Document:

exv10w50

Exhibit 10.50

EXECUTION VERSION

AMENDMENT NO. 1

TO

LOAN AGREEMENT [SPARE PARTS]

          THIS AMENDMENT NO. 1 TO LOAN AGREEMENT [SPARE PARTS] (the “Amendment”) is entered into
as of this 5th day of December 2008 among US AIRWAYS, INC., a Delaware corporation (the
“Borrower”), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, as Administrative Agent
for the Lenders (the “Administrative Agent”), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware
corporation, as the Collateral Agent (the “Collateral Agent”), GENERAL ELECTRIC CAPITAL
CORPORATION, as the Original Lender (herein called the “Original Lender”), and such other
lenders as may from time to time become party to the Loan Agreement (as hereinafter defined)
(together with the Original Lender, the “Lenders”).

RECITALS:

          A. The Borrower, the Administrative Agent, the Lenders and the Collateral Agent have
heretofore executed and delivered a Loan Agreement [Spare Parts], dated as of October 20, 2008
prior to the effectiveness of this Amendment (the “Original Loan Agreement”), pursuant to
which Lenders agreed to make loans to the Borrower to be secured by a Lien (such term and other
capitalized terms used without definition herein have the meanings assigned to them in, or by
reference in, the Loan Agreement) on certain spare parts and related property owned by the Borrower
and stored at certain locations.

          B. The Borrower wishes to exercise its option to make the Special Prepayment as provided in
the Original Loan Agreement.

          C. In connection with such Special Prepayment, the Borrower has requested that the
Administrative Agent, the Lenders and the Collateral Agent enter into this Amendment in order to
permit the Borrower to solicit and obtain new loan commitments from new lenders and to provide the
Borrower with the right to borrow certain new loans, all on the terms and subject to the provisions
set forth herein.

          D. The Administrative Agent, the Lenders and Collateral Agent are willing to amend the
Original Loan Agreement on the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereto agree as follows:

          Section 1. Amendments.

 

			
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          A. Section 1.1 of the Original Loan Agreement is amended in full to read as follows:

          “Section 1.1. The Loan.

          (a) Commitments.

               (1) Funding Date. Subject to the terms and conditions of this Loan Agreement, on the Funding
Date, each Original Lender shall advance funds in an amount equal to its Percentage Share of the
Maximum Facility Amount; provided that no Original Lender shall have any obligation to advance
funds in excess of the amount of its Commitment. As evidence of the funds advanced by each
Original Lender, on the Funding Date the Borrower shall issue and deliver to each Original Lender,
as provided hereunder, a Note payable to such Original Lender in an original principal amount
equal to the amount of such Lender’s Percentage Share of the Original Loan.

               (2) New Loan Dates. Provided that no Potential Default has occurred and is continuing and
that the Borrower has elected to make and has made the Special Prepayment, the Borrower shall be
entitled at any time and from time to time prior to March 31, 2009 (or such earlier date as the
Borrower notifies the Administrative Agent in writing that it is irrevocably relinquishing its
right to obtain New Loans pursuant to this Section 1.1(a)(2)), to solicit and obtain loan
commitments (each, a “New Loan Commitment”) from additional lenders (each a “New
Lender”), in an amount not less that ** per New Lender, and in an aggregate maximum amount for
all New Lenders of $100,000,000 (the “Maximum New Loan Commitment”), with each such New
Loan Commitment providing for the funding by such New Lender of loans (a “New Loan”) on
any Business Day (a “New Loan Date”) on or prior to March 31, 2009 (or such earlier date
as the Borrower notifies the Administrative Agent in writing that it is irrevocably relinquishing
its right to obtain New Loans pursuant to this Section 1.1(a)(2)). The Borrower acknowledges and
agrees that neither the Borrower nor any Affiliate of the Borrower shall be, or shall be permitted
to be, a New Lender. **. A New Lender shall have rights under this Agreement, and may advance a
New Loan under this Agreement, only after executing and delivering to the Administrative Agent an
agreement in a form reasonably satisfactory to the Administrative Agreement by which such New
Lender is joined to the Loan Agreement as a party thereto and a “Lender” thereunder (herein, a
“NL Joinder”). On each New Loan Date, each New Lender shall make a Loan to the Borrower
in an amount equal to its New Loan Commitment; provided that (a) no New Lender shall have any
obligation to make a loan to the Borrower in excess of the amount of its respective New Loan
Commitment, and (b) no other Lender shall have any obligation to advance any funds or have any
other liability resulting from a New Lender’s failure to make New Loans to the Borrower. As
evidence of the funds advanced by each New Lender, on the New Loan Date, the Borrower shall issue
and deliver to each New Lender, as provided hereunder, a Note payable to such New Lender in an
original principal amount equal to the amount of such New Lender’s New Loan and reflecting the
amortization schedule in respect of such Note, after giving effect to the New Loan. The terms and
provisions of any New Loan shall, except to the extent expressly set forth herein, be identical to
the Original Loans, and any New Loan made pursuant to the New

 

			
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Loan Commitments will constitute Obligations hereunder for all purposes of this Agreement and
the other Transaction Documents and will be secured by the Collateral securing the other
Obligations. The parties hereto acknowledge and agree that the Administrative Agent may hereunder
or pursuant to any NL Joinder, without the consent of any Lender, effect such amendments to this
Agreement and the other Transaction Documents as may be necessary or appropriate, in the opinion
of the Administrative Agent, to effect the provisions of this Section 1.1(a)(2) including, without
limitation, conforming amendments (which may be in the form of an amendment and restatement) to
provide for each New Loan Commitment to share ratably in the benefits of this Agreement and the
other Transaction Documents (including the accrued interest and fees in respect thereof) with the
Loans; provided that such amendments may not alter the obligations of the Borrower under the
Transaction Documents except as provided in this Section. In addition, unless otherwise
specifically provided herein, all references in Transaction Documents to Loans shall be deemed,
unless the context otherwise requires, to include references to the New Loans. If any New Lender
or the Borrower reasonably requests any amendments or modifications to any of the Transaction
Documents or the entry into or issuance of any other documentation or other assurances (including
without limitation, amendments, modifications, documentation or assurances related to granting or
re-granting the security interest in the Collateral, reaffirmations of the security interest,
making filings with the FAA or the International Registry, or making any other filings to evidence
or perfect the Collateral Agent’s security interest in the Collateral) (collectively, the “New
Lender Requests”), in connection with (or as condition to) the making of such New Lender’s New
Loans, the Transaction Agents and the Lenders agree to consider such New Lender Requests in good
faith and to effectuate (at the Borrower’s expense) each such New Lender Request that is
acceptable to all of the Transaction Agents and the Lenders; provided that no Transaction Agent or
Lender shall be obligated to take any action or approve any New Lender Request that it determines
(in its good faith judgment) is adverse to it.

     (3) Form of Notes. The Notes and the Collateral Agent’s certificate of authentication
thereon shall each be substantially in the form set forth in Exhibit B.

     (b) The Notes; Amortization; Release of Expendables. The Loan shall mature on the
Maturity Date, and the principal of the Loan shall be payable in twenty-four (24)
consecutive quarterly installments in the amount set forth in Part 1 of Schedule 2 to this
Agreement with respect to each Payment Date;**. On the Funding Date, Annex A to each Note
shall be completed so that the aggregate amount of principal due on each Payment Date on all
of the Notes, taken together, is equal to the amount of principal due on such Payment Date
as set forth on Part 1 of Schedule 2. In the event the Borrower incurs New Loans, (i) the
quarterly installments of principal in respect of the Original Loan shall be as set forth in
Part 3 of Schedule 2, and (ii) the quarterlyinstallments of principal in respect of any New
Loan shall be in an amount agreed between such New Lender and the Borrower and reasonably
acceptable to each Transaction Agent; provided, however, that in no event shall the
**installments of principal in respect of the New Loans (at any time in the aggregate) be
less than the amount of the corresponding **installment of principal set forth in Part 5 of
Schedule 2. **. Notwithstanding anything to the contrary set forth in this Agreement
(including Schedule 2), no

 

			
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amendment to this Agreement shall increase the principal amount of the Loan payable on
any date prior to the Maturity Date as compared to the analogous date as set forth in the
Original Loan Agreement.

     (c) Optional Prepayment.

