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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 18, 1995
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DELTA AIR LINES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-5424 58-0218548
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Hartsfield Atlanta International Airport, Atlanta, Georgia 30320
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(Address of principal executive offices)
Registrant's telephone number, including area code: (404) 715-2600
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Item 5. OTHER EVENTS
Effective December 18, 1995, Delta Air Lines, Inc. ("Delta") renewed
its aircraft hull and general liability insurance policies (the "Policies").
In entering into these renewals, it was Delta's goal to maintain insurance in
amounts that it deems adequate while achieving premium savings under the
Policies. Accordingly, Delta and its captive insurance company agreed to
reimburse the primary insurers for losses under the Policies in an amount not
to exceed $100 million per occurrence and $118 million in the aggregate for
this policy year. The obligations of the primary insurers in relation to the
insureds under the Policies will not be limited or reduced in any way by this
reimbursement obligation.
The reimbursement obligation of Delta and its captive insurance
company to the primary insurers will be supported by one or more letters of
credit issued by third parties. The letters of credit will have an aggregate
stated amount equal to the maximum reimbursement obligation. To the extent the
primary insurers make draws under the letters of credit, Delta and its captive
insurance company will be required to reimburse the issuers of the letters of
credit.
Delta will accrue amounts estimated to be payable for probable losses
under each reimbursement agreement with the primary insurers, as incurred.
Such accrued liabilities necessarily will be based on estimates. Thus, Delta's
ultimate liability may exceed or be less than the amounts accrued. The methods
of making such estimates and establishing the resulting accrued liabilities
will be reviewed on an ongoing basis and adjusted as required.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DELTA AIR LINES, INC.
BY: /s/ James H. Sanregret
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James H. Sanregret
Treasurer
DATE: December 20, 1995
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