US Airways 2007 Annual Report Download - page 131

Table of Contents
Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholder
US Airways, Inc.:
We have audited the accompanying consolidated balance sheets of US Airways, Inc. and subsidiaries ("US Airways") as of
December 31, 2007 and 2006, and the related statements of operations, stockholder's equity (deficit) and cash flows for years ended
December 31, 2007, and 2006, and the three months ended December 31, 2005 for the Successor Company, and for the nine months
ended September 30, 2005 for the Predecessor Company. These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of US Airways as of December 31, 2007 and 2006, and the results of their operations and their cash flows for the years ended
December 31, 2007, and 2006, and the three months ended December 31, 2005 for the Successor Company, and for the nine months
ended September 30, 2005 for the Predecessor Company, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 1 and 2(b) to the consolidated financial statements, on September 16, 2005, the Bankruptcy Court confirmed
the Company's Plan of Reorganization (the Plan), related to its Chapter 11 bankruptcy proceeding. The Plan became effective on
September 27, 2005 and US Airways and its parent Company, US Airways Group, Inc. (US Airways Group), emerged from the
Chapter 11 bankruptcy proceeding. In connection with its emergence from the Chapter 11 bankruptcy proceedings, US Airways adopted
fresh-start reporting pursuant to Statement of Position 90-7, "Financial Reporting by Entities in Reorganization Under the Bankruptcy
Code" as of September 27, 2005. As a result, the consolidated financial statements of the Successor Company are presented on a different
basis than those of the Predecessor Company and, therefore, are not comparable in all respects.
As discussed in Note 1 to the consolidated financial statements, the Company adopted the provisions of Financial Accounting
Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement
No. 109, effective January 1, 2007 and Statement of Financial Accounting Standards ("SFAS") No. 158, Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R), effective
December 31, 2006, and as discussed in Note 14 to the consolidated financial statements, the Company adopted the provisions of
SFAS No. 123(R), Shared Based Payment, effective January 1, 2006.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), US
Airways' internal control over financial reporting as of December 31, 2007, based on criteria established in "Internal Control-Integrated
Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated
February 20, 2008 expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.
/s/ KPMG LLP
Phoenix, Arizona
February 20, 2008
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