JetBlue Airlines 2003 Annual Report Download - page 29

operating personnel. We maintain key-man life insurance on Messrs. Neeleman and Barger, which may
not be sufficient to cover the costs of recruiting and hiring a replacement chief executive officer or
president, much less the loss of their services. We may have difficulty replacing management or other
key personnel who leave and, therefore, the loss of the services of any of these individuals could harm
our business.
Our lack of an established line of credit or borrowing facility makes us highly dependent upon our
operating cash flows.
We have no lines of credit, other than a short-term borrowing facility for certain aircraft
predelivery deposits, and rely primarily on operating cash flows to provide working capital. Unless we
secure a line of credit, borrowing facility or equity financing, we will be dependent upon our operating
cash flows to fund our operations and to make scheduled payments on our debt and other fixed
obligations. If we fail to generate sufficient funds from operations to meet these cash requirements or
are unable to secure a line of credit, other borrowing facility or equity financing, we could default on
our debt and other fixed obligations.
We could be subject to liability arising from claims or other actions relating to our handling of customer
data.
Through our computerized reservation system, we are provided with and maintain data regarding
our customers and their travel itineraries. Various federal and state laws and regulations impose
limitations on the dissemination of that information by us. In addition, we have adopted a privacy
policy concerning our customer information gathering and dissemination practices, including the
protection of financial and personal information collected on our website.
Beginning in September 2003, several lawsuits were commenced against us alleging various causes
of action, including fraudulent misrepresentation, breach of contract, violation of privacy rights, as well
as violations of consumer protection statutes and federal electronic communications laws. These claims
arose out of our providing access to limited customer data to a government contractor in connection
with a test project for military base security. Other parties, including certain governmental agencies, are
conducting inquiries, and may commence proceedings, file claims or seek other relief with respect to
this matter. Since the litigation and inquiries are in their early stages, we are unable to determine the
impact they may have upon us.
Our reputation and financial results could be harmed in the event of an accident or incident involving
our aircraft.
An accident or incident involving one of our aircraft, or an aircraft containing LiveTV equipment,
could involve significant potential claims of injured passengers or others in addition to repair or
replacement of a damaged aircraft and its consequential temporary or permanent loss from service. We
are required by the DOT to carry liability insurance. Although we believe we currently maintain
liability insurance in amounts and of the type generally consistent with industry practice, the amount of
such coverage may not be adequate and we may be forced to bear substantial losses from an accident.
Substantial claims resulting from an accident in excess of our related insurance coverage would harm
our business and financial results. Moreover, any aircraft accident or incident, even if fully insured,
could cause a public perception that we are less safe or reliable than other airlines, which would harm
our business.
Our employment agreements with our FAA-licensed personnel provide that we can only terminate these
employees for cause and, as a result, it may be difficult to reduce our labor costs during an economic
downturn, which could harm our business.
Our employment agreements with our FAA-licensed personnel, including pilots, technicians and
dispatchers, provide that these employees can only be terminated for cause. Each employment
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