Exhibit 10.1

Mizuho Corporate Bank, Ltd.

NEW YORK BRANCH
1251 AVENUE OF THE AMERICAS
NEW YORK, N.Y. 10020-1104

      TELEPHONE   TELEX (212) 282-3000   AT&T 420802     LDD8 170088 FACSIMILE  
  (212) 283-4250    

June 28, 2004             

America West Airlines, Inc.

111 West Rio Salado Parkway
Tempe, Arizona 85281
Attention: W. Douglas Parker
Fax: (480) 693-5261

          Re: Amended and Restated Term Loan Agreement

Dear Mr. Parker:

      Reference is made to (i) the Amended and Restated Term Loan Agreement
dated as of January 18, 2002, (as amended from time to time, the “Loan
Agreement”; capitalized terms used herein and not otherwise defined herein are
used as defined in the Loan Agreement) among America West Airlines, Inc. (the
“Company”), the lenders listed therein, Mizuho Corporate Bank, Ltd. (successor
by merger to The Industrial Bank of Japan, Limited), as Arranger, Co-Lead Book
Manager, Initial Issuing Bank and as Agent for the Lenders from time to time
party to the Loan Agreement (in such last capacity, the “Agent”), Citicorp USA,
Inc. as Arranger and Syndication Agent, Salomon Smith Barney Inc., as Co-lead
Book Manager and Bankers Trust Company, as Documentation Agent and (ii) the
Borrowing Base Certificate delivered to the Agent on June 25, 2004 and showing a
Borrowing Base Deficiency of $3,848,744.00 (the “Agreed Borrowing Base
Deficiency”).

      The Company has requested that the Agent and the Lenders waive the
requirement under Section 2.4B(1)(a) of the Loan Agreement that the Company pay
the Agreed Borrowing Base Deficiency by June 30, 2004 and the Agent and the
Requisite Lenders have agreed to do so for the period and on the terms and
conditions stated herein.

      Subject to satisfaction of the following conditions precedent by no later
than 5:00 pm on June 30, 2004 and the terms of this letter agreement, the Agent
and the Requisite Lenders agree to waive the Agreed Borrowing Base Deficiency
payment requirement for the period from June 30, 2004 through Friday, July 23,
2004 (the “Waiver Period”):

      (i) receipt by the Agent of this letter agreement duly executed and
delivered by the Company;

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      (ii) receipt by the Agent of this letter agreement, duly executed and
delivered by the Requisite Lenders; and

      (iii) the Company shall agree to pay Simat Helliesen & Eichner, Inc. its
fees and expenses incurred on or prior to the date hereof in the amount set
forth in the invoice submitted to the Company by such firm.

      The Company hereby represents, warrants and covenants to the Agent and the
Lenders that:

      (i) but for the waiver contained in this letter agreement an Event of
Default would exist under Section 7.1 of the Loan Agreement by virtue of the
Company’s failure to pay the Agreed Borrowing Base Deficiency on or before June
30, 2004;

      (ii) the Loan Agreement and the Loan Documents are in full force and
effect, and no Event of Default or Potential Event of Default has occurred and
is continuing other than the Potential Event of Default in connection with the
Company’s failure to pay the Agreed Borrowing Base Deficiency;

      (iii) the Company irrevocably waives any claims against the Agent and the
Lenders and represents that no such claims exist and that it has no defenses or
offsets with respect to repayment of the Loans;

      (iv) the Loan Agreement and the Loan Documents remain in full force and
effect, and the Company ratifies and confirms the Loan Agreement and each Loan
Document; and

      (v) the aggregate principal amount of all Loans outstanding on the date
hereof is $71,665,302.00 (exclusive of the PIK Notes).

