US Airways 2003 Annual Report Download - page 6

Table of Contents
Part I
Item 1. Business
Overview
US Airways, Inc. (US Airways or the Company) is a corporation organized under the laws of the State of Delaware and is a wholly owned subsidiary of
US Airways Group, Inc. (US Airways Group). US Airways is a certificated air carrier engaged primarily in the business of transporting passengers, property
and mail. US Airways enplaned approximately 41 million passengers in 2003 and was the seventh largest U.S. air carrier (as ranked by revenue passenger
miles (RPMs)). As of December 31, 2003, US Airways operated 282 jet aircraft (see Item 2 "Properties" for additional information related to aircraft operated
by US Airways) and provided regularly scheduled service at 90 airports in the continental United States, Canada, Mexico, France, Germany, Italy, Spain,
Ireland, the Netherlands, the United Kingdom and the Caribbean. US Airways' executive offices are located at 2345 Crystal Drive, Arlington, Virginia 22227
(telephone number [phone]). The Company's internet address is usairways.com.
On August 11, 2002 (Petition Date), US Airways filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code
(Bankruptcy Code) in the United States Bankruptcy Court for the Eastern District of Virginia, Alexandria Division (Bankruptcy Court) (Case No. 02-83985-
SSM). On the same date, US Airways Group, US Airways' parent company, and six of its other subsidiaries (collectively with US Airways, the Filing
Entities) also filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The reorganization cases were jointly
administered under the caption "In re US Airways Group, Inc., et al., Case No. 02-83984-SSM." During the pendency of the Chapter 11 cases, US Airways
continued to operate its business as a debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of
the Bankruptcy Code and orders of the Bankruptcy Court.
The Filing Entities emerged from bankruptcy protection under the First Amended Joint Plan of Reorganization of US Airways Group, Inc. and
Affiliated Debtors and Debtors-in-Possession, As Modified (Plan of Reorganization), which (i) was confirmed pursuant to an order of the Bankruptcy Court
on March 18, 2003 and (ii) after each of the conditions precedent to consummation was satisfied or waived, became effective on March 31, 2003 (Effective
Date). In accordance with AICPA Statement of Position 90-7, "Financial Reporting by Entities in Reorganization Under the Bankruptcy Code," the Company
adopted fresh-start reporting on the Effective Date. Refer to Item 7 "Management's Discussion and Analysis of Financial Condition and Results of
Operations" for more information regarding the Company's bankruptcy reorganization. References to "Predecessor Company" refer to the Company prior to
March 31, 2003. References to "Successor Company" refer to the Company on and after March 31, 2003, after application of fresh-start reporting. As a result
of the application of fresh-start reporting, the Successor Company's financial statements are not comparable with the Predecessor Company's financial
statements.
Certain air carriers have code share arrangements with US Airways to operate under the trade name "US Airways Express." Typically, under a code
share arrangement, one air carrier places its designator code and sells tickets on the flights of another air carrier (its code share partner). US Airways Express
carriers are an integral component of the Company's operating network. Due to the relatively small local traffic base at its hubs, US Airways relies heavily on
feed traffic from its US Airways Express affiliates who carry passengers from low-density markets to US Airways' hubs. As of December 2003, the US
Airways Express network served 143 airports in the continental U.S., Canada and the Bahamas, including 44 airports also served by US Airways. During
2003, US Airways Express air carriers enplaned approximately 13.2 million
1