Document:

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                                                                     Exhibit 4.2

                          REGISTRATION RIGHTS AGREEMENT

                         DATED AS OF SEPTEMBER 30, 2005

                                      AMONG

                             US AIRWAYS GROUP, INC.

                  AND ITS SUBSIDIARIES LISTED ON THE SIGNATURE
                                  PAGES HEREOF

                                       AND

               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
                            AS THE INITIAL PURCHASER

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                          REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the "Agreement") is made and
entered into this 30th day of September, 2005, among US Airways Group, Inc., a
Delaware corporation (the "Company"), US Airways, Inc., a Delaware corporation,
and America West Airlines, Inc., a Delaware corporation (collectively, the
"Guarantors" and, together with the Company, the "Issuers"), and Merrill Lynch,
Pierce, Fenner & Smith Incorporated as the Initial Purchaser (the "Initial
Purchaser"), pursuant to the Purchase Agreement dated September 27, 2005 (the
"Purchase Agreement") between the Issuers and the Initial Purchaser.

          This Agreement is made pursuant to the Purchase Agreement, which
relates to the sale by the Company to the Initial Purchaser of an aggregate of
$143,750,000 principal amount at maturity of the Company's 7% Senior Convertible
Notes due 2020 (the "Securities"). In order to induce the Initial Purchaser to
enter into the Purchase Agreement, the Issuers have agreed to provide to the
Initial Purchaser and its direct and indirect transferees the registration
rights set forth in this Agreement. The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

          In consideration of the foregoing, the parties hereto agree as
follows:

          1. Definitions.

          As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

          "1933 Act" shall mean the Securities Act of 1933, as amended from time
     to time.

          "1934 Act" shall mean the Securities Exchange Act of l934, as amended
     from time to time.

          "1939 Act" shall mean the Trust Indenture Act of 1939, as amended from
     time to time.

          "Closing Date" shall mean the Closing Time as defined in the Purchase
     Agreement.

          "Common Stock" shall mean any shares of common stock, $0.01 par value,
     of the Company and any other shares of common stock as may constitute
     "Common Stock" for purposes of the Indenture.

          "Company" shall have the meaning set forth in the preamble and shall
     also include the Company's successors.

          "Depositary" shall mean The Depository Trust Company, or any other
     depositary appointed by the Company, provided, however, that such
     depositary must have an address in the Borough of Manhattan, in the City of
     New York.

          "Guarantors" shall have the meaning set forth in the preamble.

          "Holder" shall mean the Initial Purchaser, for so long as it owns any
     Registrable Securities, and each of its successors, assigns and direct and
     indirect transferees who become registered owners of Registrable Securities
     under the Indenture.

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          "Indenture" shall mean the Indenture relating to the Securities, dated
     as of September 30, 2005, by and among the Company, the Guarantors and U.S.
     Bank National Association, as trustee, as the same may be amended,
     supplemented, waived or otherwise modified from time to time in accordance
     with the terms thereof.

          "Initial Purchaser" shall have the meaning set forth in the preamble.

          "Issuers" shall have the meaning set forth in the preamble.

          "Majority Holders" shall mean the Holders of a majority of the
     outstanding Registrable Securities (assuming conversion of all Securities
     into Common Stock); provided that whenever the consent or approval of
     Holders of a specified percentage of Registrable Securities is required
     hereunder, Registrable Securities held by the Company or any Affiliate (as
     defined in the Indenture) of the Company shall be disregarded in
     determining whether such consent or approval was given by the Holders of
     such required percentage amount.

          "Person" shall mean an individual, partnership (general or limited),
     corporation, limited liability company, trust or unincorporated
     organization, or a government or agency or political subdivision thereof.

          "Prospectus" shall mean the prospectus included in a Shelf
     Registration Statement, including any preliminary prospectus, and any such
     prospectus as amended or supplemented by any prospectus supplement,
     including any such prospectus supplement with respect to the terms of the
     offering of any portion of the Registrable Securities covered by a Shelf
     Registration Statement, and by all other amendments and supplements to a
     prospectus, including post-effective amendments, and in each case including
     all material incorporated by reference therein.

          "Purchase Agreement" shall have the meaning set forth in the preamble.

          "Registrable Securities" shall mean all or any of the Securities
     issued from time to time under the Indenture in registered form, and the
     shares of Common Stock issuable upon conversion of such Securities;
     provided, however, that any such Securities shall cease to be Registrable
     Securities when (i) a Shelf Registration Statement with respect to such
     Securities shall have been declared effective under the 1933 Act and such
     Securities shall have been disposed of pursuant to such Shelf Registration
     Statement, (ii) such Securities have been sold to the public pursuant to
     Rule l44 under the 1933 Act, (iii) such Securities shall have ceased to be
     outstanding or (iv) such Securities may be sold or transferred, other than
     by the Company's Affiliates, pursuant to Rule 144(k) (or any similar
     provision then in force) under the 1933 Act.

          "Registration Expenses" shall mean any and all expenses incident to
     performance of or compliance by the Company with this Agreement, including
     without limitation: (i) all SEC, stock exchange or National Association of
     Securities Dealers, Inc. (the "NASD") registration and filing fees,
     including, if applicable, the fees and expenses of any "qualified
     independent underwriter" (and its counsel) that is required to be retained
     by any holder of Registrable Securities in accordance with the rules and
     regulations of the NASD, (ii) all fees and expenses incurred in connection
     with compliance with state securities or blue sky laws and compliance with
     the rules of the NASD (including reasonable fees and disbursements of
     counsel for any underwriters or Holders in connection with blue sky
     qualification of any of the Registrable Securities and any filings with the
     NASD), (iii) all expenses of the Company in preparing or assisting in
     preparing, word processing, printing and distributing any Shelf
     Registration Statement, any Prospectus, any amendments or supplements
     thereto, any securities sales agreements and other documents relating to
     the

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     performance of and compliance with this Agreement, (iv) all fees and
     expenses incurred in connection with the listing, if any, of any of the
     Registrable Securities on any securities exchange or exchanges, (v) all
     rating agency fees, (vi) the fees and disbursements of counsel for the
     Company and of the independent public accountants of the Company, including
     the expenses of any special audits or "comfort" letters required by or
     incident to such performance and compliance, (vii) the reasonable fees and
     expenses of the Trustee, and any escrow agent or custodian, (viii) the
     reasonable fees and expenses of a single counsel to the Holders in
     connection with the Shelf Registration, which counsel shall be selected by
     the Majority Holders, and (ix) any fees and expenses of any special experts
     retained by the Company in connection with any Shelf Registration
     Statement, but excluding any underwriting discounts and commissions and
     transfer taxes, if any, relating to the sale or disposition of Registrable
     Securities by a Holder.

          "SEC" shall mean the Securities and Exchange Commission or any
     successor agency or government body performing the functions currently
     performed by the United States Securities and Exchange Commission.

          "Shelf Registration" shall mean a registration effected pursuant to
     Section 2.1 hereof.

          "Shelf Registration Statement" shall mean a "shelf" registration
     statement of the Issuers pursuant to the provisions of Section 2.1 of this
     Agreement which covers all of the Registrable Securities on an appropriate
     form under Rule 415 under the 1933 Act, or any similar rule that may be
     adopted by the SEC, and all amendments and supplements to such registration
     statement, including post-effective amendments, in each case including the
     Prospectus contained therein, all exhibits thereto and all material
     incorporated by reference therein.

          "Trustee" shall mean the trustee with respect to the Securities under
     the Indenture.

          2. Registration Under the 1933 Act.

          2.1 Shelf Registration.

          (a) The Issuers shall, at their cost, no later than 90 days after the
     Closing Date, file with the SEC, and thereafter shall use reasonable
     efforts to cause to be declared effective as promptly as practicable but no
     later than 180 days after the Closing Date, a Shelf Registration Statement
     relating to the offer and sale of the Registrable Securities by the Holders
     that have provided the information pursuant to Section 2.1(d).

          (b) The Issuers shall, at their cost, use reasonable efforts, subject
     to Section 2.5, to keep the Shelf Registration Statement continuously
     effective in order to permit the Prospectus forming part thereof to be
     usable by Holders for a period of two years from the date the Shelf
     Registration Statement is declared effective by the SEC, or for such
     shorter period that will terminate when all Registrable Securities covered
     by the Shelf Registration Statement have been sold pursuant to the Shelf
     Registration Statement or cease to be outstanding or otherwise to be
     Registrable Securities (the "Effectiveness Period").

          (c) Notwithstanding any other provisions hereof, the Issuers shall use
     reasonable efforts to ensure that (i) any Shelf Registration Statement and
     any amendment thereto and any Prospectus forming part thereof and any
     supplement thereto complies in all material respects with the 1933 Act and
     the rules and regulations thereunder, (ii) any Shelf Registration Statement
     and any amendment thereto does not, when it becomes effective, contain an
     untrue statement of a material fact or omit to state a material fact
     required to be stated therein or necessary to make the statements

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     therein not misleading and (iii) any Prospectus forming part of any Shelf
     Registration Statement, and any supplement to such Prospectus (as amended
     or supplemented from time to time), does not include an untrue statement of
     a material fact or omit to state a material fact necessary in order to make
     the statements therein, in light of the circumstances under which they were
     made, not misleading.

          (d) Notwithstanding any other provision hereof, no Holder of
     Registrable Securities may include any of its Registrable Securities in the
     Shelf Registration Statement pursuant to this Agreement unless the Holder
     furnishes to the Company a fully completed notice and questionnaire in the
     form attached as Annex A to the Offering Memorandum (the "Questionnaire")
     and such other information in writing as the Company may reasonably request
     in writing for use in connection with the Shelf Registration Statement or
     Prospectus included therein and in any application to be filed with or
     under state securities laws. In order to be named as a selling
     securityholder in the Prospectus at the time of effectiveness of the Shelf
     Registration Statement, each Holder must, before the effectiveness of the
     Shelf Registration Statement and no later than the 20th day after the
     issuance of a press release by the Company announcing the initial filing of
     the Registration Statement (or the filing of the first amendment to the
     Shelf Registration Statement in the event the Issuers promptly file the
     Shelf Registration Statement following the date of this Agreement), furnish
     the completed Questionnaire and such other information that the Company may
     reasonably request in writing, if any, to the Company in writing and the
     Company will include the information from the completed Questionnaire and
     such other information, if any, in the Shelf Registration Statement and the
     Prospectus in a manner so that upon effectiveness of the Shelf Registration
     Statement the Holder will be permitted to deliver the Prospectus to
     purchasers of the Holder's Registrable Securities. From and after the date
     that the Registration Statement is first declared effective by the SEC,
     upon receipt of a completed Questionnaire and such other information that
     the Company may reasonably request in writing, if any, the Issuers will use
     reasonable efforts to file within 20 business days any amendments or
     supplements to the Shelf Registration Statement necessary for such Holder
     to be named as a selling securityholder in the Prospectus contained therein
     to permit such Holder to deliver the Prospectus to purchasers of the
     Holder's Securities (subject to the Issuers' right to suspend the Shelf
     Registration Statement as described in Section 2.5 below); provided that
     the Issuers shall not be required to file more than one such amendment to
     the Shelf Registration Statement in any calendar quarter for all such
     Holders. Holders that do not deliver a completed written Questionnaire and
     such other information, as provided for in this Section 2.1(d), will not be
     named as selling securityholders in the Prospectus. Each Holder named as a
     selling securityholder in the Prospectus agrees to promptly furnish to the
     Company all information required to be disclosed in order to make
     information previously furnished to the Company by the Holder not
     materially misleading and any other information regarding such Holder and
     the distribution of such Holder's Registrable Securities as the Company may
     from time to time reasonably request in writing.

          (e) Each Holder agrees not to sell any Registrable Securities pursuant
     to the Shelf Registration Statement without delivering, or causing to be
     delivered, a Prospectus to the purchaser thereof and, following termination
     of the Effectiveness Period, to notify the Company, within ten days of a
     written request by the Company, of the amount of Registrable Securities
     sold pursuant to the Shelf Registration Statement and, in the absence of a
     response, the Company may assume that all of such Holder's Registrable
     Securities have been so sold; provided that the Company shall use
     reasonable efforts to confirm that all of such Holder's Registrable
     Securities have been so sold prior to making such assumption.

     The Issuers shall not permit any securities other than Registrable
Securities to be included in the Shelf Registration Statement. The Issuers
further agree, if necessary, to supplement or amend the Shelf

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Registration Statement, as required by Section 2.3(b) below, and to furnish to
the Holders of Registrable Securities copies of any such supplement or amendment
promptly after its being used or filed with the SEC.

          2.2 Expenses. The Issuers shall pay all Registration Expenses in
connection with the registration pursuant to Section 2.1. Each Holder shall pay
all underwriting discounts and commissions and transfer taxes, if any, relating
to the sale or disposition of such Holder's Registrable Securities pursuant to
the Shelf Registration Statement.

          2.3 Effectiveness.

          (a) The Issuers will be deemed not have used their reasonable efforts
to cause the Shelf Registration Statement to become, or to remain, effective
during the requisite period if the Issuers voluntarily take any action that
would, or fail to take any action which failure would, result in any such Shelf
Registration Statement not being declared effective or the Holders of
Registrable Securities covered thereby not being able to offer and sell such
Registrable Securities during that period as and to the extent contemplated
hereby, unless such action is required by applicable law or permitted by this
agreement.

          (b) A Shelf Registration Statement pursuant to Section 2.1 hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that if, after it has been declared effective, the
offering of Registrable Securities pursuant to a Shelf Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Shelf Registration
Statement will be deemed not to have been effective during the period of such
interference, until the offering of Registrable Securities pursuant to such
Shelf Registration Statement may legally resume.

          2.4 Interest. In the event that (a) a Shelf Registration Statement is
not filed with the SEC on or before the 90th calendar day following the Closing
Date, (b) a Shelf Registration Statement is not declared effective on or prior
to the 180th calendar day following the Closing Date, (c) after effectiveness,
subject to Section 2.5, the Shelf Registration Statement fails to be effective
or usable by the Holders without being succeeded within five business days by a
post-effective amendment or a report filed with the SEC pursuant to the 1934 Act
that cures the failure to be effective or usable, or (d) the Shelf Registration
Statement is unusable by the Holders for any reason, and the aggregate number of
days in any consecutive twelve-month period for which the Shelf Registration
Statement shall not be usable exceeds the Suspension Period (as defined in
Section 2.5 hereof) (each such event being a "Registration Default"), additional
interest, as liquidated damages ("Liquidated Damages"), will accrue at a rate
per annum of one-quarter of one percent (0.25%) of the principal amount of the
Securities for the first 90-day period from day following the Registration
Default, and thereafter at a rate per annum of one-half of one percent (0.50%)
of the principal amount of the Securities, provided that in no event shall
Liquidated Damages accrue at a rate per annum exceeding one-half of one percent
(0.50%), provided further that no Liquidated Damages shall accrue after the
second anniversary of the date of this Agreement. Upon the cure of all
Registration Defaults then continuing, the accrual of Liquidated Damages will
automatically cease and the interest rate borne by the Securities will revert to
the original interest rate at such time. Liquidated Damages shall be computed
based on the actual number of days elapsed in each 90-day period in which the
Shelf Registration Statement is not effective or is unusable. Holders who have
converted Securities into Common Stock will not be entitled to receive any
Liquidated Damages with respect to such Common Stock or the issue price of the
Securities converted.

