Document:

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                                                                    Exhibit 10.1

                                           *** TEXT OMITTED AND FILED SEPARATELY
                                                CONFIDENTIAL TREATMENT REQUESTED
                                           UNDER 17 C.F.R. SECTION 200.80(B)(4),
                                                            200.83 AND 240.24b-2

                    CODE SHARE AND REVENUE SHARING AGREEMENT

         This CODE SHARE AND REVENUE SHARING AGREEMENT (the "Agreement") is made
and entered into as of March 20, 2001, to be effective retroactive to February
1, 2001 (the "Contract Date"), by and between AMERICA WEST AIRLINES, INC., a
Delaware corporation ("AWA"), and MESA AIRLINES, INC., a Nevada corporation
("Mesa").

                                 R E C I T A L S

         A. AWA holds a certificate of public convenience and necessity issued
by the Department of Transportation ("DOT") authorizing AWA to engage in the
interstate and overseas air transportation of persons, property and mail between
all points in the United States, its territories and possessions.

         B. Mesa holds a certificate of public convenience and necessity issued
by the DOT authorizing Mesa to engage in the interstate transportation of
persons, property and mail in the United States, its territories and
possessions.

         C. AWA owns various trademarks, service marks and logos, including
"America West Airlines," "America West Express," and distinctive exterior color
decor and patterns on its aircraft, hereinafter referred to individually and
collectively as the "AWA Service Marks."

         D. AWA and Mesa entered into that certain Code Share and Revenue
Sharing Agreement, dated July 15, 1998, as amended by those certain First and
Second Amendments to Code Share and Revenue Sharing Agreement, dated January 4,
2000 and May 10, 2000, respectively (the "Original Agreement"), in order to
provide scheduled air transportation services as America West Express and to
share in revenue and costs of such services.

         E. AWA and Mesa desire to terminate the Original Agreement and replace
the Original Agreement, in its entirety, with the terms and conditions of this
Agreement.

         NOW, THEREFORE, in consideration of the promises, covenants,
representations and warranties hereinafter set forth, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, AWA
and Mesa agree as set forth below.

                                A G R E E M E N T

1. Effectiveness. This Agreement replaces the Original Agreement effective upon
the date (the "Effective Date") that Mesa executes a binding agreement to
acquire the CRJ Aircraft required to be provided by Mesa pursuant to Section
2.2.2 of this Agreement (the "Aircraft Contract"). Mesa shall provide AWA with
written notice of the date the Aircraft Contract is executed together with
copies of the Aircraft Contract. On the date of execution of the Aircraft
Contract, all of the terms and provisions of this Agreement shall be effective
retroactive to the Contract Date. On the Effective Date, the Original Agreement
shall be terminated in its entirety. All
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sums payable pursuant to Section 6 of the Original Agreement between the
Contract Date and Effective Date shall be recalculated pursuant to the terms of
Section 7 of this Agreement, and AWA, subject to the rights regarding disputed
amounts contained in Section 7.8, shall pay additional and undisputed sums
payable within 30 days after receipt of a written invoice for such
recalculation. Until the Effective Date, AWA and Mesa shall continue to perform
pursuant to the Original Agreement. If the Aircraft Contract is not executed by
May 1, 2001, then this Agreement shall automatically terminate and the terms and
conditions of the Original Agreement shall remain in full force and effect.
Simultaneously with the execution of this Agreement, AWA and Mesa shall enter
into an amendment to the Original Agreement providing for the addition of 3 CRJs
under the Original Agreement if this Agreement is terminated pursuant to this
Section.

