Document:

<PAGE>   1
                                                                 EXHIBIT 10.48

                  AMENDMENT NO. 2 TO REVOLVING CREDIT AGREEMENT

         This Amendment No. 2 dated July 31, 2001 ("Amendment No. 2") to the
Amended and Restated Revolving Credit Agreement dated as of December 10, 1999
(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 (collectively, the "Lenders"), 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 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:

         WHEREAS, the Company, the Agent and the institutions from time to time
becoming Lenders thereunder have entered into the Loan Agreement;

         WHEREAS, the Company, the Requisite Lenders and the Agent have amended
the Loan Agreement by Amendment No. 1 dated as of April 16, 2001 ("Amendment No.
1") and desire to amend the Loan Agreement hereby and by Amendment No. 3 dated
the date hereof ("Amendment No. 3");

         NOW, THEREFORE, the parties hereto agree to amend the Loan Agreement
and to such additional terms as follows:

         - Section 1.1 of the Loan Agreement is amended by deleting "60%" in
subsection (C) of the definition of the term "BORROWING BASE" and substituting
"40%" therefor.

         - Section 1.1 of the Loan Agreement is further amended by inserting the
following defined term in appropriate alphabetical order:

         "ADDITIONAL COLLATERAL" means the four Boeing 737-200A aircraft and
         three spare engines more particularly described in Schedule 1.1."

         - Section 1.1 of the Loan Agreement is further amended by replacing the
definition of Borrowing Base Deficiency with the following:

         "BORROWING BASE DEFICIENCY" means, at any time when either (i) the
         Borrowing Base, as calculated in the Borrowing Base Certificate then
         most recently delivered, or (ii) $90,000,000 (reduced by any amount or
         amounts by which the Borrowing Base has been reduced after July 31,
         2001, and increased by any amounts by which the Borrowing Base has been
         increased on or after such date, but in no event to an amount in excess
         of $90,000,000) is less than Outstanding Amounts, the amount of such
         deficiency (and if the amounts set forth in clauses (i) and (ii) are
         both less than Outstanding Amounts, Borrowing Base
<PAGE>   2
         Deficiency shall equal the greater of the two deficiencies).

         - The Loan Agreement is amended by adding as a new Schedule 1.1 thereto
Schedule 1.1 hereto.

         - Clause (1)(x) of the proviso to the second sentence of Subsection
2.1A(i) of the Loan Agreement, clause (ii)(b) of the proviso to the first
sentence of Section 2.9A, and Subsection 3.2A(i) of the Loan Agreement are
amended by replacing "$125,000,000" with "$90,000,000." For the avoidance of
doubt, it is acknowledged that the other reference to "$125,000,000" in
Subsection 2.1A(i) is not amended, and that the amendments specified in this
section do not affect the Lenders' Commitments. In addition, in any circumstance
in which the Borrowing Base is reduced or increased following the date hereof,
each such reference to "$90,000,000" shall be reduced or increased,
respectively, by one dollar for each dollar that the Borrowing Base is reduced
or increased, except that such reference shall in no event be increased to above
$90,000,000. Subsection 2.4(B)(iii)(1)(a) of the Loan Agreement is amended by
replacing "of the Borrowing Base" appearing in the eighth line of such
subsection with "permitted by the terms of Subsections 2.1A(i) and 2.9A," and by
replacing "increase the Borrowing Base to the Outstanding Amounts" appearing in
the thirteenth line of such subsection with "meet the requirements of
Subsections 2.1A(i) and 2.9A." The Loan Agreement is amended by replacing
Exhibit IX thereto with Exhibit IX hereto.

         - Sections 2.10A and 2.10D of the Loan Agreement are amended by
changing "fifty percent (50%)" in each place where such phrase appears in such
sections to "thirty percent (30%)." Section 2.10A is further amended by deleting
the word "Collateral" in the last sentence of such section.

         - Subsection 2.10B(ii)(1) of the Loan Agreement is amended by changing
the word "penultimate" in the first line to "third," by substituting the term
"Borrowing Base Collateral" for the term "Borrowing Base" in clause (iv) of the
second sentence of such subsection, and by adding the following sentence at the
end of such section:

         Without affecting the terms of the third sentence of this subsection
         2.10B(ii)(1) and without affecting the terms of subsection 2.4B(iii),
         but notwithstanding any other terms of this section 2.10B(ii)(1) to the
         contrary, no Borrowing Base Collateral shall be released from the Lien
         of any Security Agreement unless (a) such Borrowing Base Collateral
         consists of Simulators, (b) prior to the release of any Simulator the
         Additional Collateral shall have been added to the Borrowing Base
         Collateral in compliance with the terms hereof (including without
         limitation delivery to the Agent of appraisals, inspection reports, and
         legal opinions with respect to the Additional Collateral satisfactory
         to the Agent pursuant to the terms of subsection 2.10B(ii)(2)), (c) the
         Additional Collateral has a Borrowing Base Value greater than that of
         the Simulators, and (d) the Company shall have complied with the other
         requirements set forth in this subsection for the release of Borrowing
         Base Collateral, including, without limitation, delivering to the Agent
         an

                                       2
<PAGE>   3
         updated Borrowing Base Certificate giving pro forma effect to such
         release and certifying that no Borrowing Base Deficiency will result
         therefrom (after taking into account the addition of the Additional
         Collateral to the Borrowing Base Collateral).

         On the date hereof, assuming the Company has complied with the
requirements for the effectiveness hereof set forth in Section 14 (with the
Borrowing Base Value of the Simulators being released determined with reference
to an appraisal delivered to the Agent dated January 31, 2001), the Agent shall
execute and deliver to the Company such documents furnished by the Company that
are necessary to release the Liens of the Security Agreements on the Simulators
described in Schedule 1.2 hereto.