     (i) In General. **, the Borrower may prepay all, or any portion of the outstanding
principal amount of the Loan without premium or penalty; provided, however, that no partial
prepayment of the Loan shall be for less than **of principal. If the Borrower elects to
prepay the Loan in whole or in part, the Borrower shall pay on the Prepayment Date to the
Administrative Agent, for the account of the Lenders, the principal amount specified to be
prepaid in the applicable notice of prepayment together with all accrued and unpaid interest
thereon, **, and all other amounts then due and payable under the Transaction Documents.
Prepayments in part (other than the Special Prepayment and prepayments pursuant to Section
1.1(c)(ii) and Section 1.7(f) below) shall be applied to principal in the inverse order of
maturity.

     (ii) Limited Optional Prepayment. Notwithstanding anything to the contrary in Section
1.1(c)(i) above and without limiting the Borrower’s obligations under Sections 5.1, 5.2 and
5.3, in the event that the Borrower receives notice from any Lender of any costs that the
Borrower is required to pay to such Lender pursuant to any of Sections 5.1, 5.2 or 5.3, and
the Lender is not able to mitigate the relevant costs by changing its Lending Office
pursuant to Section 1.10 below, then the Borrower shall have the right, exercisable upon not
less than **prior notice to the applicable Lender (with a copy to the Administrative Agent),
to prepay in full the Loan Amount held by such Lender, without premium or penalty. If the
Borrower elects to make such a prepayment, then the Borrower shall pay the full Loan Amount
held by the applicable Lender, together with accrued interest thereon, any **and any amounts
due to such Lender pursuant to Sections 5.1, 5.2 and 5.3, as applicable. Any prepayment by
the Borrower pursuant to this Section 1.1(c)(ii) shall be made by the Borrower directly to
the applicable Lender, and no prepayment by the Borrower pursuant to this Section 1.1(c)(ii)
shall have any effect on the Borrower’s obligations with respect to the remaining
outstanding balance of the Loan to any of the other Lenders hereunder. For the avoidance of
doubt such prepayment may be made prior to the Designated Date and may be in an amount less
than**.

     (d) Collateral Compliance Prepayment. In the event that, in accordance with Section
3.03 of the Mortgage, the Borrower is entitled to make, and elects to make, a prepayment of
the Loan, then the principal amount of such prepayment, together with accrued interest
thereon to the date of such prepayment, **, shall be paid, without premium or penalty, by
the Borrower to the Administrative Agent for the account of all Lenders. Any prepayment
pursuant to this Section 1.1(d) shall be applied to principal**. For the avoidance of doubt
such prepayment may be made prior to the Designated Date and may be in an amount less
than**.

     (e) Special Prepayment. Notwithstanding anything to the contrary elsewhere in this
Agreement or the other Transaction Documents, the Borrower may prepay an

 

			
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amount equal to the Special Prepayment Amount,**. In the event that the Borrower makes
the prepayment contemplated by this Section 1.1(e), then the schedule for the payment of the
remaining outstanding principal balance of the Loan shall be as set forth in Part 2 of
Schedule 2; provided, that the foregoing change in amortization schedule shall be deferred
until**.

     (f) Pro Rata Treatment. Except to the extent otherwise provided herein (including, but
not limited to, as otherwise specified in Sections 1.1(a)(2) and 1.1(c)(ii) above): (a) the
borrowing of the Original Loans from the Original Lenders under Section 1.2 shall be made
from the Original Lenders pro rata according to the amounts of their respective Commitments;
(b) each payment or prepayment of principal of the Loan shall be made for account of the
Lenders pro rata in accordance with the respective unpaid principal amounts of the Loan held
by them (as evidenced by the Notes held by them); and (c) each payment of interest on the
Loan shall be made for account of the Lenders pro rata in accordance with the amounts of
interest on the Loan then due and payable to the Lenders, but must in all respects comply
with the terms of the Mortgage.

     (g) **so long as (i) the Borrower has**, (ii) no Potential Default has occurred and is
continuing, (iii) the Borrower no longer has the right to incur New Loans (including, in the
event that the Borrower relinquishes such right), (iv) **and (v) the remaining Pledged Spare
Parts, after giving effect to such release (and any cure pursuant to Section 3.03 of the
Mortgage), will satisfy each of the Collateral Value Tests, in each case as measured as of
the date when the**, but based on the Current Market Value of such Pledged Spare Parts as of
the most recent Valuation Date. In the event that the Borrower no longer has the right to
incur New Loans (including, in the event that the Borrower relinquishes such right), no New
Loans have been incurred by the Borrower and the **(or such earlier date as the Borrower
notifies the Administrative Agent in writing that it is irrevocably relinquishing its right
to obtain New Loans pursuant to Section 1.1(a)(2)), then the schedule for the payment of the
remaining outstanding principal balance of the Loan shall be as set forth in Part 4 of
Schedule 2.

     B. Section 1.2(a) of the Original Loan Agreement is amended in full to read as follows:

     “Section 1.2. Making the Loan.

     (a) Notice of Borrowing.

     (1) Funding Date. The Original Loan shall be requested by the delivery of a Notice of
Borrowing by the Borrower to the Administrative Agent not later than 4:00 p.m. (New York
City time) on the second Business Day prior to the Funding Date specified in such notice.
The Administrative Agent shall give to each Lender prompt notice thereof. The Notice of
Borrowing shall be irrevocable and binding on the Borrower. The Notice of Borrowing shall
be in writing specifying therein (i) the aggregate amount of the Original Loan to be funded,
and (ii) the proposed Funding Date. Each Lender shall, before 10:00 a.m. (New York City
time) on the scheduled Funding

 

			
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Date, make available for the account of its Lending Office to the Administrative
Agent’s Account, in immediately available funds, the amount of its Commitment. After the
Administrative Agent’s receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article VI as confirmed during a closing conference call pursuant to
which the Administrative Agent or its counsel shall indicate such fulfillment, the
Administrative Agent shall transfer such funds to the escrow account at**.

     (2) New Loan Date. Promptly following the Borrower obtaining a New Loan Commitment,
the Borrower shall notify the Administrative Agent of the same, including the name of the
New Lender, the amount of the New Loan Commitment and the projected New Loan Date (which
shall be a date not less than five (5) Business Days (or such earlier date as may be
acceptable to the Administrative Agent in its sole and absolute discretion) after the date
that the Borrower gives such notice). The increase to the Loan through New Loans shall be
requested by the delivery of a Notice of Borrowing by the Borrower to the New Lender and the
Administrative Agent not later than 4:00 p.m. (New York City time) on the second Business
Day prior to the New Loan Date specified in such notice; provided, however, that no such
Notice of Borrowing may be issued until the New Lender has executed and delivered an NL
Joinder to the Administrative Agent. The Administrative Agent shall give to each Lender
prompt notice thereof. The Notice of Borrowing shall be irrevocable and binding on the
Borrower. The Notice of Borrowing shall be in writing specifying therein (i) the aggregate
amount of the increase to the Loan to be funded, and (ii) the proposed New Loan Date. The
New Lender shall, before 10:00 a.m. (New York City time) on the scheduled New Loan Date,
make available for the account of its Lending Office to the Administrative Agent’s Account,
in immediately available funds, the amount of its New Loan Commitment. After the
Administrative Agent’s receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article VI as confirmed during a closing conference call pursuant to
which the Administrative Agent or its counsel shall indicate such fulfillment, the
Administrative Agent shall transfer such funds to **

          C. Section 1.4 of the Original Loan Agreement is amended in full to read as follows:

     “Section 1.4. Commitment Termination. The Commitment of each Lender other than a New
Lender shall **

          D. Section 2.1(b) of the Original Loan Agreement is amended in full to read as follows:

          “(b) **

          E. Section 2.2(a) of the Original Loan Agreement is amended in full to read as follows:

     “(a) Interest Periods. The first Interest Period shall be the period commencing on the
Funding Date (provided, that in the case of a delayed Funding Date, the date the

 

			
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funds for such Note are made available to the Administrative Agent shall be the
commencement date of such Interest Period pursuant to Section 1.2(b)), except that in
respect of any New Loan, the first Interest Period shall commence on the New Loan Date, and
in all cases such first Interest Period shall end on, but shall exclude, the next Interest
Payment Date (and the LIBOR Rate for such first Interest Period shall be the same as the
LIBOR Rate in effect at such time for the Original Loans), and thereafter each successive
Interest Period shall commence on (and shall include) the last day of the next preceding
Interest Period and shall end on (but shall exclude) the next succeeding Interest Payment
Date, provided however that notwithstanding anything in this Agreement to the contrary, the
final Interest Period shall end on the Maturity Date.”

