decline in demand for air travel due to adverse macroeconomic conditions;
competitive actions by other airlines which reduce revenue; insufficient availability of financing for new aircraft
deliveries; increases in interest rates on existing obligations, or an inability to re-finance our existing debt.
Although, historically our available capital has been sufficient to meet our operating expenses, lease obligations, debt
service requirements, and capital expenditures and we have managed our liquidity such that our aggregate unrestricted
cash and short-term investments at December 31, 2010, was $454.0 million and we have a $50 million revolving line of
credit facility (which had been fully drawn on as of December 31, 2010), future circumstances could require us to
materially increase our revenues, materially reduce our expenses, or otherwise materially improve operating results or
obtain material new sources of capital in order to maintain adequate liquidity.
We cannot assure you that we would be successful either in further improving our results of operations or in reducing our
costs. Likewise, although we have been able to conduct public offerings of our equity and debt securities, sell aircraft, and
obtain a letter of credit facility and a revolving line of credit facility over the course of the last three years, we cannot
assure you that, in the event we need to obtain additional liquidity, we will be able to access the capital markets, sell
additional aircraft, utilize, renew or extend existing financing arrangements, or obtain new financing on terms acceptable
to us or at all.
In recent years, U.S. and global equity and debt markets have undergone significant disruption, making it difficult for
many businesses to obtain financing in the capital markets on acceptable terms or at all. Further, the capital markets in
general, and the market prices of securities of airline companies and the market prices of our securities each in particular,
have experienced, and in the future may experience, extreme volatility including fluctuations that are unrelated or
disproportionate to the operating performance of particular companies. These broad market and industry fluctuations
could adversely affect our ability to access the capital markets or the terms of the securities we might offer, regardless of
our actual operating performance.
Our ability to sell or otherwise monetize aircraft assets could be adversely affected by similar attempts by other operators
of commercial aircraft in general or by operators of B737 aircraft in particular. Similarly, the limited number of operators
of B717 aircraft may adversely affect the market for such aircraft and our ability to sell or otherwise monetize such
aircraft if we decide to do so. Our ability to generate cash from the disposition of certain aircraft may require the consent
of one or more secured parties including in connection with our obligations under our Credit Facility, and we would likely
be required to apply the proceeds from the sale of aircraft which are encumbered by liens to reduce or pay off
indebtedness. The availability of other aircraft for sale could have an adverse impact on our ability to sell or otherwise
monetize aircraft and on the market values of our aircraft assets, including any aircraft we seek to sell or pledge as
collateral, especially if other carriers are reducing capacity or ceasing operations. Reductions in the value of assets
pledged to secure our obligations under our Credit Facility could result in reductions in the amount available under such
facility.
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