US Airways 2005 Annual Report Download - page 267

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
three months ended March 31, 2003, related to these expenses. US Airways also leases or subleases certain aircraft to these regional airline subsidiaries.
US Airways recognized other operating revenues related to these arrangements of $21 million for the three months ended December 31, 2005, $65 million for
the nine months ended September 30, 2005, $55 million for the year ended December 31, 2004, $12 million for the nine months ended December 31, 2003
and $2 million for the three months ended March 31, 2003.
US Airways' net payable to Piedmont and PSA was $19 million and $12 million, respectively, at December 31, 2005 and $17 million and $6 million,
respectively, at December 31, 2004.
US Airways has a net payable to AWA of $20 million at December 31, 2005, which consists of receivable of $601 million and a payable of $621 million.
The receivable from AWA consists primarily of operating cash transfers received by AWA. The payable to AWA consists of payments made by AWA on
behalf of US Airways to extinguish debt associated with the GE Merger MOU, amounts received by US Airways for AWA related to a bonus payment and
prepurchased miles by Juniper and various other transactions occurring in the normal course of business that AWA settles on US Airways' behalf.
As of December 31, 2005, $186 million is included in Long-term debt for the Airbus Loans. US Airways and AWA are borrowers under the Airbus Loans
and are jointly and severally liable for these obligations, with US Airways Group as the guarantor. See Note 6(f) for additional information regarding
US Airways' debt.
(c) Other US Airways Group subsidiaries
US Airways purchases a portion of its aviation fuel from US Airways Group's wholly owned subsidiary, Material Services Company, Inc. ("MSC"), which
acts as a fuel wholesaler to US Airways in certain circumstances. US Airways' aviation fuel purchases from MSC were $120 million for the three months
ended December 31, 2005, $191 million for the nine months ended September 30, 2005, $34 million for the year ended December 31, 2004, $9 million for the
nine months ended December 31, 2003 and $11 million for the three months ended March 31, 2003. US Airways' payable to MSC was $47 million and
$4 million as of December 31, 2005 and 2004, respectively.
Effective July 1, 2000, the activities of a certain division of MSC were transferred into US Airways and MSC began receiving a portion of its fuel
inventory from US Airways. As a result, US Airways' receivable from MSC was $31 million and $12 million as of December 31, 2005 and 2004,
respectively.
(d) RSA
As of March 31, 2003, at the time of emergence from US Airways first bankruptcy, Retirement Systems of Alabama Holdings LLC ("RSA") held
approximately 36.2%, on a fully-diluted basis, of US Airways Group's equity, had a voting interest of approximately 71.6% and was entitled to designate and
vote to elect eight of 15 directors to US Airways Group's Board of Directors. Total amounts due to RSA at December 31, 2004 and 2003 included $54 million
and $73 million, respectively, of the initial $100 million at-risk amounts under the ATSB Loan. Interest expense and interest payments on RSA's portion of
the ATSB Loan was $4 million for the nine months ended September 30, 2005. Interest expense on RSA's portion of the ATSB Loan was $5 million with
interest payments of $5 million for the year ended December 31, 2004. Interest expense on RSA's portion of the ATSB Loan was $3 million with interest
payments of $2 million for the nine months ended December 31, 2003. In connection with US Airways' emergence from bankruptcy and merger with America
West Holdings on September 27, 2005, any stock held by RSA and their board seats were cancelled. RSA no longer has the right to elect directors to the
US Airways Group's Board of Directors. 261