As of the Contract Date, AWA and Mesa dispute certain amounts that are payable
between AWA and Mesa under the Original Agreement (the "Disputed Amounts"). Mesa
and AWA shall continue to work to resolve their respective obligations
concerning the Disputed Amounts pursuant to the terms of the Original Agreement.
This is a new and separate agreement from the Original Agreement. The terms of
this Agreement shall not be used by either Mesa or AWA to determine or interpret
the respective payment obligations of the parties for the Disputed Amounts. The
respective obligations for the Disputed Amounts and other matters and disputes
arising under the Original Agreement prior to the Contract Date shall be
resolved pursuant to the terms, covenants, rights and remedies of the Original
Agreement, shall not affect the rights, duties and obligations of AWA or Mesa
under this Agreement and shall not permit AWA or Mesa to exercise any remedies
under this Agreement. The intent of AWA and Mesa is to resolve any disputes
concerning the Disputed Amounts or any other matters and disputes under the
Original Agreement under the Original Agreement and not pursuant to this
Agreement.

2. Rights, Responsibilities and Obligations of Mesa:

         2.1      Flight Service. During the term of this Agreement, Mesa shall
                  operate America West Express air transportation services (the
                  "Flight Services"), using the Fleet of Aircraft established
                  pursuant to Section 2.2, to and from the cities and based upon
                  the schedule established from time to time by AWA (the
                  "Schedule") in written notice to Mesa (a "Schedule Notice").
                  For purposes of this Agreement, "Flights" means flights
                  operated pursuant to the Schedule. AWA may change the Schedule
                  by issuance of a Schedule Notice at any time. When creating a
                  Schedule, AWA shall: (i) take into account Mesa's aircraft
                  maintenance requirements; (ii) create a Schedule which will
                  permit Mesa to schedule flight crews in a manner consistent
                  with industry operational practices; (iii) schedule block
                  times based on AWA's internal block time policy; (iv) provide
                  for the following turn times: (a) in a hub location: 20
                  minutes for Beech 1900s and Dash 8s and 25 minutes for CRJs;
                  and (b) in other stations: 10 minutes for Beech 1900s, 15
                  minutes for Dash 8s and 20 minutes for CRJs; (v) take into
                  account airport facilities available for Aircraft handling;
                  (vi) provide for maintenance as required by Section 2.6.3 and
                  scheduled heavy maintenance on Aircraft as required from time
                  to time; and (vii) provide for at least 45 days prior notice
                  of any holiday cancellations. Mesa shall implement all changes
                  in the Schedule contained in a Schedule Notice in accordance
                  with

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                  AWA's scheduling requirements within 60 days after receipt of
                  a Schedule Notice. Mesa or any of its affiliates shall not
                  provide any flight service for any other airline for flights
                  that originate in or end in Phoenix, Arizona.

                  So long as Air Midwest ("AM") is a wholly-owned subsidiary of
                  Mesa Air Group, Inc., Mesa may subcontract with AM for the
                  performance of those Flight Services, Other Services (as
                  hereinafter defined), and other related obligations under this
                  Agreement, which are to be performed by Mesa using the Beech
                  1900s (the "AM Services"). Mesa has delivered to AWA an
                  assumption agreement pursuant to which AM agrees to perform
                  all the duties and obligations of Mesa under this Agreement
                  relating to the AM Services and to be bound by all of the
                  liabilities, obligations, and duties of Mesa under this
                  Agreement applicable to the AM Services, including, without
                  limitation, the providing of flights, maintenance of aircraft,
                  compliance with laws, maintenance of insurance and
                  indemnification of AWA (the "Assumption Agreement"). AWA shall
                  have no duty, obligation or liability to AM under this
                  Agreement. All payments for the use and operation of the Beech
                  1900 Subfleet to be made by AWA under this Agreement shall be
                  paid to Mesa. Mesa shall pay all sums payable to AM for the
                  operation of the Beech 1900 Subfleet pursuant to a separate
                  agreement between AM and Mesa to which AWA is not a party.
                  Notwithstanding the foregoing, Mesa shall not be released,
                  discharged, or relieved from any duties, liabilities or
                  obligations set forth in this Agreement, including those
                  arising from the AM Services performed by AM. AM shall be
                  deemed a subcontractor of Mesa, and Mesa shall cause AM's
                  performance of the AM Services to comply with all relevant
                  terms and conditions of this Agreement. If either: (i) AM
                  ceases to be a wholly-owned subsidiary of Mesa Air Group,
                  Inc.; or (ii) AM fails to comply with the terms and conditions
                  of this Agreement as required by the Assumption Agreement,
                  then Mesa, within thirty (30) days after receipt of written
                  notice from AWA, shall terminate the subcontractor
                  relationship with AM, acquire the Beech 1900 Subfleet and
                  perform the duties and obligations applicable to the Beech
                  1900 Subfleet pursuant to this Agreement.

