UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
On September 26, 2007, as part of the integration efforts following the merger of US Airways Group and America West Holdings Corporation (“America West Holdings”) in September 2005, America West Airlines, Inc. (“AWA”) surrendered its Federal Aviation Administration (“FAA”) operating certificate. As a result, all mainline airline operations are now being conducted under US Airways’ FAA operating certificate. In connection with the combination of all mainline airline operations under one FAA operating certificate, US Airways Group contributed one hundred percent of its equity interest in America West Holdings to US Airways. As a result, America West Holdings and its wholly owned subsidiary AWA are now wholly owned subsidiaries of US Airways. In addition, AWA transferred substantially all of its assets and liabilities to US Airways. All off-balance sheet commitments of AWA were also transferred to US Airways. This transaction constituted a transfer of assets between entities under common control and was accounted for at historical cost.
WE saved you from "Project Zanzibar"
2005 Outlook
We continue to face considerable challenges in 2005, including competing with legacy carriers that, through a variety of restructuring mechanisms, have reduced labor wages, extended debt maturities and lowered their overall cost per available seat mile. These actions could cause AWA’s cost advantage to diminish.
In spite of our diligent work to contain our costs, we believe revenues will continue to reflect the excess capacity that exists across the domestic system and fuel prices will remain at, or exceed, record highs. Given these conditions, we anticipate significant losses for full year 2005.
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AWA’s Results of Operations
In 2006, AWA realized operating losses of $35 million and a loss before income taxes and cumulative effect of change in accounting principle of $33 million.
In 2005, AWA realized operating losses of $120 million and a loss before income taxes and cumulative effect of change in accounting principle of $195 million.
In 2004, AWA realized operating losses of $16 million and a loss before income taxes and cumulative effect of change in accounting principle of $85 million.
America West Airlines Inchttp://www.secinfo.com/$/SEC/Registrant.asp?CIK=706270http://www.secinfo.com/$/SEC/Registrant.asp?CIK=706270, et al. · 10-K · For 12/31/06 Filed On 2/27/07http://www.secinfo.com/$/SEC/Filings.asp?On=20070228 9:54pm ET · SEC Files 0-12337http://www.secinfo.com/$/SEC/File.asp?Number=000-12337, 1-08442http://www.secinfo.com/$/SEC/File.asp?Number=001-08442, 1-08444http://www.secinfo.com/$/SEC/File.asp?Number=001-08444 · Accession Number 950153-7-433
[SIZE=10pt]Subject:[/SIZE][SIZE=10pt] Fw: PlaneDeal061005_Without the merger, America West.....with fuel prices high and industry capacity in excess, we (like most of our industry) could also face bankruptcy if those fundamentals don’t change.[/SIZE]
Q: Why not let US Airways just tank and go belly up? That way there is no bothering with seniority integration or bickering about the way that their employees are being paid more to do the same jobs than we are.
A: The proposed merger is about making our company stronger and bringing in the kinds of assets - gates, slots, and aircraft that allow us to grow our network instantly. Yes, a merger comes with tremendous challenges, including the task of integrating seniority lists. But, we believe that this merger is in the best interests of employees, shareholders and travelers. Without the merger, America West will continue as it has; however, we have to consider the long-term viability of our company and, with fuel prices high and industry capacity in excess, we (like most of our industry) could also face bankruptcy if those fundamentals don’t change.
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America West Airlines Inc et al Financial Data and Statements found in the 10 K For 12 31 04 and 10 Q For 06 30 05
America West Airlines Inchttp://www.secinfo.com/$/SEC/Registrant.asp?CIK=706270, et al. · 10-K · For 12/31/04
Filed On 3/14/05 9:54pm ET · SEC Files 0-12337, 1-12649 · Accession Number 950153-5-517
- Excerpted from Page 12 of America West Airlines Inc. 10-K For 12/31/04
Risk Factors Relating to the Company and Industry Related Risks
We caution the reader that these risk factors may not be exhaustive. We operate in a continually changing business environment and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or the extent to which any factor or combination of factors may impact our business.
We have sustained, and may continue to sustain significant operating losses.
For the year ended December 31, 2004,
we incurred an operating loss of $43.8 million.
In addition, we incurred operating losses for the years ended December 31, 2001 and 2002 resulting primarily from the decrease in revenue and passenger demand and the increase in operating costs after the terrorist attacks of September 11, 2001. Recently, the operating losses resulted primarily from a substantial increase in the cost of jet fuel and excess domestic industry capacity resulting in lower revenue per available seat mile. We expect the threat of further terrorist attacks and continued instability in oil producing regions to continue to negatively impact our revenues and costs in the near-term. We may not be able to effectively counteract increasing costs through our cost reduction initiatives, customer service initiatives and revised pricing structures. Moreover, our liquidity and borrowing options are limited and we may not be able to survive a prolonged economic downturn, decreases in demand for air travel or further increases in jet fuel costs.
The inability to sustain profitability may impair our ability to satisfy our obligations as they become due, obtain future equity or debt financing, respond to competitive developments and otherwise sustain or expand our business.
[SIZE=12pt]Andrew Nocella: “When you take that and combine it with high fuel prices, Las Vegas has become extremely unprofitable for US Airways and would remain unprofitable indefinitely at its current size... / “US Airways dropped those flights because they couldn’t make any money on them,” said aviation consultant Mike Boyd of Evergreen, Colo.-based Boyd Group International. “I don’t see it as a deathblow (for Las Vegas).[/SIZE] But the days of America West are over.
Project Zanzibar
At the May 9 session of the Joint Negotiating Committee, Scott Kirby, President of the Company, revealed to the assembled representatives of both pilot groups and ALPA National that he had headed a project code-named “Project Zanzibar” for AW in 2005 and that the legal papers for a Chapter 11 filing had been prepared and a plan developed for AW’s bankruptcy in the event that the merger failed to come to fruition. Project Zanzibar was AW’s only Plan B. It is now beyond dispute that the junior AW pilot, Dave Odell, and 300-400 other AW F/Os hired in 2002-05 would have been furloughed absent the US merger, as AW went into Chapter 11, perhaps never to emerge. In light of this new disclosure from the carrier’s President, there is clearly no support for the explicit premise of the Nicolau Award that these AW pilots had more job security and better promotional prospects than US pilots hired in 1988, including hundreds who had never been furloughed for a single day.
Bottom line you need to remember who saved DAVE............ The EAST. Now run along and just be thankful of your lottery ticket.