Delta Airlines 2004 Annual Report Download - page 113

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
agreement is required to repay its security fee payments described above. We are subject to this requirement and have entered into the
required contract with the TSA.
• Compensation for Strengthening Flight Deck Doors. Payments totaling $100 million from the U.S. government to compensate air carriers
for the direct costs associated with the strengthening of flight deck doors and locks on aircraft.
• Suspension of Passenger and Air Carrier Security Fees. The suspension of the TSA's collection of passenger and air carrier security fees
during the period beginning June 1, 2003 and ending September 30, 2003.
During 2003, we received payments under the Appropriations Act totaling (1) $398 million as reimbursement for passenger and air carrier security fees,
which was recorded as a reduction of operating expenses in our 2003 Consolidated Statement of Operations and (2) $13 million related to the strengthening of
flight deck doors, which was recorded as a reduction to previously capitalized costs.
Stabilization Act Compensation
On September 22, 2001, the Air Transportation Safety and System Stabilization Act ("Stabilization Act") became effective. The Stabilization Act was
intended to preserve the viability of the U.S. air transportation system following the terrorist attacks on September 11, 2001 by, among other things,
(1) providing for payments from the U.S. Government totaling $5 billion to compensate U.S. air carriers for losses incurred from September 11, 2001 through
December 31, 2001 as a result of the September 11 terrorist attacks and (2) permitting the Secretary of Transportation to sell insurance to U.S. air carriers. See
Note 8 for additional information about war-risk insurance.
We received $668 million as compensation under the Stabilization Act, including $112 million in the year ended December 31, 2002. Due to uncertainties
regarding the U.S. government's calculation of compensation, we recognized $634 million of this amount in our 2001 Consolidated Statement of Operations.
We recognized the remaining $34 million of this compensation in our 2002 Consolidated Statement of Operations.
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