         - Section 6.5A of the Loan Agreement is amended by deleting such
section in its entirety, and replacing such section with the following:

         A. MINIMUM FIXED CHARGE COVERAGE RATIO. The Company shall not permit
         the ratio of (i) EBITDA plus Aircraft Rental Expense to (ii) Interest
         Expense plus Aircraft Rental Expense for any four-fiscal quarter period
         ending as of the last day of any fiscal quarter of the Company to be
         less than:

         For the period ending June 30, 2001: .75 to 1.00
         For the period ending September 30, 2001: .70 to 1.00
         For periods ending after September 30, 2001: 1.15 to 1.00.

         The Company agrees to deliver to the Agent and Lenders the Compliance
Certificate required by the terms of Subsection 5.1(iii)(b) for the fiscal year
ending December 31, 2001 not later than January 31, 2002 and the Agent and
Lenders may (but shall not be required to) rely upon such Compliance Certificate
(as though it were delivered at the time otherwise required under the Loan
Agreement) notwithstanding that the Company's audited financial statements for
such fiscal year will not yet then be completed. If, at the time the Company
delivers the financial statements (or Form 10-K) required by the terms of
Subsection 5.1(ii) for such fiscal year, the accountant's reports provided
pursuant to the terms of Subsection 5.1(ii)(c) or in the Company's Form 10-K for
such fiscal year have revealed that such Compliance Certificate is not accurate,
then along with such financial statements (or Form 10-K) the Company shall also
provide a revised Compliance Certificate for such fiscal year (revised to
reflect audit adjustments only). If, at such time, the Compliance Certificate
delivered not later than January 31, 2002 shall have been proved accurate by
such accountant's reports, the Company shall along with such financial
statements (or Form 10-K) deliver to the Agent and Lenders an Officer's
Certificate to such effect. The terms of this paragraph shall only affect the
requirement to deliver a Compliance Certificate for the fiscal year ending
December 31, 2001.

         - The obligation of the Company to comply with the terms of Section
6.5D of the Loan Agreement is hereby waived until the earlier of (a) the
Amendment No. 3 Effective Date (as defined in Amendment No. 3) and (b) October
31, 2001.

                                       3
<PAGE>   4
         - The Company agrees to the following limitations on its and its
Subsidiaries' rights under Sections 6.3, 6.4 and 6.6 of the Loan Agreement: the
aggregate of (a) all Investments made on or after the date hereof and otherwise
permitted under the terms of clauses (i), (vii), (xi), and (xii) of Section 6.3,
(b) all amounts expended on or after the date hereof for Restricted Payments
otherwise permitted under the terms of Section 6.4, and (c) all amounts expended
on or after the date hereof for acquisitions of capital stock and assets
otherwise permitted under the terms of Section 6.6(iv), shall not at any time
exceed $5,000,000, except, that the amounts expended for dividends on and
distributions in respect of the Capital Stock of the Company, or any loans or
advances, in each case, paid to, or on behalf of, Holdings to the extent
necessary to enable Holdings to fund its ordinary course of business expenses
and overhead in an amount not to exceed $3,500,000 shall not be counted toward
such $5,000,000 limit. Notwithstanding the terms of Sections 6.3, 6.7, 6.12 and
6.13 of the Loan Agreement, the Company shall be permitted to enter into a joint
venture transaction on the terms described in Exhibit I hereto, and (i) the
capital contributions made by the Company in connection therewith as described
in such exhibit will not be counted toward the $5,000,000 limit described in the
preceding sentence or in any category of permitted investments under Section
6.3, but only if and to the extent such contributions do not exceed $500,000 and
are made either before December 31, 2001 or pursuant to an agreement entered
into by the Company and an affiliate of The General Electric Company on or
before such date, (ii) such transaction will not be considered an Asset Sale for
purposes of Section 6.11 of the Loan Agreement, and (iii) the holding by the
Company, or the issuance to the Company, of equity interests in such joint
venture will not be deemed to violate the terms of Sections 6.12 or 6.13 of the
Loan Agreement.

         - The Company agrees to provide the Agent, on or before October 31,
2001, one or more appraisal and inspection reports satisfactory to the Agent
covering the Additional Collateral by one or more Approved Appraisers selected
by the Agent and based on an inspection conducted not earlier than the date
hereof. Until such date as such appraisals are required to be delivered to the
Agent hereunder the appraisals in respect of the Additional Collateral dated
January 31, 2001 provided to the Agent are satisfactory. The Company shall pay
all costs of the appraisal and inspection reports furnished pursuant to the
terms of this section. The Company shall deliver a Borrowing Base Certificate by
such date reflecting such appraisals, and if such certificate reveals a
Borrowing Base Deficiency the Company shall forthwith either comply with the
terms of Subsection 2.4B(iii)(1)(a) of the Loan Agreement with respect to such
Borrowing Base Deficiency or remedy such Borrowing Base Deficiency by adding
Borrowing Base Collateral in accordance with the terms of Section 2.10B(ii)(2)
of the Loan Agreement and concurrently delivering to the Agent a Borrowing Base
Certificate reflecting such addition.

         - The Company will from time to time promptly on receipt of an invoice
therefor pay all reasonable out-of-pocket expenses incurred by the Agent or
Lenders in connection with the matters described in Section 14(iv) hereof
(including without limitation due diligence regarding the transactions
contemplated hereby and by Amendment No. 3) and fees and expenses incurred after
the date hereof. The Company shall be obligated under the terms of this Section
12 whether or not the Amendment No. 3 Effective Date (as defined in Amendment
No. 3) occurs.

