Delta Airlines 2012 Annual Report Download - page 19

Agreements governing our debt, including credit agreements and indentures, include financial and other covenants that impose restrictions
on our financial and business operations.
Our credit facilities and indentures for secured notes have various financial and other covenants that require us to maintain, depending on the
particular agreement, minimum fixed charge coverage ratios, minimum liquidity and/or minimum collateral coverage ratios. The value of the
collateral that has been pledged in each facility may change over time, which may be reflected in appraisals of collateral required by our credit
agreements and indentures. These changes could result from factors that are not under our control. A decline in the value of collateral could result in
a situation where we may not be able to maintain the collateral coverage ratio. In addition, the credit facilities and indentures contain other negative
covenants customary for such financings. If we fail to comply with these covenants and are unable to obtain a waiver or amendment, an event of
default would result. These covenants are subject to important exceptions and qualifications.
The credit facilities and indentures also contain other events of default customary for such financings. If an event of default were to occur, the
lenders or the trustee could, among other things, declare outstanding amounts due and payable, and our cash may become restricted. We cannot
provide assurance that we would have sufficient liquidity to repay or refinance the borrowings or notes under any of the credit facilities if such
amounts were accelerated upon an event of default. In addition, an event of default or declaration of acceleration under any of the credit facilities or
the indentures could also result in an event of default under other of our financing agreements.
Employee strikes and other labor-related disruptions may adversely affect our operations.
Our business is labor intensive, utilizing large numbers of pilots, flight attendants, aircraft maintenance technicians, ground support personnel and
other personnel. As of December 31, 2012 , approximately 15% of our workforce was unionized. Relations between air carriers and labor unions in
the United States are governed by the Railway Labor Act, which provides that a collective bargaining agreement between an airline and a labor union
does not expire, but instead becomes amendable as of a stated date. The Railway Labor Act generally prohibits strikes or other types of self-help
actions both before and after a collective bargaining agreement becomes amendable, unless and until the collective bargaining processes required by
the Railway Labor Act have been exhausted. Monroe's relations with unions representing its employees are governed by the National Labor Relations
Act ("NLRA"), which generally allows self-help after a collective bargaining agreement expires.
If we or our affiliates are unable to reach agreement with any of our unionized work groups on future negotiations regarding the terms of their
collective bargaining agreements or if additional segments of our workforce become unionized, we may be subject to work interruptions or
stoppages, subject to the requirements of the Railway Labor Act or the NLRA, as the case may be. Strikes or labor disputes with our unionized
employees may adversely affect our ability to conduct business. Likewise, if third party regional carriers with whom we have contract carrier
agreements are unable to reach agreement with their unionized work groups in current or future negotiations regarding the terms of their collective
bargaining agreements, those carriers may be subject to work interruptions or stoppages, subject to the requirements of the Railway Labor Act, which
could have a negative impact on our operations.
Extended interruptions or disruptions in service at one of our hub airports could have a material adverse impact on our operations.
Our business is heavily dependent on our operations at the Atlanta airport and at our other hub airports in Amsterdam, Cincinnati, Detroit,
Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these
hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to other major cities and
to other Delta hubs. A significant interruption or disruption in service at one of our hubs could have a serious impact on our business, financial
condition and results of operations.
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