EXHIBIT 10.40 (g)
 CONFIDENTIAL TREATMENT
 REQUESTED PURSUANT TO RULE 24b-2
  Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934.
The omitted materials have been filed separately with the Securities and
Exchange Commission.  
 CONFIDENTIAL

 
AMENDMENT No. 7 TO LETTER AGREEMENT DCT-015/2004

This Amendment No. 7 to Letter Agreement DCT-015/2004, dated as of November 9,
2005 (“Amendment No. 7”) relates to the Letter Agreement DCT-015/2004 (the
“Letter Agreement”) between Embraer - Empresa Brasileira de Aeronáutica S.A.
(“Embraer”) and Republic Airline Inc. (“Buyer”) dated March 19, 2004 and which
concerns the Purchase Agreement DCT-014/2004 (the “Purchase Agreement”), as
amended from time to time (collectively referred to herein as “Agreement”). This
Amendment No. 7 is between Embraer and Buyer, collectively referred to herein as
the “Parties”.
 
This Amendment No. 7 sets forth additional agreements between Embraer and Buyer
relative to exercise of 4 Conditional Aircraft into 4 Firm Aircraft (as per
Amendment No. 14 to the Purchase Agreement dated as of the date hereof), and
[*].
 
Except as otherwise provided for herein all terms of the Letter Agreement shall
remain in full force and effect. All capitalized terms used in this Amendment
No. 7 that are not defined herein shall have the meaning given in the Letter
Agreement. In the event of any conflict between this Amendment No. 7 and the
Letter Agreement the terms, conditions and provisions of this Amendment No. 7
shall control.

 
NOW, THEREFORE, for good and valuable consideration which is hereby acknowledged
Embraer and Buyer hereby agree as follows:

1.  
Spare Parts Credit:

1.1  
Article 1(ii) of the Letter Agreement shall be deleted and replaced by the
following:

 
"(ii) Spare Parts Credit: Embraer will provide a spart parts (except for
engines, engine related parts and APU), ground support equipment and test
equipment credit of [*]. This [*] credit shall be made available to Buyer upon
[*]. If for any reason [*], then [*] Buyer shall [*]. The [*] credit with
respect to an Aircraft shall only be made available to Buyer in the event there
is [*]. If [*] credit is not so made available to Buyer because [*] such credit
shall be made available at such time thereafter [*]. Any portion of such credit
which remains unused [*] shall be deemed to have been waived by Buyer, and no
further compensation shall be due from Embraer to Buyer for such [*] credit(s).
Such [*] credit(s) shall be applied [*]."

2. Aircraft [*] 
 
  2.1 [*]
 
3. Miscellaneous
 
All other provisions of the Letter Agreement which have not been specifically
amended or modified by this Amendment No. 7 shall remain valid in full force and
effect without any change.
 
_____
*Confidential

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CONFIDENTIAL
 
 
IN WITNESS WHEREOF, EMBRAER and BUYER, by their duly authorized officers, have
entered into and executed this Amendment No. 7 to Letter Agreement to be
effective as of the date first written above.

 

 EMBRAER - Empresa Brasileira de Aeronáutica S.A.      REPUBLIC AIRLINE INC.    
    /s/ Illegible     /s/ Bryan Bedford

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Name:
Title:
    Name: Bryan Bedford
Title: President

                    Date:
Place:     Date: November 9, 2005
Place: Indianapolis         Witness: /s/ Fernando Bueno     Witness: /s/
Lars-Erik Arnell Name: Fernanco Bueno     Name: Lars-Erik Arnell

 
 
 

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