         - As of the date hereof, the Company restates the representations and
warranties set forth in the following sections of the Loan Agreement as though
such sections had been fully set

                                       4
<PAGE>   5
forth herein: 4.1A, 4.1B, 4.2, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13,
and 4.14, except in the case of Section 4.14, as such representations and
warranties relate to an earlier date.

         - This Amendment No. 2 shall be effective as of June 29, 2001, subject
to the execution and delivery hereof on or before the date hereof by the Agent,
the Company, and the Requisite Lenders and the satisfaction on the date hereof
of the following conditions:

                  (i) The Agent shall receive counterparts of this Amendment No.
         2 and counterparts of Amendment No. 3, duly executed and delivered by
         the Company and the Requisite Lenders (with the same Lenders executing
         and delivering both amendments) and the Company shall be in compliance
         with the terms hereof and thereof.

                  (ii) The Company shall pay each Lender that executes and
         delivers Amendment No. 2 and Amendment No. 3 a fee in an amount equal
         to such Lender's Commitment multiplied by .0025.

                  (iii) The Loan Agreement shall be in full force and effect,
         and no Event of Default or Potential Event of Default shall have
         occurred and be continuing (after giving effect to this Amendment No. 2
         and Amendment No. 3), and the Agent shall receive an Officer's
         Certificate of the Company to such effect.

                  (iv) The Company shall have paid Fulbright & Jaworski L.L.P.
         its fees and expenses incurred on or prior to the date hereof as
         counsel to the Agent and Lenders in connection with the withdrawn
         Notice of Borrowing of the Company under the Loan Agreement, dated June
         21, 2001, and related issues, and the negotiation, documentation, and
         closing of the transactions contemplated hereby and by Amendment No. 3,
         in the amount set forth in the invoice submitted to the Company by such
         firm.

                  (v) The Company shall cause the Additional Collateral to be
         added to the Borrowing Base Collateral under documentation in form and
         substance satisfactory to the Agent and shall have complied with the
         terms of subsections 2.10B(ii)(2) and (3) of the Loan Agreement with
         respect to the Additional Collateral.

                  (vi) The Company shall comply with such conditions precedent
         set forth in Section 3 of the Loan Agreement with respect to this
         Amendment No. 2, Amendment No. 3, and the Additional Collateral as the
         Agent shall have specified in a closing list provided to the Company,
         including without limitation a pro-forma Borrowing Base Certificate
         dated the date hereof reflecting the addition of the Additional
         Collateral to, and the removal of the Simulators from, the Borrowing
         Base Collateral.

         - Except as expressly amended hereby and by Amendment No. 3, the Loan
Agreement remains in full force and effect as if fully set forth herein. The
Company ratifies and confirms the Loan Agreement and each Loan Document. Each
reference herein, in the Loan Agreement and each other Loan Document to the
"Loan Agreement" shall mean and constitute a reference to the Loan Agreement as
amended by Amendment No. 1, this Amendment No. 2, and Amendment No. 3.

                                       5
<PAGE>   6
         - Without limitation of Section 15, all of the sections of this
Amendment No. 2 shall remain in full force and effect (other than Section 9 as
expressly provided therein) in accordance with their terms regardless of whether
the Amendment No. 3 Effective Date (as defined in Amendment No. 3) occurs,
except that if and only if the Amendment No. 3 Effective Date occurs, on and as
of such date: (i) the amendments to the Loan Agreement made in Sections 3, 5,
and 7 hereof shall be rescinded; and (ii) the amendments to the Loan Agreement
made in Section 8 hereof (but not the provisions of the second paragraph of
Section 8) shall be further amended as expressly provided in Amendment No. 3.

         - The Company, on behalf of itself and its affiliates, directors,
officers, employees, agents, successors, and assigns, hereby irrevocably
releases, waives, relinquishes, and agrees not to assert, any claim or cause of
action against the Agent, any Lender, or any other party to the Loan Agreement,
or any of their affiliates, directors, officers, employees, agents, successors
or assigns (collectively, the "Lender Parties"), arising out of or related to
the giving by the Company of a Notice of Borrowing under the Loan Agreement
dated June 21, 2001, or the failure of the Agent or Lenders to fund the Loans
specified in such notice, or the withdrawal of such notice.

         - Each party hereto agrees that, to the maximum extent permitted by the
law of the State of New York, this Amendment No. 2, 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.

                                       6
<PAGE>   7
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2
to be executed by their representative officers thereunto duly authorized, as of
the date first above written.

                                COMPANY:

                                AMERICA WEST AIRLINES, INC.

                                       /s/ Stephen L. Johnson
                                By: ________________________________
                                    Name:  Stephen L. Johnson
                                    Title: Senior Vice President

                                INITIAL ISSUING BANK, AGENT AND LENDER:

                                THE INDUSTRIAL BANK OF JAPAN, LIMITED,
                                as Initial Issuing Bank, Agent and Lender

                                       /s/ Kazutoshi Kutrahara
                                By: ________________________________
                                    Name:  Kazutoshi Kutrahara
                                    Title: General Manager

                                LENDERS:

                                CITICORP USA, INC.