          The Company shall notify the Trustee within ten business days after
each and every date on which an event occurs in respect of which Liquidated
Damages are required to be paid by press release or other reasonable method.
Liquidated Damages shall be paid by depositing with the Trustee, in trust,

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for the benefit of the Holders of Registrable Securities, on or before the
applicable semiannual interest payment date, immediately available funds in sums
sufficient to pay the Liquidated Damages then due. The Liquidated Damages due
shall be payable on each interest payment date to the record Holder of
Registrable Securities entitled to receive the interest payment to be paid on
such date as set forth in the Indenture. Each obligation to pay Liquidated
Damages shall be deemed to accrue from and including the day following the
Registration Default to but excluding the day on which the Registration Default
is cured.

          A Registration Default under clause (a) above shall be cured on the
date that the Registration Statement is filed with the SEC. A Registration
Default under clause (b) above shall be cured on the date that the Registration
Statement is declared effective by the SEC. A Registration Default under clauses
(c) or (d) above shall be cured on the date an amended Registration Statement is
declared effective by the SEC or the Company otherwise declares the Registration
Statement and the Prospectus useable, as applicable. The Company will have no
liabilities for monetary damages with respect to any Registration Default other
than for Liquidated Damages as expressly provided for herein.

          2.5 Suspension. The Company may suspend the use of any Prospectus,
without incurring or accruing any obligation to pay Liquidated Damages pursuant
to Section 2.4 hereof, for a period not to exceed 30 calendar days in any 90-day
period, or an aggregate of 90 calendar days in any twelve-month period (each, a
"Suspension Period") if the Company shall have determined in its reasonable
judgment that it may possess material non-public information the disclosure of
which would have a material adverse effect on the Company and its subsidiaries
taken as a whole, and prior to suspending such use the Company provides the
Holders with written notice of such suspension, which notice need not specify
the nature of the event giving rise to such suspension. Each Holder shall keep
confidential any communications received by it from the Company regarding the
suspension of the use of the Prospectus, except as required by applicable law.

          3. Registration Procedures. In connection with the obligations of the
Issuers with respect to the Shelf Registration, the Issuers shall:

          (a) prepare and file with the SEC a Shelf Registration Statement,
     within the relevant time period specified in Section 2, on the appropriate
     form under the 1933 Act, which form (i) shall be selected by the Company,
     (ii) shall be available for the sale of the Registrable Securities by the
     selling Holders thereof, (iii) shall comply as to form in all material
     respects with the requirements of the applicable form and include or
     incorporate by reference all financial statements required by the SEC to be
     filed therewith or incorporated by reference therein, and (iv) shall comply
     in all material respects with the applicable requirements of Regulation S-T
     under the 1933 Act, if any, and use reasonable efforts to cause such Shelf
     Registration Statement to become effective and remain effective in
     accordance with Section 2 hereof;

          (b) prepare and file with the SEC such amendments and post-effective
     amendments to the Shelf Registration Statement as may be necessary under
     applicable law to keep the Shelf Registration Statement effective for the
     Effectiveness Period, subject to Section 2.5; and cause each Prospectus to
     be supplemented by any required prospectus supplement, and as so
     supplemented to be filed pursuant to Rule 424 (or any similar provision
     then in force) under the 1933 Act and comply during the Effectiveness
     Period with the provisions of the 1933 Act, the 1934 Act and the rules and
     regulations thereunder required to enable the disposition of all
     Registrable Securities covered by the Shelf Registration Statement in
     accordance with the intended method or methods of distribution by the
     selling Holders thereof;

          (c) (i) notify each Holder of Registrable Securities of the filing, by
     issuing a press release, of a Shelf Registration Statement with respect to
     the Registrable Securities; (ii) furnish to

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     each Holder of Registrable Securities that has provided the information
     required by Section 2.1(d) and to each underwriter of an underwritten
     offering of Registrable Securities, if any, without charge, as many copies
     of each Prospectus, including each preliminary Prospectus, and any
     amendment or supplement thereto and such other documents as such Holder or
     underwriter may reasonably request, including financial statements and
     schedules and, if the Holder so requests, all exhibits in order to
     facilitate the unrestricted sale or other disposition of the Registrable
     Securities; and (iii) subject to Section 2.5 hereof and to any notice by
     the Company in accordance with Section 3(e) hereof of the existence of any
     fact of the kind described in Sections 3(e)(ii), (iii), (iv), (v) and (vi)
     hereof, hereby consent to the use of the Prospectus or any amendment or
     supplement thereto by each of the selling Holders of Registrable Securities
     that has provided the information required by Section 2.1(d) in connection
     with the offering and sale of the Registrable Securities;

          (d) use reasonable efforts to register or qualify the Registrable
     Securities under all applicable state securities or "blue sky" laws of such
     jurisdictions as any Holder of Registrable Securities covered by a Shelf
     Registration Statement and each underwriter of an underwritten offering of
     Registrable Securities shall reasonably request, and do any and all other
     acts and things which may be reasonably necessary or advisable to enable
     each such Holder and underwriter to consummate the disposition in each such
     jurisdiction of such Registrable Securities owned by such Holder; provided,
     however, that the Company shall not be required to (i) qualify as a foreign
     corporation or as a dealer in securities in any jurisdiction where it would
     not otherwise be required to qualify but for this Section 3(d), or (ii)
     take any action which would subject it to general service of process or
     taxation in any such jurisdiction where it is not then so subject;

          (e) notify promptly each Holder of Registrable Securities under a
     Shelf Registration that has provided the information required by Section
     2.1(d) (i) when a Shelf Registration Statement has become effective and
     when any post-effective amendments thereto become effective, (ii) of any
     request by the SEC or any state securities authority for post-effective
     amendments and supplements to a Shelf Registration Statement and Prospectus
     or for additional information after the Shelf Registration Statement has
     become effective, (iii) of the issuance by the SEC or any state securities
     authority of any stop order suspending the effectiveness of a Shelf
     Registration Statement or the initiation of any proceedings for that
     purpose, (iv) of the happening of any event or the discovery of any facts
     during the period a Shelf Registration Statement is effective which makes
     any statement of a material fact made in such Shelf Registration Statement
     or the related Prospectus untrue or which requires the making of any
     changes in such Shelf Registration Statement or Prospectus in order to make
     the statements therein not misleading, (v) of the receipt by the Company of
     any notification with respect to the suspension of the qualification of the
     Registrable Securities for sale in any jurisdiction or the initiation or
     threatening of any proceeding for such purpose and (vi) of any
     determination by the Company that a post-effective amendment to such Shelf
     Registration Statement would be appropriate;

          (f) furnish special counsel for the Holders of Registrable Securities
     (designated in writing) copies of any comment letters received from the SEC
     or any other request by the SEC or any state securities authority for
     amendments or supplements to a Shelf Registration Statement and Prospectus
     or for additional information;

          (g) use reasonable efforts to obtain the withdrawal of any order
     suspending the effectiveness of a Shelf Registration Statement at the
     earliest possible moment;

          (h) furnish (upon written request) to each Holder of Registrable
     Securities that has provided the information required by Section 2.1(d),
     and each underwriter, if any, without charge,

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     at least one conformed copy of each Shelf Registration Statement and any
     post-effective amendment thereto, including financial statements and
     schedules (without documents incorporated therein by reference and all
     exhibits thereto, unless requested);

          (i) cooperate with the selling Holders of Registrable Securities to
     facilitate the timely preparation and delivery of certificates representing
     Registrable Securities to be sold and not bearing any restrictive legends
     (other than as required by the Company's certificate of incorporation or
     bylaws or applicable law); and enable such Registrable Securities to be in
     such denominations (consistent with the provisions of the Indenture) and
     registered in such names as the selling Holders or the underwriters, if
     any, may reasonably request at least three business days prior to the
     closing of any sale of Registrable Securities;

          (j) upon the occurrence of any event or the discovery of any facts,
     each as contemplated by Sections 3(e)(ii), (iii), (iv), (v) and (vi)
     hereof, as promptly as practicable after the occurrence of such event or
     discovery of facts, use reasonable efforts to prepare a supplement or
     post-effective amendment to the Shelf Registration Statement or the related
     Prospectus or any document incorporated therein by reference or file any
     other required document so that, as thereafter delivered to the purchasers
     of the Registrable Securities, such Prospectus will not contain at the time
     of such delivery any untrue statement of a material fact or omit to state a
     material fact necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading or will remain so
     qualified. At such time as such public disclosure is otherwise made or the
     Company determines that such disclosure is not necessary, in each case to
     correct any misstatement of a material fact or to include any omitted
     material fact, the Company agrees promptly to notify each Holder that has
     provided the information required by Section 2.1(d) of such determination
     and to furnish each Holder such number of copies of the Prospectus as
     amended or supplemented, as such Holder may reasonably request;

          (k) no less than two business days prior to the filing of any Shelf
     Registration Statement, any Prospectus, any amendment to a Shelf
     Registration Statement or amendment or supplement to a Prospectus (other
     than amendments and supplements that do nothing more than name Holders and
     provide information with respect thereto), provide, upon request, copies of
     such document to the Initial Purchaser on behalf of such Holders;

          (l) provide the Trustee with printed certificates for the Registrable
     Securities in a form eligible for deposit with the Depositary;

          (m) (i) cause the Indenture to be qualified under the 1939 Act in
     connection with the registration of the Registrable Securities, (ii)
     cooperate with the Trustee and the Holders to effect such changes to the
     Indenture as may be required for the Indenture to be so qualified in
     accordance with the terms of the 1939 Act, and (iii) execute, and use
     reasonable efforts to cause the Trustee to execute, all documents as may be
     required to effect such changes, and all other forms and documents required
     to be filed with the SEC to enable the Indenture to be so qualified in a
     timely manner;

          (n) enter into such customary agreements and take all other customary
     and appropriate actions in order to expedite or facilitate the disposition
     of such Registrable Securities including but not limited to:

          (i) obtain opinions of counsel to the Company and updates thereof
     addressed to each selling Holder and the underwriters, if any, covering the
     matters set forth in the opinion of such counsel delivered on the Closing
     Date;

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          (ii) obtain "comfort" letters and updates thereof from the Company's
     independent registered public accountants (and, if necessary, any other
     independent registered public accountants of any subsidiary of the Company
     or of any business acquired by the Company for which financial statements
     are, or are required to be, included in the Shelf Registration Statement)
     addressed to the underwriters, if any, and use reasonable efforts to have
     such letter addressed to the selling Holders of Registrable Securities (to
     the extent consistent with Statement on Auditing Standards No. 72 of the
     American Institute of Certified Public Accounts), such letters
     substantially in the form and covering the matters covered in the comfort
     letter delivered on the Closing Date, to the extent applicable; and

          (iii) if an underwriting agreement is entered into, cause the same to
     set forth indemnification provisions and procedures substantially
     equivalent to the indemnification provisions and procedures set forth in
     Section 4 hereof with respect to the underwriters and all other parties to
     be indemnified pursuant to said Section or, at the request of any
     underwriters, in the form customarily provided to such underwriters in
     similar types of transactions.

     The above shall be done solely in connection with the underwritten offering
     of Registrable Securities off of such Shelf Registration Statement pursuant
     to an underwriting or similar agreement as and to the extent required
     thereunder, and reasonably requested by any of the parties thereto;

          (o) if reasonably requested in connection with a disposition of
     Registrable Securities, make available for inspection during business hours
     by representatives of the Holders of the Registrable Securities, any
     underwriters participating in any disposition pursuant to a Shelf
     Registration Statement, and any counsel or accountant retained by any of
     the foregoing, all financial and other records, pertinent corporate
     documents and properties of the Company reasonably requested by any such
     persons, and cause the respective officers, directors, employees, and any
     other agents of the Company to supply all information reasonably requested
     by any such representative, underwriter, special counsel or accountant in
     connection with a Shelf Registration Statement, and make such
     representatives of the Company available for discussion of such documents
     as shall be reasonably requested by the representatives of the Holders, in
     each case as is customary for "due diligence" investigations; provided
     that, to the extent the Company, in its reasonable discretion, agrees to
     disclose non-public information, such persons shall first agree in writing
     with the Company that any such non-public information shall be kept
     confidential by such persons and shall be used solely for the purposes of
     exercising rights under this Agreement and such person shall not engage in
     trading any securities of the Company until such material non-public
     information becomes properly publicly available, unless (i) disclosure of
     such information is required by court or administrative order or is
     necessary to respond to inquiries of regulatory authorities, (ii)
     disclosure of such information is required by law (including any disclosure
     requirements pursuant to federal securities laws in connection with the
     filing of any Registration Statement or the use of any Prospectus referred
     to in this Agreement upon a customary opinion of counsel for such persons
     delivered and reasonably satisfactory to the Company), (iii) such
     information becomes generally available to the public other than as a
     result of a disclosure or failure to safeguard by any such person or (iv)
     such information becomes available to any such person from a source other
     than the Company and such source is not bound by a confidentiality
     agreement, and provided further, that the foregoing inspection and
     information gathering shall, to the greatest extent possible, be
     coordinated on behalf of all the Holders and the other parties entitled
     thereto by special counsel to the Holders;

          (p) a reasonable time prior to filing the Shelf Registration
     Statement, any Prospectus forming a part thereof, any amendment to the
     Shelf Registration Statement or amendment or supplement to such Prospectus
     (other than amendments and supplements that name Holders and provide

                                       -9-

<PAGE>

     information with respect thereto), provide (upon written request) copies of
     such document to the Holders of Registrable Securities that have provided
     the information required by Section 2.1(d), to the Initial Purchaser, to
     special counsel for the Holders and to the underwriter or underwriters of
     an underwritten offering of Registrable Securities, if any, make such
     changes in any such document prior to the filing thereof as the Initial
     Purchaser, the counsel to the Holders or the underwriter or underwriters
     reasonably request and not file any such document in a form to which the
     Majority Holders, the Initial Purchaser on behalf of the Holders of
     Registrable Securities or any underwriter shall not have previously been
     advised and furnished a copy of or to which the Majority Holders, the
     Initial Purchaser of behalf of the Holders of Registrable Securities,
     counsel to the Holders of Registrable Securities or any underwriter shall
     reasonably object within three business days of delivery of such copies,
     and make the representatives of the Company available for discussion of
     such document as shall be reasonably requested by the Holders of
     Registrable Securities, the Initial Purchaser on behalf of such Holders,
     counsel for the Holders of Registrable Securities or any underwriter;

          (q) use reasonable efforts to cause all Registrable Securities to be
     listed on any securities exchange or inter-dealer quotation system on which
     similar debt securities issued by the Company are then listed if requested
     by the Majority Holders, or if requested by the underwriter or underwriters
     of an underwritten offering of Registrable Securities, if any;

          (r) if the Securities are rated, use reasonable efforts to cause the
     Registrable Securities to be rated by the appropriate rating agencies;

          (s) otherwise comply with all applicable rules and regulations of the
     SEC and make available to its security holders, as soon as reasonably
     practicable, an earnings statement covering at least 12 months which shall
     satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
     thereunder; and

          (t) cooperate and assist in any filings required to be made with the
     NASD and in the performance of any due diligence investigation by any
     underwriter and its counsel (including any "qualified independent
     underwriter" that is required to be retained in accordance with the rules
     and regulations of the NASD, at the Holder's expense).

