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| LCC > SEC Filings for LCC > Form 8-K on 24-Nov-2009 | All Recent SEC Filings |
24-Nov-2009
Entry into a Material Definitive Agreement
Airbus Arrangements
On November 20, 2009, US Airways, Inc. (the "Company") and Airbus S.A.S.
("Airbus") entered into (i) Amendment No. 6 to the Amended and Restated Airbus
A320 Family Aircraft Purchase Agreement dated as of October 2, 2007 (the "A320
Amendment"), (ii) Amendment No. 5 to the A330 Purchase Agreement dated as of
October 2, 2007 (the "A330 Amendment"), and (iii) Amendment No. 4 to the Amended
and Restated Airbus A350 XWB Purchase Agreement dated October 2, 2007 (the "A350
XWB Amendment" and together with the A320 Amendment and the A330 Amendment, the
"Amendments"). Pursuant to the terms of the Amendments, Airbus has agreed to
amendments which, among other things:
• defer 54 aircraft that were scheduled for delivery between 2010 and 2012
that are now to be delivered in 2013 and beyond such that the Company now
plans to accept delivery of 28 aircraft from Airbus between 2010 and 2012,
consisting of four aircraft in 2010 (two A320 aircraft and two A330s), and
24 A320 family aircraft in 2011-2012;
• defer commencement of the Company's Airbus A350 XWB operations, with aircraft deliveries originally scheduled to start in 2015 now being postponed until 2017; and
• reduce near and medium-term obligations to Airbus and others by $132 million.
The Company has financing commitments for the 28 Airbus aircraft now scheduled
for delivery during 2010 to 2012.
Barclays Arrangements
US Airways Group, Inc. ("US Airways") entered into Amendment No. 10 to the
America West Co-Branded Card Agreement (the "Co-Branded Card Amendment"),
effective as of November 20, 2009, with Barclays Bank Delaware ("Barclays"). The
co-branded credit card agreement provides for, among other things, the
pre-purchase of frequent flyer miles in the aggregate amount of $200 million
(the "$200 Million Advanced Miles"). Barclays has agreed that it will
pre-purchase additional miles on a monthly basis in an amount equal to the
difference between $200 million and the amount of unused miles then outstanding,
which purchases average approximately $17 million per month. Among the
conditions to this monthly purchase of miles is a requirement that US Airways
maintain an unrestricted cash balance of at least $1.5 billion. Under the
Co-Branded Card Amendment Barclays agreed to permanently reduce this requirement
to $1.35 billion for the months of March through November, and $1.25 billion for
the months of January, February and December. In addition, Barclays agreed to
defer for 14 months the amortization of the $200 Million Advanced Miles.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above is incorporated herein by this
reference.
Item 8.01. Other Events.
On November 24, 2009, US Airways announced via press release the completion of a
series of transactions with key business partners designed to reschedule its
aircraft orders, reduce its exposure to financial markets in the near term, and
improve its liquidity position. A copy of US Airways' press release is filed as
Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by this
reference.
Item 9.01. Financial Statement and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 Press Release, dated November 24, 2009
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