US Airways 2007 Annual Report Download - page 20

Table of Contents
Our ability to operate and grow our route network in the future is dependent on the availability of adequate facilities and
infrastructure throughout our system.
In order to operate our existing flight schedule and, where appropriate, add service along new or existing routes, we must be able to
obtain adequate gates, ticketing facilities, operations areas, slots (where applicable) and office space. For example, at our largest hub
airport, we are seeking to increase international service despite challenging airport space constraints. The nation's aging air traffic control
infrastructure presents challenges as well. The ability of the air traffic control system to handle traffic in high-density areas where we
have a large concentration of flights is critical to our ability to operate our existing schedule. Also, as airports around the world become
more congested, we cannot always be sure that our plans for new service can be implemented in a commercially viable manner given
operating constraints at airports throughout our network.
Delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity may adversely impact our operations and financial
results.
The success of our business depends on, among other things, the ability to operate a certain number and type of aircraft. In many
cases, the aircraft we intend to operate are not yet in our fleet, but we have contractual commitments to purchase or lease them. If for any
reason we were unable to secure deliveries of new aircraft on contractually scheduled delivery dates, this could have a negative impact on
our business, operations and financial performance. Our failure to integrate newly purchased aircraft into our fleet as planned might
require us to seek extensions of the terms for some leased aircraft. Such unanticipated extensions may require us to operate existing
aircraft beyond the point at which it is economically optimal to retire them, resulting in increased maintenance costs. If new aircraft
orders are not filled on a timely basis, we could face higher monthly rental rates.
We are subject to many forms of environmental regulation and may incur substantial costs as a result.
We are subject to increasingly stringent federal, state, local and foreign laws, regulations and ordinances relating to the protection of
the environment, including those relating to emissions to the air, discharges to surface and subsurface waters, safe drinking water, and the
management of hazardous substances, oils and waste materials. Compliance with all environmental laws and regulations can require
significant expenditures.
Several U.S. airport authorities are actively engaged in efforts to limit discharges of de-icing fluid (glycol) to local groundwater,
often by requiring airlines to participate in the building or reconfiguring of airport de-icing facilities. Such efforts are likely to impose
costs and restrictions on airlines using those airports. We do not believe, however, that such environmental developments will have a
material impact on our capital expenditures or otherwise adversely affect its operations, operating costs or competitive position.
We are also subject to other environmental laws and regulations, including those that require us to remediate soil or groundwater to
meet certain objectives. Under federal law, generators of waste materials, and owners or operators of facilities, can be subject to liability
for investigation and remediation costs at locations that have been identified as requiring response actions. We have liability for such
costs at various sites, although the future costs associated with the remediation efforts are currently not expected to have a material
adverse affect on our business.
We have various leases and agreements with respect to real property, tanks and pipelines with airports and other operators. Under
these leases and agreements, we have agreed to standard language indemnifying the lessor or operator against environmental liabilities
associated with the real property or operations described under the agreement, even if we are not the party responsible for the initial event
that caused the environmental damage. We also participate in leases with other airlines in fuel consortiums and fuel committees at
airports, where such indemnities are generally joint and several among the participating airlines.
Recently, climate change issues and greenhouse gas emissions (including carbon) have attracted international and domestic
regulatory interest that may result in the imposition of additional regulation on airlines. Any such regulatory activity in the future may
adversely affect our business and financial results.
Governmental authorities in several U.S. and foreign cities are also considering or have already implemented aircraft noise
reduction programs, including the imposition of nighttime curfews and limitations on daytime take-
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