US Airways delays A350 deliveries; divulges more financing details

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Star Alliance member US Airways has pushed back delivery of its 22 Airbus A350 XWBs by one year.

The delay, revealed today by the carrier in a filing with the US Securities and Exchange Commission (SEC), means that US Airways will begin accepting delivery of A350s in 2015 rather than 2014 with deliveries extending through 2018.

It is part of a broader arrangement with Airbus announced last week. On 20 October US Airways agreed to amendments of its aircraft purchase agreements with the European airframer covering Airbus A320 family aircraft, A330s and A350s.

In exchange for US Airways' agreement to the new amendments, Airbus advanced US Airways $200 million earned in consideration of aircraft deliveries under the various related purchase agreements.

The financing is part of nearly $1 billion in financing and near-term liquidity commitments raised by loss-making US Airways with strategic partners. Proceeds are being used to prepay the company's bank debt facility and boost its cash position.

In addition to Airbus, Barclays Bank and Republic Airways Holdings last week were named as contributors to the financing package.

US Airways' latest filing with the SEC reveals, however, that on 20 October the airline also entered into a $270 million spare parts loan agreement and a $85 million engines loan agreement with an undisclosed lender.

US Airways' obligations under the spare parts loan agreement are secured by a first priority security interest in substantially all of US Airways' rotable, repairable and expendable parts, says the carrier.

The obligations under the engines loan agreement are secured by a first priority security interest in 36 of US Airways' aircraft engines.