914397--3/26/2010--GREAT_LAKES_AVIATION

related topics

{stock, price, share}

{operation, natural, condition}

{system, service, information}

{stock, price, operating}

{cost, regulation, environmental}

{gas, price, oil}

{debt, indebtedness, cash}

{tax, income, asset}

{control, financial, internal}

{condition, economic, financial}

{provision, law, control}

{personnel, key, retain}

{cost, operation, labor}

Risks Related to Our Business Airline industry conditions constantly change, and negative economic conditions in the United States may materially and adversely affect our business and results of operations. We depend on Essential Air Service revenue, which is based on short-term awards. We depend on connecting capacity at our hubs and the activities of our code share partners affect that capacity. We have a significant amount of debt and other contractual obligations, including a $32.7 million balloon payment due to Raytheon in June 2011. An ownership change under IRS Section 382 could reduce, eliminate, or defer the utilization of our net operating loss carryforwards. Our operations could be negatively impacted by terrorist events or war activity. We compete for passenger traffic and EAS revenue with other air carriers and ground transportation. Fuel prices or disruptions in fuel supplies could have a material adverse effect on us. Any labor disruption by our employees or those of our code share partners would adversely affect our ability to conduct our business. Our business could be harmed if we lose the services of our key personnel. We are at risk of losses stemming from an accident involving any of our aircraft. The airline industry is subject to extensive government regulation, and new regulations, or changes in interpretations of current regulations, could increase our operating costs. We rely on technology and automated systems to operate our business, and a failure of these technologies or systems, or failures by their operators, could harm our business. New production of both types of aircraft which we fly has ceased. Risks Related to Our Securities We are controlled by two principal stockholders. The limited market for our securities could make trading more difficult or more expensive. The market price of our common stock may be subject to wide fluctuations. We may be exposed to potential risks relating to our internal control over financial reporting and our ability to have those controls remediated timely. A substantial number of shares are eligible for sale by our current investors and the sale of those shares could adversely affect our stock price. The issuance of additional equity securities in a future financing could require approval from Raytheon. We do not anticipate paying cash dividends on our shares of common stock in the foreseeable future. Provisions in our charter documents, including our ability to issue preferred stock without stockholder approval, and provisions of Iowa law could delay or prevent the acquisition of our company by a third party.

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914397--3/26/2010--GREAT_LAKES_AVIATION_LTD