US Airways 2005 Annual Report Download - page 266

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
There was no tax effect on any element of other comprehensive income (loss) during the nine months ended September 30, 2005, the year ended
December 31, 2004, the nine months ended December 31, 2003 and the three months ended March 31, 2003.
11. Related party transactions
The following represents net receivable (payable) balances with related parties as of December 31, 2005 and 2004 (in millions):
December 31,
2005 2004
US Airways Group $ (269) $ (53)
AWA (20) —
Piedmont (19) (17)
PSA (12) (6)
MSC (16) 8
Total $ (336) $ (68)
(a) Parent company
US Airways provides funds to and receives funds from US Airways Group which arise in the normal course of business and bear interest at market rates,
which are reset quarterly. US Airways had a net payable to US Airways Group of $269 million for the year ended December 31, 2005 and $53 million for the
year ended December 31, 2004.
US Airways recorded interest expense of $6 million for the three months ended December 31, 2005, $1 million for the nine months ended September 30,
2005, $2 million for the year ended December 31, 2004 and interest income of $1 million for the three months ended March 31, 2003 related to the above
transactions. No interest income or expense was recorded for the nine months ended December 31, 2003.
(b) Airline subsidiaries of US Airways Group
US Airways purchases all of the capacity (available seat miles or ASMs) generated by US Airways Group's wholly owned regional airline subsidiaries at a
rate per ASM that is periodically determined by US Airways and, concurrently, recognizes revenues that result primarily from passengers being carried by
these affiliated companies. The rate per ASM that US Airways pays is based on estimates of the costs incurred to supply the capacity. US Airways recognized
US Airways Express capacity purchase expense of $96 million for the three months ended December 31, 2005, $306 million for the nine months ended
September 30, 2005, $472 million for the year ended December 31, 2004, $349 million for the nine months ended December 31, 2003 and $112 million for
the three months ended March 31, 2003, related to this program.
US Airways provides various services to these regional airlines including passenger handling, maintenance and catering. US Airways recognized other
operating revenues of $22 million for the three months ended December 31, 2005, $64 million for the nine months ended September 30, 2005, $71 million for
the year ended December 31, 2004, $40 million for the nine months ended December 31, 2003 and $12 million for the three months ended March 31, 2003
related to these services. These regional airlines also perform passenger and ground handling for US Airways at certain airports for which US Airways
recognized other operating expenses of $32 million for the three months ended December 31, 2005, $100 million for the nine months ended September 30,
2005, $126 million for the year ended December 31, 2004, $55 million for the nine months ended December 31, 2003 and $15 million for the
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