JetBlue Airlines 2009 Annual Report Download - page 22

Our substantial indebtedness and limited number of shares of common stock currently available for
issuance may limit our ability to incur additional debt or issue additional equity to obtain future financing
needs.
We typically finance our aircraft through either secured debt or lease financing. The impact on financial
institutions from the current global credit and liquidity crisis may adversely affect the availability and cost of
credit to JetBlue as well as to prospective purchasers of our aircraft that we undertake to sell in the future,
including financing commitments that we have already obtained for purchases of new aircraft. To the extent
we finance our activities with additional debt, we may become subject to financial and other covenants that
may restrict our ability to pursue our growth strategy or otherwise constrain our operations. While we intend
to seek approval from our shareholders to increase the number of shares of our common stock available for
issuance, we are currently limited in our ability to obtain additional equity as a result of the limited of shares
of common stock currently available for issuance. Furthermore, if we are unable to increase our authorized
common stock, our ability to satisfy our significant financing needs or meet our obligations may be affected.
If we fail to successfully implement our modified growth strategy, our business could be harmed.
We have grown, and expect to continue to grow our business whenever practicable, by increasing the
frequency of flights to markets we currently serve, expanding the number of markets we serve and increasing
flight connection opportunities. In 2006, primarily due to higher fuel prices, the competitive pricing
environment and other cost increases, we began modifying our growth plans by deferring some of our
scheduled deliveries of new aircraft, selling some used aircraft, terminating our leases for some of our aircraft,
and leasing aircraft to other operators. A continuation of the economic downturn may cause us to further
reduce our future growth plans from previously announced levels.
To the extent we continue to grow our business, opening new markets requires us to commit a substantial
amount of resources even before the new services commence. Expansion is also dependent upon our ability to
maintain a safe and secure operation and requires additional personnel, equipment and facilities. An inability
to hire and retain personnel, timely secure the required equipment and facilities in a cost-effective manner,
efficiently operate our expanded facilities, or obtain the necessary regulatory approvals may adversely affect
our ability to achieve our growth strategy, which could harm our business. In addition, our competitors often
add service, reduce their fares and/or offer special promotions following our entry into a new market. We
cannot assure you that we will be able to profitably expand our existing markets or establish new markets or
be able to adequately temper our growth in a cost effective manner through additional deferrals or selling or
leasing aircraft; if we fail to do so, our business could be harmed.
There are risks associated with our presence in some of our international emerging markets, including
political or economic instability and failure to adequately comply with existing legal requirements.
Expansion to new international emerging markets may have risks due to factors specific to those markets.
Emerging markets are countries which have less developed economies that are vulnerable to economic and
political problems, such as significant fluctuations in gross domestic product, interest and currency exchange
rates, civil disturbances, government instability, nationalization and expropriation of private assets and the
imposition of taxes or other charges by governments. The occurrence of any of these events in markets served
by us and the resulting instability may adversely affect our business.
We have recently expanded our service to countries in the Caribbean and Latin America, some of which
have less developed legal systems, financial markets, and business and political environments than the
United States, and therefore present greater political, economic and operational risks. We emphasize legal
compliance and have implemented policies, procedures and certain ongoing training of employees with regard
to business ethics and many key legal requirements; however, there can be no assurance that our employees
will adhere to our code of business ethics, other Company policies, or other legal requirements. If we fail to
enforce our policies and procedures properly or maintain adequate record-keeping and internal accounting
practices to accurately record our transactions, we may be subject to sanctions. In the event that we believe or
have reason to believe that employees have or may have violated applicable laws or regulations, we may be
subject to investigation costs, potential penalties and other related costs which in turn could negatively affect
our results of operations and cash flow.
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