Delta Airlines 2002 Annual Report Download - page 18

ITEM 2. PROPERTIES
Flight Equipment
Information relating to Delta's aircraft fleet is set forth under
"Delta's Aircraft Fleet" on page 70, and in Notes 7 and 9 of the Notes to the
Consolidated Financial Statements on pages 47-50, of Delta's 2002 Annual Report
to Shareowners, and is incorporated by reference.
Ground Facilities
Delta leases most of the land and buildings that it occupies. The
Company's largest aircraft maintenance base, various computer, cargo, flight
kitchen and training facilities and most of its principal offices are located at
or near Hartsfield Atlanta International Airport in Atlanta, Georgia, on land
leased from the City of Atlanta generally under long-term leases. Delta owns a
portion of its principal offices, its Atlanta reservations center and other
improved and unimproved real property in Atlanta, as well as a limited number of
radio transmitting and receiving sites and certain other facilities.
Delta leases ticket counter and other terminal space, operating areas
and air cargo facilities in most of the airports which it serves. These leases
generally run for periods of less than one year to thirty years or more, and
often contain provisions for periodic adjustment of lease rates. At most
airports which it serves, Delta has entered into use agreements which provide
for the non-exclusive use of runways, taxiways, and other facilities; landing
fees under these agreements normally are based on the number of landings and
weight of aircraft. The Company also leases aircraft maintenance facilities at
certain airports; these leases generally require Delta to pay the cost of
providing, operating and maintaining such facilities. In addition to its Atlanta
maintenance base, Delta's other major aircraft maintenance facilities are
located at Cincinnati/Northern Kentucky International Airport, Dallas/Ft. Worth
International Airport and Salt Lake City International Airport. Delta leases
marketing, ticket and reservations offices in certain major cities which it
serves; these leases are generally for shorter terms than the airport leases.
Additional information relating to Delta's ground facilities is set forth in
Note 7 of the Notes to the Consolidated Financial Statements on page 47 of
Delta's 2002 Annual Report to Shareowners, and is incorporated by reference.
In recent years, some airports have increased or sought to increase the
rates charged to airlines to levels that, in the airlines' opinion, are
unreasonable. The extent to which such charges are limited by statute or
regulation and the ability of airlines to contest such charges has been subject
to litigation and to administrative proceedings before the DOT. If the
limitations on such charges are relaxed, or the ability of airlines to challenge
such charges is restricted, the rates charged by airports to airlines may
increase substantially.
The City of Atlanta, with the support of Delta and other airlines, has
begun a ten year capital improvement program (the "CIP") at Hartsfield Atlanta
International Airport. Implementation of the CIP should increase the number of
flights that may operate at the airport and reduce flight delays. The CIP
includes, among other things, a new approximately 9,000 foot full-service runway
(targeted for completion in May 2006), related airfield improvements, additional
terminal and gate capacity, new cargo and other support facilities and roadway
and
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