          Without limiting Section 2.1(d), the Company may (as a condition to
such Holder's participation in the Shelf Registration) require each Holder of
Registrable Securities to furnish to the Company such information regarding the
Holder and the proposed distribution by such Holder of such Registrable
Securities as the Company may from time to time reasonably request in writing.

          Each Holder agrees that, upon receipt of any notice from the Company
of the happening of any event or the discovery of any facts, each of the kind
described in Section 3(e)(ii), (iii), (iv), (v) and (vi) hereof, such Holder
will forthwith discontinue disposition of Registrable Securities pursuant to the
Prospectus included in the Shelf Registration Statement until such Holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(j) hereof or written notice from the Company that the Shelf
Registration Statement is again effective and no amendment or supplement is
needed, and, if so directed by the Company, such Holder will deliver to the
Company (at its expense) all copies in such Holder's possession, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

          If any of the Registrable Securities covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the underwriter or
underwriters and manager or managers that will manage such offering will be
selected by the Majority Holders of such Registrable Securities included in such

                                      -10-

<PAGE>

offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless
such Holder (a) agrees to sell such Holder's Registrable Securities on the basis
provided in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrangements and (b) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents required under the terms of such underwriting arrangements.

          4. Indemnification; Contribution.

          (a) The Issuers agree, jointly and severally, to indemnify and hold
harmless the Initial Purchaser, each Holder, each Person who participates as an
underwriter (any such Person being an "Underwriter") and each Person, if any,
who controls any Holder or Underwriter within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act as follows:

          (i) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, arising out of any untrue statement or alleged
     untrue statement of a material fact contained in any Shelf Registration
     Statement (or any amendment or supplement thereto) pursuant to which
     Registrable Securities were registered under the 1933 Act, including all
     documents incorporated therein by reference, or the omission or alleged
     omission therefrom of a material fact required to be stated therein or
     necessary to make the statements therein not misleading, or arising out of
     any untrue statement or alleged untrue statement of a material fact
     contained in any Prospectus (or any amendment or supplement thereto) or the
     omission or alleged omission therefrom of a material fact necessary in
     order to make the statements therein, in the light of the circumstances
     under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, to the extent of the aggregate amount paid in
     settlement of any litigation, or any investigation or proceeding by any
     governmental agency or body, commenced or threatened, or of any claim
     whatsoever based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission; provided that any such settlement is
     effected with the prior written consent of the Company; and

          (iii) against any and all expense whatsoever, as incurred (including
     the reasonable fees and disbursements of counsel chosen by any indemnified
     party), reasonably incurred in investigating, preparing or defending
     against any litigation, or any investigation or proceeding by any
     governmental agency or body, commenced or threatened, or any claim
     whatsoever based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission, to the extent that any such expense
     is not paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by, and
with respect to, any Holder or Underwriter expressly for use in a Shelf
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto).

          (b) Each Holder, severally, but not jointly, agrees to indemnify and
hold harmless the Issuers, the Initial Purchaser, each Underwriter and the other
selling Holders, and each of their respective directors and officers, and each
Person, if any, who controls the Issuers, the Initial Purchaser, any Underwriter
or any other selling Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, against any and all loss, liability, claim, damage
and expense described in the indemnity contained in Section 4(a) hereof, as
incurred, but only with respect to untrue statements or omissions, or

                                      -11-

<PAGE>

alleged untrue statements or omissions, made in the Shelf Registration Statement
(or any amendment thereto) or any Prospectus included therein (or any amendment
or supplement thereto) in reliance upon and in conformity with written
information with respect to such Holder furnished to the Company by such Holder
expressly for use in the Shelf Registration Statement (or any amendment thereto)
or such Prospectus (or any amendment or supplement thereto); provided, however,
that no such Holder shall be liable for any claims hereunder in excess of the
amount of net proceeds received by such Holder from the sale of Registrable
Securities pursuant to such Shelf Registration Statement.

          (c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action or proceeding commenced
against it in respect of which indemnity may be sought hereunder, but failure so
to notify an indemnifying party shall not relieve such indemnifying party from
any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement. An indemnifying
party may participate at its own expense in the defense of such action;
provided, however, that counsel to the indemnifying party shall not (except with
the consent of the indemnified party, which shall not be unreasonably withheld)
also be counsel to the indemnified party. In no event shall the indemnifying
party or parties be liable for the fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution could
be sought under this Section 4 (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or
a failure to act by or on behalf of any indemnified party.

          (d) If the indemnification provided for in this Section 4 is for any
reason unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect
the relative fault of the indemnifying party or parties on one hand and the
indemnified party or party on the other hand in connection with the statements
or omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

     The relative fault of the Issuers on the one hand and the Holders and the
Initial Purchaser on the other hand shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to
information supplied by the Company, the Holder or the Initial Purchaser and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

     The Issuers, the Holders and the Initial Purchaser agree that it would not
be just and equitable if contribution pursuant to this Section 4 were determined
by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 4. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 4 shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or

                                      -12-

<PAGE>

any claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

     Notwithstanding the provisions of this Section 4, the Initial Purchaser
shall not be required to contribute any amount in excess of the amount by which
the total price at which the Securities sold by it were offered exceeds the
amount of any damages which the Initial Purchaser has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

     For purposes of this Section 4, each Person, if any, who controls the
Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as the
Initial Purchaser or Holder, and each director of the Issuers, and each Person,
if any, who controls the Issuers within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act shall have the same rights to contribution as
the Company.

          5. Miscellaneous.

          5.1 Rule 144 and Rule 144A. If the Issuers cease to be required to
file the reports required to be filed by them under Section 13(a) or 15(d) of
the 1934 Act and the rules and regulations adopted by the SEC thereunder, the
Issuers covenant that they will upon the request of any Holder of Registrable
Securities (a) make publicly available such information as is necessary to
permit sales pursuant to Rule 144 under the 1933 Act, (b) deliver such
information to a prospective purchaser as is necessary to permit sales pursuant
to Rule 144A under the 1933 Act and take such further action as any Holder of
Registrable Securities may reasonably request for such purpose, and (c) take
such further action that is reasonable in the circumstances, in each case, to
the extent required from time to time to enable such Holder to sell its
Registrable Securities without registration under the 1933 Act within the
limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as
such Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act,
as such Rule may be amended from time to time, or (iii) any similar rules or
regulations hereafter adopted by the SEC. Upon the written request of any Holder
of Registrable Securities, the Issuers will deliver to such Holder a written
statement as to whether they have complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 5.1 shall be deemed to
require the Company to register any of its securities (other than the Common
Stock) under the 1934 Act.

          5.2 No Inconsistent Agreements. The Issuers have not entered into and
the Issuers will not after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not and will not for the term of
this Agreement in any way conflict with the rights granted to the holders of any
of the Issuers' other issued and outstanding securities under any such
agreements.

          5.3 Amendments and Waivers. The provisions of this Agreement,
including he provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority of the outstanding Registrable Securities (with Holders
of Securities deemed to be the Holders, for purposes of this Section 5.3, of the
number of outstanding shares of Common Stock into which such Registrable
Securities are or could be convertible on the date that consent would be
required) affected by such amendment, modification, supplement, waiver or
departure. Notwithstanding

                                      -13-

<PAGE>

the foregoing, this Agreement may be amended by a written agreement between the
Company and the Initial Purchaser, without the consent of the Holders of the
Registrable Securities, in order to cure any ambiguity or to correct or
supplement any provision contained herein, provided that no such amendment shall
adversely affect the interest of the Holders of Registrable Securities. Each
Holder of Registrable Securities outstanding at the time of any amendment,
modification, waiver or consent pursuant to this Section 5.3, shall be bound by
such amendment, modification, waiver or consent, whether or not any notice or
writing indicating such amendment, modification, waiver or consent is delivered
to such Holder.

          5.4 Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, facsimile, or any courier guaranteeing overnight delivery (a)
if to a Holder, at the most current address given by such Holder to the Company
in a Questionnaire or by means of a notice given in accordance with the
provisions of this Section 5.4, which address initially is the address set forth
in the Purchase Agreement with respect to the Initial Purchaser; and (b) if to
the Issuers, initially at the Company's address set forth in the Purchase
Agreement, and thereafter at such other address of which notice is given in
accordance with the provisions of this Section 5.4.

          All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; two business days
after being deposited in the mail, postage prepaid, if mailed; when receipt is
acknowledged, if sent by facsimile; and on the next business day if timely
delivered to an overnight courier.

          Copies of all such notices, demands, or other communications shall be
concurrently delivered by the person giving the same to the Trustee under the
Indenture, at the address specified in such Indenture.

          5.5 Successor and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Registrable Securities, in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding
such Registrable Securities such person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement, including the restrictions on resale set forth in this Agreement and,
if applicable, the Purchase Agreement, and such person shall be entitled to
receive the benefits hereof.

          5.6 Third Party Beneficiaries. The Initial Purchaser (even if the
Initial Purchaser is not a Holder of Registrable Securities) shall be a third
party beneficiary to the agreements made hereunder between the Company, on the
one hand, and the Holders, on the other hand, and shall have the right to
enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchaser, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

          5.7 Specific Enforcement. Without limiting the remedies available to
the Initial Purchaser and the Holders, the Issuers acknowledge that any failure
by the Issuers to comply with their obligations under Section 2.1 hereof may
result in material irreparable injury to the Initial Purchaser or the

                                      -14-

<PAGE>

Holders for which there is no adequate remedy at law, that it may not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchaser or any Holder may seek such relief as
may be required to specifically enforce the Issuers' obligations under Section
2.1 hereof.

          5.8 Restriction on Resales. Until the expiration of two years after
the original issuance of the Securities, the Company will not, and will cause
its Affiliates not to, resell any Securities which are "restricted securities"
(as such term is defined under Rule 144(a)(3) under the 1933 Act) that have been
reacquired by any of them and shall immediately upon any purchase of any such
Securities submit such Securities to the Trustee for cancellation.

          5.9 Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          5.10 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

          5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF.

          5.12 Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

          5.13 Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted by the Issuer with respect to
the Registrable Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

                                      -15-

<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                        US AIRWAYS GROUP, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      -16-

<PAGE>

                                        GUARANTORS:

                                        US AIRWAYS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        AMERICA WEST AIRLINES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      -17-

<PAGE>

Confirmed and accepted as
   of the date first above
   written:

MERRILL LYNCH, PIERCE, FENNER & SMITH
   INCORPORATED

By:
    ------------------------------------
Name:
      ----------------------------------
Title:
       ---------------------------------

                                      -18-<PAGE>
                                                                    Exhibit 10.1

================================================================================

                             US AIRWAYS GROUP, INC.

                            (a Delaware corporation)

                                  $125,000,000

                      7% Senior Convertible Notes due 2020

                               PURCHASE AGREEMENT

                            Dated: September 27, 2005

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
SECTION 1.    REPRESENTATIONS AND WARRANTIES.............................     2

   (a)   Representations and Warranties by the Issuers...................     2
   (b)   Officer's Certificates..........................................    13

SECTION 2.    SALE AND DELIVERY TO INITIAL PURCHASER; CLOSING............    13

   (a)   Initial Securities..............................................    13
   (b)   Option Securities...............................................    13
   (c)   Payment.........................................................    14
   (d)   Denominations; Registration.....................................    14

SECTION 3.    COVENANTS OF THE COMPANY...................................    14

   (a)   Offering Memorandum.............................................    14
   (b)   Notice and Effect of Material Events............................    14
   (c)   Amendments to Offering Memorandum and Supplements...............    15
   (d)   Qualifications of Securities for Offer and Sale.................    15
   (e)   Use of Proceeds.................................................    15
   (f)   Listing on Securities Exchange..................................    16
   (g)   Restriction on Sale of Securities...............................    16
   (h)   PORTAL Designation..............................................    16
   (i)   DTC.............................................................    17
   (j)   Reporting Requirements..........................................    17

SECTION 4.    PAYMENT OF EXPENSES........................................    17

   (a)   Expenses........................................................    17
   (b)   Termination of Agreement........................................    18

SECTION 5.    CONDITIONS OF INITIAL PURCHASER'S OBLIGATIONS..............    18

   (a)   Opinions of Counsel for the Issuers.............................    18
   (b)   Opinion of Counsel for Initial Purchaser........................    18
   (c)   Officers' Certificate...........................................    18
   (d)   Accountant's Comfort Letter.....................................    19
   (e)   Bring-down Comfort Letter.......................................    19
   (f)   Lock-up Agreements..............................................    19
   (g)   Indenture and Registration Rights Agreement.....................    19
   (h)   Conditions to Purchase of Option Securities.....................    19
   (i)   Additional Documents............................................    20
   (j)   PORTAL Market...................................................    20
   (k)   Termination of Agreement........................................    20
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>                                                                         <C>
SECTION 6.    SUBSEQUENT OFFERS AND RESALES OF THE SECURITIES............    20

   (a)   Offer and Sale Procedures.......................................    20
   (b)   Covenants of the Issuers........................................    21
   (c)   Qualified Institutional Buyer...................................    22
   (d)   Resale Pursuant to Rule 903 of Regulation S or Rule 144A........    22

SECTION 7.    INDEMNIFICATION............................................    23

   (a)   Indemnification of Initial Purchaser............................    23
   (b)   Indemnification of Issuers......................................    23
   (c)   Actions against Parties; Notification...........................    23
   (d)   Settlement without Consent if Failure to Reimburse..............    24

SECTION 8.    CONTRIBUTION...............................................    24

SECTION 9.    REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO
                 SURVIVE DELIVERY........................................    25

SECTION 10.   TERMINATION OF AGREEMENT...................................    26

   (a)   Termination; General............................................    26
   (b)   Liabilities.....................................................    26

SECTION 11.   ARM'S LENGTH RELATIONSHIP; NO FIDUCIARY DUTY...............    26

SECTION 12.   NOTICES....................................................    26

SECTION 13.   PARTIES....................................................    27

SECTION 14.   GOVERNING LAW..............................................    27

SECTION 15.   TIME.......................................................    27

SECTION 16.   COUNTERPARTS...............................................    27

SECTION 17.   EFFECT OF HEADINGS.........................................    27

SECTION 18.   SUBMISSION TO JURISDICTION.................................    27
</TABLE>

SCHEDULES

Schedule A   US Airways Group, Inc. Senior Convertible Notes Due 2020
Schedule B   Guarantors
Schedule C   Restricted Stockholders
Schedule D   Subsidiaries

                                      -ii-

<PAGE>

<TABLE>
<S>           <C>
EXHIBITS

Exhibit A     Form of Registration Rights Agreement
Exhibit B-1   Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP,
                 Counsel for the Issuers, to be Delivered Pursuant to
                 Section 5(a)
Exhibit B-2   Form of Opinion of General Counsel(s) of the Company, to be
                 delivered pursuant to Section 5(a)
Exhibit C     Form of Lock-Up Letter Agreement
</TABLE>

                                      -iii-

<PAGE>

                             US AIRWAYS GROUP, INC.