                  Mesa, with the prior written consent of AWA, which consent
                  shall not be unreasonably withheld, delayed or conditioned,
                  may subcontract with a wholly-owned subsidiary of Mesa Air
                  Group, Inc. for the performance of certain Flight Services,
                  Other Services and other related obligations under this
                  Agreement, which are to be performed by Mesa using certain
                  Aircraft on terms and conditions similar to the terms and
                  conditions applicable to the subcontracting of the AM Services
                  (the "Subcontracting of Services"). If AWA consents to the
                  Subcontracting of Services, then AWA and Mesa shall execute an
                  amendment to this Agreement permitting the Subcontracting of
                  Services and setting forth the terms and conditions pursuant
                  to which the Subcontracting of Services may occur (the
                  "Subcontracting Amendment"). The Subcontracting of Services
                  shall not occur until the Subcontracting Amendment and any
                  documents required from the wholly-owned subsidiary have been
                  executed by Mesa and the affiliate and delivered by AWA.

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                  AM and any other affiliate to which services are subcontracted
                  under this Agreement are referred to as the "Affiliated
                  Service Providers."

         2.2      Fleet.

                  2.2.1    Initial Fleet. As of the Contract Date, Mesa and AM
                           provide the Flight Services using the following
                           aircraft (collectively, the "Fleet"; with respect to
                           any one aircraft type, the "Subfleet"; and
                           individually, the "Aircraft"):

                               Number     Aircraft Type ("Subfleet")
                               ------     --------------------------
                               12         deHavilland DHC-8-200 ("Dash 8")
                               5          Hawker-Beech 1900 ("Beech 1900")
                               22         Canadair Regional Jet-50 ("CRJ")

                  2.2.2    CRJ Fleet Expansion. Pursuant to the Aircraft
                           Contract, Mesa shall have the right to acquire an
                           additional 83 CRJ Aircraft, 43 by virtue of firm
                           orders (the "Firm Aircraft") and 40 by virtue of
                           options (the "Option Aircraft"), in the
                           configuration, with the seating capacity and at the
                           times set forth on Exhibit A, attached hereto. The
                           Firm Aircraft and Option Aircraft will consist of CRJ
                           Models 200s, 700s and 900s as set forth in Exhibit A.
                           For purposes of this Agreement, the CRJ Model 200s
                           shall be a "CRJ Subfleet" and the CRJ Model 700s and
                           900s shall be a "CRJ Subfleet".

                           (a)      Each of the Firm Aircraft shall be placed
                                    into Flight Services by Mesa in the calendar
                                    months set forth on Exhibit A (the "Delivery
                                    Schedule"). The Firm Aircraft to be
                                    delivered in each of the calendar months
                                    from and including October, 2003 to and
                                    including June, 2004 may be either CRJ Model
                                    700s or 900s (the "Convertible Firm
                                    Aircraft"). AWA, by written notice to Mesa,
                                    given on or before the last day of the 18th
                                    calendar month prior to the delivery of each
                                    Convertible Firm Aircraft, shall advise Mesa
                                    as to which model is to be added to the
                                    Fleet (the "Firm Selection Notice"). For
                                    example, for the CRJ to be delivered in
                                    October, 2003, AWA must provide the Firm
                                    Selection Notice by April 31, 2002. If AWA
                                    does not provide the Firm Selection Notice
                                    timely, then AWA shall be deemed to have
                                    elected to have a CRJ Model 700 added to the
                                    Fleet. Mesa shall provide AWA with at least
                                    90 days' prior written notice of the week
                                    each of the Firm Aircraft will be placed
                                    into Flight Service under this Agreement and
                                    at least 60 days' prior written notice of
                                    the date on which each of the Firm Aircraft
                                    will be placed into Flight Service under
                                    this Agreement (each, a "Scheduled Delivery
                                    Date").

