Delta Airlines 2004 Annual Report Download - page 14

Table of Contents
Joseph C. Kolshak
Senior Vice President and Chief of Operations since June 2004; Senior Vice President — Flight Operations (2002-2004); Vice President — Flight
Operations (2001-2002); Director, Investor Relations (1998-2001); General Manager — Flight Operations (1996-1998); Flight Operations Manager and
Assistant Chief Pilot (1994-1996); Flight Operations Coordinator — Atlanta (1993-1994); Special Assignment Supervisor to the Vice President of Flight
Operations (1991-1993). Additionally, Mr. Kolshak is a 757/767 Captain
Lee A. Macenczak
Senior Vice President and Chief Customer Service Officer since October 2004; Senior Vice President & Chief Human Resources Officer (June 2004-
October 2004); Senior Vice President — Sales and Distribution (2000-2004); Vice President — Customer Service (1999-2000); Vice President —
Reservation Sales (1998-1999); Vice President — Reservation Sales & Distribution Planning (1996-1998)
Paul G. Matsen
Senior Vice President and Chief Marketing Officer since June 2004; Senior Vice President — International & Alliances (2000-2004); Senior Vice
President — Alliances (1999-2000); Senior Vice President — Alliance Strategy & Development (1998-1999); Senior Vice President — Corporate
Planning & Information Technologies (1997-1998); Senior Vice President — Corporate Planning (1996-1997);Vice President — Corporate Planning
(1996); Vice President — Advertising and Consumer Marketing (1994-1996)
Gregory L. Riggs
Senior Vice President, General Counsel and Chief Corporate Affairs Officer since June 2004; Senior Vice President — General Counsel (2003-2004);
Vice President — Deputy General Counsel (1998-2003); Associate General Counsel (1997-1998); Director — Airport Customer Service Administration
(1996-1997); Associate General Counsel (1994-1996); Assistant General Counsel (1992-1994)
James Whitehurst
Senior Vice President and Chief Network and Planning Officer since June 2004; Senior Vice President — Finance, Treasury & Business Development
(2002-2004); Vice President and Director, Boston Consulting Group (1997-2001)
Risks Factors Relating to Delta
If we are unsuccessful in further reducing our operating expenses and continue to experience significant losses, we will need to seek to restructure
our costs under Chapter 11 of the U.S. Bankruptcy Code.
We reported a net loss of $5.2 billion, $773 million and $1.3 billion for the years ended December 31, 2004, 2003 and 2002, respectively. We expect our
revenue and cost challenges to continue. In addition, Deloitte & Touche LLP, our independent registered public accounting firm, issued a Report of
Independent Registered Public Accounting Firm related to our Consolidated Financial Statements that contains an explanatory paragraph that makes reference
to uncertainty about our ability to continue as a going concern. Future reports may continue to contain this explanatory paragraph.
In connection with our restructuring efforts in the December 2004 quarter, we determined that there are anticipated annual benefits from our
transformation plan sufficient for us to achieve financial viability by way of an out-of-court restructuring, including reduction of pilot costs of at least
$1 billion annually by the end of 2006 and other benefits of at least $1.7 billion annually by the end of 2006 (in addition to the approximately $2.3 billion of
annual benefits (compared to 2002) achieved by the end of 2004 through previously implemented profit improvement initiatives). This determination,
however, was based on a number of material assumptions, including, without limitation, assumptions about fuel prices, yields, competition and our access to
additional sources of financing on acceptable terms. Any number of these assumptions, many of which, such as fuel prices, are not within our control, could
prove to be incorrect. 10