     F. The Original Loan Agreement is amended by the addition of Section 6.4, to read as follows:

     “Section 6.4. Conditions to New Loans. The obligation of each New Lender to fund the
increase to the Loan in the amount of its New Loan Commitment is subject to the fulfillment,
prior to or on the applicable New Loan Date, of the following additional conditions
precedent:

     (a) The Administrative Agent shall have received a replacement Note for each Lender
other than the New Lenders and a Note for such New Lender (in each case, duly executed by
the Borrower and authenticated by the Collateral Agent) issued to each Lender in an original
principal amount equal to such Lender’s Percentage Share of the Loan and reflecting the
revised amortization schedule applicable to each such Note.

     (b) On the New Loan Date, no event shall have occurred and be continuing, or would
result from the New Loan, which constitutes an Event of Default or a Potential Default.”

     G. Section 9.3 of the Original Loan Agreement is amended in full to read as follows:

     “Section 9.3. Costs and Expenses. The Borrower agrees to pay at or prior to Closing,
after receipt of reasonably detailed invoices, all reasonable and actual costs and expenses
of the initial Lender and each Transaction Agent in connection with the preparation,
execution and delivery of the Transaction Documents and Additional Documents (whether or not
any such Transaction Document or Additional Document is entered into), including, without
limitation the reasonable fees and expenses of (a)**, special counsel to the Lenders, (b)**,
special counsel to the Lenders, and (c)**. The Borrower further agrees to pay on demand (i)
the initial and annual fees, and the reasonable expenses of, the Collateral Agent in
connection with the transactions contemplated hereby, (ii) all reasonable and actual costs
and expenses of each Transaction Agent and the Lenders, if any (including, without
limitation, reasonable counsel fees and expenses), in connection with any New Loan, and
(iii) all reasonable and actual costs and expenses of each Transaction Agent and the
Lenders, if any (including, without limitation, reasonable counsel fees and expenses), in
connection with

 

			
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the enforcement (whether through negotiations, legal proceedings or otherwise) of the
Transaction Documents after the occurrence of an Event of Default (including, without
limitation, reasonable fees and expenses of one counsel for the Collateral Agent and one
counsel for all of the Lenders in connection with the enforcement of their rights under the
Transaction Documents).”

     H. Schedule 1 to the Original Loan Agreement is amended by adding the following terms, to read
as follows:

          ““Expendables Release” is defined in Section 1.1(g) of this Agreement.”

          ““Maximum New Loan Commitment” is defined in Section 1.1(a)(2) of this Agreement.””

          ““New Lender” is defined in Section 1.1(a)(2) of this Agreement.”

          ““New Lender Requests” is defined in Section 1.1(a)(2) of this Agreement.”

          ““New Loan” is defined in Section 1.1(a)(2) of this Agreement.”

          ““New Loan Commitment” is defined in Section 1.1(a)(2) of this Agreement.”

          ““New Loan Date” is defined in Section 1.1(a)(2) of this Agreement.”

          ““NL Joinder” is defined in Section 1.1(a)(2) of this Agreement.”

          ““Original Lender” means General Electric Capital Corporation.”

     ““ Original Loan Agreement” means the Loan Agreement [Spare Parts], dated as of
October 20, 2008, among the Borrower, the Administrative Agent, the Lenders and the
Collateral Agent, as in effect immediately prior to that certain Amendment No.1 to Loan
Agreement [Spare Parts] dated as of December 5, 2008 among the Borrower, the Administrative
Agent, the Lenders and the Collateral Agent becoming effective.”

     ““Original Loans” means Loans advanced by the Original Lender to the Borrower on the
Funding Date.”

          I. The following terms in Schedule 1 to the Original Loan Agreement are amended in full to
read as follows:

     ““Closing” means the time on the Funding Date at which the Loan has been advanced to
the Borrower.”

     ““Commitment” means (i) with respect to each Lender that is a signatory to this
Agreement on the date it is signed, its obligation to fund a portion of the Loan up to the
amount set forth on such Lender’s signature page hereto, (ii) with respect to any Lender
that becomes a party to this Agreement by a Transfer Supplement, its obligation to fund (if
not already funded) a portion of the Loan up to the amount set forth in such Transfer

 

			
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Supplement as the “Assigned Share”, and (iii) with respect to each New Lender, its
obligation to extend New Loans in accordance with its New Loan Commitment; provided that, in
no event shall the aggregate amount of the Commitments of all Lenders exceed the Maximum
Facility Amount.”

     ““Lenders” is defined in the first paragraph of this Agreement, and for avoidance doubt
includes any New Lenders.”

     ““Loan” means the sum of Original Loans and the New Loan; and “Loans” means Original
Loans and New Loans.”

     “Maturity Date” means the date that is the seventy-second (72nd) monthly
anniversary of the Funding Date; provided, however, if the Expendables Release occurs, then
the Maturity Date shall be the sixtieth (60th) monthly anniversary of the Funding
Date.””

     “Required Lenders” **

     J. Part 1 of Schedule 2 (Amortization of the Loan) to the Original Loan Agreement is
amended by adding the following the end of such Schedule:

     “Notwithstanding anything to the contrary set forth in this Agreement (including
Schedule 2), no amendment to this Agreement shall increase the principal amount of the Loan
payable on any date prior to the Maturity Date as compared to the analogous date as set
forth in the Original Loan Agreement.”

     K. Part 2 of Schedule 2 (Amortization of the Loan) to the Original Loan Agreement is
amended in full to read as follows:

“Part 2

     Quarterly principal payments due on the Loan, assuming the Expendables Release occurs:

          **.

     Notwithstanding anything to the contrary set forth in this Agreement (including
Schedule 2), no amendment to this Agreement shall increase the principal amount of the Loan
payable on any date prior to the Maturity Date as compared to the analogous date as set
forth in the Original Loan Agreement.”

          L. Schedule 2 (Amortization of the Loan) to the Original Loan Agreement is amended by adding
a new “Part 3” to read in full as follows:

“Part 3

     Quarterly principal payments due on the Original Loan, assuming the Borrower makes the
Special Prepayment and obtains New Loans shall be:

 

			
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          **

     Notwithstanding anything to the contrary set forth in this Agreement (including
Schedule 2), no amendment to this Agreement shall increase the principal amount of the Loan
payable on any date prior to the Maturity Date as compared to the analogous date as set
forth in the Original Loan Agreement.”

          M. Schedule 2 (Amortization of the Loan) to the Original Loan Agreement is amended by adding
a new “Part 4” to read in full as follows:

“Part 4

     Quarterly principal payments due on the Loan, assuming the Borrower makes the Special
Prepayment, does not obtain New Loans and the Expendables Release does not occur:

          **

          Notwithstanding anything to the contrary set forth in this Agreement (including Schedule 2),
no amendment to this Agreement shall increase the principal amount of the Loan payable on any date
prior to the Maturity Date as compared to the analogous date as set forth in the Original Loan
Agreement.”

          N. Schedule 2 (Amortization of the Loan) to the Original Loan Agreement is amended by adding
a new “Part 5” to read in full as follows:

“Part 5

     Quarterly principal payments due in respect of New Loans (in the aggregate) in the
first twelve Periods shall, at no time, be no less than the amounts calculated below in
respect of each Period:

          **

          with each such scheduled amortization payment being reduced to an amount calculated pursuant
to the following formula:

          **

          Where:

          **.

          Notwithstanding anything to the contrary set forth in this Agreement (including Schedule 2),
no amendment to this Agreement shall increase the principal amount of the Loan payable on any date
prior to the Maturity Date as compared to the analogous date as set forth in the Original Loan
Agreement.”

          Section 2. Amendments to Senior Mortgage.

 

			
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          That certain Spare Parts Mortgage and Security Agreement dated as of October 20, 2008 between
the Borrower and the Collateral Agent (the “Senior Mortgage”) shall be deemed amended upon this
Amendment becoming effective pursuant to Section 4 below as follows:

          A. The first sentence of Section 7.01(c) of the Senior Mortgage shall be deleted in its
entirety; and

          B. The definition of “Expendable Parts Release” set forth in Appendix A to the Senior Mortgage
shall be amended and restated in its entirety to read: ““Expendables Parts Release” has the meaning
given to the term “Expendables Release” in the Loan Agreement.”

          The Borrower and the Collateral Agent hereby agree to enter into a confirmatory amendment to
the Senior Mortgage promptly following this Amendment becoming effective pursuant to Section 4
below in order to document the amendments to the Senior Mortgage set forth in this Section 2.

          Section 3. Amendments to Subordinated Mortgage.

