Delta Airlines 2008 Annual Report Download - page 13

Table of Contents
Index to Financial Statements
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 also 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 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., LaGuardia and JFK in New York, and Newark. 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 and Heathrow airports 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 existing flights, and we have generally been able to obtain the rights to expand
our operations and to change our schedules. There is no assurance, however, that we will be able to do so in the future because, among other reasons, such
allocations are subject to changes in governmental policies.
Environmental Matters
The Airport Noise and Capacity Act of 1990 recognizes the rights of operators of airports with noise problems to implement local noise abatement
programs so long as such programs do not interfere unreasonably with interstate or foreign commerce or the national air transportation system. This statute
generally provides that
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