|  **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**

| **1.  ** | **Spare                Parts Credit:** |
|--------------------|----------------------------------------|

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

**2.      Aircraft **
** **

**3.      Miscellaneous**

----

**CONFIDENTIAL**

|  EMBRAER              - Empresa Brasileira de Aeronáutica S.A. |   |   |  REPUBLIC              AIRLINE INC.         |
|--------------------------------------------------------------------------|--------|--------|--------------------------------------------------|
|                                                                     |   |   |                                             |
| /s/ Illegible                                                       |   |   | /s/ Bryan              Bedford              |
|                                                                          |   |   |                                                  |
| Name:Title:                                                              |   |   | Name:              Bryan BedfordTitle: President |
|                                     |   |   |                                                                |
|------------------------------------------|--------|--------|---------------------------------------------------------------------|
|                                     |   |   |                                                                |
|                                          |   |   |                                                                     |
| Date:Place:                              |   |   | Date:              November 9,              2005Place: Indianapolis |
|                                     |   |   |                                                                |
| Witness:              /s/ Fernando Bueno |   |   | Witness:              /s/ Lars-Erik Arnell                          |
| Name:              Fernanco Bueno        |   |   | Name:              Lars-Erik Arnell                                 |

----