                                   125,000,000

                      7% SENIOR CONVERTIBLE NOTES DUE 2020

                               PURCHASE AGREEMENT

                                                              September 27, 2005

MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
4 World Financial Center
New York, New York 10080

Ladies and Gentlemen:

     US Airways Group, Inc., a Delaware corporation (the "Company"), and the
subsidiaries of the Company listed on Schedule B hereto (the "Guarantors" and,
together with the Company, the "Issuers") confirm their agreement with Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (the "Initial
Purchaser" or "Merrill Lynch"), with respect to the issue and sale by the
Company and the purchase by the Initial Purchaser of $125,000,000 aggregate
principal amount of the Company's Senior Convertible Notes due 2020 (the
"Notes"), and with respect to the grant by the Company to the Initial Purchaser
of the option described in Section 2(b) hereof to purchase all or any part of an
additional $18,750,000 aggregate principal amount of Notes. The aforesaid
$125,000,000 aggregate principal amount of Notes (the "Initial Securities") to
be purchased by the Initial Purchaser and all or any part of the $18,750,000
aggregate principal amount of Notes subject to the option described in Section
2(b) hereof (the "Option Securities") will both be unconditionally guaranteed
(the "Guarantees") on a senior basis by each of the Guarantors. The Initial
Securities, the Option Securities and the Guarantees are hereinafter called,
collectively, the "Securities." The Securities are to be issued pursuant to an
indenture, to be dated as of Closing Time (as defined in Section 2(c)) (the
"Indenture"), between the Company , the Guarantors and U.S. Bank National
Association, as trustee (the "Trustee").

     The Securities are convertible, subject to certain conditions, at the
option of the holder prior to maturity (unless previously redeemed or otherwise
purchased) into cash and shares of common stock, par value $0.01 per share, of
the Company (the "Common Stock") in accordance with the terms of the Securities
and the Indenture, as described in Schedule A hereto. Securities issued in
book-entry form will be issued to Cede & Co. as nominee of The Depository Trust
Company ("DTC") pursuant to a letter agreement, to be dated as of Closing Time
(as defined in Section 2(c)), among the Company, the Trustee and DTC.

     The Issuers understand that the Initial Purchaser proposes to make an
offering of the Securities on the terms and in the manner set forth herein and
agree that the Initial Purchaser may initially resell, subject to the conditions
set forth herein, all or a portion of the Securities to purchasers ("Subsequent
Purchasers") at any time after this Agreement has been executed and

                                       -1-

<PAGE>

delivered. The Securities are to be sold to the Initial Purchaser and offered
and resold by the Initial Purchaser without being registered under the
Securities Act of 1933, as amended (the "1933 Act"), in reliance upon exemptions
therefrom. Pursuant to the terms of the Securities and the Indenture, investors
that acquire Securities may only resell or otherwise transfer such Securities if
such Securities are hereafter registered under the 1933 Act or pursuant to an
available exemption from the registration requirements of the 1933 Act
(including the exemption afforded by Rule 144A ("Rule 144A") of the rules and
regulations of the Securities and Exchange Commission (the "Commission") under
the 1933 Act (the "1933 Act Regulations"). On or prior to Closing Time, the
Issuers will enter into an agreement with the Initial Purchaser (the
"Registration Rights Agreement"), in substantially the form attached hereto as
Exhibit A, with such changes as shall be agreed to by the parties hereof,
pursuant to which, subject to the conditions set forth therein, the Issuers are
required to file and use their reasonable efforts to have declared effective a
registration statement (the "Registration Statement") under the 1933 Act to
register resales of the Securities and the shares of Common Stock issuable upon
conversion thereof.

     The Company has prepared and delivered to the Initial Purchaser copies of a
preliminary offering memorandum dated September 20, 2005 (the "Preliminary
Offering Memorandum") and has prepared and will deliver to the Initial
Purchaser, on the date hereof or the next succeeding day, copies of a final
offering memorandum dated September 27, 2005 (the "Final Offering Memorandum"),
each for use by the Initial Purchaser in connection with its solicitation of
purchases of, or offering of, the Securities. "Offering Memorandum" means, with
respect to any date or time referred to in this Agreement, the most recent
offering memorandum (whether the Preliminary Offering Memorandum or the Final
Offering Memorandum, or any amendment or supplement to either such document),
including exhibits thereto and any documents (including the Incorporated
Documents (as defined in Section 1(a)(ii)) incorporated therein by reference,
which has been prepared and delivered by the Company to the Initial Purchaser in
connection with its solicitation of purchases of, or offering of, the
Securities.

     All references in this Agreement to financial statements and schedules and
other information which is "contained," "included," "stated" or "described" in
the Offering Memorandum (or other references of like import) shall be deemed to
mean and include all such financial statements and schedules and other
information which are incorporated by reference in the Offering Memorandum; and
all references in this Agreement to amendments or supplements to the Offering
Memorandum shall be deemed to mean and include the filing of any document under
the Securities Exchange Act of 1934, as amended (the "1934 Act"), which is
incorporated by reference in the Offering Memorandum.

     SECTION 1. Representations and Warranties.

     (a) Representations and Warranties by the Issuers. Each of the Issuers,
jointly and severally, represents and warrants to the Initial Purchaser as of
the date hereof, as of the Closing Time referred to in Section 2(c) hereof, and
as of each Date of Delivery (if any) referred to in Section 2(b) hereof and
agrees with the Initial Purchaser, as follows:

                                       -2-

<PAGE>

          (i) Compliance with Registration Requirements. The Offering Memorandum
     does not and at the Closing Time (and, if any Option Securities are
     purchased, at the Date of Delivery) will not, contain an untrue statement
     of a material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading. The
     representations and warranties in this subsection shall not apply to
     statements in or omissions from the Offering Memorandum made in reliance
     upon and in conformity with information furnished to the Company in writing
     by, and with respect to, the Initial Purchaser expressly for use in the
     Offering Memorandum.

          (ii) Incorporated Documents. The Offering Memorandum as delivered from
     time to time shall incorporate by reference each of the Company's and
     America West Airlines, Inc.'s (A) most recent Annual Report on Form 10-K
     filed with the Commission (B) Quarterly Report on Form 10-Q for the quarter
     ended June 30, 2005 and (C) each Current Report on Form 8-K filed (not
     furnished) with the Commission since June 30, 2005 and such other reports
     as specifically incorporated by reference in the Offering Memorandum. The
     documents incorporated by reference in the Offering Memorandum (the
     "Incorporated Documents"), at the time they were or hereafter are filed
     with the Commission, or if amended, as so amended, complied and will comply
     in all material respects with the requirements of the 1934 Act and the
     rules and regulations of the Commission thereunder (the "1934 Act
     Regulations"), and, when read together with the other information in the
     Offering Memorandum, at the time the Offering Memorandum was issued and at
     the Closing Time (and, if any Option Securities are purchased, at the Date
     of Delivery), did not and will not include an untrue statement of material
     fact or omit to state a material fact required to be stated therein or
     necessary to make the statements therein not misleading.

          (iii) Independent Accountants. Each of the accountants who certified
     the financial statements and supporting schedules included in the Offering
     Memorandum has advised the Company that they are independent registered
     public accountants as required by the 1933 Act and the 1933 Act
     Regulations.

          (iv) Financial Statements. The financial statements included in the
     Offering Memorandum, together with the related schedules and notes, present
     fairly the financial position of the Company and its consolidated
     subsidiaries at the dates indicated and the statement of operations,
     stockholders' equity and cash flows of the Company and its consolidated
     subsidiaries for the periods specified; said financial statements have been
     prepared in conformity with generally accepted accounting principles
     ("GAAP") applied on a consistent basis throughout the periods involved
     except as disclosed therein. The supporting schedules included in the
     Offering Memorandum present fairly in accordance with GAAP the information
     required to be stated therein. No financial statements are required to be
     included in the Offering Memorandum that have not been so included.

          The selected financial data of the Company and the summary financial
     information of the Company included in the Offering Memorandum present
     fairly the information shown therein and have been compiled on a basis
     consistent with that of the audited financial statements included in the
     Offering Memorandum. The pro forma

                                       -3-

<PAGE>

     financial statements and the related notes thereto included in the Offering
     Memorandum present fairly the information shown therein, have been prepared
     in accordance with the Commission's rules and guidelines with respect to
     pro forma financial statements and have been properly compiled on the bases
     described therein, and the assumptions used in the preparation thereof are
     reasonable and the adjustments used therein are appropriate to give effect
     to the transactions and circumstances referred to therein.

          (v) No Material Adverse Change in Business. Since the respective dates
     as of which information is given in the Offering Memorandum, except as
     otherwise stated therein, (A) there has been no material adverse change in
     the condition, financial or otherwise, or in the earnings, business
     affairs, business prospects or properties of the Company and its
     Subsidiaries (as defined below) considered as one enterprise, whether or
     not arising in the ordinary course of business (a "Material Adverse
     Effect"), (B) there have been no transactions entered into by the Company
     or any of its Subsidiaries, other than those in the ordinary course of
     business or other than as disclosed in the Offering Memorandum, which are
     material with respect to the Company and its subsidiaries considered as one
     enterprise and (C) there has been no dividend or distribution of any kind
     declared, paid or made by the Company on any class of its capital stock.

          (vi) Publicly Filed Documents. (A) The Company's Annual Report on Form
     10-K for the year ended December 31, 2004 and its Quarterly Report on Form
     10-Q for the quarter ended June 30, 2005 filed with the Commission and all
     subsequent reports which have been filed by the Company with the Commission
     or sent to stockholders pursuant to the Securities Exchange Act of 1934, as
     amended (the "1934 Act") and the Company's registration statement on Form
     S-4 (No. 333-126162) and (B) America West Airlines, Inc.'s Annual Report on
     Form 10-K for the year ended December 31, 2004 and its Quarterly Report on
     Form 10-Q for the quarter ended June 30, 2005 filed with the Commission and
     all subsequent reports which have been filed by the Company with the
     Commission or sent to stockholders pursuant to Exchange Act, when they were
     filed with the Commission, complied in all material respects to the
     requirements of the 1933 Act or the 1934 Act, as applicable, and the rules
     and regulations of the Commission thereunder, and none of such documents
     contained an untrue statement of a material fact or omitted to state a
     material fact required to be stated therein or necessary to make the
     statements therein not misleading; and any further documents so filed by
     the Company, when such documents become effective or are filed with the
     Commission by the Company, as the case may be, will comply in all material
     respects to the requirements of the 1933 Act or the 1934 Act, as
     applicable, and the rules and regulations of the Commission thereunder and
     will not contain an untrue statement of a material fact or omit to state a
     material fact required to be stated therein or necessary to make the
     statements therein not misleading.

          (vii) Good Standing of the Company. The Company has been duly
     organized and is validly existing as a corporation in good standing under
     the laws of the State of Delaware and has corporate power and authority to
     own, lease and operate its properties and to conduct its business as
     described in the Offering Memorandum and to enter into and perform its
     obligations under this Agreement; and the Company is duly qualified as a
     foreign corporation to transact business and is in good standing in each
     other jurisdiction

                                       -4-

<PAGE>

     in which such qualification is required, whether by reason of the ownership
     or leasing of property or the conduct of business, except where the failure
     so to qualify or to be in good standing would not result in a Material
     Adverse Effect.

          (viii) Good Standing of Subsidiaries. Each "significant subsidiary" of
     the Company (as such term in defined in Rule 1-02 of Regulation S-X (each a
     "Subsidiary" and, collectively, the "Subsidiaries") has been duly organized
     and is validly existing as a corporation and in good standing (if
     recognized by such jurisdiction) under the laws of the jurisdiction of its
     incorporation, has corporate power and authority to own, lease and operate
     its properties and to conduct its business as described in the Offering
     Memorandum and is duly qualified as a foreign corporation to transact
     business and is in good standing in each jurisdiction in which such
     qualification is required, whether by reason of the ownership or leasing of
     property or the conduct of business, except where the failure so to qualify
     or to be in good standing would not result in a Material Adverse Effect;
     except as otherwise disclosed in the Offering Memorandum, all of the issued
     and outstanding capital stock of each such Subsidiary has been duly
     authorized and validly issued, is fully paid and non-assessable and is
     owned by the Company, directly or through subsidiaries, free and clear of
     any security interest, mortgage, pledge, lien, encumbrance, claim or
     equity; none of the outstanding shares of capital stock of any Subsidiary
     was issued in violation of the preemptive or similar rights of any
     securityholder of such Subsidiary. The only subsidiaries of the Company are
     the subsidiaries listed on Schedule D hereto.

          (ix) Capitalization. The authorized, issued and outstanding capital
     stock of the Company was, as of June 30, 2005, as set forth in the Offering
     Memorandum in the column entitled "Actual" under the caption
     "Capitalization" and, after giving effect to the offering and the Company's
     concurrent public offering of Common Stock pursuant to the registration
     statement on Form S-1 (File No. 333-126226), would have been, as of June
     30, 2005, as set forth in the column entitled "As Adjusted" under the
     caption "Capitalization" (except, in each case, for subsequent issuances,
     if any, pursuant to this Agreement, pursuant to reservations, agreements or
     employee benefit plans referred to in the Offering Memorandum or pursuant
     to the exercise of convertible securities or options referred to in the
     Offering Memorandum). The shares of issued and outstanding capital stock of
     the Company have been duly authorized and validly issued and are fully paid
     and non-assessable; none of the outstanding shares of capital stock of the
     Company was issued in violation of the preemptive or other similar rights
     of any securityholder of the Company.

          (x) Authorization of Agreement. This Agreement has been duly
     authorized, executed and delivered by each of the Issuers.

          (xi) Authorization of the Indenture. The Indenture has been duly
     authorized by each of the Issuers and, when executed and delivered by the
     Issuers and the Trustee, will constitute a valid and binding agreement of
     the Issuers, enforceable against the Issuers in accordance with its terms,
     except as the enforcement thereof may be limited by bankruptcy, insolvency
     (including, without limitation, all laws relating to fraudulent

                                       -5-

<PAGE>

     transfers), reorganization, moratorium or similar laws affecting
     enforcement of creditors' rights generally and except as enforcement
     thereof is subject to general principles of equity (regardless of whether
     enforceability is considered in a proceeding in equity or at law).

          (xii) Authorization of the Registration Rights Agreement. The
     Registration Rights Agreement has been authorized by each of the Issuers
     and, when executed and delivered by each of the Issuers and the Initial
     Purchaser, will constitute a valid and binding agreement of each of the
     Issuers, enforceable against each of the Issuers in accordance with its
     terms, except as the enforcement thereof may be limited by bankruptcy,
     insolvency (including, without limitation, all laws relating to fraudulent
     transfers), reorganization, moratorium or similar laws affecting
     enforcement of creditors' rights generally and except as enforcement
     thereof is subject to general principles of equity (regardless of whether
     enforceability is considered in a proceeding in equity or at law).

