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Exhibit 10.1 (AMERICA WEST HOLDINGS CORPORATION LOGO) Annual Incentive Plan Plan Objectives The primary objective of the America West Holdings Corporation Annual Incentive Plan (AIP)
is to achieve specific business and financial goals which are key to the organizations
success. The Company believes these goals can best be accomplished by providing incentives
to key employees. The AIP helps prioritize and focus efforts on the accomplishment of goals established each
year. This is achieved by linking a significant element of variable annual compensation to
the accomplishment of selected financial goals and individual performance. At target
performance levels, the AIP provides incentive compensation opportunities, which, in
combination with base salary, will yield competitive total cash compensation levels. Basic Plan Concept The plan concept provides for incentives to be paid based on performance in two main areas:
(i) Corporate Financial Performance, and (ii) Individual Performance. A minimum level of
Corporate Financial Performance must be achieved before any incentives will be
funded. The minimum level is set each year and approved by the Board of Directors. Eligibility Criteria Eligibility for participation in the AIP will be extended to officers and other key
employees who directly impact the Companys success. The specific positions eligible to
participate in the plan will be reviewed annually by the Chairman and the Compensation
Committee of the Board of Directors. Employees hired or promoted into an eligible position
from January through September are eligible to participate on a prorated basis. Employees
hired or promoted into an eligible position after September 30 will not be eligible to
participate in that calendar year. Employees on leave for more than 3 months during the
program year may have their base salaries prorated for purposes of calculating incentive
payouts. The following positions are currently eligible to participate: Chairman/President/CEO
Executive Vice President
Sr. Vice President
Vice President
Sr. Director
Director
Manager
Supervisor
Individual Contributors (grades 23 and higher)




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(AMERICA WEST HOLDINGS CORPORATION LOGO) Award Opportunities On an annual basis, the Company will specify target awards for each eligible position. The
incentive award opportunities at target performance levels are intended to reflect
competitive annual incentive compensation opportunities for comparable positions in the
market. In all cases, the maximum award for participants equals two times the target
level. Target incentive award opportunities, as a percentage of base salary, are as
follows: Level
    
    Individual Target %Chairman/President/CEO
    
    
    80
    %Executive Vice President
    
    
    60
    %Sr. Vice President
    
    
    45
    %Vice President
    
    
    35
    %Sr. Director
    
    
    25
    %Director
    
    
    20
    %Manager
    
    
    7
    %Supervisor
    
    
    6.25
    %Individual Contributor
    
    
    5
    %
 These award opportunities will be reviewed annually by the Board of Directors. Performance Measures and Bonus Calculation The Company and each individual will be assigned accountability for performance on selected
performance measures. The specific measurements used for corporate financial performance will be set by the Board
of Directors, but have generally been based on AWHCs planned
operating income or loss. In
all cases, a minimum level of planned operating income or loss must be achieved for any
incentives to be funded. AWHCs financial performance compared against the approved financial plan will determine
the total bonus pool for 2005. This pool will equal the sum of all individual bonus
targets, with adjustments made based on AWHCs financial performance versus plan. Bonus
payments will never exceed the established pool maximum. Financial Performance v. Plan
    
    Pool Funding %< Plan
    
    
    0
    %Plan
    
    
    100
    %Maximum (exceed plan by 60%)
    
    
    200
    %
 Straight-line interpolation is used to determine the payout when performance falls between
performance levels. Each individual will be given a performance score, based upon his/her overall performance
and contribution towards AWHCs plan performance.




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(AMERICA WEST HOLDINGS CORPORATION LOGO) Individual Performance
    
    ScorePoor Performance
    
    
    0Adequate Performance (room for improvement)
    
    
    50Meets Expectations
    
    
    100Exceeds Expectations
    
    
    150Superior Performance
    
    
    200
 Each individuals annual bonus will be calculated using the following formula: Base
Salary
    
    X
    
    Individual
Target %
    
    X
    
    Pool
Performance
Factor (%)
    
    X
    
    Individual
Performance
Score (%)
    
    =
    
    BONUS*
 *Bonus payments will never exceed the established pool maximum; therefore, individual
performance scores may be adjusted to contain the total bonus payments within the total
bonus pool. Award Payments Awards will be paid in cash as soon as possible after the close of the fiscal year (but no
later than March 15th following the end of the fiscal year). Awards will be
paid based on audited financial results and approval by the Board of Directors. All awards
are subject to applicable taxes and other standard deductions. Employees must be in an
eligible position on date of payout, in order to receive a payment. Employees must be on
active, at-work status on date of payout, in order to receive a payment. Employees who are
on leave on date of payout, but otherwise eligible, will receive payment after they have
been on active, at-work status for 30 days. Promotions In the event that a person is promoted from an eligible position to a position with a
higher target payout, the award will be pro-rated according to the time spent in each
position and the base salary that apply. Employees promoted from a non-eligible position
to an eligible position during the year, but prior to October 1, will participate on a
similarly prorated basis. Retirement and Terminations To receive an award under the AIP, the participant generally must be employed at the time
of payout. Exceptions to this policy will be made for retirement, long-term disability or
death; in these cases, the award will be prorated to reflect the actual number of months of
service during the year.




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(AMERICA WEST HOLDINGS CORPORATION LOGO) Plan Administration, Modification and Adjustment The AIP will be administered by the Chairman, who may delegate certain elements of program
administration to the Vice President, Human Resources. Actual performance goals,
standards, and award determinations will be approved by the Compensation Committee of the
Board of Directors (the Committee). The Committee has the discretion to adjust the
financial performance criteria to reflect effects of changes in U.S.
tax laws, generally
accepted accounting principles, or other laws or provisions affecting the Companys
reported financial results and extraordinary non-recurring items as described in Accounting
Principles Board Opinion No. 30 and/or in Managements
Discussion and Analysis of Financial
Condition and results of operations appearing in the Companys annual report to
stockholders for fiscal year 2005. Any modifications, amendments, or adjustment to the
plan shall be recommended by the Chairman and approved by the Committee.