US Airways 2006 Annual Report Download - page 69

Table of Contents
bankruptcy, US Airways contracted with Air Wisconsin, a related party, and Republic to purchase a significant portion of these
companies' regional jet capacity for a period of ten years. US Airways has determined that it is not the primary beneficiary of these
variable interest entities, based on cash flow analyses. Additionally, US Airways has analyzed the arrangements with other carriers with
which US Airways has long-term capacity purchase agreements and concluded that it is not required to consolidate any of the entities.
Other Indebtedness and Obligations
The following table provides details of our future cash contractual obligations as of December 31, 2006 (in millions):
Payments Due by Period
2007 2008 2009 2010 2011 Thereafter Total
US Airways Group(1)
Debt(2) $ — $ — $ — $ — $ 1,250 $ 74 $ 1,324
Aircraft related and other commitments 302 442 40 48 239 1,429 2,500
US Airways(3)
Debt and capital lease obligations 93 98 87 92 105 947 1,422
Aircraft purchase and operating lease commitments 625 598 530 488 471 3,067 5,779
Regional capacity purchase agreements(5) 1,031 1,194 1,248 1,273 1,298 7,277 13,321
AWA(3)
Debt and capital lease obligations 2 111 139 108 — 29 389
Aircraft purchase and operating lease commitments 483 686 1,126 770 250 1,637 4,952
Regional capacity purchase agreements(5) 538 530 541 552 563 287 3,011
Other US Airways Group subsidiaries(4) 11 10 4 1 1 2 29
Total $ 3,085 $ 3,669 $ 3,715 $ 3,332 $ 4,177 $ 14,749 $ 32,727
(1) These commitments represent those specifically entered into by US Airways Group or joint commitments entered into by
US Airways Group, AWA and US Airways under which each entity is jointly and severally liable.
(2) Includes $74 million aggregate principal amount of 7% Senior Convertible Notes due 2020 issued by US Airways Group and the
$1.25 billion GE loan due March 31, 2011
(3) Commitments listed separately under US Airways or AWA represent commitments under agreements entered into separately by
those companies.
(4) Represents operating lease commitments entered into by US Airways Group's other airline subsidiaries Piedmont and PSA.
(5) Represents minimum payments under capacity purchase agreements with third-party express carriers.
We expect to fund these cash obligations from funds provided by operations and future financings, if necessary. The cash available
to us from these sources, however, may not be sufficient to cover these cash obligations because economic factors outside our control
may reduce the amount of cash generated by operations or increase our costs. For instance, an economic downturn or general global
instability caused by military actions, terrorism, disease outbreaks and natural disasters could reduce the demand for air travel, which
would reduce the amount of cash generated by operations. An increase in our costs, either due to an increase in borrowing costs caused
by a reduction
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