          (i) Authorization of the Securities. (A) Notes. The Notes have been
     duly authorized and, at Closing Time, will have been duly executed by the
     Company and, when authenticated, issued and delivered in the manner
     provided for in the Indenture and delivered against payment of the purchase
     price therefor as provided in this Agreement, will constitute valid and
     binding obligations of the Company, enforceable against the Company in
     accordance with their terms, except as the enforcement thereof may be
     limited by bankruptcy, insolvency (including, without limitation, all laws
     relating to fraudulent transfers), reorganization, moratorium or similar
     laws affecting enforcement of creditors' rights generally and except as
     enforcement thereof is subject to general principles of equity (regardless
     of whether enforcement is considered in a proceeding in equity or at law),
     and will be in the form contemplated by, and entitled to the benefits of,
     the Indenture.

          (B) Guarantees. The Guarantees have been duly and validly authorized
     by the Guarantors and, when the Notes are issued, authenticated and
     delivered by the Company against payment by the Initial Purchaser in
     accordance with the terms of this Agreement and the Indenture, will be
     legal, valid and binding obligations of the Guarantors, enforceable against
     each of them in accordance with their terms, except as the enforcement
     thereof may be limited by bankruptcy, insolvency (including, without
     limitation, all laws relating to fraudulent transfers), reorganization,
     moratorium or other similar laws affecting the enforcement of creditors'
     rights generally and except as enforcement thereof is subject to general
     principles of equity (regardless of whether enforcement is considered in a
     proceeding in equity or at law), and will be in the form contemplated by,
     and entitled to the benefits of, the Indenture.

          (xiii) Description of the Securities, the Indenture and the
     Registration Rights Agreement. As of Closing Time, the Securities, the
     Indenture and the Registration Rights Agreement will conform in all
     material respects to the respective statements relating thereto contained
     in the Offering Memorandum.

                                       -6-

<PAGE>

          (xiv) Authorization and Description of Common Stock. The Common Stock
     conforms to all descriptions relating thereto contained in the Offering
     Memorandum, and such description conforms in all material respects to the
     rights set forth in the instruments defining the same. Upon issuance and
     delivery of the Securities in accordance with this Agreement and the
     Indenture, the Securities will be convertible at the option of the holder
     thereof into shares of Common Stock in accordance with the terms of the
     Securities and the Indenture; the shares of Common Stock issuable upon
     conversion of the Securities have been duly authorized and reserved for
     issuance upon such conversion by all necessary corporate action and such
     shares, when issued upon such conversion in accordance with the terms of
     the Securities, will be validly issued and will be fully paid and
     non-assessable; no holder of such shares will be subject to personal
     liability by reason of being such a holder; and the issuance of such shares
     upon such conversion will not be subject to the preemptive or other similar
     rights of any securityholder of the Company.

          (xv) Absence of Defaults and Conflicts. None of the Issuers nor any of
     their Subsidiaries is in violation of its charter or by-laws or in default
     in the performance or observance of any obligation, agreement, covenant or
     condition contained in any contract, indenture, mortgage, deed of trust,
     loan or credit agreement, note, lease or other agreement or instrument to
     which the Company or any of its Subsidiaries is a party or by which it or
     any of them may be bound, or to which any of the property or assets of the
     Company or any Subsidiary is subject (collectively, "Agreements and
     Instruments"), except for such defaults that would not result in a Material
     Adverse Effect; and the execution, delivery and performance of this
     Agreement and the consummation of the transactions contemplated in this
     Agreement and in the Offering Memorandum (including, but not limited to,
     the issuance and sale of the Securities and the use of the proceeds from
     the sale of the Securities as described in the Offering Memorandum under
     the caption "Use of Proceeds" and the issuance of the shares of Common
     Stock issuable upon conversion of the Securities) and compliance by the
     Company with its obligations under this Agreement, the Indenture, the
     Registration Rights Agreement and the Securities have been duly authorized
     by all necessary corporate action and do not and will not, whether with or
     without the giving of notice or passage of time or both, conflict with or
     constitute a breach of, or default or Repayment Event (as defined below)
     under, or result in the creation or imposition of any lien, charge or
     encumbrance upon any property or assets of the Company or any Subsidiary
     pursuant to, the Agreements and Instruments (except for such conflicts,
     breaches or defaults or liens, charges or encumbrances that would not
     result in a Material Adverse Effect), nor will such action result in any
     violation of the provisions of the charter or by-laws of the Company or any
     Subsidiary or any applicable law, statute, rule, regulation, judgment,
     order, writ or decree of any government, government instrumentality or
     court, domestic or foreign, having jurisdiction over the Company or any of
     its Subsidiaries or any of their assets, properties or operations. As used
     herein, a "Repayment Event" means any event or condition which gives the
     holder of any note, debenture or other evidence of indebtedness (or any
     person acting on such holder's be-half) the right to require the
     repurchase, redemption or repayment of all or a portion of such
     indebtedness by the Company or any of its Subsidiaries.

                                       -7-

<PAGE>

          (xvi) Absence of Labor Dispute. Except as otherwise disclosed in the
     Offering Memorandum, no labor dispute with the employees of the Company or
     any Subsidiary exists or, to the knowledge of the Company, is imminent, and
     the Company is not aware of any existing or imminent labor disturbance by
     the employees of any of its or any Subsidiary's principal suppliers,
     manufacturers, customers or contractors, which, in either case, may
     reasonably be expected to result in a Material Adverse Effect.

          (xvii) Absence of Proceedings. There is no action, suit, proceeding,
     inquiry or investigation before or brought by any court or governmental
     agency or body, domestic or foreign, now pending, or, to the knowledge of
     the Company, threatened, against or affecting the Company or any
     Subsidiary, which is required to be disclosed in the Offering Memorandum
     (other than as disclosed in the Offering Memorandum), or which might
     reasonably be expected to result in a Material Adverse Effect, or which
     might reasonably be expected to materially and adversely affect the
     properties or assets thereof or the consummation of the transactions
     contemplated in this Agreement or the performance by the Company of its
     obligations hereunder; the aggregate of all pending legal or governmental
     proceedings to which the Company or any Subsidiary is a party or of which
     any of their respective property or assets is the subject which are not
     described in the Offering Memorandum, including ordinary routine litigation
     incidental to the business, could not reasonably be expected to result in a
     Material Adverse Effect.

          (xviii) Possession of Intellectual Property. The Company and its
     Subsidiaries own or possess, or can acquire on reasonable terms, adequate
     licenses, patents, patent rights, inventions, copyrights, know-how
     (including trade secrets and other unpatented and/or unpatentable
     proprietary or confidential information, systems or procedures),
     trademarks, service marks, trade names or other intellectual property or
     other rights or similar interests (collectively, "Intellectual Property")
     to carry on the business now operated by them or to be operated by them as
     described in the Offering Memorandum except where the failure to possess
     such licenses would not, singly or in the aggregate have a Material Adverse
     Effect, and neither the Company nor any of its Subsidiaries has received
     any notice or is otherwise aware of any infringement of or conflict with
     asserted rights of others with respect to any Intellectual Property or of
     any facts or circumstances which would render any Intellectual Property
     invalid or inadequate to protect the interest of the Company or any of its
     Subsidiaries therein, and which infringement or conflict (if the subject of
     any unfavorable decision, ruling or finding) or invalidity or inadequacy,
     singly or in the aggregate, would result in a Material Adverse Effect.

          (xix) Absence of Further Requirements. No filing with, or
     authorization, approval, consent, license, order, registration,
     qualification or decree of, any court or governmental authority or agency
     is necessary or required for the performance by each Issuer of its
     obligations hereunder or under the Registration Rights Agreement or the
     Indenture, in connection with the offering, issuance or sale of the
     Securities hereunder, the issuance of shares of Common Stock upon
     conversion of Securities or the consummation of the transactions
     contemplated by this Agreement or the Offering Memorandum, or for the due
     execution, delivery or performance by the Company of this Agreement, the
     Registration Rights Agreement or the Indenture, or for the valid

                                       -8-

<PAGE>

     authorization, issuance, sale and delivery of the Securities, except such
     as have been already obtained and or as may be required under the 1933 Act
     or the 1933 Act Regulations or state securities or blue sky laws in
     connection with the transactions contemplated in the Registration Rights
     Agreement (including the filing of the Registration Statement by the
     Issuers and the qualification of the Indenture under the Trust Indenture
     Act of 1939, as amended (the "1939 Act")) and the listing of the Common
     Stock issuable upon conversion of the Securities on the New York Stock
     Exchange.

          (xx) Possession of Licenses and Permits. The Company and its
     Subsidiaries possess such permits, licenses, approvals, consents and other
     authorizations (collectively, "Licenses") issued by the appropriate
     federal, state, local or foreign regulatory agencies or bodies and third
     parties, governmental or otherwise, necessary to conduct the business now
     operated by them as described in the Offering Memorandum except where the
     failure to possess such licenses would not, singly or in the aggregate,
     have a Material Adverse Effect or as disclosed in the Offering Memorandum;
     the Company and its Subsidiaries are in compliance with the terms and
     conditions of all such Licenses, except where the failure so to comply
     would not, singly or in the aggregate, have a Material Adverse Effect; all
     of the Licenses are valid and in full force and effect, except when the
     invalidity of such Licenses or the failure of such Licenses to be in full
     force and effect would not singly or in the aggregate have a Material
     Adverse Effect or as disclosed in the Offering Memorandum; and neither the
     Company nor any of its Subsidiaries has received any notice of proceedings
     relating to the revocation or modification of any such Licenses which,
     singly or in the aggregate, if the subject of an unfavorable decision,
     ruling or finding, would result in a Material Adverse Effect.

          (xxi) Title to Property. The Company and its Subsidiaries have good
     and marketable title to all real property owned by the Company and its
     Subsidiaries and good title to all other properties owned by them, in each
     case, free and clear of all mortgages, pledges, liens, security interests,
     claims, restrictions or encumbrances of any kind except such as (a) are
     described in the Offering Memorandum or (b) do not, singly or in the
     aggregate, materially affect the value of such property and do not
     interfere with the use made and proposed to be made of such property by the
     Company or any of its Subsidiaries; and all of the leases and subleases
     material to the business of the Company and its Subsidiaries, considered as
     one enterprise, and under which the Company or any of its Subsidiaries
     holds properties described in the Offering Memorandum, are in full force
     and effect, and neither the Company nor any Subsidiary has any notice of
     any material claim of any sort that has been asserted by anyone adverse to
     the rights of the Company or any Subsidiary under any of the leases or
     subleases mentioned above, or affecting or questioning the rights of the
     Company or any Subsidiary to the continued possession of the leased or
     subleased premises under any such lease or sublease.

          (xxii) Investment Company Act. The Company is not, and upon the
     issuance and sale of the Securities as herein contemplated and the
     application of the net proceeds therefrom as described in the Offering
     Memorandum will not be, an "investment

                                       -9-

<PAGE>

     company" or an entity "controlled" by an "investment company" as such terms
     are defined in the Investment Company Act of 1940, as amended (the "1940
     Act").

          (xxiii) Environmental Laws. Except as described in the Offering
     Memorandum and except as would not, singly or in the aggregate, result in a
     Material Adverse Effect, (A) neither the Company nor any of its
     Subsidiaries is in violation of any applicable federal, state, local or
     foreign statute, law, rule, regulation, ordinance, code or rule of common
     law or any judicial or administrative interpretation thereof, including any
     judicial or administrative order, consent, decree or judgment relating to
     pollution or protection of human health, the environment (including without
     limitation, ambient air, surface water, ground water, land surface or
     subsurface strata) or wildlife, including, without limitation, laws and
     regulations relating to the release or threatened release of chemicals,
     pollutants, contaminants, wastes, toxic substances, hazardous substances,
     petroleum or petroleum products (collectively, "Hazardous Materials") or to
     the manufacture, processing, distribution, use, treatment, storage,
     disposal, transport or handling of Hazardous Materials (collectively,
     "Environmental Laws"), (B) the Company and its Subsidiaries have all
     permits, authorizations and approvals required under any applicable
     Environmental Laws and are each in compliance with their requirements, (C)
     there are no pending or threatened administrative, regulatory or judicial
     actions, suits, demands, demand letters, claims, liens, notices of
     noncompliance or violation, investigations or proceedings relating to any
     Environmental Law against the Company or any of its Subsidiaries and (D)
     there are no events or circumstances that might reasonably be expected to
     form the basis of an order for clean-up or remediation, or an action, suit
     or proceeding by any private party or governmental body or agency, against
     or affecting the Company or any of its Subsidiaries relating to any
     Environmental Laws.

          (xxiv) Registration Rights. Except as disclosed in the Offering
     Memorandum, there are no persons with registration rights or other similar
     rights to have any securities registered by the Company under the 1933 Act.
     The foregoing sentence shall not apply to (A) the American Transportation
     Safety Board and (B) AVSA, S.A.R.L. and its affiliates.

          (xxv) Restricted Stockholders. The persons listed on Schedule C hereto
     include all directors and officers of the Company.

          (xxvi) Statistical and Market-Related Data. The statistical and
     market-related data included in the Offering Memorandum are based on or
     derived from sources which the Company believes to be reliable and accurate
     in all material respects or represent the Company's good faith estimates
     made on the basis of data derived from such sources.

          (xxvii) ERISA. Each employee benefit plan, within the meaning of
     Section 3(3) of the Employee Retirement Income Security Act of 1974, as
     amended ("ERISA"), that is maintained, administered or contributed to by
     the Company or any of its Subsidiaries for employees or former employees of
     the Company and its Subsidiaries has been maintained in compliance with its
     terms and the requirements of any applicable statutes, orders, rules and
     regulations, including but not limited to ERISA and the Internal Revenue
     Code of

                                      -10-

<PAGE>

     1986, as amended (the "Code"), except to the extent that any failure to
     maintain, administer or contribute to any such plan would not reasonably be
     expected to result in a Material Adverse Effect. No prohibited transaction,
     within the meaning of Section 406 of ERISA or Section 4975 of the Code, has
     occurred with respect to any such plan excluding transactions effected
     pursuant to a statutory or administrative exemption, except to the extent
     that any such occurrence would not reasonably be expected to result in a
     Material Adverse Effect. For each such plan which is subject to the funding
     rules of Section 412 of the Code or Section 302 of ERISA, no "accumulated
     funding deficiency" as defined in Section 412 of the Code has been
     incurred, whether or not waived, and the fair market value of the assets of
     each such plan (excluding for these purposes accrued but unpaid
     contributions) exceeds the present value of all benefits accrued under such
     plan determined using reasonable actuarial assumptions.

          (xxviii) Tax Returns and Payment of Taxes. The Company and its
     Subsidiaries have timely filed all federal, state, local and foreign tax
     returns that are required to be filed or have duly requested extensions
     thereof and all such tax returns are true, correct and complete, except to
     the extent that any failure to file or request an extension, or any
     incorrectness would not reasonably be expected to result in a Material
     Adverse Effect. The Company and its Subsidiaries have timely paid all taxes
     shown as due on such filed tax returns (including any related assessments,
     fines or penalties), except to the extent that any such taxes are being
     contested in good faith and by appropriate proceedings, or to the extent
     that any failure to pay would not reasonably be expected to result in a
     Material Adverse Effect; and adequate charges, accruals and reserves have
     been provided for in the financial statements referred to in Section
     1(a)(iii) above in accordance with GAAP in respect of all federal, state,
     local and foreign taxes for all periods as to which the tax liability of
     the Company or any of its Subsidiaries has not been finally determined or
     remains open to examination by applicable taxing authorities, except to the
     extent that any failure to create adequate charges, accruals and reserves
     would not reasonably be expected to result in a Material Adverse Effect.

