US Airways 2003 Annual Report Download - page 16

Table of Contents
US Airways is a participant in the Civil Reserve Air Fleet (CRAF), a voluntary program administered by the Air Mobility Command (AMC). The
General Services Administration of the U.S. Government requires that airlines participate in CRAF in order to receive U.S. Government business. US
Airways' commitment under CRAF is to provide up to its entire widebody fleet of ten 767-200ER aircraft and nine A330-300 aircraft in support of military
missions. US Airways is reimbursed at compensatory rates when aircraft are activated under CRAF. US Airways is reimbursed during peacetime
proportionally to its commitment.
In February 2003, AMC activated Stage One of CRAF. US Airways' commitment under Stage One is to provide two A330-300 aircraft for missions as
required by AMC. AMC allowed the Company to replace its A330-300 aircraft commitment with two 767-200ER aircraft, allowing the Company to maintain
its full Transatlantic schedule during the activation. During the final phase of this activation, the Company did provide an A330-300 for several missions.
AMC cooperated with the Company to cause the least amount of schedule disruption during activation. During the Stage One activation, which ended in June
2003, US Airways completed fifty missions for the Air Force in the support of Operation Enduring and Iraqi Freedom. The majority of the missions were to
Kuwait City from domestic military bases. If AMC had activated CRAF Stage Two, in addition to providing more A330-300 aircraft, the Company could
have been required to provide up to six 767-200ER aircraft for use in the Aeromed medical program. Under the Aeromed program, the 767-200ER aircraft are
converted to "flying hospitals" for transportation of injured troops. US Airways and Delta are participants in the Aeromed Program. Participation in this
program provides increased peacetime U.S. government revenues for the Company.
Ground Facilities
The Company leases the majority of its ground facilities, including executive and administrative offices in Arlington, Virginia adjacent to Reagan
National Airport; its principal operating, overhaul and maintenance bases at the Pittsburgh International Airport and Charlotte/Douglas International Airports;
training facilities in Pittsburgh and Charlotte; central reservations offices in Pittsburgh and Winston-Salem (North Carolina); and line maintenance bases and
local ticket, cargo and administrative offices throughout its system. US Airways owns a training facility in Winston-Salem and a reservation facility in
Orlando. The Orlando facility was closed on January 10, 2003 and is currently available for sale. See also "Pittsburgh Leases" in Item 7, "Management's
Discussion and Analysis of Financial Condition and Results of Operations."
Terminal Construction Projects
The Company utilizes public airports for its flight operations under lease arrangements with the government entities that own or control these airports.
Airport authorities frequently require airlines to execute long-term leases to assist in obtaining financing for terminal and facility construction. Any future
requirements for new or improved airport facilities and passenger terminals at airports at which the Company operates could result in additional expenditures
and long-term commitments.
In 1998, US Airways reached an agreement with the Philadelphia Authority for Industrial Development (PAID) and the City of Philadelphia to
construct a new international terminal and a new US Airways Express terminal at the Philadelphia International Airport, one of US Airways' connecting hubs
and US Airways' principal international gateway. The international terminal includes 12 gates for widebody aircraft and new federal customs and immigration
facilities. The international terminal gates were put into operation in May 2003 and the ticket lobby opened in September 2003. The US Airways Express
facility, completed in June 2001, can accommodate 38 regional aircraft.
11