                                       /s/ George E. Moyer, Jr.
                                By: ________________________________
                                    Name:  George E. Moyer, Jr.
                                    Title: Vice President
<PAGE>   8
                                THE FUJI BANK, LIMITED

                                       /s/ Steven Brennan
                                By: ________________________________
                                    Name:  Steven Brennan
                                    Title: Senior Vice President

                                THE MITSUBISHI TRUST AND BANKING CORPORATION

                                       /s/ Scott J. Paige
                                By: ________________________________
                                    Name:  Scott J. Paige
                                    Title: Executive Vice President

                                BANKERS TRUST COMPANY

                                       /s/ Marguerite Sutton
                                By: ________________________________
                                    Name:  Marguerite Sutton
                                    Title: Vice President

                                BANK ONE, ARIZONA, NA

                                       /s/ Dennis Warren
                                By: ________________________________
                                    Name:  Dennis Warren
                                    Title: First Vice President

                                BANK OF SCOTLAND

                                       /s/ Joseph Fratus
                                By: ________________________________
                                    Name:  Joseph Fratus
                                    Title: Vice President
<PAGE>   9
                                                                       Exhibit I

         America West Airlines, Inc. ("AWA") will be entering into a joint
venture arrangement with GE Capital Aviation Training, Ltd. ("GECAT"), pursuant
to which AWA and GECAT will enter into a limited liability company agreement
(the "LLC Agreement") relating to a Delaware limited liability company (the "JV
LLC"). AWA will make an initial capital contribution to the JV LLC in the amount
of up to $500,000 and will make additional capital contributions to the JV LLC
as may be required or allowed pursuant to the LLC Agreement.

         In connection with the joint venture arrangement, AWA will sublease a
portion of its new Phoenix, Arizona facility that is currently under
construction to the JV LLC. Following the formation of the JV LLC, AWA will
assign lease agreements for six flight simulators to the JV LLC. The JV LLC may
enter into additional lease agreements for flight simulators. Upon the
expiration of the term of the JV LLC or the occurrence of certain dissolution
events, the JV LLC will assign some or all of the lease agreements to AWA and,
in certain circumstances, AWA will have the option to purchase the flight
simulators.
<PAGE>   10
                                  Schedule 1.1

                              Additional Collateral

AIRCRAFT:

<TABLE>
<CAPTION>
<S>                                       <C>                                    <C>
1.       Make and Model                   U.S. Registration No. N149AW           Manufacturer's Serial No. 22575
         Boeing 737-200A
         Engine Make and Model                                                   Manufacturer's Serial Nos.
         Pratt & Whitney JT8D-15                                                          P656859B
         Pratt & Whitney JT8D-15                                                          P708344B

2.       Make and Model                   U.S. Registration No. N179AW           Manufacturer's Serial No. 22646
         Boeing 737-200A
         Engine Make and Model                                                   Manufacturer's Serial Nos.
         Pratt & Whitney JT8D-15                                                          P702978B
         Pratt & Whitney JT8D-15                                                          P708365B

3.       Make and Model                   U.S. Registration No. N183AW           Manufacturer's Serial No. 22650
         Boeing 737-200A
         Engine Make and Model                                                   Manufacturer's Serial Nos.
         Pratt & Whitney JT8D-15                                                          P708343B
         Pratt & Whitney JT8D-15                                                          P708357B

4.       Make and Model                   U.S. Registration No. N184AW           Manufacturer's Serial No. 22651
         Boeing 737-200A
         Engine Make and Model                                                   Manufacturer's Serial Nos.
         Pratt & Whitney JT8D-15                                                          P708358B
         Pratt & Whitney JT8D-15                                                          P708394B
</TABLE>

SPARE ENGINES:

Spare Engine Make and Model         Manufacturer's Serial Nos.
IAE V2527-A5                                V10817
IAE V2527-A5                                V10676
IAE V2524-A5                                V10783
<PAGE>   11
                                  Schedule 1.2

                               Released Collateral

         A320/200 Full Flight Simulator which simulates the Airbus A320/200
aircraft, manufacturer's serial no. SN-006, U.S. aircraft registration no.
N633AW (the "A320 Simulator") manufactured and supplied by CAE Electronics Ltd.,
a Canadian corporation, pursuant to the certain Simulator Purchase Agreement,
dated December 18, 1990, and the SP-X-200TCD three channel and four window
computer generator visual system for installation and coupling, all within the
limit and scope of the design specifications thereof, to the simulator,
manufactured and supplied by Rediffusion Simulation Limited, an English
corporation, pursuant to that certain Purchase Agreement dated February 15,
1991.

         B737-300/400 Full Flight Simulator which simulates the Boeing B737-300
aircraft, manufacturer's serial no. 037, with convertibility to a B737-400
Series aircraft (the "B737 Simulator") manufactured and supplied by CAE
Electronics Ltd., a Canadian corporation, pursuant to that certain Simulator
Purchase Agreement, dated May 21, 1990, and the SP-X-200TCD three channel and
four window computer generator visual system for installation and coupling, all
within the limit and scope of the design specifications thereof, to the B737
Simulator, manufactured and supplied by Rediffusion Simulation Limited, an
English corporation, pursuant to that certain Purchase Agreement, dated June 29,
1990.

         B737-200 Full Flight Simulator which simulates the Boeing B737-200
aircraft, manufacturer's serial no. A07477B00 (the "B737-200 Simulator")
manufactured and supplied by Rediffusion, England, pursuant to that certain
Simulator Purchase Agreement, dated November 13, 1986, and the SP-X-200TCD three
channel and four window computer generator visual system, for installation and
coupling, all within the limit and scope of the design specifications thereof,
to the B737-200 Simulator, manufactured and supplied by Rediffusion Simulation
Limited, an English corporation, pursuant to that certain Purchase Agreement,
dated November 13, 1986.