          (xxix) Insurance. The Company and its Subsidiaries are insured by
     insurers of recognized financial responsibility against such losses and
     risks and in such amounts as the Company reasonably believes are prudent
     and customary; and neither the Company nor any of its Subsidiaries has any
     reason to believe that any of them will not be able to renew its existing
     insurance coverage as and when such coverage expires or to obtain similar
     coverage from similar insurers as may be necessary to continue its business
     except where the failure to renew or maintain such coverage would not
     reasonably be expected to result in a Material Adverse Effect. The officers
     and directors of the Company are insured by insurers of recognized
     financial responsibility against such losses and risks and in such amounts
     as are reasonably believed to be prudent and customary; and the Company has
     no reason to believe that it will not be able to renew its existing
     directors and officers liability insurance coverage as and when such
     coverage expires or to obtain similar coverage from similar insurers as may
     be necessary to cover its officers and directors.

                                      -11-

<PAGE>

          (xxx) No Stabilization or Manipulation. Neither the Company nor any of
     its affiliates nor, to the knowledge of the Company, any of its directors
     or officers has taken nor will take, directly or indirectly, any action
     designed to, or that might be reasonably expected to, cause or result in
     stabilization or manipulation of the price of the Securities in violation
     of Regulation M under the 1934 Act.

          (xxxi) Certain Transactions. Except as disclosed in the Offering
     Memorandum, there are no outstanding loans, advances, or guarantees of
     indebtedness by the Company to or for the benefit of any of the executive
     officers or directors of the Company or any of the members of the families
     of any of them, other than those not reasonably required to be disclosed in
     the Offering Memorandum.

          (xxxii) Accounting and Other Controls. The Company has established for
     itself and each Subsidiary a system of internal accounting controls
     sufficient to provide reasonable assurances that (i) transactions were
     executed in accordance with management's general or specific authorization;
     (ii) transactions were recorded as necessary to permit preparation of
     financial statements in conformity with generally accepted accounting
     principles and to maintain accountability for assets; (iii) access to
     assets was permitted only in accordance with management's general or
     specific authorization; and (iv) the recorded accountability for assets was
     compared with existing assets at reasonable intervals and appropriate
     action was taken with respect to any differences. Except as described in
     the Offering Memorandum, since the end of the Company's most recent audited
     fiscal year, there has been (I) no material weakness in the Company's
     internal control over financial reporting (whether or not remediated) and
     (II) no change in the Company's internal control over financial reporting
     that has materially affected, or is reasonably likely to materially affect,
     the Company's internal control over financial reporting.

          (xxxiii) Foreign Corrupt Practices Act. Neither the Company, nor any
     of its Subsidiaries, nor to the knowledge of the Company any director,
     officer, agent, employee or other person associated with or acting on
     behalf of the Company or any such Subsidiary has, directly or indirectly:
     used any corporate funds for unlawful contributions, gifts, entertainment
     or other unlawful expenses relating to political activity; made any
     unlawful payment to foreign or domestic government officials or employees
     or to foreign or domestic political parties or campaigns from corporate
     funds; violated any provision of the Foreign Corrupt Practices Act of 1977,
     as amended; or made any bribe, rebate, payoff, influence payment, kickback
     or other unlawful payment.

          (xxxiv) Absence of Restrictions on Dividends by Subsidiaries. No
     Subsidiary of the Company is currently prohibited, directly or indirectly,
     from paying any dividends to the Company, from making any other
     distributions on such Subsidiary's capital stock, from repaying to the
     Company any loans or advances to such Subsidiary or from transferring any
     of such Subsidiary's property or assets to the Company or any other
     Subsidiary of the Company, except as disclosed in the Offering Memorandum.

                                      -12-

<PAGE>

          (xxxv) Similar Offering. Neither the Company nor any of its
     affiliates, as such term is defined in Rule 501(b) under the 1933 Act
     (each, an "Affiliate"), has, directly or indirectly, solicited any offer to
     buy, sold or offered to sell or otherwise negotiated in respect of, or will
     solicit any offer to buy, sell or offer to sell or otherwise negotiate in
     respect of, in the United States or to any United States citizen or
     resident, any security which is or would be integrated with the sale of the
     Securities in a manner that would require the Securities to be registered
     under the 1933 Act.

          (xxxvi) Rule 144A. The Securities are eligible for resale pursuant to
     Rule 144A and will not be, at Closing Time, of the same class as securities
     listed on a national securities exchange registered under Section 6 of the
     1934 Act, or quoted in a U.S. automated interdealer quotation system.

          (xxxvii) No General Solicitation or General Advertising. None of the
     Company, its Affiliates or any person acting on its or any of their behalf
     (other than the Initial Purchaser and its Affiliates, as to whom the
     Company makes no representation) has engaged or will engage, in connection
     with the offering of the Securities, in any form of general solicitation or
     general advertising within the meaning of Rule 502(c) under Regulation D of
     the 1933 Act.

          (xxxviii) No Registration Required. Subject to compliance by the
     Initial Purchaser with the representations and warranties and the
     procedures set forth in Section 6 hereof, it is not necessary in connection
     with the offer, sale and delivery of the Securities to the Initial
     Purchaser and the initial resale by the Initial Purchaser to each
     Subsequent Purchaser in the manner contemplated by this Agreement and the
     Offering Memorandum to register the Securities under the 1933 Act or to
     qualify the Indenture under the 1939 Act.

          (xxxix) Compliance with Sarbanes-Oxley Act. The Company, its officers
     and directors are in compliance with the applicable provisions of the
     Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
     connection therewith that are effective.

     (b) Officer's Certificates. Any certificate signed by any officer of the
Company or any of its Subsidiaries delivered to Merrill Lynch or to counsel for
the Initial Purchaser shall be deemed a representation and warranty by the
Company to the Initial Purchaser as to the matters covered thereby.

     SECTION 2. Sale and Delivery to Initial Purchaser; Closing.

     (a) Initial Securities. On the basis of the representations, warranties and
agreements herein contained and subject to the terms and conditions herein set
forth, the Issuers, jointly and severally, agree to sell to the Initial
Purchaser and Initial Purchaser, agrees to purchase from the Issuers at the
price set forth in Schedule A hereto all of the Initial Securities.

     (b) Option Securities. In addition, on the basis of the representations,
warranties and agreements herein contained and subject to the terms and
conditions herein set forth, the Issuers hereby grant an option to the Initial
Purchaser to purchase up to an additional $18,750,000

                                      -13-

<PAGE>

aggregate principal amount of Option Securities at the same price per Security
set forth in Schedule A for the Initial Securities. The option hereby granted
will expire 12 days after the date hereof and may be exercised in whole or in
part from time to time upon notice to the Company setting forth the number of
Option Securities as to which the Initial Purchaser is then exercising the
option and the time and date of payment and delivery for such Option Securities.
Any such time and date of delivery (a "Date of Delivery") shall be determined by
Merrill Lynch, but shall not be later than seven full business days after the
exercise of said option, nor in any event prior to Closing Time, as hereinafter
defined.

     (c) Payment. Payment of the purchase price for, and delivery of one or more
global certificates for, the Initial Securities shall be made at the offices of
Cahill Gordon & Reindel LLP, 80 Pine Street, New York, New York 10005, or at
such other place as shall be agreed upon by Merrill Lynch and the Company, at
9:00 A.M. (Eastern time) on September 30, 2005, or at such other time not later
than ten business days after such date as shall be agreed upon by Merrill Lynch
and the Company (such time and date of payment and delivery being herein called
the "Closing Time").

     In addition, in the event that the Initial Purchaser has exercised its
option to purchase all or any of the Option Securities, payment of the purchase
price for, and delivery of one or more global certificates for, such Option
Securities shall be made at the above-mentioned offices, or at such other place
as shall be agreed upon by Merrill Lynch and the Company, on each Date of
Delivery as specified in the notice from Merrill Lynch to the Company.

     Payment shall be made to the Company by wire transfer of immediately
available funds to a bank account designated by the Company, against delivery to
Merrill Lynch for the Securities to be purchased by it.

     (d) Denominations; Registration. Certificates for the Initial Securities
and the Option Securities, if any, shall be in such denominations ($1,000 or
integral multiples thereof) and registered in such names as Merrill Lynch may
request in writing at least one full business day before Closing Time or the
relevant Date of Delivery, as the case may be; provided that any Securities in
global form be registered in the name of Cede & Co. The certificates for the
Initial Securities and the Option Securities, if any, will be made available for
examination and packaging by Merrill Lynch in The City of New York not later
than 10:00 A.M. (Eastern time) on the business day prior to Closing Time or the
relevant Date of Delivery, as the case may be.

     SECTION 3. Covenants of the Company. The Company and where specifically
indicated, each of the other Issuers, jointly and severally, covenants with the
Initial Purchaser, as follows:

     (a) Offering Memorandum. The Company, as promptly as possible, will furnish
to the Initial Purchaser, without charge, such number of copies of the Offering
Memorandum and any amendments and supplements thereto and any Incorporated
Documents as the Initial Purchaser may reasonably request.

     (b) Notice and Effect of Material Events. From the date hereof until the
last Date of Delivery hereunder, the Company will immediately notify each
Initial Purchaser, and confirm

                                      -14-

<PAGE>

such notice in writing, of (x) any filing made by the Company of information
relating to the offering of the Securities with any securities exchange or any
other securities regulatory body in the United States or any other jurisdiction,
and (y) prior to the completion of the placement of the Securities by the
Initial Purchaser as evidenced by a notice from the Initial Purchaser to the
Company in writing, any material changes in or events affecting the condition,
financial or otherwise, or the earnings, business or business prospects of the
Company and its Subsidiaries considered as one enterprise which (i) make any
statement in the Offering Memorandum false or misleading or (ii) are not
disclosed in the Offering Memorandum. In such event or if during such time any
event shall occur as a result of which it is necessary, in the reasonable
opinion of any of the Company, its counsel, the Initial Purchaser or counsel for
the Initial Purchaser, to amend or supplement the Offering Memorandum in order
that the Offering Memorandum not include any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
therein not misleading in the light of the circumstances then existing, the
Company will forthwith amend or supplement the Offering Memorandum by preparing
and furnishing to the Initial Purchaser an amendment or amendments of, or a
supplement or supplements to, the Offering Memorandum (in form and substance
satisfactory in the reasonable opinion of counsel for the Initial Purchaser) so
that, as so amended or supplemented, the Offering Memorandum will not include an
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances
existing at the time it is delivered to a Subsequent Purchaser, not misleading.

     (c) Amendments to Offering Memorandum and Supplements. The Company will
advise the Initial Purchaser promptly of any proposal to amend or supplement the
Offering Memorandum and will not effect any such amendment or supplement without
the consent of the Initial Purchaser, which consent shall not be unreasonably
withheld, conditioned or delayed. Neither the consent of the Initial Purchaser,
nor the Initial Purchaser's delivery of any such amendment or supplement, shall
constitute a waiver of any of the conditions set forth in Section 5 hereof.

     (d) Qualifications of Securities for Offer and Sale. The Issuers shall use
their reasonable best efforts, in cooperation with the Initial Purchaser, to
qualify the Securities and the shares of Common Stock issuable upon conversion
of Securities for offering and sale under the applicable securities laws of such
states and other jurisdictions as Merrill Lynch may designate and will maintain
such qualification in effect as long as required in connection with the
distribution of the Securities; provided, however, that no Issuer shall be
obligated to file any general consent to service of process or to qualify as a
foreign corporation or as a dealer in securities in any jurisdiction in which it
is not so qualified or to subject itself to taxation in respect of doing
business in any jurisdiction in which it is not otherwise so subject. In each
jurisdiction in which the Securities or such shares of Common Stock issuable
upon conversion of the Securities have been so qualified, the Company will file
such statements and reports as may be required by the laws of such jurisdiction
to continue such qualification in effect for so long as may be required in
connection with the distribution of the Securities.

     (e) Use of Proceeds. The Company will use the net proceeds received by it
from the sale of the Securities in the manner specified in the Offering
Memorandum under "Use of Proceeds."

                                      -15-

<PAGE>

     (f) Listing on Securities Exchange. The Company will use its reasonable
best efforts to cause all shares of Common Stock issuable upon conversion of the
Securities to be listed on the New York Stock Exchange.

     (g) Restriction on Sale of Securities. (1) During the period ending 180
days after the date of the Final Offering Memorandum, the Company will not,
without the prior written consent of Merrill Lynch or except as contemplated
under the Plan, as defined in the Company's concurrent public offering of Common
Stock pursuant to the registration statement on Form S-1 (File No. 333-126226),
(i) directly or indirectly, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase or otherwise transfer or dispose of any
share of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock or file any registration statement under the 1933
Act with respect to any of the foregoing or (ii) enter into any swap or any
other agreement or any transaction that transfers, in whole or in part, directly
or indirectly, the economic consequence of ownership of the Common Stock,
whether any such swap or transaction described in clause (i) or (ii) above is to
be settled by delivery of Common Stock or other securities, in cash or
otherwise. The foregoing sentence shall not apply to (A) the Securities to be
sold hereunder, (B) the shares of Common Stock to be sold pursuant to the
Company's concurrent public offering of Common Stock pursuant to the
registration statement on Form S-1 (File No. 333-126226), (C) any shares of
Common Stock issued by the Company upon the exercise of an option or warrant or
the conversion, or exchange, of a security outstanding on the date hereof and
referred to in the Offering Memorandum, (D) any shares of Common Stock issued or
options to purchase Common Stock granted pursuant to existing employee benefit
plans of the Company referred to in the Offering Memorandum or (E) any shares of
Common Stock issued pursuant to any non-employee director stock plan or dividend
reinvestment plan. Notwithstanding the foregoing, if (1) during the last 17 days
of the 180-day lock-up period, the Company issues an earnings release or
material news or a material event relating to the Company occurs; or (2) prior
to the expiration of the 180-day lock-up period, the Company announces that it
will release earnings results or becomes aware that material news or a material
event will occur during the 16-day period beginning on the last day of the
180-day lock-up period, the restrictions imposed by the lock-up agreement shall
continue to apply until the expiration of the 18-day period beginning on the
issuance of the earnings release or occurrence of the material news or material
event, as applicable, unless Merrill Lynch waives, in writing, such extension.

          (2) The Company will not, without the prior written consent of Merrill
Lynch, waive or amend any existing lockup agreements with (i) the equity
investors (as defined in the Company's registration statement and prospectus on
Form S-1 (File No. 333-126226)) during the period ending 180 days after the date
of the Final Offering Memorandum or (ii) the Pension Benefit Guaranty
Corporation during the period ending five months after the date of the Final
Offering Memorandum.

