JetBlue Airlines 2011 Annual Report Download - page 28

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We rely heavily on automated systems to operate our business; any failure of these systems could harm
our business.
We are dependent on automated systems and technology to operate our business, enhance customer service
and achieve low operating costs. The performance and reliability of our automated systems and data center is
critical to our ability to operate our business and compete effectively. These systems include our computerized
airline reservation system, flight operations system, telecommunications systems, website, maintenance systems,
check-in kiosks, in-flight entertainment systems and our primary and redundant data centers. Our website and
reservation system must be able to accommodate a high volume of traffic and deliver important flight
information. These systems require upgrades or replacement periodically, which involve implementation and
other operational risks. Our business may be harmed if we fail to operate, replace or upgrade our systems or data
center infrastructure successfully.
We rely on the third party providers of our current automated systems and data center infrastructure for
technical support. If the current provider were to fail to adequately provide technical support for any one of our
key existing systems or if new or updated components were not integrated smoothly, we could experience service
disruptions, which, if they were to occur, could result in the loss of important data, increase our expenses,
decrease our revenues and generally harm our business and reputation. Furthermore, our automated systems
cannot be completely protected against events that are beyond our control, including natural disasters, computer
viruses, other security breaches, or telecommunications failures. Substantial or sustained system failures could
impact customer service and result in our customers purchasing tickets from other airlines. We have implemented
security measures and change control procedures and have disaster recovery plans; however, we cannot assure
you that these measures are adequate to prevent disruptions, which, if they were to occur, could result in the loss
of important data, increase our expenses, decrease our revenues and generally harm our business and reputation.
Our reputation and business may be harmed and we may be subject to legal claims if there is loss,
disclosure or misappropriation of or access to our customers’, employees’, business partners’ or our own
information or other breaches of our information security.
We make extensive use of online services and centralized data processing, including through third party
service providers. The secure maintenance and transmission of customer and employee information is a critical
element of our operations. Our information technology and other systems that maintain and transmit customer
information, or those of service providers or business partners, may be compromised by a malicious third party
penetration of our network security, or that of a third party service provider or business partner, or impacted by
deliberate or inadvertent actions or inactions by our employees, or those of a third party service provider or
business partner. As a result, personal information may be lost, disclosed, accessed or taken without consent.
Any such loss, disclosure or misappropriation of, or access to, customers’, employees’ or business partners’
information or other breach of our information security can result in legal claims or legal proceedings, including
regulatory investigations and actions, may have a serious impact on our reputation and may materially adversely
affect our business, operating results and financial condition. Furthermore, the loss, disclosure or
misappropriation of our business information may materially adversely affect our business, operating results and
financial condition.
Our liquidity could be adversely impacted in the event one or more of our credit card processors were to
impose material reserve requirements for payments due to us from credit card transactions.
We currently have agreements with organizations that process credit card transactions arising from
purchases of air travel tickets by our customers. Credit card processors have financial risk associated with tickets
purchased for travel which can occur several weeks after the purchase. Our credit card processing agreements
provide for reserves to be deposited with the processor in certain circumstances. We do not currently have
reserves posted for our credit card processors. If circumstances were to occur that would require us to deposit
reserves, the negative impact on our liquidity could be significant which could materially adversely affect our
business.
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