          That certain Subordinated Spare Parts Mortgage and Security Agreement dated as of October 20,
2008 between the Borrower and the Collateral Agent (the “Subordinated Mortgage”) shall be deemed
amended upon this Amendment becoming effective pursuant to Section 4 below as follows:

          A. The first sentence of Section 7.01(c) of the Subordinated Mortgage shall be deleted in its
entirety; and

          B. The definition of “Expendable Parts Release” set forth in Appendix A to the Subordinated
Mortgage shall be amended and restated in its entirety to read: ““Expendables Parts Release” has
the meaning given to the term “Expendables Release” in the Loan Agreement.”

          The Borrower and the Collateral Agent hereby agree to enter into a confirmatory amendment to
the Subordinated Mortgage promptly following this Amendment becoming effective pursuant to Section
4 below in order to document the amendments to the Subordinated Mortgage set forth in this Section
3.

          Section 4. Miscellaneous.

          A. Effectiveness: This Amendment shall become effective upon the making of the
Special Prepayment by the Borrower on or before December 5, 2008, which the Borrower may elect to
do or not to do, at its option.

          B. Effect on Syndication Agreement: Reference is made to the Syndication Agreement
dated as of October 20, 2008 (the “Syndication Agreement”) among the Borrower and General Electric
Capital Corporation (“GECC”). GECC acknowledges that if Borrower

 

			
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makes the Special Prepayment, which the Borrower may elect to do or not to do, at its option,
the Syndication Agreement shall automatically terminate and be of no further force or effect.

          C. Limitation on Amendment: Except as expressly amended hereby, all terms and
provisions of the Loan Agreement remain in full force and effect and are hereby ratified and
confirmed.

          D. Counterparts. This Amendment may be executed in any number of counterparts and by
the parties hereto on separate counterparts. All counterparts of this Amendment executed by the
parties hereto together shall constitute one instrument.

          E. Governing Law. This Amendment is being delivered in the State of New York and
shall in all respects, including all matters of construction, validity and performance, be governed
by, and construed in accordance with, the laws of the State of New York.

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          IN WITNESS WHEREOF, this Amendment No. 1 to Loan Agreement [Spare Parts] has been duly
executed and delivered all as of the date first above written.

	 	 	 	 	 
	 	US AIRWAYS, INC.

 	 
	 	By:  	/s/ Thomas T. Weir
 	 
	 	 	Name:  	Thomas T. Weir 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION

as the Administrative Agent, Collateral Agent and

Original Lender

 	 
	 	By:  	/s/ Ricardo B. Silva
 	 
	 	 	Name:  	Ricardo B. Silva 	 
	 	 	Title:  	Vice President 	 
	 

-S-exv10w53

Exhibit 10.53

EXECUTION COUNTERPART

 

AMENDMENT TO

LOAN AGREEMENT, SECURITY AGREEMENT AND AIRCRAFT MORTGAGE

dated as of October 20, 2008,

between

US AIRWAYS GROUP, INC.,

as Borrower,

certain subsidiaries of the Borrower

and

CITICORP NORTH AMERICA, INC.,

as Administrative Agent

 

 

 

AMENDMENT TO LOAN AGREEMENT, SECURITY AGREEMENT AND AIRCRAFT

 MORTGAGE

          AMENDMENT NO. 3 TO LOAN AGREEMENT, dated as of October 20, 2008, between US AIRWAYS GROUP,
INC., a Delaware corporation (the “Borrower”), certain Subsidiaries of the Borrower
signatory hereto and CITICORP NORTH AMERICA, INC. (“Citicorp”), as administrative agent and
collateral agent for the Lenders (in such capacity, together with its successors and permitted
assigns, the “Administrative Agent”), AMENDMENT NO. 1 TO SECURITY AGREEMENT, dated as of
October 20, 2008, between the Borrower, certain Subsidiaries of the Borrower signatory hereto and
the Administrative Agent and, AMENDMENT NO. 1 TO AIRCRAFT MORTGAGE, dated as of October 20, 2008,
between the Borrower, certain Subsidiaries of the Borrower signatory hereto and the Administrative
Agent (collectively, the “Amendment”).

          WHEREAS, the Borrower, the direct and indirect Subsidiaries of the Borrower party thereto, the
Lenders and the Administrative Agent entered into the Loan Agreement, dated as of March 23, 2007
(as amended, supplemented or otherwise modified prior to the date hereof, the “Loan
Agreement”);

          WHEREAS, the Borrower, the direct and indirect Subsidiaries of the Borrower party thereto and
the Administrative Agent entered into the Security Agreement, dated as of March 23, 2007 (as
amended, supplemented or otherwise modified prior to the date hereof, the “Security
Agreement”);

          WHEREAS, the Borrower, the direct and indirect Subsidiaries of the Borrower party thereto and
the Administrative Agent entered into the Aircraft, Engines, Propellers and Spare Parts Mortgage
and Security Agreement, dated as of March 23, 2007 (as amended, supplemented or otherwise modified
prior to the date hereof, the “Aircraft Mortgage”);

          WHEREAS, the Borrower wishes to amend certain provisions of the Loan Agreement, the Security
Agreement and the Aircraft Mortgage as set forth herein;

          WHEREAS, at the request of the Borrower, the Requisite Lenders have delivered consent letters,
each in the form of Exhibit A hereto (a “Lender Consent Letter”), to the Administrative
Agent consenting to the amendments as set forth herein in their entirety; and

          NOW, THEREFORE, in consideration of the mutual agreements contained herein, the parties hereto
agree as follows:

S-1

 

ARTICLE I

DEFINITIONS

          Section 1.1 Definitions Except as otherwise defined in this Amendment, terms defined in Section 1.1 of the Loan
Agreement are used herein as defined therein.

ARTICLE II

AMENDMENTS TO THE LOAN AGREEMENT, THE SECURITY AGREEMENT AND THE AIRCRAFT MORTGAGE

 THE AIRCRAFT MORTGAGE

          Section 2.1 Amendments to Definitions The following definitions contained in Section 1.1 of the Loan Agreement are hereby amended as
follows as of the Effective Date:

               (a) Airbus Financing Letter Agreement. The definition of Airbus Financing Letter Agreement is
hereby amended and restated in its entirety as follows:

               ““Airbus Financing Letter Agreement” means, collectively, (i) the A350 XWB
Financing Letter Agreement, dated as of October 2, 2007, among US Airways, AWA, the
Borrower, and AVSA, S.A.R.L., or any financing pursuant thereto, as amended, restated,
supplemented or modified from time to time, (ii) the A320 Family Financing Letter Agreement,
dated as of October 2, 2007, among US Airways, AWA, the Borrower, and AVSA, S.A.R.L., or any
financing pursuant thereto, as amended, restated, supplemented or modified from time to
time, and (iii) the A321 Junior Financing Letter Agreement, dated as of October 20, 2008,
among US Airways and Airbus S.A.S., or any financing pursuant thereto, as amended, restated,
supplemented or modified from time to time.”

               (b) Asset Sale. The definition of Asset Sale is hereby amended by (i) deleting the
parenthetical “(including available seat miles and frequent flier miles (including dividend and
flightfund miles))” from clause (a) of the proviso; (ii) deleting the word “or” immediately prior
to clause (l) thereof; and (iii) adding “; or (m) the sale, transfer or other disposition of
available seat miles and frequent flier miles (including dividend miles)” after the word “amounts”
at the end of clause (l) thereof.

               (c) Collateral Release Value. The definition of Collateral Release Value is hereby amended by
adding the following proviso after the parenthetical at the end of the definition: “;
provided that with respect to any Specified Transaction, the Collateral Release
Value is the minimum amount necessary to satisfy the applicable Specified Transaction
Prepayment Condition with respect to such Specified Transaction”.

 

 

               (d) Excess Cash Flow. The definition of Excess Cash Flow is hereby amended by amending and
restating clause (iii)(A) thereof as follows:

          “(iii) the sum of (A) payments by the Obligors of scheduled principal and interest
with respect to the consolidated Indebtedness of the Borrower (but excluding Indebtedness
that is solely the obligation of any Subsidiary that is not an Obligor) during such
period, to the extent such payments are not prohibited under this Agreement”.

               (e) Excluded Cash. The definition of Excluded Cash is hereby amended by (i) deleting the word
“or” at the end of clause (vii) thereof; (ii) replacing the period at the end of clause (viii)
thereof with “; or” and (iii) adding the following new clauses (ix), (x) and (xi):

          “(ix) subject to Liens securing reimbursement obligations in respect of letters of
credit issued for the account of any Obligor for the benefit of any credit card processor,
so long as the aggregate amount of such cash and Cash Equivalents does not exceed 115% of
the maximum available amount under the secured letters of credit;

          (x) subject to Liens securing the GECAS Financing to cure collateral deficiencies
thereunder; or

          (xi) proceeds of any property subject to a Lien in favor of a Person other than the
Administrative Agent to the extent the Lien on such property is permitted hereunder or cash
and cash equivalents from time to time in possession of a third party pursuant to a
mortgage, indenture or similar instrument that the Obligors are permitted to enter into
hereunder.”

