US Airways 2007 Annual Report Download - page 15

Table of Contents
• inventory levels of crude, refined products and natural gas; and
• other factors, such as the relative fluctuation in value between the U.S. dollar and other major currencies and the influence of
speculative positions on the futures exchanges.
Insurance
US Airways Group and its subsidiaries maintain insurance of the types and in amounts deemed adequate to protect themselves and
their property. Principal coverage includes:
• liability for injury to members of the public, including passengers;
• damage to property of US Airways Group, its subsidiaries and others;
• loss of or damage to flight equipment, whether on the ground or in flight;
• fire and extended coverage;
• directors' and officers' liability;
• travel agents' errors and omissions;
• advertiser and media liability;
• fiduciary; and
• workers' compensation and employer's liability.
Since September 11, 2001, US Airways Group and other airlines have been unable to obtain coverage for liability to persons other
than employees and passengers for claims resulting from acts of terrorism, war or similar events, which coverage is called war risk
coverage, at reasonable rates from the commercial insurance market. US Airways, therefore, purchased its war risk coverage through a
special program administered by the FAA, as have most other U.S. airlines. The Emergency Wartime Supplemental Appropriations Act
extended this insurance protection until August 2005. The program was subsequently extended, with the same conditions and premiums,
until March 31, 2008. Under the Vision 100 — Century of Aviation Reauthorization Act, the President may continue the insurance
program until December 31, 2008. If the federal insurance program terminates, we would likely face a material increase in the cost of war
risk coverage, and because of competitive pressures in the industry, our ability to pass this additional cost to passengers may be limited.
Customer Service
We are committed to building a successful combined airline by taking care of our customers. We believe that our focus on excellent
customer service in every aspect of our operations, including personnel, flight equipment, inflight and ancillary amenities, on-time
performance, flight completion ratios and baggage handling, will strengthen customer loyalty and attract new customers.
We reported the following combined operating statistics to the DOT for mainline operations for the years ended December 31,
2007, 2006 and 2005:
Full Year
2007 2006 2005
On-time performance(a) 68.7 76.9 77.8
Completion factor(b) 98.2 98.9 98.2
Mishandled baggage(c) 8.47 7.88 7.68
Customer complaints(d) 3.16 1.36 1.55
(a) Percentage of reported flight operations arriving on time as defined by the DOT.
(b) Percentage of scheduled flight operations completed.
(c) Rate of mishandled baggage reports per 1,000 passengers.
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