American Airlines 2008 Annual Report Download - page 13

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10
Other Matters
Seasonality and Other Factors The Company’s results of operations for any interim period are not necessarily
indicative of those for the entire year, since the air transportation business is subject to seasonal fluctuations.
Higher demand for air travel has traditionally resulted in more favorable operating and financial results for the
second and third quarters of the year than for the first and fourth quarters. Fears of terrorism or war, fare initiatives,
fluctuations in fuel prices, labor actions, weather and other factors could impact this seasonal pattern. Unaudited
quarterly financial data for the two-year period ended December 31, 2008 is included in Note 15 to the
consolidated financial statements. In addition, the results of operations in the air transportation business have also
significantly fluctuated in the past in response to general economic conditions.
Insurance The Company carries insurance for public liability, passenger liability, property damage and all-risk
coverage for damage to its aircraft. As a result of the terrorist attacks of September 11, 2001 (the Terrorist
Attacks), aviation insurers significantly reduced the amount of insurance coverage available to commercial air
carriers for liability to persons other than employees or passengers for claims resulting from acts of terrorism, war
or similar events (war-risk coverage). At the same time, these insurers significantly increased the premiums for
aviation insurance in general.
The U.S. government has agreed to provide commercial war-risk insurance for U.S. based airlines until March 31,
2009, covering losses to employees, passengers, third parties and aircraft. Beyond that date, the Secretary of
Transportation has the authority to provide commercial war-risk insurance until May 31, 2009. If the U.S.
government does not extend the policy beyond March 31, 2009 (or beyond May 31, 2009 if the Secretary has
exercised the authority to extend coverage to that date), or if the U.S. government at anytime thereafter ceases to
provide such insurance, or reduces the coverage provided by such insurance, the Company will attempt to
purchase similar coverage with narrower scope from commercial insurers at an additional cost. To the extent this
coverage is not available at commercially reasonable rates, the Company would be adversely affected. While the
price of commercial insurance has declined since the premium increases immediately after the Terrorist Attacks, in
the event commercial insurance carriers further reduce the amount of insurance coverage available to the
Company, or significantly increase its cost, the Company would be adversely affected.
Other Government Matters In time of war or during a national emergency or defense oriented situation,
American and other air carriers can be required to provide airlift services to the Air Mobility Command under the
Civil Reserve Air Fleet program. In the event the Company has to provide a substantial number of aircraft and crew
to the Air Mobility Command, its operations could be adversely impacted.
Available Information The Company makes its annual report on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and amendments to reports filed or furnished pursuant to Section 13(a) or 15(d) of
the Securities Exchange Act of 1934 available free of charge under the Investor Relations page on its website,
www.aa.com, as soon as reasonably practicable after such reports are electronically filed with the Securities and
Exchange Commission. In addition, the Company’s code of ethics (called the Standards of Business Conduct),
which applies to all employees of the Company, including the Company’s Chief Executive Officer (CEO), Chief
Financial Officer (CFO) and Controller, is posted under the Investor Relations page on its website, www.aa.com.
The Company intends to disclose any amendments to the code of ethics, or waivers of the code of ethics on behalf
of the CEO, CFO or Controller, under the Investor Relations page on the Company’s website, www.aa.com. The
charters for the AMR Board of Directors’ standing committees (the Audit, Compensation, Diversity and
Nominating/Corporate Governance Committees), as well as the Board of Directors’ Governance Policies (the
Governance Policies), are likewise available on the Company’s website, www.aa.com. Upon request, copies of the
charters or the Governance Policies are available at no cost. Information on the Company’s website is not
incorporated into or otherwise made a part of this Report.