               (f) Excluded Property — Leases. The definition of Excluded Property is hereby amended by
adding the following immediately after the end of clause (i)(3) thereof: “, in each case together
with improvements and fixtures located on such leased real property”.

               (g) Excluded Property — Aircraft Related Equipment. The definition of Excluded Property is
hereby amended by (i) deleting the word “Spare” in the parenthetical in clause (ii) thereof and
(ii) adding the following immediately after the words “Supporting Route Facilities” in clause (ii)
thereof: “and any rights of any Obligor as lessee, licensee, lessor or licensor with respect to a lease or license of any of the foregoing and
any other assets customarily securing Indebtedness used to acquire, finance or refinance such
Aircraft Related Equipment, Gates, Slots or Supporting Route Facilities such as all books, records,
logs,

 

 

manuals, data and inspection, modification and overhaul records, related intellectual
property (whether owned or leased) or the like and, in the case of spare parts, spare part tracking
systems and any and all computer programs and inventory management systems (including but not
limited to all source codes and user interfaces associated therewith as well as all date files used
as input thereto and data files or other records generated thereby) used to track and manage the
location, use, and maintenance status of spare parts and appliances, in each case”.

               (h) Excluded Property — Property Subject to a Lien. The definition of Excluded Property is
hereby amended by deleting the phrases “on the Closing Date” and “, or following the Closing Date,”
in clause (iii) thereof.

               (i) Excluded Property — Engine and Simulator Purchase Agreements. The definition of Excluded
Property is hereby amended by adding the following immediately after the words “aircraft purchase
agreements” in clause (vii) thereof: “, engine purchase agreements, Flight Simulator purchase
agreements and, to the extent entered into after the Closing Date, other agreements for the
purchase of Aircraft Related Equipment, in each case”.

               (j) Excluded Property — Property Pledged or Sold in Specified Transactions. The definition
of Excluded Property is hereby amended by (i) deleting the word “and” immediately prior to clause
(viii) thereof and (ii) adding the following at the end of clause (viii) thereof: “; (ix) any
property sold, transferred, disposed of, or pledged or financed in connection with a Specified
Transaction (it being understood that such property (and all subsequently acquired property of the
same type) shall remain Excluded Property regardless of whether it is subsequently released from
such Specified Transaction)”.

               (k) Flight Simulators. The definition of Flight Simulators is hereby amended by adding “,
whether now owned or hereafter acquired” immediately after the word “Obligor”.

               (l) Gates. The definition of Gates is hereby amended and restated in its entirety as follows:

          ““Gates” means all of the right, title, privilege, interest and authority of
any Obligor with respect to premises used for the purpose of holdroom seating and boarding
space and related aircraft parking positions to enplane and deplane passengers at any
airport or terminal in the United States or in any foreign country, at which such Obligor,
or any sublessee of such Obligor, as the case may be, conducts scheduled operations, arising
under any lease, usufruct, use agreement, facility agreement or similar agreement governing
the right to use that portion of the premises demised or
covered by such lease, usufruct, use agreement, facility agreement or similar
agreement, whether now owned or hereafter acquired.”

 

 

               (m) Loan. The definition of Loan is hereby amended by deleting “(a)” immediately after the
words “Section 2.1”.

               (n) Net Condemnation Proceeds. The definition of Net Condemnation Proceeds is hereby amended
by inserting “, or having a Lien on,” immediately after the words “beneficial interest in” in
clause (ii)(c) thereof.

               (o) Net Insurance Proceeds. The definition of Net Insurance Proceeds is hereby amended by
inserting “, or having a Lien on,” immediately after the words “beneficial interest in” in clause
(ii)(c) thereof.

               (p) Replacement Secured Financing. The definition of Replacement Secured Financing is hereby
amended by adding the following immediately after the word “transaction” the last time it appears
in the definition: “; provided that the GECAS Financing and any other Specified
Transaction that is structured as a financing transaction that is secured by any of the Obligors’
Appraised Collateral or Accounts shall be deemed to constitute a Replacement Secured Financing so
long as the applicable Specified Transaction Prepayment Condition is satisfied with respect
thereto.”

               (q) Routes. The definition of Routes is hereby amended and restated in its entirety as
follows:

          ““Routes” means a right, license, permit, or other authorization held by the
Borrower or any other Obligor, whereby the Borrower, or, if applicable, such other Obligor
is entitled or permitted to fly between two or more points, either within one country or
between two countries, including without limitation, applicable designations pursuant to any
transport agreement between the United States and a foreign government, frequencies,
exemption and certificate authorities, Fifth Freedom Rights and “behind/beyond rights”,
whether now owned or hereafter acquired.”

               (r) Supporting Route Facilities. The definition of Supporting Route Facilities is hereby
amended and restated in its entirety as follows:

          ““Supporting Route Facilities” means the takeoff and/or landing rights (which
are not Slots), ticket counters, office space, terminals, maintenance facilities and baggage
claim areas at each airport which are necessary to operate a Route held by the Borrower or
any other Obligor, whether now held or hereafter acquired.”

               Section 2.2 New Definitions. The following new definitions are hereby added to
Section 1.1 in proper alphabetical order:

 

 

               (a) Barclays Financing. “Barclays Financing” America West Co-Branded Card Agreement,
dated January 25, 2005, between US Airways and Barclays as amended, restated, supplemented or
modified from time to time.

               (b) Engines. “Engines” means any aircraft engines owned by an Obligor, whether now
owned or hereafter acquired.

               (c) GECAS Financing. “GECAS Financing” means, collectively, the Senior Secured Spare
Parts Financing Facility, dated as of October 20, 2008 and the Senior Secured Spare Engines
Financing Facility, dated as of October 20, 2008, to be entered into with General Electric Capital
Corporation which financing facilities shall be secured by, among other things, spare parts
(including all rotables, repairables, expendables and appliances), spare engines (including all
appliances) and other property customarily securing spare parts and spare engines financings,
including, among other things, computer software, all books, records, logs, manuals, data and
inspection, modification and overhaul records relating to such spare parts or spare engines,
insurance, requisition and condemnation proceeds relating to such spare parts and spare engines,
warranty assignments, purchase agreement assignments and the like and proceeds of the foregoing.

               (d) Other Specified Transaction. “Other Specified Transaction” means any sale,
transfer or other disposition of Appraised Collateral and/or Accounts and related assets or any
financing secured by any such assets that previously secured the Obligations (whether pursuant to a
loan agreement, note purchase agreement, credit facility, indenture, mortgage, sale and leaseback
transaction or otherwise) so long as, in each case, such transaction is consummated on or after the
Third Amendment Effective Date and on or before September 30, 2009 and at the time of the closing
of any such transaction the Borrower has satisfied the Other Specified Transaction Prepayment
Condition.

               (e) Other Specified Transaction Prepayment Condition. “Other Specified
Transaction Prepayment Condition” means, with respect to any Other Specified Transaction, the
requirement that at the time of the consummation of such Other Specified Transaction, the Borrower
shall have delivered to the Administrative Agent, for the ratable benefit of the Lenders, an amount
in cash equal to not less than 75% of the aggregate Appraised Value of the Appraised Collateral
sold, transferred, disposed of, pledged or financed in such Other Specified Transaction (or in the
case of any sale, transfer, disposition or financing of Accounts, 75% of the Collateral Value of
all Eligible Accounts sold, transferred, disposed of or pledged in such transaction), which amount
shall be applied to prepay the Loan in accordance with Section 2.5.

               (f) Primary Specified Transaction. “Primary Specified Transaction” means the GECAS
Financing so long as such transaction is consummated on the Third Amendment Effective Date and at
the time of the closing of any such transaction the Borrower has satisfied the Primary Specified
Transaction Prepayment Condition.

 

 

               (g) Primary Specified Transaction Prepayment Condition. “Primary Specified Transaction
Prepayment Condition” means the requirement that at the time of the consummation of the Primary
Specified Transaction, the Borrower shall have prepaid the Loan in an aggregate amount of not less
than $400 million.

               (h) Specified Transaction. “Specified Transaction” means the Primary Specified
Transaction and any Other Specified Transaction.

               (i) Specified Transaction Prepayment Condition. “Specified Transaction Prepayment
Condition” means (i) in the case of the Primary Specified Transaction, the Primary Specified
Transaction Prepayment Condition and (ii) in the case of any Other Specified Transaction, the Other
Specified Transaction Prepayment Condition.