         A320-231 Full Flight Simulator which simulates the Airbus A320-231
aircraft, manufacturer's serial no. 14 (the "A320-231 Simulator") manufactured
and supplied by Thomson-CSF/Aerospatiale, Toulouse, France, and the NovoView
6PI/T four channel and six window computer generator visual system for
installation and coupling, all within the limit of the scope of the design
specifications thereof, to the simulator.
<PAGE>   12
                                                              Exhibit IX
                           REVOLVING LOAN PERIOD                           Date:
                           BORROWING BASE CERTIFICATE

     Reference is made to the Amended and Restated Revolving Credit Agreement
dated as of December 10, 1999 (as may be amended, restated or supplemented or
otherwise modified from time to time, the "Credit Agreement") among America West
Airlines, Inc. (the "Company"), the lenders from time to time party thereto and
The Industrial Bank of Japan Limited, Los Angeles Agency, as arranger, initial
issuing bank and as agent for such lenders. Capitalized terms used herein and
not otherwise defined herein shall have the meanings assigned to such terms in
the Credit Agreement. The undersigned, being the Vice President and Treasurer of
the Company, does hereby certify for and on behalf of the Company, as of
____________ the following:
                                     BORROWING BASE COLLATERAL

<TABLE>
<CAPTION>
<S>                                                      <C>
  A      CASH AND PERMITTED CASH EQUIVALENTS             A      Collateral Balance:

                                                                Rate of Advance:  100%

                                                                Borrowing Base Value:
-------------------------------------------------------------------------------------------------------------------------
  B      STAGE III AIRCRAFT                              B      Appraised Value:

                                                                Rate of Advance:  85%

                                                                Borrowing Base Value:
-------------------------------------------------------------------------------------------------------------------------

  C      ROTABLES                                        C      Book Value:

                                                                Adjusted Fair Market Value:

                                                                Lower of Book Value or Adjusted Fair Market Value:

                                                                Rate of Advance:  40%

                                                                Borrowing Base Value:
-------------------------------------------------------------------------------------------------------------------------

  D      MAINTENANCE FACILITY/HANGAR                     D      Appraised Value:

                                                                Rate of Advance:  66%

                                                                Borrowing Base:
-------------------------------------------------------------------------------------------------------------------------

  E      737-200A AIRCRAFT                               E      Appraised Value:

                                                                Rate of Advance:  66%

                                                                Borrowing Base Value:
-------------------------------------------------------------------------------------------------------------------------

  G      SPARE ENGINES                                   G      Appraised Value:

                                                                Rate of Advance:  66%

                                                                Borrowing Base Value:
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   13
<TABLE>
<CAPTION>
<S>                                                        <C>                                 <C>
TOTAL BORROWING BASE VALUE:
-------------------------------------------------------------------------------------------------------------------------
TOTAL MAXIMUM ADVANCE VALUE:                                                                   $90,000,000
-------------------------------------------------------------------------------------------------------------------------
TOTAL LOANS
-------------------------------------------------------------------------------------------------------------------------
BORROWING BASE VALUE UNAVAILABLE
-------------------------------------------------------------------------------------------------------------------------
TOTAL UNAVAILABLE FOR LOAN
-------------------------------------------------------------------------------------------------------------------------
LESSER OF BORROWING BASE VALUE OR MAXIMUM
ADVANCE VALUE:
-------------------------------------------------------------------------------------------------------------------------
                                                           AVAILABILITY
-------------------------------------------------------------------------------------------------------------------------
                                                           DEFICIENCY
</TABLE>

         In addition, the Company certifies that:

(1)      None of the Borrowing Base Collateral included in the calculation of
         the Borrowing Base is subject to an Event of Loss, Event of Damage,
         Repairable Event or Adjustment Event;

(2)      No reduction in the Borrowing Base is required pursuant to subsection
         2.4B(iii)(1)(e) of the Credit Agreement; and

(3)      The portion of the Borrowing Base attributable to Rotables stated above
         does not exceed thirty percent (30%) of the aggregate Borrowing Base.

                                                     AMERICA WEST AIRLINES, INC.

                                                     By:
                                                        ------------------------
                                                        Name:
                                                        Title:<PAGE>   1
                                                                  EXHIBIT 10.49

                  AMENDMENT NO. 3 TO REVOLVING CREDIT AGREEMENT

         This Amendment No. 3 dated July 31, 2001 ("Amendment No. 3") to the
Amended and Restated Revolving Credit Agreement dated as of December 10, 1999
(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 (collectively, the "Lenders"), 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 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:

         WHEREAS, the Company, the Agent and the institutions from time to time
becoming Lenders thereunder have entered into the Loan Agreement;

         WHEREAS, the Company, the Requisite Lenders and the Agent have amended
the Loan Agreement by Amendment No. 1 dated as of April 16, 2001 ("Amendment No.
1") and desire to amend the Loan Agreement hereby and by Amendment No. 2 dated
the date hereof ("Amendment No. 2");

         NOW, THEREFORE, the parties hereto agree to amend the Loan Agreement
and to such additional terms as follows:

         1. Section 1.1 of the Loan Agreement is amended by inserting the
following defined term in appropriate alphabetical order:

                  "AMENDMENT NO. 3 EFFECTIVE DATE" means the date the Agent
         notifies the Company that all conditions precedent to the effectiveness
         of Amendment No. 3 to this Agreement, as set forth in such Amendment
         No. 3, have been satisfied.

                  "FINANCING" means an issuance by the Company of up to
         $250,000,000 of senior unsecured notes substantially in the form shown
         in the Preliminary Offering Memorandum, of which a draft dated July 19,
         2001 was provided to the Agent, or any other financing (or series of
         financings) arranged by the Company, in either case on market terms,
         which in either case is intended to provide the Company with not less
         than $140,000,000 in proceeds to the Company net of customary fees and
         other out-of-pocket expenses incurred in connection with such
         financing. Such financing or financings may not subordinate or
         otherwise adversely affect the rights of the Agent or the Lenders in
         the Collateral.

