Delta Airlines 2010 Annual Report Download - page 82

Table of Contents
In connection with efforts to resolve union representation for employee groups where representation has not been resolved following our Merger with
Northwest, the National Mediation Board ("NMB") held elections for the following employee groups during 2010. The employee groups, the union seeking
representation and the approximate number of employees in each workgroup prior to the election is set forth in the table below:
Approximate Number of Employees
Employee Group Union Seeking Representation (as of June 30, 2010)
Flight Attendants AFA 20,100
Fleet Service(1) IAM 14,100
Stores Employees(2) IAM 700
Passenger Service(3) IAM 16,400
(1) Includes below-wing airport customer service employees, cargo warehouse employees and related positions
(2) Includes technical operations supply attendants, stock clerks and stores utility employees
(3) Includes above-wing airport customer service agents, cargo sales agents and passenger reservations sales agents
In each case, the employee groups rejected representation by the unions and the unions filed claims with the NMB alleging that we interfered with the
elections. While we are vigorously challenging the interference claims, we cannot predict when or how these matters will be resolved for each workgroup.
In an election conducted in September 2010, Delta's 91 simulator technicians rejected representation by the IAM.
War-Risk Insurance Contingency
As a result of the terrorist attacks on September 11, 2001, aviation insurers significantly (1) reduced the maximum amount of insurance coverage available
to commercial air carriers for liability to persons (other than employees or passengers) for claims from acts of terrorism, war or similar events and
(2) increased the premiums for such coverage and for aviation insurance in general. Since September 24, 2001, the U.S. government has been providing U.S.
airlines with war-risk insurance to cover losses, including those resulting from terrorism, to passengers, third parties (ground damage) and the aircraft hull.
The U.S. Secretary of Transportation has extended coverage through September 30, 2011, and we expect the coverage to be further extended. The withdrawal
of government support of airline war-risk insurance would require us to obtain war-risk insurance coverage commercially, if available. Such commercial
insurance could have substantially less desirable coverage than currently provided by the U.S. government, may not be adequate to protect our risk of loss
from future acts of terrorism, may result in a material increase to our operating expense or may not be obtainable at all, resulting in an interruption to our
operations.
Other
We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract specific equipment,
as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our
termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.
NOTE 8. JFK REDEVELOPMENT
During the December 2010 quarter, we began a redevelopment project at John F. Kennedy International Airport ("JFK"). At JFK, we currently operate
primarily at Terminal 2 for domestic flights and Terminal 3 for international flights under leases with the Port Authority of New York and New Jersey ("Port
Authority"), which operates JFK. We also conduct some flights from Terminal 4, which is operated by JFK International Air Terminal LLC ("IAT"), a private
party, under its lease with the Port Authority.
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