1172222--3/3/2008--HAWAIIAN_HOLDINGS_

related topics

{operation, natural, condition}

{competitive, industry, competition}

{debt, indebtedness, cash}

{cost, operation, labor}

{product, market, service}

{regulation, government, change}

{condition, economic, financial}

{personnel, key, retain}

{cost, contract, operation}

{regulation, change, law}

{acquisition, growth, future}

{loss, insurance, financial}

{gas, price, oil}

{stock, price, share}

Risks Relating to our Business Our business is highly dependent on the price and availability of fuel. We operate in an extremely competitive environment. Our business is affected by the competitive advantages held by network carriers in the transpacific market. The interisland market continues to experience reduced fares and decreasing demand. Our business is highly dependent on tourism, and our financial results could suffer if there is a downturn in tourism levels. Our business is subject to substantial seasonal and cyclical volatility. The concentration of our business in Hawaii, and between Hawaii and the western United States, provides little diversification of our revenue. Our failure to successfully implement our growth strategy and related cost-reduction goals could harm our business. Our share price could be subject to extreme price fluctuations, and stockholders could have difficulty trading shares. We are increasingly dependent on technology to operate our business. We are subject to various risks as a result of our fleet concentration in Boeing 717s and Boeing 767s. We are highly reliant on third-party contractors to provide certain facilities and services for our operations, and termination of our third-party agreements could have a potentially adverse effect on our financial results. We are dependent on satisfactory labor relations. Our operations may be adversely affected if we are unable to attract and retain key executives, including our Chief Executive Officer. Our substantial debt could adversely affect our financial condition. Our agreement to purchase Airbus A330-200 and A350XWB-800 aircraft significantly increases our future financial commitments and operating costs and creates implementation risk associated with the change from our current Boeing 767-300 fleet. Delays in scheduled aircraft deliveries or other loss of fleet capacity may adversely impact our operations and financial results. Certain of our financing agreements and our credit card processing agreement include financial covenants that impose substantial restrictions on our financial and business operations. Our business has substantial operating leverage. Our obligations for funding our defined benefit pension plans are significant and are affected by factors beyond our control. Airline strategic combinations or industry consolidation could have an impact on our competitive environment in ways yet to be determined. Our reputation and financial results could be harmed in the event of adverse publicity. Our financial results may be negatively affected by increased airport rent rates and landing fees at the airports within the State of Hawaii as a result of the modernization plan. Risks Relating to the Airline Industry The continued threat of terrorist attacks may adversely impact our business. The airline industry is subject to extensive government regulation, and new regulations could have an adverse effect on our financial condition and results of operations. Our operations may be adversely impacted by increased security measures mandated by regulatory authorities. Our insurance costs are susceptible to significant increases, and further increases in insurance costs or reductions in coverage could have an adverse effect on our financial results. We are at risk of losses and adverse publicity in the event of an aircraft accident. We are at risk of losses in the event of an outbreak of diseases.

Full 10-K form ▸

1172222--3/3/2008--HAWAIIAN_HOLDINGS__INC