                           (b)      AWA shall have the options to expand the CRJ
                                    Fleet by up to 40 additional CRJs from the
                                    Option Aircraft. On or before each option

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                                    "Exercise Date" (as set forth on Exhibit A),
                                    AWA, by written notice to Mesa (the "Option
                                    Notice"), shall have the option to require
                                    Mesa to increase the CRJ Subfleet by the
                                    addition of the applicable CRJ Aircraft in
                                    the applicable "In Service Months" (as set
                                    for on Exhibit A)(each, a "Fleet Expansion
                                    Option"). Each Option Notice shall specify
                                    whether AWA is selecting either a CRJ Model
                                    700 or 900. If the Option Notice does not
                                    specify the CRJ Model, then AWA shall be
                                    deemed to have selected a CRJ Model 700. The
                                    Fleet Expansion Options are separate and
                                    individual options and may be exercised or
                                    not exercised on a separate and individual
                                    basis. The Aircraft that are the subject of
                                    each Fleet Expansion Option shall be added
                                    to the Fleet by Mesa in the applicable In
                                    Service Months. Mesa shall provide AWA with
                                    at least 90 days prior written notice of the
                                    week each Option Aircraft will be placed
                                    into Flight Service under this Agreement and
                                    at least 60 days' prior written notice of
                                    the Scheduled Delivery Date for each Option
                                    Aircraft that is the subject of each
                                    exercised Fleet Expansion Option.

                           (c)      Mesa shall not be liable to AWA for the
                                    failure to deliver any Firm Aircraft or
                                    Option Aircraft on the Scheduled Delivery
                                    Date (a "Failed Delivery") if: (i) the
                                    failure to deliver is the result of the
                                    manufacturer's failure to deliver the
                                    Aircraft to Mesa as a result of acts of
                                    terrorism, hostilities, war, strikes, labor
                                    disputes, work stoppages beyond the
                                    manufacturer's control, fire, act of
                                    government or court order; (ii) Mesa uses
                                    commercially reasonable efforts to acquire a
                                    replacement aircraft for the Aircraft that
                                    was not delivered; and (iii) Mesa pays to
                                    AWA any compensation, damages or award
                                    obtained by Mesa from the manufacturer as a
                                    result of the Failed Delivery (an "Excused
                                    Failure"). In the event of a Failed
                                    Delivery, Mesa shall use commercially
                                    reasonable efforts to obtain the applicable
                                    Aircraft as soon as practicable after the
                                    Scheduled Delivery Date. If the Aircraft
                                    that is the subject of a Failed Delivery is
                                    not delivered within 90 days after the
                                    Scheduled Delivery Date, then AWA shall have
                                    the option to elect not to include such
                                    Aircraft under this Agreement by providing
                                    written notice to Mesa at any time prior to
                                    the actual delivery of such Aircraft. If a
                                    Failed Delivery is not the result of an
                                    Excused Failure, then AWA shall have all
                                    rights and remedies under this Agreement for
                                    such Failed Delivery.

                  2.2.3    Intentionally Omitted.

                  2.2.4    Fleet Reduction. Except as otherwise permitted by
                           Section 2.2.5, upon 180 days' prior written notice
                           from AWA, AWA, subject to limitations set forth
                           below, may require Mesa to reduce the number of
                           Aircraft in any Subfleet. AWA shall not require Mesa
                           to reduce: (i) the number of Aircraft in the Dash 8
                           Subfleet, Beech 1900 Subfleet or the combined CRJ