     (h) PORTAL Designation. The Issuers shall use their best efforts to permit
the Securities to be designated as PORTAL securities in accordance with the
rules and regulations adopted by the National Association of Securities Dealers,
Inc. ("NASD") relating to the PORTAL Market.

                                      -16-

<PAGE>

     (i) DTC. The Issuers shall cooperate with Merrill Lynch and use their best
efforts to permit the Securities to be eligible for clearance and settlement
through the facilities of DTC.

     (j) Reporting Requirements. The Company, during the period when the
Offering Memorandum is required to be delivered, will file all documents
required to be filed with the Commission pursuant to the 1934 Act within the
time periods required by the 1934 Act and the 1934 Act Regulations.

     SECTION 4. Payment of Expenses.

     (a) Expenses. The Issuers shall, jointly and severally, pay all expenses
incident to the performance of their obligations under this Agreement,
including, without limiting the generality of the foregoing, (i) the
preparation, printing, delivery to the Initial Purchaser and any filing of the
Offering Memorandum (including financial statements and any schedules or
exhibits and any Incorporated Document) and of each amendment or supplement
thereto, (ii) the preparation, printing and delivery to the Initial Purchaser of
this Agreement, the Indenture, the Securities, the Registration Rights Agreement
and such other documents as may be required in connection with the offer,
purchase, sale, issuance or delivery of the Securities or the issuance or
delivery of the Common Stock issuable upon conversion thereof, (iii) the
preparation, issuance and delivery of the certificates for the Securities to the
Initial Purchaser and the certificates for the Common Stock issuable upon
conversion thereof including any stock or other transfer taxes, any stamp or
other duties payable upon the sale, issuance and delivery of the Securities to
the Initial Purchaser, the issuance and delivery of the Common Stock issuable
upon conversion thereof and any charges of DTC in connection therewith, (iv) the
fees and disbursements of the Issuers' counsel, accountants and other advisors,
(v) the qualification of the Securities and the shares of Common Stock issuable
upon conversion of the Securities under securities laws in accordance with the
provisions of Section 3(d) hereof, including filing fees and the reasonable fees
and disbursements of counsel for the Initial Purchaser in connection therewith
and in connection with the preparation of the Blue Sky Survey and any supplement
thereto, (vi) the preparation, printing and delivery to the Initial Purchaser of
copies of the Blue Sky Survey and any supplement thereto, (vii) the fees and
expenses of the Trustee, including the fees and disbursements of counsel for the
Trustee in connection with the Indenture and the Securities, (viii) the fees and
expenses of any transfer agent or registrar for the Common Stock, (ix) any fees
payable in connection with the rating of the Securities, (x) any fees and
expenses payable in connection with the initial and continued designation of the
Securities as PORTAL securities under the PORTAL Market Rules pursuant to NASD
Marketplace Rule 5322 and (xi) the fees and expenses of any transfer agent or
registrar for the Common Stock and (xii) the Company's pro rata costs and
expenses of meetings with prospective investors and the road show (including
road show consultants, venues, and travel and accommodation for its directors
and employees) and the costs and expenses incurred for chartered air travel in
connection with the road show. It is understood, however, that except as
provided in this Section 4, and Section 7 and Section 8 hereof, the Initial
Purchaser will pay all of their own costs and expenses including fees and
disbursements of their counsel, stock transfer taxes payable on resale of any of
the Securities by them and any advertising expenses connected with any offers
they may make.

                                      -17-

<PAGE>

     (b) Termination of Agreement. If this Agreement is terminated by Merrill
Lynch in accordance with the provisions of Section 5 or Section 10(a)(i) hereof,
the Company shall reimburse the Initial Purchaser for all of its out-of-pocket
expenses, including the reasonable fees and disbursements of counsel for the
Initial Purchaser.

     SECTION 5. Conditions of Initial Purchaser's Obligations. The obligations
of the Initial Purchaser hereunder are subject to the accuracy of the
representations and warranties of the Issuers contained in Section 1 hereof or
in certificates of any officer of the Issuers delivered pursuant to the
provisions hereof, to the performance by the Company and the Issuers of their
covenants and other obligations hereunder, and to the following further
conditions:

     (a) Opinions of Counsel for the Issuers. At Closing Time, Merrill Lynch
shall have received the favorable opinions, dated as of Closing Time, of
Skadden, Arps, Slate, Meagher & Flom LLP, and James E. Walsh III and Janet
Dhillon, each as general counsel for the Company, in form and substance
satisfactory to counsel for the Initial Purchaser to the effect set forth in
Exhibit B-1 and Exhibit B-2 hereto, and to such further effect as counsel to the
Initial Purchaser may reasonably request. In giving such opinion such counsel
may rely, as to all matters governed by the laws of jurisdictions other than the
law of the State of New York, the federal law of the United States and the
General Corporation Law of the State of Delaware, upon the opinions of counsel
satisfactory to Merrill Lynch. Such counsel may also state that, insofar as such
opinion involves factual matters, they have relied, to the extent they deem
proper, upon certificates of officers of the Company and its Subsidiaries and
certificates of public officials.

     (b) Opinion of Counsel for Initial Purchaser. At Closing Time, Merrill
Lynch shall have received the favorable opinion, dated as of Closing Time, of
Cahill Gordon & Reindel LLP, counsel for the Initial Purchaser, in form and
substance satisfactory to Merrill Lynch. In giving such opinion such counsel may
rely, as to all matters governed by the laws of jurisdictions other than the law
of the State of New York, the federal law of the United States and the General
Corporation Law of the State of Delaware, upon the opinions of counsel
satisfactory to Merrill Lynch. Such counsel may also state that, insofar as such
opinion involves factual matters, they have relied, to the extent they deem
proper, upon certificates of officers of the Company and its Subsidiaries and
certificates of public officials.

     (c) Officers' Certificate. At Closing Time, there shall not have been,
since the date hereof or since the respective dates as of which information is
given in the Final Offering Memorandum (exclusive of any amendments or
supplements thereto after the date of this Agreement), any material adverse
change in the condition, financial or otherwise, or in the earnings, business
affairs, business prospects or properties of the Company and its Subsidiaries
considered as one enterprise, whether or not arising in the ordinary course of
business, and Merrill Lynch shall have received a certificate of the President
or a Vice President of the Company and of the chief financial or chief
accounting officer of the Company, dated as of Closing Time, to the effect that
(i) there has been no such material adverse change, (ii) the representations and
warranties in Section 1(a) hereof are true and correct with the same force and
effect as though expressly made at and as of Closing Time, and (iii) the Issuers
have complied with all agreements and satisfied all conditions on their part to
be performed or satisfied at or prior to Closing Time.

                                      -18-

<PAGE>

     (d) Accountant's Comfort Letter. At the time of the execution of this
Agreement, Merrill Lynch shall have received from KPMG LLP and
PricewaterhouseCoopers LLP letters dated such date, in form and substance
satisfactory to Merrill Lynch, containing statements and information of the type
ordinarily included in accountants' "comfort letters" to the Initial Purchaser
with respect to the financial statements and certain financial information
contained, or incorporated by reference, in the Offering Memorandum.

     (e) Bring-down Comfort Letter. At Closing Time, Merrill Lynch shall have
received from KPMG LLP a letter, dated as of Closing Time, to the effect that it
reaffirms the statements made in the letter furnished pursuant to subsection (d)
of this Section, except that the specified date referred to shall be a date not
more than three business days prior to Closing Time.

     (f) Lock-up Agreements. On or prior to the date of this Agreement, Merrill
Lynch shall have received an agreement substantially in the form of Exhibit C
hereto signed by the persons listed on Schedule C hereto.

     (g) Indenture and Registration Rights Agreement. At or prior to Closing
Time, each of the Issuers and the Trustee shall have executed and delivered the
Indenture, and the Issuers, and the Initial Purchaser shall have executed and
delivered the Registration Rights Agreement.

     (h) Conditions to Purchase of Option Securities. In the event that the
Initial Purchaser exercises its option provided in Section 2(b) hereof to
purchase all or any portion of the Option Securities, the representations and
warranties of the Issuers contained herein and the statements in any
certificates furnished by the Company and any Subsidiary of the Company
hereunder shall be true and correct as of each Date of Delivery and, at the
relevant Date of Delivery, Merrill Lynch shall have received:

          (i) Officers' Certificate. A certificate, dated such Date of Delivery,
     of the President or a Vice President of the Company and of the chief
     financial or chief accounting officer of the Company confirming that the
     certificate delivered at Closing Time pursuant to Section 5(c) hereof
     remains true and correct as of such Date of Delivery.

          (ii) Opinions of Counsel for the Issuers. The favorable opinions of
     each of Skadden, Arps, Slate, Meagher & Flom LLP, James E. Walsh III and
     Janet Dhillon, each in form and substance satisfactory to Merrill Lynch,
     dated such Date of Delivery, relating to the Option Securities to be
     purchased on such Date of Delivery and otherwise to the same effect as the
     opinion required by Section 5(a) hereof.

          (iii) Opinion of Counsel for Initial Purchaser. The opinion of Cahill
     Gordon & Reindel LLP, counsel for the Initial Purchaser, dated such Date of
     Delivery, relating to the Option Securities to be purchased on such Date of
     Delivery and otherwise to the same effect as the opinion required by
     Section 5(b) hereof.

          (iv) Bring-down Comfort Letter. A letter from KPMG LLP, in form and
     substance satisfactory to Merrill Lynch and dated such Date of Delivery,
     substantially in the same form and substance as the letter furnished to
     Merrill Lynch pursuant to Section

                                      -19-

<PAGE>

     5(d) hereof, except that the "specified date" in the letter furnished
     pursuant to this paragraph shall be a date not more than five days prior to
     such Date of Delivery.

     (i) Additional Documents. At Closing Time and at each Date of Delivery,
counsel for the Initial Purchaser shall have been furnished with such documents
and opinions as they may reasonably require for the purpose of enabling them to
pass upon the issuance and sale of the Securities as herein contemplated, or in
order to evidence the accuracy of any of the representations or warranties, or
the fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Issuers in connection with the issuance and sale of the Securities
as herein contemplated shall be satisfactory in form and substance to Merrill
Lynch and counsel for the Initial Purchaser.

     (j) PORTAL Market. At Closing Time, the Securities and the Common Stock
issuable upon conversion of the Securities shall have been designated for
trading on PORTAL.

     (k) Termination of Agreement. If any condition specified in this Section
shall not have been fulfilled when and as required to be fulfilled, this
Agreement (or, in the case of any condition to the purchase of Option
Securities, on a Date of Delivery which is after Closing Time, the obligations
of the Initial Purchaser to purchase the relevant Option Securities) may be
terminated by Merrill Lynch by notice to the Company at any time at or prior to
Closing Time or such Date of Delivery, as the case may be, and such termination
shall be without liability of any party to any other party except as provided in
Section 4 and except that Sections 1, 7, 8 and 9 shall survive any such
termination and remain in full force and effect.

     SECTION 6. Subsequent Offers and Resales of the Securities.

     (a) Offer and Sale Procedures. Each of the Initial Purchaser and the
Company, as the case may be, hereby establish and agree to, severally and not
jointly, observe the following procedures in connection with the offer and sale
of the Securities.

          (i) Offers and Sales to Qualified Institutional Buyers. Offers and
     sales of the Securities shall only be made to persons whom the offeror or
     seller reasonably believes to be qualified institutional buyers, as defined
     in Rule 144A under the 1933 Act ("Qualified Institutional Buyers").

          (ii) No General Solicitation. No general solicitation or general
     advertising (within the meaning of Rule 502(c) under the 1933 Act) shall be
     used in the United States in connection with the offering or sale of the
     Securities.

          (iii) Purchases by Non-Bank Fiduciaries. In the case of a non-bank
     Subsequent Purchaser of Securities acting as a fiduciary for one or more
     third parties, each third party shall, in the reasonable belief of the
     Initial Purchaser, be a Qualified Institutional Buyer to whom the notice
     required in subsection (iv) has been given.

          (iv) Subsequent Purchaser Notification. The Initial Purchaser will
     take reasonable steps to inform, and cause each of its United States
     Affiliates to take reasonable steps to inform, persons acquiring Securities
     from the Initial Purchaser or its

                                      -20-

<PAGE>

     Affiliates that the Securities (A) have not been and will not be registered
     under the 1933 Act, (B) are being sold to them without registration under
     the 1933 Act in reliance on Rule 144A or in accordance with another
     exemption from registration under the 1933 Act, as the case may be, and (C)
     may not be offered, sold or otherwise transferred except (1) to the
     Company, (2) outside the United States in accordance with Regulation S
     under the 1933 Act or (3) inside the United States in accordance with (x)
     Rule 144A to a person whom the seller reasonably believes is a Qualified
     Institutional Buyer that is purchasing such Securities for its own account
     or for the account of a Qualified Institutional Buyer to whom notice is
     given that the offer, sale or transfer is being made in reliance on Rule
     144A or (y) pursuant to another available exemption from registration under
     the 1933 Act.

          (v) Minimum Principal Amount. No sale of the Securities to any one
     Subsequent Purchaser shall be for less than $1,000 principal amount and no
     Security will be issued in a smaller principal amount. If the Subsequent
     Purchaser is a non-bank fiduciary acting on behalf of others, each person
     for whom it is acting must purchase at least $1,000 principal amount of the
     Securities.

          (vi) Restriction on Transfer. The transfer restrictions and the other
     provisions set forth in the Offering Memorandum under the caption "Transfer
     Restrictions," including the legend required thereby, shall apply to the
     Securities except as otherwise agreed by the Company and the Initial
     Purchaser. Following the sale of the Securities by the Initial Purchaser to
     each Subsequent Purchaser pursuant to the terms hereof, the Initial
     Purchaser shall not be liable or responsible to any Issuer for any losses,
     damages or liabilities suffered or incurred by any Issuer, including any
     losses, damages or liabilities under the 1933 Act, arising from or relating
     to any subsequent resale or transfer of any Security.

     (b) Covenants of the Issuers. The Company, and where specifically
indicated, each of the Issuers, jointly and severally, covenants with the
Initial Purchaser as follows:

          (i) Integration. The Company agrees that it will not and will cause
     its Affiliates not to, directly or indirectly, solicit any offer to buy,
     sell or make any offer or sale of, or otherwise negotiate in respect of,
     securities of the Company or any Affiliate thereof of any class if, as a
     result of the doctrine of "integration" referred to in Rule 502 under the
     1933 Act, such offer and sale would render invalid (for the purpose of (A)
     the sale of the Securities by the Company to the Initial Purchaser, (B) the
     resale of the Securities by the Initial Purchaser to Subsequent Purchasers,
     or (C) the resale of the Securities by such Subsequent Purchasers to
     others) the exemption from the registration requirements of the 1933 Act
     provided by Section 4(2) thereof or by Rule 144A thereunder or otherwise.

          (ii) Rule 144A Information. The Issuers agree that, in order to render
     the Securities eligible for resale pursuant to Rule 144A under the 1933
     Act, while any of the Securities remain outstanding, it will make
     available, upon request, to any holder of Securities or prospective
     purchasers of Securities the information specified in

                                      -21-

<PAGE>

     Rule 144A(d)(4), unless the Company furnishes information to the Commission
     pursuant to Section 13 or 15(d) of the 1934 Act.

