Delta Airlines 2003 Annual Report Download - page 27

Table of Contents
If we experience a significant loss of our senior management and other key employees, our operating results could be adversely affected, and we may
not be able to attract and retain additional qualified management personnel.
We have approximately 55 officers, and we are dependent on their experience and industry knowledge, and that of other key employees, to execute our
business plans. If we were to experience a substantial turnover in our leadership, our performance could be materially adversely impacted. Additionally, we
may be unable to attract and retain additional qualified executives as needed in the future.
Employee strikes and other labor-related disruptions may adversely affect our operations.
Our business is labor intensive, requiring large numbers of pilots, flight attendants, mechanics and other personnel. Approximately 18% of our workforce
is unionized. Strikes or labor disputes with our and our affiliates' unionized employees may adversely affect our ability to conduct our business. Relations
between air carriers and labor unions in the United States are governed by the Railway Labor Act, which provides that a collective bargaining agreement
between an airline and a labor union does not expire, but instead becomes amendable as of a stated date. Our collective bargaining agreement with ALPA,
which represents our pilots, becomes amendable on May 1, 2005. Our wholly-owned subsidiary, ASA, is in collective bargaining negotiations with ALPA,
which represents ASA's pilots, and with AFA, which represents ASA's flight attendants. The outcome of these collective bargaining negotiations cannot
presently be determined. In addition to the ASA negotiations, if we or our affiliates are unable to reach agreement with any of our unionized work groups on
future negotiations regarding the terms of their collective bargaining agreements, or if additional segments of our workforce become unionized, we may be
subject to work interruptions or stoppages.
We are facing significant litigation, including litigation arising from the terrorist attacks on September 11, 2001, and if any such significant litigation is
concluded in a manner adverse to us, our financial condition and operating results could be materially adversely affected.
We are involved in legal proceedings relating to antitrust matters, employment practices, environmental issues and other matters concerning our business.
We are also a defendant in numerous lawsuits arising out of the terrorist attacks of September 11, 2001. It appears that the plaintiffs in these September 11
actions are alleging that we and many other air carriers are jointly liable for damages resulting from the terrorist attacks based on a theory of shared
responsibility for passenger security screening at Logan, Washington Dulles International Airport ("Dulles") and Newark Liberty International Airport
("Newark"). These lawsuits, which are in preliminary stages, generally seek unspecified damages, including punitive damages. Although federal law limits the
financial liability of any air carrier for compensatory and punitive damages arising out of the September 11 terrorist attacks to no more than the limits of
liability insurance coverage maintained by the air carrier, it is possible that we may be required to pay damages in the event of our insurer's insolvency or
otherwise. While we cannot reasonably estimate the potential loss for certain of our legal proceedings because, for example, the litigation is in its early stages
or the plaintiff does not specify damages being sought, if the outcome of any significant litigation is adverse to us, our financial condition and operating
results could be materially adversely impacted.
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