JetBlue Airlines 2011 Annual Report Download - page 29

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If we are unable to attract and retain qualified personnel or fail to maintain our company culture, our
business could be harmed.
We compete against the other major U.S. airlines for pilots, mechanics and other skilled labor; some of them
offer wage and benefit packages that exceed ours. We may be required to increase wages and/or benefits in order
to attract and retain qualified personnel or risk considerable employee turnover. If we are unable to hire, train and
retain qualified employees, our business could be harmed and we may be unable to implement our growth plans.
In addition, as we hire more people and grow, we believe it may be increasingly challenging to continue to
hire people who will maintain our company culture. One of our competitive strengths is our service-oriented
company culture that emphasizes friendly, helpful, team-oriented and customer-focused employees. Our
company culture is important to providing high quality customer service and having a productive workforce that
helps keep our costs low. As we continue to grow, we may be unable to identify, hire or retain enough people
who meet the above criteria, including those in management or other key positions. Our company culture could
otherwise be adversely affected by our growing operations and geographic diversity. If we fail to maintain the
strength of our company culture, our competitive ability and our business may be harmed.
Our results of operations fluctuate due to seasonality and other factors.
We expect our quarterly operating results to fluctuate due to seasonality including high vacation and leisure
demand occurring on the Florida routes between October and April and on our western routes during the
summer. Actions of our competitors may also contribute to fluctuations in our results. We are more susceptible to
adverse weather conditions, including snow storms and hurricanes, as a result of our operations being
concentrated on the East Coast, than some of our competitors. As we enter new markets we could be subject to
additional seasonal variations along with any competitive responses to our entry by other airlines. Price changes
in aircraft fuel as well as the timing and amount of maintenance and advertising expenditures also impact our
operations. 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 period 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 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 two types of aircraft and engines for all of our flights makes us vulnerable to
significant problems associated with the Airbus A320 aircraft or the IAE International Aero Engines V2527-A5
engine and the EMBRAER 190 aircraft or the General Electric Engines CF-34-10 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.
One of the unique features of our fleet is that every seat in each of our aircraft is equipped with free in-flight
entertainment including DirecTV®. An integral component of the system is the antenna, which is supplied to us
by KVH Industries Inc, or KVH. If KVH were to stop supplying us with its antennas for any reason, we would
have to incur significant costs to procure an alternate supplier.
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
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