               (j) Third Amendment. “Third Amendment” means the Amendment to Loan Agreement,
Security Agreement and Aircraft Mortgage, dated as of October 20, 2008, among the Administrative
Agent, the Borrower and certain Subsidiaries of the Borrower party thereto.

               (k) Third Amendment Effective Date. “Third Amendment Effective Date” means the
“Effective Date” as defined in the Third Amendment.

          Section 2.3 Further Amendments.

               (a) Notice of Voluntary Prepayments. Section 2.4(a) is hereby amended by adding the following
parenthetical immediately after the words “fifteen (15) days,”: “(or three (3) days, in the case
of a prepayment in connection with the Primary Specified Transaction and five (5) days, in case of
a prepayment in connection with an Other Specified Transaction)”.

               (b) Mandatory Prepayments — Replacement Secured Financings. Section 2.5(a) is hereby amended
by adding the following proviso to the end of the first sentence thereof: “provided that
if the Replacement Secured Financing is also a Primary Specified Transaction or Other Specified
Transaction, the amount required to be prepaid pursuant to this Section 2.5(a) shall be limited to
the minimum amount, if any, necessary to be prepaid to satisfy the Primary Specified Transaction
Prepayment Condition (in the case of the Primary Specified
Transaction) or the Other Specified Transaction Prepayment Condition (in the case of an Other
Specified Transaction).”

               (c) Mandatory Prepayments — Asset Sales. Section 2.5(b) is hereby amended by adding the
following proviso to the end of the first paragraph thereof: “provided,

 

 

further, however that if the Asset Sale is also a Primary Specified Transaction or an Other Specified
Transaction, the amount required to be prepaid pursuant to this Section 2.5(b) shall be limited to
the minimum amount, if any, necessary to be prepaid to satisfy the Primary Specified Transaction
Prepayment Condition (in the case of the Primary Specified Transaction) or the Other Specified
Transaction Prepayment Condition (in the case of an Other Specified Transaction).”

               (d) Additional Obligors; Collateral. Section 5.8(d) is hereby amended by (i) adding the words
“or additional assets are being deposited or pledged in accordance with the definition of Other
Specified Transaction Prepayment Condition” immediately following the words “Section 5.8(c)” and
(ii) adding the words “or additional assets” immediately after the words “Cure Collateral” in the
second place those words appear in Section 5.8(d).

               (e) Permitted Liens — PDP Payments. Section 6.1(a)(ii) is hereby amended by adding the words
“engines, Flight Simulators and other Aircraft Related Equipment” immediately after the word
“aircraft” in clause (E) thereof.

               (f) Permitted Liens — Insurance and Requisition Proceeds; Standard Warranties. Section
6.1(a)(ii) is hereby further amended by (i) replacing the term “Aircraft” with the term “aircraft”
each place it appears in clause (H) thereof. In addition, Section 6.1(a)(iii) is hereby amended
and restated in its entirety as follows:

          “Liens on any insurance and requisition proceeds received with respect to any aircraft,
engine, Flight Simulator or other Aircraft Related Equipment and the benefit of all standard
warranties related thereto, in each case to the extent that the aircraft, engine, Flight
Simulator or other Aircraft Related Equipment does not constitute Collateral”.

               (g) Permitted Liens — Replacement Secured Financing. Section 6.1(a)(ix) is hereby amended by
deleting the words “with the Net Issue Proceeds of” and replacing such words with “in connection
with”.

               (h) Permitted Liens — Second Lien. Section 6.1(a)(xiii) is hereby amended and restated in
its entirety as follows:

          “Liens on any of the Collateral securing Indebtedness or other obligations so long as
they are junior to the Liens in favor of the Administrative Agent securing the Obligations
pursuant to an intercreditor agreement containing the terms set forth on Exhibit K, it being
understood and agreed that the Administrative Agent is authorized to execute and deliver
such an intercreditor agreement on behalf of itself, the

 

 

          Lenders and the other Secured Parties (without the need for any further consent or action by any Lender or any other
Secured Party)”.

               (i) Permitted Liens — No Restrictions on Subsidiary Distributions. Section 6.1(b) is hereby
amended by deleting the word “or” immediately before clause (v) thereof, and adding the following
after the end of clause (v) and before the phrase “, no Obligor will, nor will it permit any other
Obligor to, create or otherwise cause to exist any Payment Restriction with respect to any
Subsidiary of any Obligor”: “or (vi) for restrictions on property or assets subject to a Lien
permitted hereunder”.

               (j) Restricted Payments  — Prepayments. Section 6.3(g) is hereby amended by replacing the
word “Borrower” the first time it appears with the word “Obligors”.

               (k) Minimum Unrestricted Cash. Section 6.4(c) is hereby amended by adding the following
proviso immediately after “$1,250,000,000”: “; provided that the minimum amount of
Unrestricted Cash required to be maintained pursuant to this Section 6.4(c) shall be reduced on a
dollar-for-dollar basis for each dollar of the Loan prepaid in connection with a Specified
Transaction until the minimum Unrestricted Cash is $750,000,000, at which point there shall be no
further reductions”.

               (l) No Further Negative Pledge. Section 6.11 is hereby amended by (i) replacing the words
“Asset Sale” with the words “asset sale” in clause (a) thereof and (ii) adding the following
immediately after the words “Airbus Financing Letter Agreement” in clause (c) thereof: “, the
GECAS Financing”.

               (m) Asset Sales. Section 6.13 is hereby amended by adding the following sentence at the end
thereof: “Notwithstanding the foregoing, to the extent that any Specified Transaction is
structured as an Asset Sale, (i) the Borrower or any Obligor shall be permitted to consummate such
Asset Sale without regard to the provisions of this Section 6.13 so long as the applicable
Specified Transaction Prepayment Condition is satisfied and (ii) the Net Cash Proceeds received
from any such Asset Sale shall not count against the $250,000,000 cap in clause (i) of this Section
6.13.”

               (n) Events of Default — Cross Default. Section 7.1(b) is hereby amended by adding the words
“or the Barclays Financing” immediately after the words “Juniper Financing” each place they appear.

               (o) Events of Default — Default under Agreement. Section 7.1(c) is hereby amended and
restated in its entirety as follows:

 

 

          “(c) failure by an Obligor (1) to perform or comply with any term or condition
contained in Section 5.2, Section 5.10 or Article VI of this Agreement (other than Section
6.4) or (2) to perform or comply with the provisions set forth in Section 6.4(a), except
that, in the case of any such failure to perform or comply arising by reason of a
fluctuation in the value of all cash and other investments in accounts subject to the
Control Agreements referred to therein, no Event of Default shall occur unless such failure
to perform or comply shall not have been remedied or waived within 5 Business Days after the
date of such failure to perform or comply”.

               (p) Exhibit K. Exhibit K is hereby amended and restated in the form of Exhibit B hereto.

          Section 2.4 Amendments to the Security Agreement.

               (a) Excluded Assets — Aircraft Related Equipment. Clauses (i) and (ii) of the definition of
Excluded Assets are hereby amended and restated in their entirety as follows:

          (i) any aircraft, airframes, aircraft engines or propellers and parts and appliances
attached thereto, all spare parts and appliances relating to any aircraft, airframes,
aircraft engines or propellers, any rights of any Obligor as lessee, licensee, lessor or
licensor with respect to a lease or license of any of the foregoing any other assets
customarily securing Indebtedness used to acquire, finance or refinance such assets such as
all books, records, logs, manuals, data and inspection, modification and overhaul records,
related Intellectual Property (whether owned or leased) and, in the case of spare parts,
spare part tracking systems and any and all computer programs and inventory management
systems (including but not limited to all source codes and user interfaces associated
therewith as well as all date files used as input thereto and data files or other records
generated thereby) used to track and manage the location, use, and maintenance status of
spare parts and appliances and related purchase agreements and warranty rights and the like,
and all assets of the type specified in Sections 2.1(a) through (j) of the Aircraft
Mortgage, in each case whether now owned or hereafter acquired, including all Airframes,
Engines, Propellers and Spare Parts (each as defined in the Aircraft Mortgage);

          (ii) any Slots, Gates, Routes and Supporting Route Facilities (each as defined in the
Loan Agreement)` now held or owned or hereafter acquired by any of the Grantors;

               (b) Excluded Assets — Flight Simulators. Clause (vii) of the definition of Excluded Assets
is hereby amended and restated as follows:

          (vii) any Flight Simulator (other than any Flight Simulator described on part (a) of
Schedule I hereto and any other Flight Simulator specifically

 

 

identified and subjected to the Lien hereof pursuant to a supplement hereto) and, all replacements and substitutions
therefor and any other assets customarily securing Indebtedness used to acquire, finance or
refinance Flight Simulators, such as all records, logs and other documents and the like at
any time maintained with respect to the foregoing, all purchase agreements and warranty
rights with respect to any of the foregoing, all Intellectual Property embedded in or used
primarily with respect thereto, all rents, issues, profits, revenues and other income
therefrom, and all proceeds thereof.

