US Airways 2008 Annual Report Download - page 24

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.
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
additional 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 our 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.
California is in the process of implementing environmental provisions aimed at limiting emissions from off-road diesel-powered
vehicles, which may include some airline belt loaders and tugs and require a change of ground service vehicles. The future costs
associated with replacing some or all of our ground fleets in California cities are currently not expected to have a material adverse affect
on our business.
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-offs and landings. We have been able
to accommodate local noise restrictions imposed to date, but our operations could be adversely affected if locally-imposed regulations
become more restrictive or widespread.
Ongoing data security compliance requirements could increase our costs, and any significant data breach could harm our
business, financial condition or results of operations.
Our business requires the appropriate and secure utilization of customer and other sensitive information. We cannot be certain that
advances in criminal capabilities, discovery of new vulnerabilities, attempts to exploit
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