Alaska Airlines and Horizon Air 2014 Annual Report Download - page 103

subject to enforcement actions that are brought by the TSA from time to time for alleged
violations of the AOSSP, SDs or security regulations. We are not aware of any enforcement
proceedings that could either materially affect our financial position or impact our authority to
operate. Under TSA authority, we are required to collect a September 11 Security Fee of $5.60
per one-way trip from passengers and remit that sum to the government to fund aviation security
measures. Through September 2014, carriers also paid the TSA a security infrastructure fee to
cover passenger and property screening costs. These security infrastructure fees amounted to
$10 million in 2014 and $13 million each year in 2013 and 2012.
The Department of Justice and DOT have jurisdiction over airline antitrust matters. The U.S. Postal
Service has jurisdiction over certain aspects of the transportation of mail and related services. Labor
relations in the air transportation industry are regulated under the Railway Labor Act. To the extent we
continue to fly to foreign countries and pursue alliances with international carriers, we may be subject
to certain regulations of foreign agencies and international treaties.
ENVIRONMENTAL AND OCCUPATIONAL SAFETY MATTERS
We are subject to various laws and government regulations concerning environmental matters and
employee safety and health in the U.S. and other countries. U.S. federal laws that have a particular
effect on us include the Airport Noise and Capacity Act of 1990, the Clean Air Act, the Resource
Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, and the
Comprehensive Environmental Response, Compensation and Liability Act, Superfund Amendments and
Reauthorization Act, and the Oil Pollution Control Act. We are also subject to the oversight of the
Occupational Safety and Health Administration (OSHA) concerning employee safety and health matters.
The U.S. Environmental Protection Agency, OSHA, and other federal agencies have been authorized to
create and enforce regulations that have an impact on our operations. In addition to these federal
activities, various states have been delegated certain authorities under these federal statutes. Many
state and local governments have adopted environmental and employee safety and health laws and
regulations. We maintain our safety, health and environmental programs in order to meet or exceed
these requirements.
We expect there will be legislation in the future to reduce carbon and other greenhouse gas emissions.
Alaska and Horizon have transitioned to more fuel-efficient aircraft fleets.
The Airport Noise and Capacity Act recognizes the rights of airport operators with noise problems to
implement local noise abatement programs so long as they do not interfere unreasonably with
interstate or foreign commerce or the national air transportation system. Authorities in several cities
have established aircraft noise reduction programs, including the imposition of nighttime curfews. We
believe we have sufficient scheduling flexibility to accommodate local noise restrictions.
Although we do not currently anticipate that these regulatory matters, individually or collectively, will
have a material effect on our financial condition, results of operations or cash flows, new regulations or
compliance issues that we do not currently anticipate could have the potential to harm our financial
condition, results of operations or cash flows in future periods.
INSURANCE
We carry Airline Hull, Spares and Comprehensive Legal Liability Insurance in amounts and of the type
generally consistent with industry practice to cover damage to aircraft, spare parts and spare engines,
as well as bodily injury and property damage to passengers and third parties. We also have coverage for
War and Allied Perils, including hijacking, terrorism, malicious acts, strikes, riots, civil commotion and
other identified perils.
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ŠForm 10-K