Delta Airlines 2007 Annual Report Download - page 8

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Table of Contents
Index to Financial Statements
offer joint service with one aircraft, rather than operating separate services with two aircraft. These arrangements typically allow us to sell seats on a foreign
carrier's aircraft that are marketed under our "DL" designator code and permit the foreign airline to sell seats on our aircraft that are marketed under the
foreign carrier's two-letter designator code. We have international codeshare arrangements in effect with Aeromexico, Air France, Alitalia, Avianca, China
Airlines, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air and Royal Air Maroc (and some affiliated carriers operating in
conjunction with these airlines).
In October 2007, we entered into a joint venture agreement with Air France to share revenues and costs on transatlantic routes. The initial
implementation of the joint venture in April 2008 will include flights operated by both carriers between Air France's Paris-Charles de Gaulle, Paris-Orly and
Lyon hubs and our Atlanta, Cincinnati, NewYork-JFK and Salt Lake City hubs, as well as all flights between London Heathrow Airport and the U.S. By
2010, the joint venture is scheduled to be extended to all transatlantic flights operated by Air France and Delta between North America and Europe and the
Mediterranean, as well as all flights between Los Angeles and Tahiti.
In addition to our agreements with individual foreign airlines, we are a member of the SkyTeam international airline alliance. The other full members of
SkyTeam are Aeroflot, Aeromexico, Air France, Alitalia, Continental, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air and Northwest. One goal
of SkyTeam is to link the route networks of the member airlines, providing opportunities for increased connecting traffic while offering enhanced customer
service through mutual codesharing arrangements, reciprocal frequent flyer and lounge programs and coordinated cargo operations.
In 2002, we, Air France, Alitalia, CSA Czech Airlines and Korean Air received limited antitrust immunity from the U.S. Department of Transportation
("DOT") that enables us and our immunized partners to offer a more integrated route network and develop common sales, marketing and discount programs
for customers.
In June 2007, we, Air France, Alitalia, CSA Czech Airlines, KLM Royal Dutch Airlines, and Northwest applied with the DOT for antitrust immunity
for certain trans-Atlantic coordination. Included in the application is a tentative joint venture agreement among us, Air France, KLM and Northwest that
would, if implemented, create a comprehensive and integrated partnership among the four SkyTeam members across the Atlantic. A more integrated
SkyTeam alliance would offer significant advantages to consumers including more choice in flight schedules, travel times, services and fares. This application
was the first under the landmark European Union-United States Open Skies treaty.
Delta Connection Program
The Delta Connection program is our regional carrier service, which feeds traffic to our route system through contracts with regional air carriers that
operate flights serving passengers primarily in small- and medium-sized cities. The program enables us to increase the number of flights we have in certain
locations, to better match capacity with demand and to preserve our presence in smaller markets.
Through the Delta Connection program, we have contractual arrangements with nine regional carriers to operate regional jet and, in certain cases, turbo-
prop aircraft using our "DL" designator code. Our wholly-owned subsidiary, Comair, Inc. ("Comair"), operates all of its flights under our code. Atlantic
Southeast Airlines, Inc., a subsidiary of SkyWest, Inc. ("SkyWest"), operates all of its flights under our code. In addition, we have agreements with the
following regional carriers that operate some of their flights using our code: SkyWest Airlines, Inc., a subsidiary of SkyWest; Chautauqua Airlines, Inc., a
subsidiary of Republic Airways Holdings, Inc. ("Republic Holdings"); Shuttle America Corporation, a subsidiary of Republic Holdings; Freedom Airlines,
Inc., a subsidiary of Mesa Air Group, Inc.; Pinnacle Airlines, Inc.; ExpressJet Airlines, Inc.; and American Eagle Airlines, Inc. ("Eagle").
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