Delta Airlines 2010 Annual Report Download - page 7

Table of Contents
SkyTeam. In addition to our marketing alliance agreements with individual foreign airlines, we are a member of the SkyTeam global airline alliance. The
other members of SkyTeam are Aeroflot, Aeromexico, Air Europa, Air France, Alitalia, China Southern, CSA Czech Airlines, Kenya Airways, KLM, Korean
Air, Tarom and Vietnam Airlines. Aerolineas Argentinas, China Eastern, Garuda Indonesia and Saudi Arabian Airlines have announced their formal intent to
join SkyTeam within the next 2 years. 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.
Transatlantic joint venture. In addition to being members in SkyTeam with Air France and KLM, both of which are subsidiaries of the same holding
company, and Alitalia, we have a transatlantic joint venture agreement with these carriers. This agreement provides for the sharing of revenues and costs on
transatlantic routes, as well as coordinated pricing, scheduling, and product development on included routes. Pursuant to this joint venture, we, Air France-
KLM and Alitalia operate an extensive transatlantic network, primarily on routes between North America and Europe, and secondarily on routes between
North America and Africa, the Middle East and India, and routes between Europe and Central America and several countries in northern South America.
Proposed joint venture with Virgin Blue Airlines Group. In July 2009, we and Virgin Blue International Airlines (VAustralia), Virgin Blue Airlines,
Pacific Blue Airlines (Australia) and Pacific Blue Airlines (New Zealand) filed an application with the U.S. Department of Transportation ("DOT") for
antitrust immunity for a proposed joint venture that will expand the reach of Delta and the Virgin Blue carriers between the United States and Australia and
the South Pacific. In September 2010, the DOT tentatively denied this application. We and the Virgin Blue carriers subsequently submitted additional
information about our proposed joint venture to the DOT and will submit further information in early 2011. We expect the DOT to make a final ruling on this
application in 2011.
Domestic Alliances
We have entered into a marketing alliance with Alaska Airlines, which includes mutual codesharing and reciprocal frequent flyer and airport lounge access
arrangements. Our alliance agreement with Alaska Airlines provides for extensive cooperation with respect to our west coast presence.
We also have frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines
("American Eagle") and Hawaiian Airlines. These marketing relationships are designed to permit the carriers to retain their separate identities and route
networks while increasing the number of domestic and international connecting passengers using the carriers' route networks.
Regional Carriers
We have air service agreements with multiple domestic regional air carriers that feed traffic to our route system by serving passengers primarily in small-
and medium-sized cities. These arrangements enable us to increase the number of flights we have available in certain locations and to better match capacity
with demand. Approximately 21% of our passenger revenue in 2010 was related to flying by regional air carriers.
Through our regional carrier 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. In addition to our wholly-owned subsidiary, Comair, we have contractual arrangements with: Atlantic Southeast
Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of
Republic Airways Holdings, Inc.; Compass Airlines, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc., both subsidiaries of Pinnacle Airlines Corp.; and
American Eagle.
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