US Airways 2010 Annual Report Download - page 98

Table of Contents
9. Commitments and Contingencies
(a) Commitments to Purchase Flight Equipment and Maintenance Services
Aircraft and Engine Purchase Commitments
US Airways has definitive purchase agreements with Airbus for the acquisition of 134 aircraft, including 97 single-aisle A320 family
aircraft and 37 widebody aircraft (comprised of 22 A350 XWB aircraft and 15 A330-200 aircraft). Since 2008, when deliveries
commenced under the purchase agreements, we have taken delivery of 34 aircraft through December 31, 2010, which includes four A320
aircraft, 23 A321 aircraft and seven A330-200 aircraft. During 2010, US Airways took delivery of two A320 aircraft and two A330-200
aircraft, which were financed through new loan agreements. US Airways plans to take delivery of 12 A320 family aircraft in each of 2011
and 2012, with the remaining 46 A320 family aircraft scheduled to be delivered between 2013 and 2015. In addition, US Airways plans
to take delivery of the eight remaining A330-200 aircraft in 2013 and 2014. Deliveries of the 22 A350 XWB aircraft are scheduled to
begin in 2017 and extend through 2019.
US Airways has agreements for the purchase of eight new IAE V2500-A5 spare engines scheduled for delivery through 2014 for use
on the A320 family fleet, three new Trent 700 spare engines scheduled for delivery through 2013 for use on the A330-200 fleet and three
new Trent XWB spare engines scheduled for delivery in 2017 through 2019 for use on the A350 XWB aircraft. US Airways has taken
delivery of two of the Trent 700 spare engines and one of the V2500-A5 spare engines through December 31, 2010.
Under all of the Company's aircraft and engine purchase agreements, the Company's total future commitments as of December 31,
2010 are expected to be approximately $5.9 billion through 2019 as follows: $570 million in 2011, $618 million in 2012, $1.15 billion in
2013, $935 million in 2014, $445 million in 2015 and $2.18 billion thereafter, which includes predelivery deposits and payments. The
Company has financing commitments for all Airbus aircraft scheduled for delivery in 2011 and 2012.
(b) Leases
The Company leases certain aircraft, engines and ground equipment, in addition to the majority of its ground facilities and terminal
space. As of December 31, 2010, the Company had 301 aircraft under operating leases, with remaining terms ranging from four months
to approximately 13 years. Airports are utilized for flight operations under lease arrangements with the municipalities or agencies owning
or controlling such airports. Substantially all leases provide that the lessee must pay taxes, maintenance, insurance and certain other
operating expenses applicable to the leased property. Some leases also include renewal and purchase options.
As of December 31, 2010, obligations under noncancellable operating leases for future minimum lease payments were as follows (in
millions):
2011 $ 988
2012 911
2013 751
2014 669
2015 572
Thereafter 2,550
Total minimum lease payments $ 6,441
For the years ended December 31, 2010, 2009 and 2008, rental expense under operating leases was $1.26 billion, $1.29 billion and
$1.33 billion, respectively.
(c) Off-balance Sheet Arrangements
US Airways has 27 owned aircraft, 114 leased aircraft and three leased engines, which were financed with pass through trust
certificates, or EETCs, issued by pass through trusts. These trusts are off-balance sheet entities, the primary purpose of which is to
finance the acquisition of flight equipment. Rather than finance each aircraft separately when such aircraft is purchased, delivered or
refinanced, these trusts allowed US Airways to raise the financing for several aircraft at one time and place such funds in escrow pending
the purchase, delivery or
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