US Airways 2005 Annual Report Download - page 212

Table of Contents
Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholder
US Airways, Inc.:
We have audited the accompanying balance sheets of US Airways, Inc. (US Airways) as of December 31, 2005 for the Successor Company and
December 31, 2004 for the Predecessor Company, and the related statements of operations, stockholders' equity (deficit) and cash flows for the three months
ended December 31, 2005 for the Successor Company, the nine months ended September 30, 2005, the year ended December 31, 2004, the nine months
ended December 31, 2003 for the Predecessor Company and the three months ended March 31, 2003 for the prior Predecessor Company. These financial
statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of US Airways as of December 31,
2005 for the Successor Company and December 31, 2004 for the Predecessor Company, and the results of its operations and its cash flows for the three
months ended December 31, 2005 for the Successor Company, the nine months ended September 30, 2005, the year ended December 31, 2004, the nine
months ended December 31, 2003 for the Predecessor Company and the three months ended March 31, 2003 for the prior Predecessor Company, in
conformity with U.S. generally accepted accounting principles.
As discussed in Notes 1 and 2(b) to the financial statements, on September 16, 2005, the Bankruptcy Court confirmed the Company's Plan of
Reorganization (the Plan), related to its second Chapter 11 bankruptcy proceeding. The Plan became effective on September 27, 2005 and US Airways and its
parent Company, US Airways Group, Inc. (US Airways Group), emerged from the second Chapter 11 bankruptcy proceeding. On March 31, 2003,
US Airways and US Airways Group emerged from the first bankruptcy proceeding. In connection with its emergence from the second and first Chapter 11
bankruptcy proceedings, US Airways adopted fresh-start reporting pursuant to Statement of Position 90-7, "Financial Reporting by Entities in Reorganization
Under the Bankruptcy Code" as of September 27, 2005 and March 31, 2003. In addition, as discussed in Note 1, on September 27, 2005, upon emergence
from the second bankruptcy, US Airways Group merged with America West Holdings Corporation (America West Holdings). Effective with the merger, the
Company conformed its policies with those of America West Holdings, including the application of the provisions of Accounting Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees". As a result, the financial statements of the Successor Company are presented on a different basis than
those of the Predecessor Companies and, therefore, are not comparable in all respects. As discussed in Notes 2(m) and 14 to the financial statements, effective
April 1, 2003, after emerging from the first bankruptcy, US Airways changed its method of accounting for stock-based compensation as described by
Statement of Financial Accounting Standards No. 148, "Accounting for Stock-Based Compensation — Transition and Disclosure".
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