714560--2/28/2007--AMERICA_WEST_AIRLINES

related topics

{cost, operation, labor}

{operation, natural, condition}

{system, service, information}

{stock, price, share}

{condition, economic, financial}

{stock, price, operating}

{debt, indebtedness, cash}

{competitive, industry, competition}

{personnel, key, retain}

{loss, insurance, financial}

{capital, credit, financial}

{regulation, change, law}

{cost, regulation, environmental}

Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations. We rely heavily on automated systems to operate our business and any failure of these systems, or the failure to integrate them successfully following the merger, could harm our business. We might not be able to fully realize the synergies generated by the merger. The integration of US Airways Group and America West Holdings following the merger continues to present significant challenges. The inability to maintain labor costs at competitive levels could harm our financial performance. Our future growth is dependent on obtaining adequate operating facilities at airports throughout our network. The travel industry continues to face ongoing security concerns. Delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity may adversely impact our operations and financial results. Fluctuations in interest rates could adversely affect our liquidity, operating expenses and results. If we incur problems with any of our third party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services. Increases in insurance costs or reductions in insurance coverage may adversely impact our operations and financial results. Changes in government regulation could increase our operating costs and limit our ability to conduct our business. Ongoing data security compliance requirements could increase our costs and any significant data breach could harm our business, financial condition or results of operations. The airline industry is intensely competitive. The loss of key personnel upon whom we depend to operate our business or the inability to attract additional qualified personnel could adversely affect the results of our operations or our financial performance. Interruptions or disruptions in service at one of our hub airports could have a material adverse impact on our operations. We are at risk of losses and adverse publicity stemming from any accident involving any of our aircraft. Our business is subject to weather factors and seasonal variations in airline travel, which cause our results to fluctuate. The use of America West Holdings and US Airways Group s respective pre-merger NOLs and certain other tax attributes could be limited in the future. Employee benefit plans represent significant continuing costs to the sponsoring employers. US Airways Group could experience significant operating losses in the future. Risks Related to Our Common Stock Our common stock has limited trading history and its market price may be volatile. Conversion of our convertible notes will dilute the ownership interest of existing stockholders and could adversely affect the market price of our common stock. A small number of stockholders beneficially own a substantial amount of our common stock.

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714560--2/28/2007--AMERICA_WEST_AIRLINES_INC