US Airways 2004 Annual Report Download - page 12

Table of Contents
The Company's Facilities
The Company's principal facilities include administrative office space located in Tempe and Phoenix, Arizona; reservations centers and other call centers
located in Tempe, Arizona and Reno, Nevada; and airport and airport related facilities associated with the Airline's hubs in Phoenix and Las Vegas. The
following table describes the Company's principal properties:
Approximate
Internal Floor
Principal Properties Description Area (sq. ft) Nature of Ownership
Tempe, AZ Headquarters Nine story complex housing headquarters for
Holdings and AWA 225,000 Lease expires April 2014
Terminal 4, Phoenix Sky Harbor
International Airport
42 gates, ticket counter space and
administrative offices
330,000 Airport Use Agreement expires June 2016. Gate
use governed by month-to-month rates and charges
program
Las Vegas McCarran
International Airport
17 gates, ticket counter space and concourse
areas
115,000 Lease expires June 2007
Maintenance and technical support facility
at Phoenix Sky Harbor International Airport Four hangar bays, hangar shops, office space, warehouse and commissary facilities 375,000 Facilities and land leased from the City of Phoenix. Lease expires September 2019
Flight Training and Systems Operations
Control Center, Phoenix, AZ
Complex accommodates training facilities,
systems operation control and crew scheduling
functions
164,000 Facilities and land leased from the City of
Phoenix. Lease expires February 2031
In addition, we have leased an aggregate of approximately 260,000 square feet of office and warehouse space in Tempe and Phoenix. Space for ticket
counters, gates and back offices has been obtained at each of the other airports operated by AWA, either by lease from the airport operator or by sublease
from another airline. Space and facilities at certain airports where AWA's operation is managed by Mesa is provided by Mesa as part of AWA's ground
handling arrangement.
Government Regulations
The airline industry is highly regulated as more fully described below.
DOT Oversight
AWA operates under a certificate of public convenience and necessity issued by the Department of Transportation or "DOT". Although the Airline
Deregulation Act of 1978 abolished regulation of domestic routes and fares, the DOT retains the authority to alter or amend AWA's certificate or to revoke
that certificate for intentional failure to comply with the terms and conditions of the certificate. In addition, the DOT has jurisdiction over international tariffs
and pricing, international routes, computer reservation systems, code share agreements and economic and consumer protection matters such as advertising,
denied boarding compensation and smoking and has the authority to impose civil penalties for violation of the United States Transportation Code or DOT
regulations.
FAA Funding
In 1997, new aviation taxes were imposed through September 30, 2007 to provide funding for the Federal Aviation Administration or "FAA". Effective
January 1, 2005, these taxes include a domestic excise tax of 7.5%, a domestic segment tax of $3.20 and an international departure and arrival tax of $14.10
(each way). The legislation also included a 7.5% excise tax on certain amounts paid to an air carrier for the right to provide mileage and similar awards (e.g.,
purchase of frequent flyer miles by a credit card company). As a result of competitive pressures, AWA and other airlines have been limited in their ability to
pass on the cost of these taxes to passengers through fare increases.
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