US Airways 2006 Annual Report Download - page 7

Table of Contents
PART I
Item 1. Business
Overview
US Airways Group, a Delaware corporation, is a holding company formed in 1982 and whose origins trace back to the formation of
All American Aviation in 1939. US Airways Group's principal executive offices are located at 111 West Rio Salado Parkway, Tempe,
Arizona 85281. US Airways Group's telephone number is [phone], and its internet address is www.usairways.com. US Airways
Group's primary business activity is the operation of a major network air carrier, through its ownership of the common stock of America
West Holdings and its wholly owned subsidiary AWA; US Airways; Piedmont Airlines, Inc. ("Piedmont"); PSA Airlines, Inc. ("PSA");
Material Services Company, Inc. ("MSC"); and Airways Assurance Limited. On September 12, 2004, US Airways Group and its
domestic subsidiaries, US Airways, Piedmont, PSA and MSC (collectively, the "Reorganized Debtors"), which at the time accounted for
substantially all of the operations of US Airways Group, filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code in the United States Bankruptcy Court for the Eastern District of Virginia, Alexandria Division. On May 19, 2005, US Airways
Group signed a merger agreement, subsequently amended on July 7, 2005, with America West Holdings pursuant to which America West
Holdings merged with a wholly owned subsidiary of US Airways Group. The plan of reorganization of US Airways Group and its
domestic subsidiaries was confirmed by the Bankruptcy Court on September 16, 2005. The merger became effective upon US Airways
Group's emergence from bankruptcy on September 27, 2005. Following the merger, America West Holdings continued as a wholly
owned subsidiary of US Airways Group.
Since the merger, US Airways Group has been moving toward operating under the single brand name of "US Airways" through its
two principal subsidiaries US Airways and AWA. We expect to complete the integration of our two principal subsidiaries into one
operation during 2007. As a result of the merger, through our two principal operating subsidiaries, we operate the fifth largest airline in
the United States as measured by domestic revenue passenger miles ("RPMs") and available seat miles ("ASMs"). For the years ended
December 31, 2006, 2005 and 2004, passenger revenues accounted for approximately 93%, 92% and 93%, respectively, of our operating
revenues. Cargo revenues and other sources accounted for 7%, 8% and 7% of our operating revenues in 2006, 2005 and 2004,
respectively. We have primary hubs in Charlotte, Philadelphia and Phoenix and secondary hubs/focus cities in Pittsburgh, Las Vegas,
New York, Washington, D.C. and Boston. We are a low-cost carrier offering scheduled passenger service on approximately 4,000 flights
daily to 240 communities in the U.S., Canada, the Caribbean, Latin America and Europe, making us the only U.S. based low-cost carrier
with a significant international route presence. We are also the only low-cost carrier with an established East Coast route network,
including the US Airways Shuttle service, with substantial presence at capacity constrained airports including New York's LaGuardia
Airport and the Washington, D.C. area's Ronald Reagan Washington National Airport. Starting in December 2005, we expanded our
route network to include Hawaii. As of December 31, 2006, our two principal subsidiaries operated 359 mainline jets and are supported
by our regional airline subsidiaries and affiliates operating as US Airways Express, which operate approximately 240 regional jets and
104 turboprops.
US Airways had approximately 36 million passengers boarding its planes in 2006. As of December 31, 2006, US Airways operated
226 jet aircraft. During 2006, US Airways provided regularly scheduled service or seasonal service at 85 airports in the continental
United States, Canada, the Caribbean, Latin America and Europe. As of December 31, 2006, the US Airways Express network served
133 airports in the United States, Canada and the Bahamas, including approximately 40 airports also served by US Airways. During
2006, US Airways Express air carriers had approximately 20 million passengers boarding their planes. Passenger revenues accounted for
approximately 90% of US Airways' operating revenues in each of the three years ended December 31, 2006, 2005 and 2004. Cargo
revenues and other sources accounted for approximately 10% of US Airways' operating revenues in 2006, 2005 and 2004.
AWA had approximately 21 million passengers boarding its planes in 2006. As of December 31, 2006, AWA operated 133 jet
aircraft. During 2006, AWA provided regularly scheduled service or seasonal service at 67 airports in the continental United States,
Hawaii, Alaska, Canada and Latin America. As of December 31, 2006, the AWA Express network served 62 airports in the United
States, Canada and Latin America, including approximately 31
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