Delta Airlines 2012 Annual Report Download - page 20

We are dependent on technology in our operations, and if our technology fails or we are unable to continue to invest in new technology, our
business may be adversely affected.
We have become increasingly dependent on technology initiatives to reduce costs and to enhance customer service in order to compete in the
current business environment. For example, we have made and continue to make significant investments in delta.com, check-
in kiosks, mobile device
applications and related initiatives. The performance and reliability of the technology are critical to our ability to attract and retain customers and our
ability to compete effectively. Because of the rapid pace of new developments, these initiatives will continue to require significant capital
investments in our technology infrastructure. If we are unable to make these investments, our business and operations could be negatively affected.
Disruptions or security breaches of our information technology infrastructure could interfere with our operations, compromise customer
information and expose us to liability, possibly causing our business and reputation to suffer.
Any internal technology error or failure impacting systems hosted internally at our data centers or externally at third party locations, or large scale
external interruption in technology infrastructure we depend on, such as power, telecommunications or the internet, may disrupt our technology
network. Any individual, sustained or repeated failure of technology could impact our customer service and result in increased costs. Our technology
systems and related data may also be vulnerable to a variety of sources of interruption due to events beyond our control, including natural disasters,
terrorist attacks, telecommunications failures, computer viruses, hackers and other security issues. While we have in place, and continue to invest in,
technology security initiatives and disaster recovery plans, these measures may not be adequate or implemented properly to prevent a business
disruption and its adverse financial and reputational consequences to our business.
In addition, as a part of our ordinary business operations, we collect and store sensitive data, including personal information of our customers and
employees. The secure operation of the networks and systems on which this type of information is stored, processed and maintained is critical to our
business operations and strategy. Any compromise of our technology systems resulting from attacks by hackers or breaches due to employee error or
malfeasance could result in the loss, disclosure, misappropriation of or access to customers', employees' or business partners' information. Any such
loss, disclosure, misappropriation or access could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the
privacy of personal information, disrupt operations and damage our reputation, any or all of which could adversely affect our business.
Our primary credit card processors have the ability to take significant holdbacks in certain circumstances. The initiation of such holdbacks
likely would have a material adverse effect on our liquidity.
Most of the tickets we sell are paid for by customers who use credit cards. Our primary credit card processing agreements provide that no
holdback of receivables or reserve is required except in certain circumstances, including if we do not maintain a required level of unrestricted cash. If
circumstances were to occur that would allow American Express or our VISA/MasterCard processor to initiate a holdback, the negative impact on
our liquidity likely would be material.
We are at risk of losses and adverse publicity stemming from any accident involving our aircraft.
An aircraft crash or other accident could expose us to significant tort liability. In the event that the insurance that we carry to cover damages
arising from future accidents is not adequate, we may be forced to bear substantial losses from an accident. In addition, any accident involving an
aircraft that we operate or an aircraft that is operated by an airline that is one of our regional carriers or codeshare partners could create a public
perception that our aircraft are not safe or reliable, which could harm our reputation, result in air travelers being reluctant to fly on our aircraft and
harm our business.
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