Delta Airlines 2003 Annual Report Download - page 11

Table of Contents
Postal Service has authority over certain aspects of the transportation of mail. Labor relations in the airline industry are generally governed by the Railway
Labor Act. Environmental matters are regulated by various federal, state, local and foreign governmental entities. Privacy of passenger and employee data is
regulated by domestic and foreign laws that are not consistent in all countries in which we operate.
Fares and Rates
Airlines are permitted to set ticket prices in most domestic and international city pairs without governmental regulation, and the industry is characterized
by significant price competition. Certain international fares and rates are subject to the jurisdiction of the DOT and the governments of the foreign countries
involved. Most of our tickets are sold by travel agents, and fares are subject to commissions, overrides and discounts paid to travel agents, brokers and
wholesalers.
Route Authority
Our flight operations are authorized by certificates of public convenience and necessity and, to a limited extent, by exemptions issued by the DOT. The
requisite approvals of other governments for international operations are provided by bilateral agreements with, or permits or approvals issued by, foreign
countries. Because international air transportation is governed by bilateral or other agreements between the United States and the foreign country or countries
involved, changes in United States or foreign government aviation policies could result in the alteration or termination of such agreements, diminish the value
of our international route authorities or otherwise affect our international operations. Bilateral agreements between the United States and various foreign
countries served by us are subject to renegotiation from time to time.
Certain of our international route and codesharing authorities are subject to periodic renewal requirements. We request extension of these authorities when
and as appropriate. While the DOT usually renews temporary authorities on routes where the authorized carrier is providing a reasonable level of service,
there is no assurance of this result. Dormant route authority may not be renewed in some cases, especially where another U.S. carrier indicates a willingness to
provide service.
Competition
We face significant competition with respect to routes, services and fares. Our domestic routes are subject to competition from both new and existing
carriers, some of which have substantially lower costs than we do and provide service at lower fares to destinations served by us. We also compete with all-
cargo carriers, charter airlines, regional jet operators and, particularly on our shorter routes, surface transportation.
The continuing growth of low-cost carriers, including Southwest Airlines Co. ("Southwest"), AirTran Airways, Inc. ("AirTran") and JetBlue Airways
Corporation ("JetBlue"), in the United States places significant competitive pressures on us and other network carriers.
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