         The amendment set forth in this section shall be effective for the
period from and after the date hereof, notwithstanding any other term hereof to
the contrary.
<PAGE>   2
         2. Section 1.1 of the Loan Agreement is further amended by replacing
the table set forth in the definition of the term "APPLICABLE MARGIN" with the
following table:

<TABLE>
<CAPTION>
                                                      Revolving Period
      Rating                                  LIBOR Margin/Base Rate Margin
      ------                                  -----------------------------
<S>                                            <C>
Below B2 by Moody's or                                 4.25% / 3.25%
Below B by S&P

B2 by Moody's or                                       3.50% / 2.50%
B by S&P

B1 by Moody's or                                       3.00% / 2.00%
B+ by S&P

Ba3 by Moody's or                                      2.75% / 1.75%
BB- by S&P

Ba2 by Moody's or                                      2.50% / 1.50%
BB by S&P
</TABLE>

         The amendment set forth in this section shall be effective for the
period from and after the date hereof, notwithstanding any other term hereof to
the contrary.

3. Section 1.1 of the Loan Agreement is further amended by replacing the table
set forth in the definition of the term "COMMITMENT FEE RATE" with the following
table:

<TABLE>
<CAPTION>
  Rating                                                 Rate
  ------                                                 ----
<S>    <C>                                              <C>
Below B2 by Moody's or                                  1.125%
Below B by S&P

B2 by Moody's or                                        .875%
B by S&P

B1 by Moody's or                                         .75%
B+ by S&P

Ba3 by Moody's or                                        .70%
BB- by S&P

Ba2 by Moody's or                                       .625%
BB by S&P
</TABLE>

         The amendment set forth in this section shall be effective for the
period from and after the date hereof, notwithstanding any other term hereof to
the contrary.

                                       2
<PAGE>   3
         4. Subsection 2.4B(iii) of the Loan Agreement is amended by adding a
new clause (3) at the end thereof as follows:

                  (3) Prepayments due to a Financing. The Company shall promptly
         notify the Agent of each and every proposed financing transaction that
         would constitute all or part of the Financing. The Company shall
         promptly notify the Agent of the date that the Company expects that the
         proceeds of such transactions will have provided the Company with an
         aggregate of at least $140,000,000 in proceeds net of customary fees
         and other out-of-pocket expenses. Within five Business Days after the
         closing of the Financing (or, if the Financing consists of a series of
         transactions, the closing of the transaction that results in such
         aggregate proceeds being provided to the Company), the Company will
         prepay, without premium or penalty (other than pursuant to subsection
         2.6D, if applicable), all amounts outstanding under the Commitments by
         applying the proceeds of such transactions as provided in Section 5.12.

         The amendment set forth in this section shall be effective for the
period from and after the date hereof, notwithstanding any other term hereof to
the contrary.

         5. Subsection 2.10C(1) of the Loan Agreement is amended by deleting the
word "and" immediately preceding "(D)" in the first sentence of such subsection
and by adding the following at the end of such sentence before the period: ",
and (E) any appraisal delivered pursuant to the terms of Section 2.10E or of
Amendment No. 2 to this Agreement." The amendment set forth in this section
shall be effective for the period from and after the date hereof,
notwithstanding any other term hereof to the contrary.

         6. A new Section 2.10E is added immediately after Section 2.10D of the
Loan Agreement. Section 2.10E shall read as follows:

                  E. ADDITIONAL APPRAISALS.

                  Not more often than once in each calendar quarter, upon
                  request of the Agent, the Company shall provide the Agent a
                  desk top appraisal of the Rotables and Spare Engines
                  constituting part of the Borrowing Base Collateral,
                  satisfactory to the Agent, by an Approved Appraiser selected
                  by the Agent. Not more often than once in any six-month
                  period, upon request of the Agent, the Company shall provide
                  the Agent an appraisal and inspection report covering the
                  Rotables and Spare Engines constituting part of the Borrowing
                  Base Collateral by an Approved Appraiser selected by the
                  Agent. In the case of Rotables only, an inspection of the
                  Rotables shall mean an inspection of a sample of the Rotables
                  by the Approved Appraiser for the purpose of determining the
                  accuracy of the inventory reports maintained by the Company
                  for

                                       3
<PAGE>   4
                  the Rotables. The Company shall pay all costs of the
                  appraisals and inspection reports furnished pursuant to the
                  terms of this Section 2.10E. The terms of this Section 2.10E
                  shall not limit the rights of the Agent or Lenders under any
                  other section hereof or of any Security Agreement. Any
                  appraisal delivered pursuant to the terms of this Section
                  2.10E shall be considered an Approved Appraisal for all
                  purposes including without limitation calculating the
                  Borrowing Base.

         The amendment set forth in this section shall be effective for the
period from and after the Amendment No. 3 Effective Date.

         7. Subsection 5.1(xvii) of the Loan Agreement is amended by adding the
following at the end of such subsection before the period: "including without
limitation offering memoranda, prospectuses, or other documents and information,
whether publicly available or not, regarding the Financing." The amendment set
forth in this section shall be effective for the period from and after the date
hereof, notwithstanding any other term hereof to the contrary.

