Delta Airlines 2015 Annual Report Download - page 11

TableofContents
RegulatoryMatters
TheDOTandtheFederalAviationAdministration(the“FAA”)exerciseregulatoryauthorityoverairtransportationintheU.S.TheDOThasauthoritytoissue
certificatesofpublicconvenienceandnecessityrequiredforairlinestoprovidedomesticairtransportation.AnaircarrierthattheDOTfindsfittooperateisgiven
authoritytooperatedomesticandinternationalairtransportation(includingthecarriageofpassengersandcargo).Exceptforconstraintsimposedbyregulations
regarding“EssentialAirServices,”whichareapplicabletocertainsmallcommunities,airlinesmayterminateservicetoacitywithoutrestriction.
TheDOThasjurisdictionovercertaineconomicandconsumerprotectionmatters,suchasunfairordeceptivepracticesandmethodsofcompetition,
advertising,deniedboardingcompensation,baggageliabilityanddisabledpassengertransportation.TheDOTalsohasauthoritytoreviewcertainjointventure
agreementsbetweenmajorcarriersandengagesinregulationofeconomicmatterssuchasslottransactions.TheFAAhasprimaryresponsibilityformatters
relatingtothesafetyofaircarrierflightoperations,includingairlineoperatingcertificates,controlofnavigableairspace,flightpersonnel,aircraftcertificationand
maintenanceandothermattersaffectingairsafety.
AuthoritytooperateinternationalroutesandinternationalcodesharingarrangementsisregulatedbytheDOTandbythegovernmentsoftheforeigncountries
involved.InternationalcertificateauthoritiesarealsosubjecttotheapprovaloftheU.S.Presidentforconformancewithnationaldefenseandforeignpolicy
objectives.
TheTransportationSecurityAdministrationandtheU.S.CustomsandBorderProtection,eachadivisionoftheDepartmentofHomelandSecurity,are
responsibleforcertaincivilaviationsecuritymatters,includingpassengerandbaggagescreeningatU.S.airportsandinternationalpassengerprescreeningpriorto
entryintoordeparturefromtheU.S.
Airlinesarealsosubjecttovariousotherfederal,state,localandforeignlawsandregulations.Forexample,theU.S.DepartmentofJusticehasjurisdictionover
airlinecompetitionmatters.TheU.S.PostalServicehasauthorityovercertainaspectsofthetransportationofmail.Laborrelationsintheairlineindustry,as
discussedbelow,aregenerallygovernedbytheRailwayLaborAct.Environmentalmattersareregulatedbyvariousfederal,state,localandforeigngovernmental
entities.Privacyofpassengerandemployeedataisregulatedbydomesticandforeignlawsandregulations.
Fares and Rates
Airlinessetticketpricesinalldomesticandmostinternationalcitypairswithminimalgovernmentalregulation,andtheindustryischaracterizedbysignificant
pricecompetition.CertaininternationalfaresandratesaresubjecttothejurisdictionoftheDOTandthegovernmentsoftheforeigncountriesinvolved.Manyof
ourticketsaresoldbytravelagents,andfaresaresubjecttocommissions,overridesanddiscountspaidtotravelagents,brokersandwholesalers.
Route Authority
Ourflightoperationsareauthorizedbycertificatesofpublicconvenienceandnecessityandalsobyexemptionsandlimited-entryfrequencyawardsissuedby
theDOT.Therequisiteapprovalsofothergovernmentsforinternationaloperationsarecontrolledbybilateralagreements(andamultilateralagreementinthecase
oftheU.S.andtheEuropeanUnion)with,orpermitsorapprovalsissuedby,foreigncountries.Becauseinternationalairtransportationisgovernedbybilateralor
otheragreementsbetweentheU.S.andtheforeigncountryorcountriesinvolved,changesinU.S.orforeigngovernmentaviationpoliciescouldresultinthe
alterationorterminationofsuchagreements,diminishthevalueofourinternationalrouteauthoritiesorotherwiseaffectourinternationaloperations.Bilateral
agreementsbetweentheU.S.andvariousforeigncountriesservedbyusaresubjecttorenegotiationfromtimetotime.TheU.S.governmenthasnegotiated“Open
Skies”agreementswithmanycountries,whichallowunrestrictedaccessbetweentheU.S.andtheforeignmarkets.Theseagreementsincludeseparateagreements
withtheEuropeanUnionandJapan.
Certainofourinternationalrouteauthoritiesaresubjecttoperiodicrenewalrequirements.Werequestextensionoftheseauthoritieswhenandasappropriate.
WhiletheDOTusuallyrenewstemporaryauthoritiesonrouteswheretheauthorizedcarrierisprovidingareasonablelevelofservice,thereisnoassurancethis
practicewillcontinueingeneralorwithrespecttoaspecificrenewal.Dormantrouteauthoritiesmaynotberenewedinsomecases,especiallywhereanotherU.S.
carrierindicatesawillingnesstoprovideservice.
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