US Airways 2008 Annual Report Download - page 126

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
18. Subsequent events
On January 15, 2009, US Airways flight 1549 was involved in an accident in New York that resulted in the aircraft landing in the
Hudson River. The Airbus A320 aircraft was en route to Charlotte from LaGuardia with 150 passengers and a crew of 5 (2 pilots and 3
flight attendants) onboard. All aboard survived and there were no serious injuries. US Airways has insurance coverage for this aircraft
(which is a total loss) as well as costs resulting from the accident, and there are no applicable deductibles.
On January 16, 2009, US Airways exercised its right to obtain new loan commitments and incur additional loans under the spare
parts loan agreement. In connection with the exercise of that right, Airbus Financial Services funded $50 million in satisfaction of a
previous commitment. This loan will mature on October 20, 2014, will bear interest at a rate of LIBOR plus a margin and will be secured
by the collateral securing loans under the spare parts loan agreement. In addition, in connection with the incurrence of this loan, US
Airways and Airbus entered into amendments to the A320 Family Aircraft Purchase Agreement, the A330 Aircraft Purchase Agreement
and the A350 XWB Purchase Agreement. Pursuant to these amendments, the existing cross-default provisions of the applicable aircraft
purchase agreements were amended and restated to, among other things, specify the circumstances under which a default under the loan
would constitute a default under the applicable aircraft purchase agreement.
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