American Airlines 2012 Annual Report Download - page 11

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period ended December 31, 2012 is included in Note 16 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 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. While the price of commercial insurance has declined since the period 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 materially adversely affected.
The U.S. government has agreed to provide commercial war-risk insurance for U.S. based airlines through September 30, 2013, covering losses to employees,
passengers, third parties and aircraft. If the U.S. government were to cease providing such insurance in whole or in part, it is likely that the Company could
obtain comparable coverage in the commercial market, but could incur substantially higher premiums and face more restrictive terms. However, there can be
no assurance that comparable war-risk coverage will be available in the commercial market. If the Company is unable to obtain adequate war-risk coverage at
commercially reasonable rates, it 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. Information on the Company’s website is not incorporated into or otherwise made a
part of this Report.
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