1386355--3/12/2009--Travelport

related topics

{system, service, information}

{debt, indebtedness, cash}

{condition, economic, financial}

{cost, operation, labor}

{regulation, government, change}

{acquisition, growth, future}

{customer, product, revenue}

{financial, litigation, operation}

{property, intellectual, protect}

{interest, director, officer}

{operation, international, foreign}

{product, market, service}

{operation, natural, condition}

{tax, income, asset}

{competitive, industry, competition}

{personnel, key, retain}

{cost, regulation, environmental}

Risks Related to Our Business Our revenue is derived from the travel industry and a prolonged or substantial decrease in travel volume, particularly air travel, as well as other industry trends, could adversely affect us. The travel industry is highly competitive and we are subject to risks relating to competition that may adversely affect our performance. We may not be able to successfully integrate our operations with Worldspan, or attain the expected benefits of the acquisition of Worldspan. We may not be able to achieve all of our expected cost savings from the Worldspan acquisition and our re-engineering efforts. We may not realize anticipated benefits from past and future acquisitions or have the ability to complete future acquisitions. We rely upon information technology to operate our businesses and maintain our competitiveness, and any failure to adapt to technological developments or industry trends could harm our businesses. System interruptions and slowdowns may cause us to lose customers or business opportunities or to incur liabilities. Our GDS business primarily relies on a single data center to conduct its business. We are dependent upon software, equipment and services provided by third parties. We rely on third party national distribution companies to market our GDS services in certain regions. Trends in pricing and other terms of agreements among airlines and travel agencies have reduced, and could further reduce in the future, our revenue and margins. We depend on our supplier relationships and adverse changes in these relationships or our inability to enter into new relationships could negatively affect our access to travel offerings and reduce our revenue. We provide IT services to travel suppliers, primarily airlines, and any adverse changes in these relationships could adversely affect our business. Travel suppliers are seeking alternative distribution models, including those involving direct access to travelers, which may adversely affect our results of operations. Consolidation in the travel industry may result in increased expenses, lost bookings and reduced revenue. Our businesses are highly regulated and any failure to comply with such regulations or any changes in such regulations could adversely affect us. Our processing, storage, use and disclosure of personal data could give rise to liabilities as a result of governmental regulation, conflicting legal requirements, differing views of personal privacy rights or security breaches. We are exposed to risks associated with on-line commerce security and credit card fraud. Our sponsors control us and may have conflicts of interest with us or the holders of our bonds in the future. We are subject to additional risks as a result of having global operations. Government regulation could impose taxes or other burdens on us, which could increase our costs or decrease demand for our products. We may not be able to protect our technology effectively, which would allow competitors to duplicate our products and services. This could make it more difficult for us to compete with them. Third parties may claim that we have infringed their intellectual property rights, which could expose us to substantial damages and restrict our operations. We may become involved in legal proceedings and may experience unfavorable outcomes, which could harm us. Our ability to attract, train and retain senior management and other qualified employees is crucial to our results of operations and future growth. Fluctuations in the exchange rate of the US dollar and other currencies may adversely impact our results of operations. We have a limited operating history as an independent group and our historical and pro forma financial information is not necessarily representative of the results we would have achieved as an independent group and may not be a reliable indicator of our future results. We are contractually obliged to indemnify Avis Budget for certain taxes relating to our separation from Avis Budget. Risks Related to Our Relationship with Orbitz Worldwide We may be required to record a significant charge to earnings if our investment in the equity of Orbitz Worldwide becomes impaired. Orbitz Worldwide is an important customer of our GDS business. Risks Related to Our Indebtedness We have a substantial level of indebtedness which may have an adverse impact on us. Our debt agreements contain restrictions that limit our flexibility in operating our business. Despite our high indebtedness level, we and our subsidiaries may still be able to incur significant additional amounts of debt, which could further exacerbate the risks associated with our substantial indebtedness.

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1386355--3/12/2009--Travelport_LTD