US Airways 2007 Annual Report Download - page 165

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
US Airways believes that its income tax filing positions and deductions related to tax periods subject to examination will be
sustained upon audit and does not anticipate any adjustments that will result in a material adverse effect on US Airways' financial
condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to
FIN 48.
8. Commitments and contingencies
(a) Commitments to Purchase Flight Equipment and Maintenance Services
Aircraft and Engine Purchase Commitments
In August 2006, AWA amended its A319/A320 Purchase Agreement with Airbus to add seven new Airbus A321 aircraft to an
existing order for 30 A320 family aircraft. The amendment also converted one A320 aircraft and seven A319 aircraft to an order of eight
A321 aircraft. Deliveries of the 15 new A321 aircraft will begin in 2008 and run through 2009. The new A321 aircraft will be configured
to accommodate up to 187 passengers in two classes of service and will be used for replacement purposes or modest expansion should
market conditions warrant. On July 30, 2007, AWA entered into an additional amendment to the A319/A320 Purchase Agreement
adjusting the delivery schedule for the propulsion systems for two A321 aircraft.
In June 2007, US Airways announced that it had agreed to terms with Airbus for the acquisition of 92 aircraft, including 60 single-
aisle A320 family aircraft and 32 wide-body aircraft, including 22 A350 Xtra Wide-Body ("XWB") aircraft and ten A330 aircraft. On
October 2, 2007, US Airways and Airbus executed the following definitive agreements for these aircraft:
• An Amended and Restated Airbus A320 Family Aircraft Purchase Agreement, which supersedes the AWA A319/A320 Purchase
Agreement discussed above. The terms of the amended and restated purchase agreement encompass the purchase of 60 new
narrow-body aircraft, including ten A319 aircraft, 40 A320 aircraft, and ten A321 aircraft, with conversion rights, in addition to
the 37 aircraft from the previous A319/A320 Purchase Agreement. Deliveries of the aircraft under this agreement will run
through 2012. US Airways expects to use the 60 A320 family aircraft to replace 60 older aircraft in the airline's fleet. The
amended and restated purchase agreement also provides US Airways with certain conversion rights, as well as purchase rights for
the acquisition of additional A320 family aircraft, subject to certain terms and conditions. In addition, the amended and restated
purchase agreement revises the delivery schedule for 15 A318 aircraft and provides US Airways with certain other rights with
respect thereto. On January 31, 2008, US Airways canceled its order for 12 of the 15 A318 aircraft.
• An Amended and Restated Airbus A350 XWB Purchase Agreement, which supersedes the A350 Purchase Agreement dated
September 27, 2005 between US Airways Group, US Airways, AWA and AVSA, S.A.R.L. (now Airbus S.A.S.). The new
purchase agreement increases the number of firm order aircraft from 20 A350 aircraft to 18 A350-800 XWB aircraft and four
A350-900 XWB aircraft, with the option to convert these aircraft to other A350 models, subject to certain terms and conditions.
Deliveries for the 22 A350 XWB aircraft will begin in 2014 and extend through 2017. US Airways expects to use these aircraft
for modest international expansion or replacement of existing older technology aircraft, as market conditions warrant. The
Amended and Restated Airbus A350 XWB Purchase Agreement also gives US Airways purchase rights for the acquisition of
additional A350 XWB aircraft, subject to certain terms and conditions.
• An Airbus A330 Purchase Agreement, which provides for the purchase by US Airways of ten firm order A330-200 aircraft with
deliveries in 2009 and 2010. The Airbus A330 Purchase Agreement also provides US Airways with purchase rights for the
acquisition of additional A330-200 aircraft, subject to certain terms and conditions.
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