US Airways 2009 Annual Report Download - page 16

Table of Contents
• other factors, such as the relative fluctuation in value between the U.S. dollar and other major currencies and the influence of
speculative positions on the futures exchanges.
Insurance
We maintain insurance of the types that we believe are customary in the airline industry. Principal coverage includes liability for injury
to members of the public, including passengers, damage to property of US Airways Group, its subsidiaries and others, and loss of or
damage to flight equipment, whether on the ground or in flight. We also maintain other types of insurance such as workers' compensation
and employer's liability, with limits and deductibles that we believe are standard within the industry.
Since September 11, 2001, we and other airlines have been unable to obtain coverage for liability to persons other than employees and
passengers for claims resulting from acts of terrorism, war or similar events, which is called war risk coverage, at reasonable rates from
the commercial insurance market. US Airways, therefore, purchased its war risk coverage through a special program administered by the
FAA, as have most other U.S. airlines. The Emergency Wartime Supplemental Appropriations Act extended this insurance protection
until August 2005. The program was subsequently extended, with the same conditions and premiums, until August 31, 2010. If the
federal insurance program terminates, we would likely face a material increase in the cost of war risk coverage, and because of
competitive pressures in the industry, our ability to pass this additional cost to passengers may be limited.
Customer Service
In 2009, we continued our commitment to running a successful airline. One of the important ways we do this is by taking care of our
customers. We believe that our focus on excellent customer service in every aspect of our operations, including personnel, flight
equipment, in-flight and ancillary amenities, on-time performance, flight completion ratios and baggage handling, will strengthen
customer loyalty and attract new customers.
Our 2009 on-time performance rate was 80.9% and ranked second among the big five hub-and-spoke carriers as measured by the DOT
Air Travel Consumer Report. Our mishandled baggage ratio for 2009 improved 36.5% as compared to 2008. Our 2009 mishandled
baggage ratio of 3.03 also ranked second among the big five hub-and-spoke carriers as measured by the DOT Air Travel Consumer
Report. The combination of continued strong on-time performance and fewer mishandled bags contributed to 34.8% fewer reported
customer complaints to the DOT in 2009 as compared to 2008.
We reported the following combined operating statistics to the DOT for mainline operations for the years ended December 31, 2009,
2008 and 2007:
Full Year
2009 2008 2007
On-time performance (a) 80.9 80.1 68.7
Completion factor (b) 98.8 98.5 98.2
Mishandled baggage (c) 3.03 4.77 8.47
Customer complaints (d) 1.31 2.01 3.16
(a) Percentage of reported flight operations arriving on time as defined by the DOT.
(b) Percentage of scheduled flight operations completed.
(c) Rate of mishandled baggage reports per 1,000 passengers.
(d) Rate of customer complaints filed with the DOT per 100,000 passengers.
Frequent Traveler Program
All major United States airlines offer frequent flyer programs to encourage travel on their respective airlines and customer loyalty. Our
Dividend Miles frequent flyer program allows participants to earn mileage credits for each paid flight segment on US Airways, Star
Alliance carriers and certain other airlines that participate in the program. Participants flying in first class or Envoy class may receive
additional mileage credits. Participants can also receive mileage credits through special promotions that we periodically offer and may
also earn mileage credits by utilizing
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