JetBlue Airlines 2011 Annual Report Download - page 32

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City area, severely impacted air travel in the northeast which resulted in several flight diversions by JetBlue and
many other domestic and international carriers to Hartford, CT’s Bradley International Airport, or Bradley.
JetBlue diverted a total of six flights to Bradley, five of which were held on the tarmac in excess of three hours,
thus exceeding the DOT’s established tarmac delay limits. As a result, the DOT is investigating these incidents
and we may be subject to a monetary penalty. Based on the allowable maximum DOT fine proscribed by the
Tarmac Delay regulations, we could be assessed a fine of up to approximately $15 million. We have issued
compensation to the impacted customers in accordance with our Customer Bill of Rights, and are complying with
the requests of the DOT investigation and believe the final determination from the DOT should be made in the
next few months.
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.
The unknown impact from the Dodd-Frank Act as well as the rules to be promulgated under it could
require the implementation of additional policies and require us to incur administrative compliance costs.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd-Frank Act,
contains a variety of provisions designed to regulate financial markets. Further, many aspects of the Dodd-Frank
Act are subject to rulemaking that will take effect over several years, thus making it difficult to assess its impact
on us at this time. We expect to successfully implement any new applicable legislative and regulatory
requirements and may incur additional costs associated with our compliance with the new regulations and
anticipated additional reporting and disclosure obligations; however, at this time we do not expect such costs to
be material to us.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
22