               (c) Excluded Assets — Leased Property. Clause (viii) of the definition of Excluded Assets is
hereby amended by inserting the following immediately after the word “material” at the end thereof:
“and any fixtures and improvements located on the leased premises”.

               (d) Excluded Assets — Liens. The definition of Excluded Assets is hereby amended by deleting
the words “on the Closing Date” in clause (ix) thereof.

               (e) Excluded Assets — Tempe Property, CFCs, Aircraft Purchase Agreements, Aircraft Related
Equipment, Property Subject to Specified Transactions, Proceeds. (i) clause (xi) of the definition
of Excluded Assets is hereby amended by deleting the word “and” at the end thereof; (ii) clause
(xii) of the definition of Excluded Assets is hereby amended by replacing the period at the end
thereof with a semicolon; and (iii) the following new clauses (xiii) through (xviii) are added to
the definition of Excluded Assets:

          (xiii) the Tempe Property and any Investments permitted under Section 6.2(xiii) of
the Loan Agreement;

          (xiv) 35% of the Voting Stock of Subsidiaries of the Grantors that are CFCs;

          (xv) aircraft purchase agreements, engine purchase agreements, Flight Simulator
purchase agreements and, to the extent entered into after the Closing Date, other
agreements for the purchase of Aircraft Related Equipment, in each case which by their
terms are not assignable;

          (xvi) all property described in clause (ii) of the definition of Excluded Property
that is acquired after the Closing Date (other than Ground Service Equipment, it being
understood that Ground Service Equipment shall be included in Pledged Equipment and
shall constitute Collateral whether now owned or hereafter acquired);

 

 

               (xvii) from and after the consummation of a Specified Transaction, all property
sold, transferred, disposed of or pledged or financed in connection with such Specified
Transaction (and all subsequently acquired property of the same type) regardless of
whether such property remains subject to such Specified Transaction; and

               (xviii) Proceeds of the foregoing.

               (f) Flight Simulator. The definition of Flight Simulator is hereby amended and restated in
its entirety as follows:

          “Flight Simulators” has the meaning set forth in the Loan Agreement.

          Section 2.5 Amendments to the Aircraft Mortgage.

               (a) Grant of Security Interest. The proviso immediately following the first sentence of
Section 2.1 is hereby amended by inserting immediately following “Section 2.1,” the first time such
section reference appears: “(A) from and after the Third Amendment Effective Date, and without
limiting the definition of Engines or the provisions of Section 3.5(a) to (e) hereof, Collateral
shall not include any estate, right, title or interest of (x) US Airways (but, except as provided
in clause (y) and (z) below, shall continue to include the right, title and interest of each other
Grantor) in Spare Parts, Released Engines identified as being owned on Schedule V hereto by US
Airways (or formerly owned by America West Airlines, LLC) or any Contract Rights, Records,
insurance proceeds, condemnation proceeds or monies or securities related thereto, (y) PSA in
Released Engines identified as being owned on Schedule V hereto by PSA or any Contract Rights,
Records, insurance proceeds, condemnation proceeds or monies or securities related thereto and (z)
America West Airlines, LLC (formerly known as America West Airlines Inc.), if any, in Spare Parts
and or Released Engines formerly owned by it and currently owned by US Airways or any Contract
Rights, Records, insurance proceeds, condemnation proceeds or monies or securities, if any, related
thereto and (B)”.

               (b) Appendix A — Released Engines. The following new definitions are hereby added to
Appendix A in proper alphabetical order:

               “Released Engines” means the engines listed on Schedule V hereto.”

               (c) Schedule V. Schedule V is to be added to the Aircraft Mortgage in the form of Exhibit C
hereto.

 

 

ARTICLE III

LENDER CONSENT

     Each Lender executing a Lender Consent Letter and providing it to the Administrative Agent
hereby consents to and authorizes (a) this Amendment and the amendments to the Loan Agreement
contained herein, including the terms, conditions, and forms of the exhibits hereto, (b) the
amendments to the Security Agreement and Aircraft Mortgage contained herein, including the terms,
conditions and forms of the exhibits and schedules thereto, (c) the Administrative Agent to release
any Liens on assets not constituting Collateral or any assets sold, transferred, disposed of,
pledged or financed in any Specified Transaction, including after giving effect to this Amendment,
and to execute and file such documents, instruments and agreements (including releases under the
Aircraft Mortgage) necessary or desirable to effectuate such release and (d) the Administrative
Agent to execute and perform an intercreditor agreement on terms not inconsistent with those set
forth in Exhibit B hereto.

ARTICLE IV

REPRESENTATION AND WARRANTIES

          Section 4.1 Representations and Warranties. The Borrower represents and warrants to each of the parties
to the Loan Agreement that (a) the execution and delivery by the Borrower of this Amendment have
been duly authorized by the Borrower and, when executed and delivered, this Amendment will
constitute the valid, legally binding and (subject to general equitable principles, insolvency,
liquidation, reorganization and other laws of general application relating to creditors’ rights or
claims or the concepts of materiality, reasonableness, good faith and fair dealing) enforceable
obligation of the Borrower, (b) no Default or Event of Default has occurred and is continuing on
the date hereof and (c) all written information that has been or will hereafter be made available
to the Administrative Agent, any Lender or any potential Lender by or on behalf of the Borrower,
its subsidiaries, any of its affiliates or any of their respective representatives in connection
with this Amendment in respect of the Borrower, its subsidiaries and its affiliates is and will be,
when taken as a whole and in light of the circumstances under which such information was provided,
complete and correct in all material respects at the time provided and does not and will not, when
taken as a whole and in light of the circumstances under which such information was provided, at
the time provided, contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained therein not misleading in light of the
circumstances under which such statements were or are made; provided that with respect to projected
financial information contained in any such document or furnished to any party hereto by or on
behalf of the Borrower, the Borrower represents only that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time, it being recognized that such
projections as to future events are not to be viewed as facts and that actual results during the
period or periods covered thereby may differ from the projected results.

 

 

ARTICLE V

EFFECTIVENESS

          Section 5.1 Effectiveness. This Amendment shall become effective upon the satisfaction of all of the
following conditions precedent (the date of satisfaction of such conditions being referred to
herein as the “Effective Date”):

               (a) The Administrative Agent shall have received a counterpart signature page of this
Amendment duly executed by each of the Obligors.

               (b) The Requisite Lenders shall have consented to this Amendment, by executing a Lender
Consent Letter.

               (c) The Primary Specified Transaction shall be consummated on the Effective Date immediately
following the effectiveness of this Amendment.

               (d) The Administrative Agent shall have received (i) reimbursement of its reasonable,
out-of-pocket expenses incurred in connection with this Amendment, (ii) for the account of each
Lender that provides a Lender Consent Letter on or before midnight New York time on October 17,
2008, an amendment fee equal to 1.5% of such Lender’s outstanding Loans as at 9:00 a.m. New York
time on the Effective Date (and prior to any prepayment of Loans made on such date), (iii) for the
account of each Lender that provides a Lender Consent Letter after midnight New York time on
October 17, 2008 and before 5:00 p.m. on October 20, 2008, an amendment fee equal to 0.75% of such
Lender’s outstanding Loans as at 9:00 a.m. New York time on the Effective Date (and prior to any
prepayment of Loans made on such date) and (iv) all other fees payable by the Borrower pursuant to
the Fee Letter, dated as of October 2, 2008, between Citigroup Global Markets Inc. and the
Borrower.

ARTICLE VI

MISCELLANEOUS

          Section 6.1 Miscellaneous. The Loan Agreement, the Security Agreement, the Aircraft Mortgage the SGR
Security Agreement and all other Loan Documents shall remain unchanged (except as provided in
Article II hereof) and in full force and effect. No amendments to the Security Agreement affect the
liens granted or purported to be granted or required to be granted under the Aircraft Mortgage, the
SGR Security Agreement or the Leasehold Mortgage, Security Agreement, Assignment of Rents and
Leases and Fixture Filing (Pennsylvania) dated as of March 21, 2007 among US Airways, Inc. and the
Administrative Agent. This Amendment may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument, and any of the parties hereto may
execute this Amendment by signing

 

 

any such counterpart. This Amendment shall be governed by, and construed in accordance with, the
law of the State of New York. Each reference to the Loan Agreement, the Security Agreement and the
Aircraft Mortgage in the Loan Documents shall be deemed to be a reference to the Loan Agreement,
Security Agreement or Aircraft Mortgage (as applicable) as amended hereby.