          (iii) Restriction on Purchases. Until the expiration of two years
     after the original issuance of the Securities, the Company will not, and
     will cause its "affiliates" (as such term is defined in Rule 144(a)(1)
     under the 1933 Act) not to, purchase or agree to purchase or otherwise
     acquire any Securities which are "restricted securities" (as such term is
     defined under Rule 144(a)(3) under the 1933 Act), whether as beneficial
     owner or otherwise (except as agent on behalf of and for the account of
     customers in the ordinary course of business as a securities broker in
     unsolicited broker's transactions) unless, immediately upon any such
     purchase, the Company or any such affiliate shall submit such Securities to
     the Trustee for cancellation.

     (c) Qualified Institutional Buyer. The Initial Purchaser represents and
warrants to, and agrees with, the Company that it is a Qualified Institutional
Buyer.

     (d) Resale Pursuant to Rule 903 of Regulation S or Rule 144A. The Initial
Purchaser understands that the offered Securities have not been and will not be
registered under the 1933 Act and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons except in
accordance with Regulation S under the 1933 Act or pursuant to an exemption from
the registration requirements of the 1933 Act. The Initial Purchaser represents
and agrees that, except as permitted by Section 6(a) above, it has offered and
sold Securities and will offer and sell Securities (i) as part of its
distribution at any time and (ii) otherwise until forty days after the later of
the date upon which the offering of the Securities commences and Closing Time,
only in accordance with Rule 903 of Regulation S, Rule 144A under the 1933 Act
or another applicable exemption from the registration requirements of the 1933
Act. Accordingly, neither the Initial Purchaser, its affiliates nor any persons
acting on their behalf have engaged or will engage in any directed selling
efforts with respect to Securities sold hereunder pursuant to Regulation S, and
the Initial Purchaser, its affiliates and any person acting on their behalf have
complied and will comply with the offering restriction requirements of
Regulation S. The Initial Purchaser agrees that, at or prior to confirmation of
a sale of offered Securities pursuant to Regulation S it will have sent to each
distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases offered Securities from it or through it during the
restricted period a confirmation or notice to substantially the following
effect:

          "The Securities covered hereby have not been registered under the
          United States Securities Act of 1933 (the "Securities Act") and may
          not be offered or sold within the United States or to or for the
          account or benefit of U.S. persons (i) as part of their distribution
          at any time and (ii) otherwise until forty days after the later of the
          date upon which the offering of the Securities commenced and the date
          of closing, except in either case in accordance with Regulation S or
          Rule 144A under the Securities Act. Terms used above have the meaning
          given to them by Regulation S."

     Terms used in the above paragraph have the meanings given to them by
Regulation S.

                                      -22-

<PAGE>

     SECTION 7. Indemnification.

     (a) Indemnification of Initial Purchaser. The Issuers agree, jointly and
severally, to indemnify and hold harmless the Initial Purchaser and each person,
if any, who controls such Initial Purchaser within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act as follows:

          (i) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, arising out of any untrue statement or alleged
     untrue statement of a material fact contained in the Preliminary Offering
     Memorandum or the Final Offering Memorandum (or any amendment or supplement
     thereto), or the omission or alleged omission therefrom of a material fact
     necessary in order to make the statements therein, in the light of the
     circumstances under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, to the extent of the aggregate amount paid in
     settlement of any litigation, or any investigation or proceeding by any
     governmental agency or body, commenced or threatened, or of any claim
     whatsoever based upon any such untrue statement or omission or any such
     alleged untrue statement or omission; provided that (subject to Section
     7(d) below) any such settlement is effected with the written consent of the
     Company; and

          (iii) against any and all expense whatsoever, as incurred (including
     the fees and disbursements of counsel chosen by Merrill Lynch), reasonably
     incurred in investigating, preparing or defending against any litigation,
     or any investigation or proceeding by any governmental agency or body,
     commenced or threatened, or any claim whatsoever based upon any such untrue
     statement or omission, or any such alleged untrue statement or omission to
     the extent that any such expense is not paid under clause (i) or (ii)
     above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by, and
with respect to, the Initial Purchaser expressly for use in the Offering
Memorandum (or any amendment or supplement thereto).

     (b) Indemnification of Issuers. The Initial Purchaser agrees to indemnify
and hold harmless the Issuers, each of their directors, and each person, if any,
who controls the Issuers within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act against any and all loss, liability, claim, damage
and expense described in the indemnity contained in subsection (a) of this
Section, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Offering Memorandum (or
any amendment or supplement thereto) in reliance upon and in conformity with
written information furnished to the Company by, and with respect to, Merrill
Lynch expressly for use in the Offering Memorandum (or any amendment or
supplement thereto).

     (c) Actions against Parties; Notification. Each indemnified party shall
give notice as promptly as reasonably practicable to each indemnifying party of
any action commenced against

                                      -23-

<PAGE>

it in respect of which indemnity may be sought hereunder, but failure to so
notify an indemnifying party shall not relieve such indemnifying party from any
liability hereunder to the extent it is not materially prejudiced as a result
thereof and in any event shall not relieve it from any liability which it may
have otherwise than on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 7(a) above, counsel to the indemnified
parties shall be selected by Merrill Lynch, and, in the case of parties
indemnified pursuant to Section 7(b) above, counsel to the indemnified parties
shall be selected by the Company. An indemnifying party may participate at its
own expense in the defense of any such action; provided, however, that counsel
to the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party. In no event shall the
indemnifying parties be liable for fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution could
be sought under this Section 7 or Section 8 hereof (whether or not the
indemnified parties are actual or potential parties thereto), unless such
settlement, compromise or consent (i) includes an unconditional release of each
indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

     (d) Settlement without Consent if Failure to Reimburse. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by
Section 7(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the terms of such settlement at least 30 days prior to such settlement being
entered into, and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement.

     SECTION 8. Contribution. If the indemnification provided for in Section 7
hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Issuers on the one
hand and the Initial Purchaser on the other hand from the offering of the
Securities pursuant to this Agreement or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Issuers on the one hand and of the
Initial Purchaser on the other hand in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

                                      -24-

<PAGE>

     The relative benefits received by the Issuers on the one hand and the
Initial Purchaser on the other hand in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Issuers and the total purchase discount received by the Initial Purchaser,
bear to the aggregate initial offering price of the Securities.

     The relative fault of the Issuers on the one hand and the Initial Purchaser
on the other hand shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information
supplied by the Issuers or by the Initial Purchaser and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

     Each of the Issuers and the Initial Purchaser agree that it would not be
just and equitable if contribution pursuant to this Section 8 were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 8. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 8 shall be deemed
to include, subject to the limitations set forth in Section 7 hereof, any legal
or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 8, the Initial Purchaser
shall not be required to contribute any amount in excess of the amount by which
the total price at which the Securities purchased and sold by it hereunder
exceeds the amount of any damages which the Initial Purchaser has otherwise been
required to pay by reason of any such untrue or alleged untrue statement or
omission or alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

     For purposes of this Section 8, each person, if any, who controls the
Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act shall have the same rights to contribution as the Initial
Purchaser, and each person, if any, who controls an Issuer within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as such Issuer.

     SECTION 9. Representations, Warranties and Agreements to Survive Delivery.
All representations, warranties and agreements contained in this Agreement or in
certificates of officers of the Issuers submitted pursuant hereto shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of the Initial Purchaser or any person who controls the Initial
Purchaser within the meaning of Section 15 of the 1933 Act or

                                      -25-

<PAGE>

Section 20 of the 1934 Act, or by or on behalf of the Issuers, and shall survive
delivery of the Securities to the Initial Purchaser.

     SECTION 10. Termination of Agreement.

     (a) Termination; General. Merrill Lynch may terminate this Agreement, by
notice to the Company, at any time at or prior to Closing Time or at any time
prior to the Date of Delivery, in the case of Option Securities (i) if there has
been, since the time of execution of this Agreement or since the respective
dates as of which information is given in the Final Offering Memorandum
(exclusive of any amendments or supplements thereto subsequent to the date of
this Agreement), any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs, business prospects or
properties of the Company and its subsidiaries considered as one enterprise,
whether or not arising in the ordinary course of business, or (ii) if there has
occurred any material adverse change in the financial markets in the United
States or the international financial markets, any outbreak of hostilities or
escalation thereof or other calamity or crisis or any change or development
involving a prospective change in national or international political, financial
or economic conditions, in each case the effect of which is such as to make it,
in the judgment of Merrill Lynch, impracticable to market the Securities or to
enforce contracts for the sale of the Securities, or (iii) if trading generally
on the American Stock Exchange or the New York Stock Exchange or in the Nasdaq
National Market has been suspended or materially limited, or minimum or maximum
prices for trading have been fixed, or maximum ranges for prices have been
required, by any of said exchanges or by such system or by order of the
Commission, the National Association of Securities Dealers, Inc. or any other
governmental authority, or (iv) a material disruption has occurred in commercial
banking or securities settlement or clearance services in the United States, or
(v) if a banking moratorium has been declared by either Federal or New York
authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this Section,
such termination shall be without liability of any party to any other party
except as provided in Section 4 hereof; and provided further that Sections 1, 7,
8 and 9 shall survive such termination and remain in full force and effect.

     SECTION 11. Arm's Length Relationship; No Fiduciary Duty. The Issuers
acknowledge and agree that (i) the purchase and sale of the Securities pursuant
to this Agreement is an arm's-length commercial transaction between the Issuers,
on the one hand, and the Initial Purchaser, on the other, (ii) in connection
therewith the Initial Purchaser (solely in its capacity as such) is acting as a
principal and not the agent or fiduciary of the Issuers, and (iii) in connection
therewith the Initial Purchaser (solely in its capacity as such) has not assumed
an advisory responsibility in favor of the Issuers with respect to the offering
contemplated hereby or the process leading thereto (irrespective of whether the
Initial Purchaser has advised or is currently advising the Issuers on other
matters) or any other obligation to the Issuers except the obligations expressly
set forth in this Agreement.

     SECTION 12. Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notices to the Initial
Purchaser shall be directed to Merrill Lynch at

                                      -26-

<PAGE>

4 World Financial Center, New York, New York 10080, attention of Robert
Innocentin; and notices to the Company shall be directed to it at US Airways
Group, Inc., 111 West Rio Salado Parkway, Tempe AZ 85281.

     SECTION 13. Parties. This Agreement shall inure to the benefit of and be
binding upon the Initial Purchaser and the Issuers and their respective
successors. Nothing expressed or mentioned in this Agreement is intended or
shall be construed to give any person, firm or corporation, other than the
Initial Purchaser and the Issuers and their respective successors and the
controlling persons and officers and directors referred to in Sections 7 and 8
and their heirs and legal representatives, any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision herein
contained. This Agreement and all conditions and provisions hereof are intended
to be for the sole and exclusive benefit of the Initial Purchaser and the
Issuers and their respective successors, and said controlling persons and
officers and directors and their heirs and legal representatives, and for the
benefit of no other person, firm or corporation. No purchaser of Securities from
the Initial Purchaser shall be deemed to be a successor by reason merely of such
purchase.

     SECTION 14. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     SECTION 15. Time. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     SECTION 16. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

     SECTION 17. Effect of Headings. The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the
construction hereof.

     SECTION 18. Submission to Jurisdiction. Except as set forth below, no claim
may be commenced, prosecuted or continued in any court other than the courts of
the State of New York located in the City and County of New York or in the
United States District Court for the Southern District of New York, which courts
shall have jurisdiction over the adjudication of such matters, and the Issuers
consent to the jurisdiction of such courts and personal service with respect
thereto. The Issuers hereby consent to personal jurisdiction, service and venue
in any court in which any claim arising out of or in any way relating to this
Agreement is brought by any third party against Merrill Lynch or any indemnified
party. Each of Merrill Lynch and the Issuers (on its behalf and, to the extent
permitted by applicable law, on behalf of its stockholders and affiliates)
waives all right to trial by jury in any action, proceeding or counterclaim
(whether based upon contract, tort or otherwise) in any way arising out of or
relating to this Agreement. The Issuers agree that a final judgment in any such
action, proceeding or counterclaim brought in any such court shall be conclusive
and binding upon such Issuer and may be enforced in any other courts to the
jurisdiction of which such Issuer is or may be subject, by suit upon such
judgment.

                                      -27-

<PAGE>

     If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement between
the Initial Purchaser and the Issuers in accordance with its terms.

                                        Very truly yours,

                                        US AIRWAYS GROUP, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      -28-

<PAGE>

                                        GUARANTORS:

                                        US AIRWAYS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      -29-

<PAGE>

                                        AMERICA WEST AIRLINES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      -30-

<PAGE>

CONFIRMED AND ACCEPTED, as of the date first above written:

MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
   INCORPORATED

By: Merrill Lynch, Pierce, Fenner &
    Smith Incorporated

By:
    ---------------------------------
    Authorized Signatory

                                      -31-

<PAGE>

                                   SCHEDULE A

                             US AIRWAYS GROUP, INC.

                        SENIOR CONVERTIBLE NOTES DUE 2020

     (i) The initial public offering price per $1,000 principal amount of the
Securities shall be 100% of the principal amount thereof, plus accrued interest,
if any, from the date of issuance.

     (ii) The purchase price per $1,000 principal amount to be paid by the
Initial Purchaser for the Initial Securities shall be 96.875% of the principal
amount thereof.

     (iii) The interest rate on the Securities shall be 7% per annum.

     (iv) The Securities shall be convertible as described and under the
circumstances set forth in the Final Offering Memorandum into cash and shares of
common stock, par value $0.01 per share, of the Company, if any, at a conversion
rate of 41.4508 shares per $1,000 principal amount of Securities (equivalent to
an initial conversion price of approximately $24.12 per share).

     (v) At any time on or after October 5, 2010, the Company may redeem for
cash all or a portion of the Securities at a redemption price equal to the 100%
of the principal amount of the Securities plus accrued and unpaid interest, if
any, to the applicable redemption date if the closing price of the common stock
has exceeded 115% of the conversion price for at least 20 trading days in any
consecutive 30-day trading period.

     (vi) Holders may require the Company to purchase all or a portion of their
Securities on September 30, 2010 and September 30, 2015, at a purchase price
equal to 100% of the principal amount of the Securities to be repurchased plus
accrued and unpaid interest, if any, to the purchase date.

     (vii) Upon a specified fundamental change described in the Final Offering
Memorandum, holders will have the option to require the Company to purchase all
or any portion of the Securities at a price equal to 100% of the principal
amount of the Securities, plus accrued and unpaid interest, if any, to the
purchase date and a make-whole premium upon conditions described in the Final
Offering Memorandum.

                                     SCH A-1

<PAGE>

                                   SCHEDULE B

                                   GUARANTORS

<TABLE>
<CAPTION>
                                   Jurisdiction of
           Subsidiary                Corporation
           ----------              ---------------
<S>                                <C>
US Airways Group, Inc...........       Delaware
America West Airlines, Inc......       Delaware
</TABLE>

                                     SCH B-1

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