         8. Section 5 of the Loan Agreement is amended by adding the following
at the end of such section:

                  5.12 USE OF PROCEEDS OF FINANCING

                  The Company may apply the proceeds of each financing
                  transaction that is a Financing or is or could comprise part
                  of a Financing, net of customary fees and other out-of-pocket
                  expenses incurred by the Company in connection with such
                  transaction, only (i) to prepay amounts outstanding under the
                  Commitments as required by Section 2.4B(iii)(3), (ii) for
                  working capital and other general corporate purposes, and
                  (iii) in the case of any proceeds that exceed a net aggregate
                  (after the payment of such customary fees and other
                  out-of-pocket expenses) of $140,000,000, for any purpose that
                  does not otherwise violate any provision of this Agreement.

         The amendment set forth in this section shall be effective for the
period from and after the date hereof, notwithstanding any other term hereof to
the contrary.

         9. The amendments to the Loan Agreement described in Sections 3, 5, and
7 of Amendment No. 2 are hereby rescinded with effect for the period from and
after the Amendment No. 3 Effective Date. From and after the Amendment No. 3
Effective Date, the phrase "fifty percent (50%)" set forth in Exhibit IX to the
Loan Agreement shall be replaced with "thirty percent (30%)" and "60%" set forth
in Section C of Exhibit IX shall be replaced with "40%." From and after the
Amendment No. 3 Effective Date, the phrase "clauses (i), (vii), (xi), and (xii)
of Section 6.3" set forth in clause (a) of Section 10 of Amendment No. 2 shall
be replaced with "clause (xi) of Section 6.3," but any Investments made on or
after July 31, 2001 but before the Amendment No. 3 Effective Date under clauses
(i), (vii), or (xii) of Section 6.3 of the Loan

                                       4
<PAGE>   5
Agreement shall continue to be counted toward the $5,000,000 limit set forth in
such section. From and after the Amendment No. 3 Effective Date, the release
under the terms of Subsection 2.10B(ii)(1) of Borrowing Base Collateral in any
of the categories shown in the table below shall reduce the Borrowing Base as
shown in the table below for the respective category (and the pro forma
Borrowing Base Certificate required to be delivered under the terms of clause
(iv) of such subsection in connection with such release shall reflect such
reduction):

<TABLE>
<CAPTION>
Category                                                  Reduction

<S>                                                       <C>
Cash and Permitted Cash Equivalents                       100% of the Dollar amount of the Cash or
                                                          Cash Equivalent

Stage III Aircraft (other than 737-200A
Series Aircraft)                                          92.5% of the Fair Market Value of the Aircraft
                                                          as stated in the Approved Appraisal thereof
                                                          delivered at the time of removal

737-200A Series Aircraft, Spare Engines or
Simulators                                                72.5% of the Fair Market Value of the
                                                          737-200A Series Aircraft, Spare
                                                          Engines or Simulators as stated in the
                                                          Approved Appraisal thereof delivered at
                                                          the time of removal
</TABLE>

For any addition to the Borrowing Base Collateral either following any such
removal from the Borrowing Base Collateral, or contemporaneously with such
removal as contemplated by the terms of the second following sentence, the
percentages set forth for the various categories of Borrowing Base Collateral in
the definition of Borrowing Base in Section 1.1 of the Loan Agreement, as
amended, shall apply to the calculation of Borrowing Base. From and after the
Amendment No. 3 Effective Date, at no time may Borrowing Base Collateral be
added or removed if the effect of such action would be to reduce to less than
50% the proportion of the Borrowing Base attributable to Cash and Permitted Cash
Equivalents, Aircraft, and Spare Engines (after giving effect to the respective
percentages of Fair Market Value applicable to such categories of Borrowing Base
Collateral that are used to calculate Borrowing Base under the definition of
such term). In addition, from and after the Amendment No. 3 Effective Date, any
removal of Borrowing Base Collateral shall, in addition to reducing the
Borrowing Base as provided above, reduce the aggregate of the Lenders'
Commitments by the same Dollar amount (and shall proportionally reduce each
Lender's Commitment), unless at the time of such removal the Company adds
Borrowing Base Collateral in accordance with the terms of Section 2.10B(ii)(2)
of the Loan Agreement that is of the same category (as shown above in this
Section 9) as the removed Borrowing Base Collateral and has an appraised value
(as shown in an Approved Appraisal delivered to the Agent at the time of such
addition) (or Dollar value in the case of Cash or Cash Equivalents) at least
equal to that of the removed Borrowing Base Collateral (as shown in such
Approved Appraisal), and each such reduction in the Lenders' Commitments shall
be evidenced by a certificate executed by the Agent setting forth each Lender's
new Commitment. Any addition to the Borrowing Base Collateral thereafter shall
increase the Borrowing Base if the terms of the Loan Agreement would so provide
but shall not increase the aggregate of the Lenders' Commitments or any Lender's
Commitment. At the Company's expense, the Company shall deliver to the Agent at
the time of any addition or removal, or simultaneous addition and removal, of
Borrowing Base Collateral an Approved

                                       5
<PAGE>   6
Appraisal of all added or removed Borrowing Base Collateral (other than Cash or
Cash Equivalents) and a pro forma Borrowing Base Certificate showing the effect
of such addition or removal and certifying that no Borrowing Base Deficiency
will result therefrom. It is acknowledged that the adjustments to the Lenders'
Commitments provided for in this section shall be used for all purposes of the
Loan Agreement including without limitation for the computation of the
commitment fees payable by the Company under the terms of Section 2.3A thereof.

         10. The waiver of the terms of Section 6.5D of the Loan Agreement
provided in Section 9 of Amendment No. 2 is terminated with effect for the
period from and after the Amendment No. 3 Effective Date.

