US Airways 2007 Annual Report Download - page 59

Table of Contents
140 purchase options. We further amended the Amended and Restated Letter Agreement in August 2007 to revise previous provisions
concerning price escalation limits and assignment of purchase rights to regional operators.
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 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. 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.
On October 2, 2007, US Airways and Airbus also entered into Amendment No. 11 to the A330/A340 Purchase Agreement dated as
of November 24, 1998, rescheduling the delivery positions for the cancellable A330 aircraft under that agreement to dates in 2014 and
2015 and replacing the predelivery payment schedule.
On November 15, 2007, US Airways and Airbus entered into Amendment No. 1 to the A330 Purchase Agreement adding an
additional five firm A330-200 aircraft to the Airbus A330 Purchase Agreement. These additional aircraft will allow US Airways to
continue its international growth plans of adding approximately three to four new markets per year between 2009 and 2011.
On January 11, 2008, US Airways and Airbus entered into Amendment No. 1 to the Amended and Restated Airbus A320 Family
Aircraft Purchase Agreement. Under this amended and restated purchase agreement, US Airways has the right to convert certain aircraft
models to other aircraft models within the mix of 97 A320 family aircraft. Amendment No. 1 provides for the conversion of 13 A319
aircraft to A320 aircraft, one A319 to an A321 and 11 A320 aircraft to A321 aircraft for deliveries during 2009 and 2010.
US Airways has an agreement with International Aero Engines ("IAE") which provides for the purchase by US Airways of eight
new V2500-A5 spare engines scheduled for delivery through 2014 for use on the Airbus A320 family fleet.
We have also agreed to terms with Rolls-Royce to acquire Trent XWB engines to power the 22 Airbus A350 XWB aircraft along
with a TotalCare long-term engine services agreement. The engine order and the services agreement are contingent upon execution of
definitive documentation.
57