US Airways 2007 Annual Report Download - page 104

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
On October 2, 2007, US Airways and Airbus also entered into Amendment No. 11 to the A330/A340 Purchase Agreement dated as
of November 24, 1998, rescheduling the delivery positions for the cancellable A330 aircraft under that agreement to dates in 2014 and
2015 and replacing the predelivery payment schedule.
On November 15, 2007, US Airways and Airbus entered into Amendment No. 1 to the A330 Purchase Agreement adding an
additional five firm A330-200 aircraft to the Airbus A330 Purchase Agreement. These additional aircraft allow US Airways to continue
its international growth plans of adding approximately three to four new markets per year between 2009 and 2011.
On January 11, 2008, US Airways and Airbus entered into Amendment No. 1 to the Amended and Restated Airbus A320 Family
Aircraft Purchase Agreement. Under this amended and restated purchase agreement, US Airways has the right to convert certain aircraft
models to other aircraft models within the mix of 97 A320 family aircraft. Amendment No. 1 provides for the conversion of 13 A319
aircraft to A320 aircraft, one A319 to an A321 and 11 A320 aircraft to A321 aircraft for deliveries during 2009 and 2010.
On June 13, 2006, US Airways Group and Embraer executed an Amended and Restated Purchase Agreement and an Amended and
Restated Letter Agreement. In accordance with the terms of these agreements, the Company placed an initial firm order for 25 Embraer
190 aircraft and an additional order for 32 Embraer 190 aircraft. The progress and deposit payments totaling approximately $18 million
previously paid by the Company to Embraer in accordance with the terms of the Purchase Agreement dated as of May 9, 2003, are being
applied to these orders in accordance with the terms of the amended and restated agreements. In addition, the Company had the option to
purchase up to 50 additional Embraer 190 aircraft and to convert certain of the Embraer 190 aircraft to Embraer 170, Embraer 175 or
Embraer 195 aircraft, subject to availability and upon agreed notice. Embraer has agreed to provide financing for certain of the aircraft.
On July 21, 2006, the Company assigned 30 of the purchase options to Republic Airlines, Inc. On January 12, 2007, the Company
assigned eight additional purchase options to Republic Airlines. The Company purchased and took delivery of two Embraer 190 aircraft
in the fourth quarter of 2006 and nine Embraer 190 aircraft throughout 2007. The Company expects to take delivery of 14 Embraer 190
aircraft in 2008. In June and August 2007, the Company amended the Amended and Restated Purchase Agreement to revise the delivery
schedule for the additional 32 Embraer 190 aircraft. On June 6, 2007, the Company entered into another amendment to the Amended and
Restated Purchase Agreement whereby Embraer granted the Company an additional 140 purchase options. The Company further
amended the Amended and Restated Letter Agreement in August 2007 to revise previous provisions concerning price escalation limits
and assignment of purchase rights to regional operators.
US Airways has an agreement with International Aero Engines ("IAE") which provides for the purchase by US Airways of eight
new V2500-A5 spare engines scheduled for delivery through 2014 for use on the Airbus A320 family fleet.
US Airways Group has also agreed to terms with Rolls-Royce to acquire Trent XWB engines to power the 22 Airbus A350 XWB
aircraft along with a TotalCare long-term engine services agreement. The engine order and the services agreement are contingent upon
execution of definitive documentation.
Under all of the aircraft and engine purchase agreements discussed above, US Airways' total future commitments to Embraer,
Airbus and IAE are expected to be approximately $7.5 billion through 2017 as follows: $798 million in 2008, $1.27 billion in 2009,
$1.31 billion in 2010, $1.28 billion in 2011, $774 million in 2012 and $2.07 billion thereafter, which includes predelivery deposits and
payments. US Airways expects to fund payments through future financings.
Engine Maintenance Commitments
In connection with the merger, US Airways and AWA restructured their rate per engine hour agreements with General Electric
Engine Services for overhaul maintenance services. Under the restructured agreements, the minimum monthly payment on account of
accrued engine flight hours for both of the agreements together will equal
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