      Except as expressly set forth in this letter agreement, nothing in this
letter agreement shall be or be construed as (i) a limitation upon or a waiver
or modification of, or a forbearance from exercising any of the rights or
remedies conferred on the Agent and the Lenders under the Loan Documents or
otherwise available to them at law or in equity or otherwise limit any of the
foregoing upon expiration of the Waiver Period, (ii) a waiver of any breach or
default by the Company under any of the Loan Documents other than the Potential
Event of Default arising from the Company’s failure to pay the Agreed Borrowing
Base Deficiency on or before June 30, 2004, (iii) an acknowledgment by the Agent
and Lenders that no Potential Event of Default or Event of Default has occurred
other than the Potential Event of Default arising from the Company’s failure to
pay the Agreed Borrowing Base Deficiency on or before June 30, 2004 or (iv) an
agreement to waive, release, modify or forbear from setting off or acting in any
other manner with respect to any secured, unsecured, fixed, contingent or other
claim against the Company.

      The Agent and the Requisite Lenders’ agreement to waive the Potential
Event of Default provided for in this letter agreement shall be of no further
force and effect if any of the following occur: (i) a Potential Event of Default
or Event of Default occurs other than the Potential Event of Default arising
from the Company’s failure to pay the Agreed Borrowing Base Deficiency on or
before June 30, 2004; (ii) the Company breaches its obligations under this
letter agreement; or (iii) any representation or warranty of the Company in this
letter agreement is untrue or incorrect as of the date hereof.

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      Each party hereto agrees that, to the maximum extent permitted by the law
of the State of New York, this letter agreement, and the rights and duties of
the parties hereunder, shall be governed by, and construed in accordance with,
the laws of the State of New York (including Section 5-1401 of the New York
General Obligations Law) in all respects, including in respect of all matters of
construction, validity and performance but without giving effect to any
provision thereof that may require application of the laws of another
jurisdiction.

      This letter shall be binding upon the respective heirs, executives,
successors and assigns of the Company and shall inure to the benefit of the
Agent and the Lenders and their successors and assigns.

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           IN WITNESS WHEREOF, the parties hereto have caused this letter
agreement to be executed by their representative officers thereunto duly
authorized, as of the date first above written.

 
 
COMPANY:

AMERICA WEST AIRLINES, INC.

By:  /s/ Thomas T. Weir

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Name: 
Title: 

INITIAL ISSUING BANK AND AGENT:

MIZUHO CORPORATE BANK, LTD., as
Initial Issuing Bank and Agent

By: 

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Name: 
Title: 

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    IN WITNESS WHEREOF, the parties hereto have caused this letter agreement to
be executed by their representative officers thereunto duly authorized, as of
the date first above written.

  COMPANY:     AMERICA WEST AIRLINES, INC.

  By: 

 

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    Name:        

  Title:

  INITIAL ISSUING BANK AND AGENT:     MIZUHO CORPORATE BANK, LTD., as   Initial
Issuing Bank and Agent

  By:  /s/ NOEL P. PURCELL

 

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    Name:        Noel P. Purcell   Title:        Senior Vice President

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            LENDERS:       CITICORP USA, INC.       By:

Name:
Title: /s/ Walter L. Larsen

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Walter L. Larsen
Vice President       MIZUHO GLOBAL, LTD.       By:

Name:
Title:

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      THE MITSUBISHI TRUST AND BANKING CORPORATION       By:

Name:
Title:

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LENDERS:

CITICORP USA, INC.

By: 

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Name: 
Title: 

MIZUHO GLOBAL, LTD.

By:  /s/ Noel P. Purcell

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Name:  Noel P. Purcell
Title:  Senior Vice President

THE MITSUBISHI TRUST AND BANKING CORPORATION

By: 

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Name: 
Title: 

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  DEUTSCHE BANK TRUST COMPANY AMERICAS   (p/k/a BANKERS TRUST COMPANY)

  By:  /s/ MARGUERITE SUTTON

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  Name: Marguerite Sutton   Title: Vice President     BANK ONE, ARIZONA, NA

  By: 

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  Name:   Title:     UBS AG, STAMFORD BRANCH

  By: 

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  Name:   Title: