PART I  ITEM 1A Risk Factors Our business depends on our strong reputation and the value of the  JetBlue brand. Our reputation and financial results could be harmed in the event of an  accident or incident involving our aircraft. Risks Associated with the Airline Industry The airline industry is particularly sensitive to changes in economic  condition. A future act of terrorism, the threat of such acts or escalation of U.S.  military involvement overseas could adversely affect our industry. We may be subject to competitive risks due to the long term nature of  our fleet order book. JETBLUE AIRWAYS CORPORATION  -  2013 Annual Report 18 The U.S. Government currently provides insurance coverage for certain  claims resulting from acts of terrorism, war or similar events. Should this  coverage no longer be offered, the coverage that would be available to us  through commercial aviation insurers may have substantially less desirable  terms, result in higher costs and not be adequate to protect our risk, any  of which could harm our business. In addition, the U.S. Environmental  Protection Agency (“EPA”) has proposed changes to underground storage  tank regulations that could affect certain airport fuel hydrant systems. In  Airlines are subject to extensive regulatory and legal requirements, both  domestically and internationally, involving significant compliance costs. In  the last several years, Congress has passed laws, and the agencies of the  federal government, including, but not limited to, the DOT, FAA, CBP and  the TSA have issued regulations relating to the operation of airlines that have  required significant expenditures. We expect to continue to incur expenses  in connection with complying with government regulations. Additional laws,  regulations, taxes and airport rates and charges have been proposed from  time to time that could significantly increase the cost of airline operations or  reduce the demand for air travel. If adopted or materially amended, these  measures could have the effect of raising ticket prices, reducing air travel  demand and/or revenue and increasing costs. We cannot assure you these  and other laws or regulations enacted in the future will not harm our business. Changes in government regulations imposing additional requirements  and restrictions on our operations or the U.S. Government ceasing to  provide adequate war risk insurance could increase our operating costs  and result in service delays and disruptions. would likely experience increased security requirements and significantly  reduced demand. We cannot assure you these actions, or consequences  resulting from these actions, will not harm our business or the industry. Fundamental and permanent changes in the domestic airline industry have  been ongoing over the past several years as a result of several years of  repeated losses, among other reasons. These losses resulted in airlines  renegotiating or attempting to renegotiate labor contracts, reconfiguring flight  schedules, furloughing or terminating employees, as well as considering  other efficiency and cost-cutting measures. Despite these actions, several  airlines have reorganized under Chapter 11 of the U.S. Bankruptcy Code  to permit them to reduce labor rates, restructure debt, terminate pension  plans and generally reduce their cost structure. Since 2005, the U.S. airline  industry has experienced significant consolidation and liquidations. The  global economic recession and related unfavorable general economic  conditions, such as higher unemployment rates, a constrained credit  market, housing-related pressures, and increased business operating costs  can reduce spending for both leisure and business travel. Unfavorable  economic conditions could also impact an airline’s ability to raise fares to  counteract increased fuel, labor, and other costs. It is foreseeable further  airline reorganizations, consolidation, bankruptcies or liquidations may  occur in the current global recessionary environment, the effects of which  we are unable to predict. We cannot assure you the occurrence of these  events, or potential changes resulting from these events, will not harm  our business or the industry. Acts of terrorism, the threat of such acts or escalation of U.S. military  involvement overseas could have an adverse effect on the airline industry.  In the event of a terrorist attack, whether or not successful, the industry  At present, we have existing aircraft commitments through 2022. As  technological evolution occurs in our industry, through the use of composites  and other innovations, we may be competitively disadvantaged because  we have existing extensive fleet commitments that would prohibit us from  adopting new technologies on an expedited basis. 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 carry liability insurance. Although we  believe we currently maintain liability insurance in amounts and of the type  generally consistent with industry practice, the amount of such coverage  may not be adequate and we may be forced to bear substantial 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,  could cause a public perception we are less safe or reliable than other  airlines which would harm our business. The JetBlue brand name symbolizes high-quality friendly customer  service, innovation, fun, and a pleasant travel experience. JetBlue is a  widely recognized and respected global brand; the JetBlue brand is one  of our most important and valuable assets. The JetBlue brand name and  our corporate reputation are powerful sales and marketing tools and we  devote significant resources to promoting and protecting them. Adverse  publicity (whether or not justified) relating to activities by our employees,  contractors or agents could tarnish our reputation and reduce the value of  our brand. Damage to our reputation and loss of brand equity could reduce  demand for our services and thus have an adverse effect on our financial  condition, liquidity and results of operations, as well as require additional  resources to rebuild our reputation and restore the value of our brand. An ownership change could limit our ability to use our net operating loss  carryforwards for U.S. income tax purposes. As of December 31, 2013, we had approximately $456 million of federal  net operating loss carryforwards for U.S. income tax purposes that begin  to expire in 2025. Section 382 of the Internal Revenue Code imposes  limitation on a corporation’s ability to use its net operating loss carryforwards  if it experiences an “ownership change”. Similar rules and limitations may  apply for state income tax purposes. In the event an “ownership change”  were to occur in the future, our ability to utilize our net operating losses  could be limited. One of the unique features of our fleet is 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. In addition, our Fly-Fi service uses technology and satellite access through  our partnership with ViaSat, Inc. Similarly an integral component of the  Fly-Fi system is the antenna, which is supplied to us by ViaSat. If ViaSat  were to stop supplying us with its antennas for any reason, we would have  to incur significant costs to procure an alternate supplier. Additionally, if  the satellites Fly-Fi uses were to become inoperable for any reason, we  would have to incur significant costs to replace the service.