Delta Airlines 2007 Annual Report Download - page 11

Table of Contents
Index to Financial Statements
Authority to operate international routes and international codesharing arrangements is regulated by the DOT and by the governments of the foreign
countries involved. International route awards are also subject to the approval of the President of the U.S. for conformance with national defense and foreign
policy objectives.
The Transportation Security Administration and the U.S. Customs and Border Protection, each a division of the Department of Homeland Security, are
responsible for certain civil aviation security matters, including passenger and baggage screening at U.S. airports and international passenger prescreening
prior to entry into or departure from the U.S.
Airlines are also subject to various other federal, state, local and foreign laws and regulations. For example, the U.S. Department of Justice has
jurisdiction over airline competition matters. The U.S. Postal Service has authority over certain aspects of the transportation of mail. Labor relations in the
airline industry, as discussed below, 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 and regulations.
Fares and Rates
Airlines 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. Many
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 controlled 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 U.S. and the foreign country or countries involved,
changes in U.S. 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 U.S. 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 this practice will continue in general or with respect to a specific renewal. Dormant route authority may not be renewed in some
cases, especially where another U.S. carrier indicates a willingness to provide service.
Airport Access
Operations at four major domestic airports and certain foreign airports served by us are regulated by governmental entities through allocations of "slots"
or similar regulatory mechanisms which limit the rights of carriers to conduct operations at those airports. Each slot represents the authorization to land at or
take off from the particular airport during a specified time period.
In the U.S., the FAA currently regulates the allocation of slots, slot exemptions, operating authorizations, or similar capacity allocation mechanisms at
Reagan in Washington, D.C., O'Hare International Airport in Chicago, and LaGuardia and JFK in New York. Our operations at these airports generally
require the allocation of slots or analogous regulatory authorities. Similarly, our operations at Tokyo's Narita Airport, London's Gatwick Airport, London's
Heathrow Airport (beginning in late March 2008) and other international airports are regulated by local slot coordinators pursuant to the International Air
Transport Association's Worldwide Scheduling Guidelines and applicable local law. We currently have sufficient slots or analogous authorizations to operate
our
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