US Airways 2007 Annual Report Download - page 167

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
$3 million as long as both agreements remain in effect through October 2009. In September 2007, all engines covered under the AWA
agreement were transferred to the US Airways agreement, and the AWA agreement was terminated. The minimum monthly payment of
$3 million remains unchanged.
(b) Leases
US Airways leases certain aircraft, engines, and ground equipment, in addition to the majority of its ground facilities and terminal
space. As of December 31, 2007, US Airways had 312 aircraft under operating leases, with remaining terms ranging from two months to
approximately 16 years. Ground facilities include executive offices, maintenance facilities and ticket and administrative offices. Public
airports are utilized for flight operations under lease arrangements with the municipalities or agencies owning or controlling such airports.
Substantially all leases provide that the lessee must pay taxes, maintenance, insurance and certain other operating expenses applicable to
the leased property. Some leases also include renewal and purchase options.
As of December 31, 2007, obligations under noncancellable operating leases for future minimum lease payments were as follows
(in millions):
2008 $ 1,077
2009 990
2010 914
2011 826
2012 796
Thereafter 4,080
Total minimum lease payments 8,683
Less sublease rental receipts (938)
Total minimum lease payments $ 7,745
For the years ended December 31, 2007, 2006, three months ended December 31, 2005 and nine months ended September 30, 2005,
rental expense under operating leases, excluding landing fees, was $1.24 billion, $1.24 billion, $296 million and $532 million,
respectively.
US Airways also leases certain owned flight equipment to related parties (see Note 11(b)) under noncancellable operating leases
expiring in various years through year 2022. The future minimum rental receipts associated with these leases are $78 million in 2008,
$78 million in 2009, $78 million in 2010, $78 million in 2011, $78 million in 2012 and $548 million thereafter. The following amounts
relate to aircraft leased under such agreements as reflected in flight equipment as of December 31, 2007 and 2006 (in millions):
2007 2006
Flight equipment $ 286 $ 286
Less accumulated amortization (23) (13)
$ 263 $ 273
(c) Off Balance Sheet Arrangements
US Airways has set up pass through trusts, which have issued pass through trust certificates, also known as "Enhanced Equipment
Trust Certificates" or "EETCs", covering the financing of 19 owned aircraft and 62 leased aircraft. These trusts are off-balance sheet
entities, the primary purpose of which is to finance the acquisition of aircraft. Rather than finance each aircraft separately when such
aircraft is purchased or delivered, these trusts allowed US Airways to raise the financing for several aircraft at one time and place such
funds in escrow pending
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