[Remainder of page intentionally left blank]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	US AIRWAYS GROUP, INC.,
 as Borrower	 	 
	 	 		 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas T. Weir	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas T. Weir	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	US AIRWAYS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas T. Weir	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas T. Weir	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	AMERICA WEST AIRLINES, LLC (as successor to	 	 
	 	 	AMERICA WEST AIRLINES, INC.)	 	 
	 	 	
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas T. Weir	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas T. Weir	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	AMERICA WEST HOLDINGS, LLC (as successor to	 	 
	 	 	AMERICA WEST HOLDINGS CORPORATION)	 	 
	 	 		 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas T. Weir	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas T. Weir	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	MATERIAL SERVICES COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Caroline B. Ray	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Caroline B. Ray	 	 
	 

	 	Title:
	 	 Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	PSA AIRLINES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Keith Houk	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Keith Houk	 	 
	 

	 	Title:
	 	 President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PIEDMONT AIRLINES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Caroline B. Ray	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Caroline B. Ray	 	 
	 

	 	Title:
	 	 Secretary	 	 

 

 

	 	 	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.,	 	 
	 	 	as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James J. McCarthy	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James J. McCarthy	 	 
	 

	 	Title:
	 	Managing Director and Vice President	 	 

 

 

Exhibit A

FORM OF LENDER CONSENT

CONSENT

Dated as of October ___, 2008

          Reference is hereby made to the $1,600,000,000 Loan Agreement dated as of March 23, 2007 (as
amended, modified and supplemented and in effect from time to time, the “Loan Agreement”),
by and among US Airways Group, Inc., as borrower, its subsidiaries from time to time party thereto,
the several lenders from time to time party therto and Citicorp North America, Inc., as
administrative agent and collateral agent (the “Agent”) for the Lenders. Capitalized terms
used but not defined herein have the meaning given to such terms in the Loan Agreement (as amended
by the Amendment).

          The undersigned, as a Lender under the Loan Agreement, hereby (a) consents to an Amendment to
Loan Agreement, Security Agreement and Aircraft Mortgage substantially in the form of Exhibit A
hereto (the “Amendment”) and consents to the execution, delivery and performance by the
Agent, on behalf of the Lender, of the Amendment, (b) authorizes the Agent to release any Liens on
assets not constituting Collateral or any assets sold, transferred, disposed of, pledged or
financed in any Specified Transaction, including after giving effect to the Amendment, and to
execute and file such documents, instruments and agreements (including releases under the Aircraft
Mortgage) necessary or desirable to effectuate such release or as more fully provided in Article
III of the Amendment and (c) the Agent to execute, deliver and perform an intercreditor agreement
on terms not inconsistent with those set forth in Exhibit B of the Amendment.

          This consent shall terminate and be of no further force or effect if the Effective Date of the
Amendment does not occur on or before November 14, 2008.

          Print Name of Institution:                                         

	 	 	 	 	 
	 	By         
               
                

     Title:

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A TO CONSENT

[see attached]

 

 

Exhibit B

EXHIBIT K

TERMS OF LIEN SUBORDINATION

	(i)	 	the Lenders will have exclusive rights to exercise, and a block on the ability of the lenders
under the second lien facility (the “Junior Lienholders”) to exercise lien-related rights and
remedies until after the expiration of a standstill period of 180 days and thereafter so long
as the Lenders have commenced the exercise of remedies;

	(ii)	 	the Junior Lienholders will not object to the amount, enforceability or priority of the
Lenders’ claims or liens and will acknowledge that the Lenders’ senior obligations for
purposes of the intercreditor agreement will include post petition interest, whether or not
allowed;

	(iii)	 	the Junior Lienholders will not object to (or support others in objecting to) a
“debtor-in-possession” financing or use of cash collateral;

	(iv)	 	the Junior Lienholders will not object to the Lenders’ adequate protection, nor will the
Junior Lienholders seek adequate protection in the form of cash payments without the consent
of the Lenders; provided that, Junior Lienholders shall be entitled to obtain replacement
liens on the Collateral if the Lender’s first obtain a replacement lien on such Collateral so
long as the Junior Lienholders’ lien is subordinate to the Lender’s lien on at least the same
terms hereof;

	(v)	 	the Junior Lienholders will not object, and will be deemed to have consented to (including
for purposes of Section 363(f) of the Bankruptcy Code), any sale or disposition of the
Collateral under the Loan Documentation consented to by the Lenders whether in a consensual
sale or disposition, upon enforcement of rights outside of bankruptcy, in any bankruptcy
proceeding or otherwise, and the Junior Lienholders will be deemed to have released their
liens on such assets (but shall retain their lien on the sale proceeds thereof subject to all
rights of the Lenders to such proceeds);

(vi)    the Junior Lienholders shall retain the same rights as any unsecured creditor;

	(vii)	 	the Lenders and the Junior Lienholders shall have separate grants of security and vote as
separate classes on any plan of reorganization in connection with any bankruptcy proceeding;

	(viii)	 	the documentation with respect to the second lien facility will not be amended in certain
respects without the consent of the Lenders; and

	(ix)	 	No provisions inconsistent with the terms of this Exhibit shall be included in any
documentation related to the Junior Lienholders’ facilities.

 

 

Exhibit C

SCHEDULE V

RELEASED ENGINES

SCHEDULE OF RELEASED ENGINES — PSA Airlines

	 	 	 	 	 
	Manufacturer	 	Model	 	Serial Number
	General Electric
	 	CF34-3B1
	 	E950494
	General Electric
	 	CF34-8C1
	 	E965668

SCHEDULE OF RELEASED ENGINES — US Airways

	 	 	 	 	 	 	 
	Manufacturer	 	Model	 	Serial Number
	Pratt & Whitney
	 	PW4168A
	 	 	733466	 
	Pratt & Whitney
	 	PW4168A
	 	 	733486	 
	Pratt & Whitney
	 	PW4168A
	 	 	733514	 
	Rolls Royce
	 	RB211-535E4
	 	 	30549	 
	Rolls Royce
	 	RB211-535E4
	 	 	30591	 
	Rolls Royce
	 	RB211-535E4
	 	 	30921	 
	Rolls Royce
	 	RB211-535E4
	 	 	31202	 
	Rolls Royce
	 	RB211-535E4
	 	 	31411	 
	Rolls Royce
	 	RB211-535E4
	 	 	31415	 
	Rolls Royce
	 	RB211-535E4
	 	 	31416	 
	CFM International
	 	CFM56-3B2
	 	 	720235	 
	CFM International
	 	CFM56-3B2
	 	 	721196	 
	CFM International
	 	CFM56-3B2
	 	 	721222	 
	CFM International
	 	CFM56-3B2
	 	 	722445	 
	CFM International
	 	CFM56-3B2
	 	 	724636	 
	General Electric
	 	CF6-80C2B2
	 	 	695424	 
	General Electric
	 	CF6-80C2B2
	 	 	695425	 
	CFM International
	 	CFM56-3B2
	 	 	720601	*
	CFM International
	 	CFM56-3B1
	 	 	720772	*
	CFM International
	 	CFM56-3B1
	 	 	720867	*
	CFM International
	 	CFM56-3B2
	 	 	721179	*
	CFM International
	 	CFM56-3B2
	 	 	721395	*
	Rolls Royce
	 	RB211-535E4
	 	 	30503	*
	IAE
	 	V2500-A1
	 	 	V0089	*
	IAE
	 	V2500-A1
	 	 	V0334	*
	IAE
	 	V2500-A1
	 	 	V0340	*
	IAE
	 	V2527-A5
	 	 	V10120	*

 

 

	 	 	 	 	 
	Manufacturer	 	Model	 	Serial Number
	IAE
	 	V2527-A5
	 	V10335*
	IAE
	 	V2527-A5
	 	V10516*
	IAE
	 	V2527-A5
	 	V10549*
	IAE
	 	V2527-A5
	 	V10642*
	IAE
	 	V2527-A5
	 	V10676*
	IAE
	 	V2524-A5
	 	V10783*
	IAE
	 	V2527-A5
	 	V10817*

 

* Formerly assets of America West Airlines, LLC (as successor to America West Airlines, Inc.)

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