Alaska Airlines and Horizon Air 2014 Annual Report Download - page 104

We believe that our emphasis on safety and our state-of-the-art flight deck safety technology help to
control the cost of aviation insurance.
WHERE YOU CAN FIND MORE INFORMATION
Our filings with the Securities and Exchange Commission, including our annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports are
available on our website at www.alaskaair.com, free of charge, as soon as reasonably practicable after
the electronic filing of these reports with the Securities and Exchange Commission. The information
contained on our website is not a part of this annual report on Form 10-K.
ITEM 1A. RISK FACTORS
If any of the following occurs, our business, financial condition and results of operations could suffer. In
such case, the trading price of our common stock could also decline. We operate in a continually
changing business environment. In this environment, new risks may emerge and already identified risks
may vary significantly in terms of impact and likelihood of occurrence. Management cannot predict such
developments, nor can it assess the impact, if any, on our business of such new risk factors or of
events described in any forward-looking statements.
We have adopted an enterprise wide Risk Analysis and Oversight Program designed to identify the
various risks faced by the organization, assign responsibility for managing those risks to individual
executives as well as align these risks with Board oversight. These enterprise-level identified risks have
been aligned to the risk factors discussed below.
SAFETY, COMPLIANCE AND OPERATIONAL EXCELLENCE
Our reputation and financial results could be harmed in the event of an airline accident or incident.
An accident or incident involving one of our aircraft or an aircraft operated by one of our codeshare
partners or CPA carriers could involve a significant loss of life and result in a loss of confidence in our
airlines by the flying public and/or aviation authorities. We could experience significant claims from
injured passengers, by-standers and surviving relatives, as well as costs for the repair or replacement of
a damaged aircraft and its consequential temporary or permanent loss from service. We maintain
liability insurance in amounts and of the type generally consistent with industry practice, as do our
codeshare partners and CPA carriers. However, the amount of such coverage may not be adequate to
fully cover all claims and we may be forced to bear substantial economic losses from an accident.
Substantial claims resulting from an accident in excess of our related insurance coverage would harm
our business and financial results. Moreover, any aircraft accident or incident, even if fully insured and
even if it does not involve one of our aircraft, could cause a public perception that our airlines or the
equipment they fly are less safe or reliable than other transportation alternatives, which would harm our
business.
Changes in government regulation imposing additional requirements and restrictions on our
operations or on the airports at which we operate could increase our operating costs and result in
service delays and disruptions.
Airlines are subject to extensive regulatory and legal requirements, both domestically and
internationally, that involve significant compliance costs. In the last several years, Congress has
passed laws, and the U.S. DOT, the TSA and the FAA have issued regulations that have required
significant expenditures relating to the maintenance and operation of airlines and establishment of
consumer protections.
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