JetBlue Airlines 2004 Annual Report Download - page 29

seasonal variations along with any competitive responses to our entry by other airlines. As a result of
these factors, quarter-to-quarter comparisons of our operating results may not be a good indicator of
our future performance. In addition, it is possible that in any future quarter our operating results could
be below the expectations of investors and any published reports or analyses regarding JetBlue. In that
event, the price of our common stock could decline, perhaps substantially.
We rely heavily on automated systems and technology to operate our business and any failure of these
systems could harm our business.
We are increasingly dependent on automated systems and technology to operate our business,
enhance customer service and achieve low operating costs, including our computerized airline
reservation system, telecommunication systems, website, check-in kiosks and in-flight entertainment
systems. Since we issue only electronic tickets, our website and reservation system must be able to
accommodate a high volume of traffic and deliver important flight information. Substantial or repeated
website, reservations system, telecommunication systems, kiosk or in-flight entertainment systems
failures, could reduce the attractiveness of our services and could result in our customers purchasing
tickets from another airline. Any disruption in these systems could result in the loss of important data,
increase our expenses and generally 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 are subject to the risks of having a limited number of suppliers for our aircraft, engines and a key
component of our in-flight entertainment system.
Our current dependence on a single type of aircraft and engine for all of our flights makes us
particularly vulnerable to any problems associated with the Airbus A320 or the IAE International Aero
Engines V2527-A5 engine, including design defects, mechanical problems, contractual performance by
the manufacturers, or adverse perception by the public that would result in customer avoidance or in
actions by the FAA resulting in an inability to operate our aircraft. Carriers that operate a more
diversified fleet are better positioned than we are to manage such events. While our recent decision to
acquire a new fleet of Embraer E190 aircraft may lessen our exposure to this risk, we will likely also
become subject to similar sets of risks with the aircraft manufacturer, Embraer, and the manufacturer
of the related engines, General Electric, once we begin to take delivery of these aircraft in 2005.
One of the unique features of our fleet is that every seat in each of our aircraft is equipped with
free LiveTV. An integral component of the system is the antenna, which is supplied to us by EMS
Technologies, Inc. If EMS were to stop supplying us with its antennas for any reason, we would have to
incur significant costs to procure an alternate supplier.
Our business could be harmed if we lose the services of our key personnel.
Our business depends upon the efforts of our Chief Executive Officer, David Neeleman, and our
President and Chief Operating Officer, David Barger. The loss of the services of either of these
individuals could harm our business.
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