JetBlue Airlines 2005 Annual Report Download - page 29

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A future act of terrorism, the threat of such acts or escalation of U.S. military involvement overseas
could adversely affect our industry.
Even if not directed at the airline industry, a future act of terrorism, the threat of such acts or
escalation of U.S. military involvement overseas could have an adverse effect on the airline industry.
In the event of a terrorist attack, the industry would likely experience significantly reduced demand.
We cannot assure you that these actions, or consequences resulting from these actions, will not harm
our business or the industry.
Changes in government regulations imposing additional requirements and restrictions on our
operations or the U.S. government ceasing to provide adequate war risk insurance could increase our
operating costs and result in service delays and disruptions.
Airlines are subject to extensive regulatory and legal requirements, both domestically and
internationally, that involve significant compliance costs. In the last several years, Congress has passed
laws, and the DOT, FAA and the TSA have issued regulations relating to the operation of airlines
that have required significant expenditures. We expect to continue to incur expenses in connection
with complying with government regulations. Additional laws, regulations, taxes and airport rates and
charges have been proposed from time to time that could significantly increase the cost of airline
operations or reduce the demand for air travel. If adopted, these measures could have the effect of
raising ticket prices, reducing revenue and increasing costs. We cannot assure you that these and other
laws or regulations enacted in the future will not harm our business.
The U.S. government currently provides insurance coverage for certain claims resulting from acts
of terrorism, war or similar events. Should this coverage no longer be offered, the coverage that would
be available to us through commercial aviation insurers may have substantially less desirable terms,
result in higher costs and not be adequate to protect our risk, any of which could harm our business.
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