Delta Airlines 2010 Annual Report Download - page 12

Table of Contents
Concern about aviation environmental issues, including climate change and greenhouse gases, has led to taxes on our operations in the United Kingdom
and in Germany, both of which have levied taxes directly on our customers. We may face additional regulation of aircraft emissions in the United States and
abroad and become subject to further taxes, charges or additional requirements to obtain permits or purchase allowances or emission credits for greenhouse
gas emissions in various jurisdictions. This could result in taxation or permitting requirements from multiple jurisdictions for the same operations. Ongoing
bilateral discussions between the United States and other nations as well as discussions at the ICAO Assembly and Conference of the Parties, most recently in
Cancun in December 2010, may lead to international treaties or other actions focusing on reducing greenhouse gas emissions from aviation.
The European Union has required its member states to implement regulations including aviation in its Emissions Trading Scheme ("ETS"). Under these
regulations, any airline with flights originating or landing in the European Union will be subject to the ETS and, beginning in 2012, may be required to
purchase emissions allowances if the airline exceeds the number of free allowances allocated to it under the ETS. We expect that such a system would impose
significant costs on our operations in the European Union. The Air Transport Association and several U.S. carriers have filed an action in the United Kingdom
challenging the legality of the ETS on various grounds. This case has been referred to the European Court of Justice for adjudication. Airlines will, however,
be required to comply with the ETS unless interim relief is granted.
Cap and trade restrictions have also been proposed in the United States. In addition, other legislative or regulatory action, including by the EPA, to regulate
greenhouse gas emissions is possible. In particular, the EPA has found that greenhouse gases threaten the public health and welfare, which could result in
regulation of greenhouse gas emissions from aircraft. In the event that legislation or regulation is enacted in the U.S. or in the event similar legislation or
regulation is enacted in jurisdictions other than the European Union where we operate or where we may operate in the future, it could result in significant
costs for us and the airline industry. We are monitoring and evaluating the potential impact of such legislative and regulatory developments. In addition to
direct costs, such regulation may have a greater effect on the airline industry through increases in fuel costs that could result from fuel suppliers passing on
increased costs that they incur under such a system.
We seek to minimize the impact of carbon emissions from our operations through reductions in our fuel consumption and other efforts. We have reduced
the fuel needs of our aircraft fleet through the retirement and replacement of certain elements of our fleet and with newer, more fuel efficient aircraft. In
addition, we have implemented fuel saving procedures in our flight and ground support operations that further reduce carbon emissions. We are also
supporting efforts to develop alternative fuels and efforts to modernize the air traffic control system in the U.S., as part of our efforts to reduce our emissions
and minimize our impact on the environment.
Other Environmental Matters. We have been identified by the EPA as a potentially responsible party (a "PRP") with respect to certain Superfund Sites,
and have entered into consent decrees regarding some of these sites. Our alleged disposal volume at each of these sites is small when compared to the total
contributions of all PRPs at each site. We are aware of soil and/or ground water contamination present on our current or former leaseholds at several domestic
airports. To address this contamination, we have a program in place to investigate and, if appropriate, remediate these sites. Although the ultimate outcome of
these matters cannot be predicted with certainty, management believes that the resolution of these matters will not have a material adverse effect on our
consolidated financial statements.
We are also subject to various other federal, state and local laws governing environmental matters, including the management and disposal of chemicals,
waste and hazardous materials, protection of surface and subsurface waters and regulation of air emissions and drinking water.
Civil Reserve Air Fleet Program
We participate in the Civil Reserve Air Fleet program (the "CRAF Program"), which permits the U.S. military to use the aircraft and crew resources of
participating U.S. airlines during airlift emergencies, national emergencies or times of war. We have agreed to make available under the CRAF Program a
portion of our international long-range aircraft during the contract period ending September 30, 2011.
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