JetBlue Airlines 2010 Annual Report Download - page 27

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.
Compliance with future environmental regulations may harm our business.
Many aspects of airlines’ operations are subject to increasingly stringent environmental regulations, and
growing concerns about climate change may result in the imposition of additional regulation. There is growing
consensus that some form of federal regulation will be forthcoming with respect to greenhouse gas emissions
(including carbon dioxide (CO
2
)) and/or “cap and trade” legislation, compliance with which could result in the
creation of substantial additional costs to us. The U.S. Congress is considering climate change legislation and
the Environmental Protection Agency issued a rule which regulates larger emitters of greenhouse gases. Since
the domestic airline industry is increasingly price sensitive, we may not be able to recover the cost of
compliance with new or more stringent environmental laws and regulations from our passengers, which could
adversely affect our business. Although it is not expected that the costs of complying with current
environmental regulations will have a material adverse effect on our financial position, results of operations or
cash flows, no assurance can be made that the costs of complying with environmental regulations in the future
will not have such an effect. The impact to us and our industry from such actions is likely to be adverse and
could be significant, particularly if regulators were to conclude that emissions from commercial aircraft cause
significant harm to the upper atmosphere or have a greater impact on climate change than other industries.
Compliance with recently adopted DOT passenger protections rules may increase our costs and may
ultimately negatively impact our operations.
The DOT’s passenger protection rules, which became effective in April 2010, provide, among other
things, that airlines return aircraft to the gate for deplaning following tarmac delays in certain circumstances.
A significant portion of our operations are focused in the northeast. Given the poor operating performance of
the air traffic control system in the northeast during certain weather conditions, particularly during the summer
season, this rule may produce results more harmful to customers than intended. The implementation of these
rules may negatively impact our operations and our business.
We could be adversely affected by an outbreak of a disease or an environmental disaster that
significantly affects travel behavior.
In 2009, there was an outbreak of the H1N1 virus which had an adverse impact throughout our network,
including on our operations to and from Mexico. Any outbreak of a disease (including a worsening of the
outbreak of the H1N1 virus) that affects travel behavior could have a material adverse impact on us. In
addition, outbreaks of disease could result in quarantines of our personnel or an inability to access facilities or
our aircraft, which could adversely affect our operations. Similarly, if an environmental disaster were to occur
and adversely impact any of our destination cities, travel behavior could be affected and in turn, could
materially adversely impact our business.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
18