714560--3/15/2006--AMERICA_WEST_AIRLINES

related topics

{cost, operation, labor}

{operation, natural, condition}

{stock, price, share}

{system, service, information}

{stock, price, operating}

{provision, law, control}

{loss, insurance, financial}

{interest, director, officer}

{debt, indebtedness, cash}

{competitive, industry, competition}

{condition, economic, financial}

{regulation, change, law}

{cost, regulation, environmental}

We may not perform as well financially as we expect following the merger. The integration of US Airways Group and America West Holdings following the merger presents significant challenges. US Airways Group continues to experience significant operating losses. Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations. Fluctuations in interest rates could adversely affect our liquidity, operating expenses and results. 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. 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. The travel industry, materially adversely affected by the September 11, 2001 terrorist attacks, continues to face on-going security concerns and cost burdens associated with security. 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. The use of America West Holdings and US Airways Group s respective pre-merger NOLs and certain other tax attributes is limited following the merger. The airline industry is intensely competitive. Certain liabilities were not fully extinguished as a result of confirmation of the plan of reorganization. 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. Employee benefit plans represent significant continuing costs to the sponsoring employers. Risks Related to Our Common Stock Our common stock has limited trading history and its market price may be volatile. Substantial sales of our common stock after the merger could cause our stock price to fall. 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. Certain provisions of the amended and restated certificate of incorporation and amended and restated bylaws of US Airways Group will make it difficult for stockholders to change the composition of our board of directors and may discourage takeover attempts that some of our stockholders might consider beneficial.

Full 10-K form ▸

714560--3/15/2006--AMERICA_WEST_AIRLINES_INC