US Airways 2007 Annual Report Download - page 626

elect to repair a defective Warranted Part in accordance with the provisions of Clause 12.1.8,
(v) the Seller receives a Warranty Claim complying with the provisions of Clause 12.1.7(v).
12.1.7 Warranty Administration
The warranties set forth in Clause 12.1 will be administered as hereinafter provided:
(i) Claim Determination. Determination as to whether any claimed defect in any Warranted Part entitles the Buyer to a remedy under this Clause
12.1 will be made by the Seller, in consultation with the Buyer, and will be based on claim details, reports from the Seller's regional
representative, historical data logs, inspections, tests, findings during repair, defect analysis and other relevant documents and information.
(ii) Transportation Costs. Transportation costs associated with (a) the sending of a defective Warranted Part as to which a remedy is available under
this Clause 12 to the facilities designated by the Seller **.
(iii) On-Aircraft Work by the Seller. If either (a) the Seller determines that a defect subject to this Clause 12.1 requires the dispatch by the Seller of
a working team to the facilities of the Buyer to repair or correct such defect, ** or (b) the Seller accepts the return of an Aircraft to perform or
have performed a repair or correction, then, the labor costs for such on-Aircraft work will be borne by the Seller.
On-Aircraft work by the Seller will be undertaken only if, in the Seller's opinion, the work requires the Seller's technical expertise. In such case,
the Seller and the Buyer will agree on a schedule and place for the work to be performed.
(iv) Return of an Aircraft. If the Buyer desires to return an Aircraft to the Seller for consideration of a Warranty Claim, the Buyer will notify the
Seller of its intention to do so, and the Seller will, prior to such return, have the right to inspect such Aircraft, and without prejudice to the
Seller's rights hereunder, to repair such Aircraft either at the Buyer's facilities or at another mutually acceptable location at the Seller's expense.
If the Seller agrees that the return or movement of the Aircraft to another facility is necessary to effect the repair or correction, the Aircraft will
be transported to and from such facility at the Seller's expense.
If the Seller does not agree that the return of an Aircraft is necessary for the handling of a Warranty Claim, then the return of such Aircraft by
the
USA — Airbus A330 Purchase Agreement
EXECUTION
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PRIVILEGED AND CONFIDENTIAL
**Confidential Treatment Requested.