Delta Airlines 2015 Annual Report Download - page 12

TableofContents
Airport Access
Operationsatfourmajordomesticairportsandcertainforeignairportsservedbyusareregulatedbygovernmentalentitiesthroughallocationsof“slots”or
similarregulatorymechanismswhichlimittherightsofcarrierstoconductoperationsatthoseairports.Eachslotrepresentstheauthorizationtolandatortakeoff
fromtheparticularairportduringaspecifiedtimeperiod.
IntheU.S.,theFAAcurrentlyregulatestheallocationofslots,slotexemptions,operatingauthorizations,orsimilarcapacityallocationmechanismsatReagan
NationalinWashington,D.C.andLaGuardia,JFKandNewarkintheNewYorkCityarea.Ouroperationsattheseairportsgenerallyrequiretheallocationofslots
oranalogousregulatoryauthorizations.Similarly,ouroperationsatTokyo'sNaritaandHanedaairports,London'sHeathrowairportandotherinternationalairports
areregulatedbylocalslotcoordinatorspursuanttotheInternationalAirTransportAssociation'sWorldwideSchedulingGuidelinesandapplicablelocallaw.We
currentlyhavesufficientslotsoranalogousauthorizationstooperateourexistingflights,andwehavegenerallybeenabletoobtaintherightstoexpandour
operationsandtochangeourschedules.Thereisnoassurance,however,thatwewillbeabletodosointhefuturebecause,amongotherreasons,suchallocations
aresubjecttochangesingovernmentalpolicies.
Environmental Matters
Emissions.TheU.S.EnvironmentalProtectionAgency(the“EPA”)isauthorizedtoregulateaircraftemissionsandhashistoricallyimplementedemissions
controlstandardsadoptedbytheInternationalCivilAviationOrganization(“ICAO”).OuraircraftcomplywithexistingEPAstandardsasapplicablebyengine
designdate.TheICAOhasadoptedtwoadditionalaircraftengineemissionsstandards,thefirstofwhichisapplicabletoenginescertifiedafterDecember31,2007,
andthesecondofwhichisapplicabletoenginescertifiedafterDecember31,2013.InJune2012,theEPApublishedafinalrulemakingfornewemissionstandards
foroxidesofnitrogen(NOx),adoptingICAO'sadditionalstandards.IncludedintherulearetwonewtiersofmorestringentemissionstandardsforNOx.These
standards,referredtoastheTier6standards,becameeffectivefornewly-manufacturedaircraftenginesbeginningin2013.
Concernaboutaviationenvironmentalissues,includingclimatechangeandgreenhousegases,hasledtotaxesonouroperationsintheUnitedKingdomandin
Germany,bothofwhichhaveleviedtaxesdirectlyonourcustomers.WemayfaceadditionalregulationofaircraftemissionsintheU.S.andabroadandbecome
subjecttofurthertaxes,chargesoradditionalrequirementstoobtainpermitsorpurchaseallowancesoremissioncreditsforgreenhousegasemissionsinvarious
jurisdictions.Thiscouldresultintaxationorpermittingrequirementsfrommultiplejurisdictionsforthesameoperations.Ongoingbilateraldiscussionsbetweenthe
U.S.andothernationsmayleadtointernationaltreatiesorotheractionsfocusingonreducinggreenhousegasemissionsfromaviation.Inaddition,atthe38th
ICAOAssemblythatconcludedOctober4,2013inMontreal,theAssemblyadoptedaclimatechangeresolutioncommittingICAOtodevelopaglobalmarket-
basedmeasuretobefinalizedatthe2016ICAOAssemblywhichwouldenabletheairlineindustrytoachievecarbon-neutralgrowthby2020.
TheEuropeanUnionhasrequireditsmemberstatestoimplementregulationsincludingaviationinitsEmissionsTradingScheme(“ETS”).Underthese
regulations,anyairlinewithflightsoriginatingorlandingintheEuropeanUnionissubjecttotheETSand,beginningin2012,wasrequiredtopurchaseemissions
allowancesiftheairlineexceedsthenumberoffreeallowancesallocatedtoitundertheETS.TheETShasbeenamendedtoapplyonlytoflightswithinthe
EuropeanEconomicAreafrom2013through2016.Asaresult,weoperatealimitednumberofflightsthatwillbesubjecttotheETSthrough2016.After2016,the
ETSwouldapplytoallflightsoriginatingorlandingintheEuropeanUnion,unlesstheEUamendsthecurrentlegislationfollowingthe2016ICAOAssembly.
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CapandtraderestrictionshavealsobeenproposedintheU.S.Inaddition,otherlegislativeorregulatoryaction,includingbytheEPA,toregulategreenhouse
gasemissionsispossible.Inparticular,theEPAhasfoundthatgreenhousegasesthreatenthepublichealthandwelfareandfurtherdeterminedthataircraftcauseor
contributegreenhousegases,whichcouldresultinregulationofgreenhousegasemissionsfromaircraft.Intheeventthatlegislationorregulationisenactedinthe
U.S.orintheeventsimilarlegislationorregulationisenactedinjurisdictionsotherthantheEuropeanUnionwhereweoperateorwherewemayoperateinthe
future,itcouldresultinsignificantcostsforusandtheairlineindustry.Inadditiontodirectcosts,suchregulationmayhaveagreatereffectontheairlineindustry
throughincreasesinfuelcoststhatcouldresultfromfuelsupplierspassingonincreasedcoststhattheyincurundersuchasystem.Wearemonitoringand
evaluatingthepotentialimpactofsuchlegislativeandregulatorydevelopments.
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