         11. With effect from and after the Amendment No. 3 Effective Date,
Section 6.5A of the Loan Agreement is amended by deleting such section in its
entirety, and replacing such section with the following:

                  A. MINIMUM FIXED CHARGE COVERAGE RATIO. The Company shall not
                  permit the ratio of (i) EBITDA plus Aircraft Rental Expense to
                  (ii) Interest Expense plus Aircraft Rental Expense for any
                  four-fiscal quarter period ending as of the last day of any
                  fiscal quarter of the Company to be less than .70 to 1.00.

         12. The Company agrees that the Liens on the Collateral granted
pursuant to the Security Agreements and any other agreements contemplated hereby
or by Amendment No. 2 shall serve as security for the due and punctual payment
of the Obligations as amended hereby and by Amendment No. 1 and Amendment No. 2.

         13. The Amendment No. 3 Effective Date (as defined in Section 1) shall
occur on the date, if any, on or before October 31, 2001, when the Agent
determines acting promptly and in good faith that all of the following
conditions precedent have been satisfied:

                  (i) The Company shall have closed the Financing on or before
         October 31, 2001 and shall have received at least $140,000,000 in
         proceeds from the Financing net of customary fees and other
         out-of-pocket expenses.

                  (ii) The Agent shall have received an Officer's Certificate of
         the Company dated the Amendment No. 3 Effective Date stating that the
         condition set forth in Section 13(i) has been satisfied.

                  (iii) The Company shall have repaid all outstanding principal
         and accrued and unpaid interest on the Loan and all other outstanding
         Obligations including without limitation all fees and expenses then due
         and payable hereunder and under Amendment No. 2, and no Obligations
         shall be outstanding on the Amendment No. 3 Effective Date.

                  (iv) The Agent shall have received a counterpart of this
         Amendment No. 3 and of Amendment No. 2 duly executed and delivered by
         the Company and the Requisite Lenders.

                                       6
<PAGE>   7
                  (v) The Loan Agreement shall be in full force and effect, and
         no Event of Default or Potential Event of Default shall have occurred
         and be continuing (after giving effect to Amendment No. 2 and this
         Amendment No. 3), and the Agent shall have received an Officer's
         Certificate of the Company to such effect.

                  (vi) Each Lender that has executed and delivered this
         Amendment No. 3 shall have received payment from the Company of a fee
         in an amount equal to such Lender's Commitment multiplied by .0025.

                  (vii) The Company shall have paid all reasonable fees and
         expenses of counsel to the Agent in connection with the Loan Agreement,
         this Amendment No. 3 and the transactions contemplated thereby.

                  (viii) The Company shall have complied with such other
         conditions as the Agent may specify in a closing list to be delivered
         to the Company.

         Promptly following or concurrently with satisfaction of the conditions
of Section 13(i) above, the Company shall take all actions necessary to cause
the other foregoing conditions to be satisfied and to prepay the Loans
contemplated by the terms of Section 4 hereof. The Company acknowledges that its
failure to take all such other actions may become an Event of Default under
Section 7.5 of the Loan Agreement.

         14. If the Amendment No. 3 Effective Date shall not have occurred on or
before October 31, 2001, the provisions set forth herein that recite that they
are effective from and after the Amendment No. 3 Effective Date (which are set
forth in Sections 6, 9, 10, and 11 hereof) shall be null and void, and the terms
of Amendment No. 2 that would have been affected according to the terms of
Sections 9, 10, and 11 hereof shall remain in full force and effect. The terms
of this Amendment No. 3 other than those set forth in Sections 6, 9, 10, and 11
hereof shall be in full force and effect from and after the execution and
delivery hereof whether or not the Amendment No. 3 Effective Date occurs.

         15. Each party hereto agrees that, to the maximum extent permitted by
the law of the State of New York, this Amendment No. 3, 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.

                                       7
<PAGE>   8
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3
to be executed by their representative officers thereunto duly authorized, as of
the date first above written.

                                         COMPANY:

                                         AMERICA WEST AIRLINES, INC.

                                                 /s/ Stephen L. Johnson
                                         By: ________________________________
                                             Name:   Stephen L. Johnson
                                             Title:  Senior Vice President

                                         INITIAL ISSUING BANK, AGENT AND LENDER:

                                         THE INDUSTRIAL BANK OF JAPAN, LIMITED,
                                         as Initial Issuing Bank, Agent
                                         and Lender

                                                 /s/ Kazutoshi Kutrahara
                                         By: ________________________________
                                             Name:   Kazutoshi Kutrahara
                                             Title:  General Manager

                                         LENDERS:

                                         CITICORP USA, INC.

                                                 /s/ George E. Moyer, Jr.
                                         By: ________________________________
                                             Name:   George E. Moyer, Jr.
                                             Title:  Vice President

                                         THE FUJI BANK, LIMITED

                                                 /s/ Steven Brennan
                                         By: ________________________________
                                             Name:   Steven Brennan
                                             Title:  Senior Vice President
<PAGE>   9
                                         THE MITSUBISHI TRUST AND BANKING
                                         CORPORATION

                                                /s/ Scott J. Paige
                                         By: ________________________________
                                             Name:  Scott J. Paige
                                             Title: Executive Vice President

                                         BANKERS TRUST COMPANY

                                                /s/ Marguerite Sutton
                                         By: ________________________________
                                             Name:  Marguerite Sutton
                                             Title: Vice President

                                         BANK ONE, ARIZONA, NA

                                                /s/ Dennis Warren
                                         By: ________________________________
                                             Name:  Dennis Warren
                                             Title: First Vice President

                                         BANK OF SCOTLAND

                                                /s/ Joseph Fratus
                                         By: ________________________________
                                             Name:  Joseph Fratus
                                             Title: Vice President

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