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                           Subfleets by more than two Aircraft in any Six
                           Calendar Month Period. For purposes of this
                           Agreement, "Six Calendar Month Period" means each
                           period during the Term (as defined below) commencing
                           on January 1 and ending on June 30 and commencing on
                           July 1 and ending on December 30, with the first Six
                           Calendar Month Period commencing on January 1, 2002;
                           (ii) the number of CRJ Model 200s for a period of 1
                           year measured from the last date that a CRJ Model 200
                           is added to the CRJ Subfleet; provided, however, that
                           the Scheduled Delivery Date shall be used to measure
                           the date each CRJ Model 200 is added to the CRJ
                           Subfleet; (iii) the number of CRJ Model 700s and 900s
                           for a period of 1 year measured from the last date
                           that a CRJ Model 700 or 900 is added to the CRJ
                           Subfleet; provided, however, that the Scheduled
                           Delivery Date shall be used to measure the date such
                           CRJ Model 700 or 900 is added to the CRJ Subfleet;
                           and (iv) the Dash 8 Subfleet below 6 Aircraft.

                  2.2.5    Elimination of Beech 1900s and Dash 8s.
                           Notwithstanding the provisions of Section 2.2.4, AWA,
                           at any time during the Term after August 25, 2004,
                           may require the Subfleet of Beech 1900s to be reduced
                           to zero by providing Mesa with at least 180 days
                           prior written notice of AWA's election to eliminate
                           the Beech 1900s on or after such date (the "1900
                           Elimination Notice"). Notwithstanding the provisions
                           of Section 2.2.4, AWA, at any time during the Term
                           after August 25, 2006, may require Mesa to reduce the
                           Subfleet of Dash 8s to zero by providing Mesa with at
                           least 180 days' prior written notice of AWA's
                           election to eliminate the Dash 8s on or after such
                           date (the "Dash 8 Elimination Notice"). The 1900
                           Elimination Notice may be given at any time during
                           the Term on or after February 27, 2004. The Dash 8
                           Elimination Notice may be given at any time during
                           the Term on or after February 27, 2006.

                  2.2.6    Spares. Mesa shall have available at least 1 spare
                           Aircraft available for Flight Services under this
                           Agreement at any time there are 35 or more CRJ
                           Aircraft and at least 2 spare Aircraft available for
                           Flight Services under this Agreement at any time
                           there are 65 or more CRJ Aircraft. AWA shall pay the
                           Actual Costs, Guaranteed Non-Maintenance Costs (other
                           than overhead) and Guaranteed Maintenance Costs
                           actually incurred by or payable to Mesa for each
                           spare Aircraft as provided in Section 7.

                  2.2.7    Transition Costs. As of the Contract Date, all of the
                           CRJ Aircraft are 50 seat Aircraft. The Firm Aircraft
                           and Option Aircraft include CRJ-700 and CRJ-900 seat
                           configurations (the "New CRJ Types"). AWA shall
                           reimburse Mesa for actual out-of-pocket costs and
                           expenses incurred by Mesa in connection with the
                           induction of the New CRJ Types into Flight Services
                           for a period of 180 days after the induction of the
                           first of each of the New CRJ Types, not to exceed
                           [***] for each of the New CRJ Types

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*** Confidential Treatment Requested

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                           (the "Transition Reimbursement"). The Transition
                           Reimbursement shall be paid by AWA within 30 days
                           after receipt of monthly written invoices together
                           with commercially reasonable evidence of the costs
                           actually incurred by Mesa.

         2.3      Other Services. In addition to the Flight Services, Mesa,
                  subject to AWA's payment of costs pursuant to Section 7.1.8,
                  shall provide the following services in connection with the
                  Flight Services (the "Other Services"): (i) curb-side service,
                  other than at AWA Service Locations (as defined below), in all
                  locations where it is normal and customary or where another
                  airline offers curbside check-in; (ii) check-in service with
                  automated baggage tags and boarding pass printers in all
                  locations, other than AWA Service Locations; (iii) ticketing
                  and security services in accordance with the Federal Aviation
                  Administration ("FAA") and AWA directives and guidelines, as
                  may be issued from time to time, and any other directives or
                  guidelines as Mesa and AWA may mutually approve, in all
                  locations, other than the AWA Service Locations; (iv)
                  Qik-Check service, to the extent used and supplied by AWA, at
                  all gates used by Mesa; (v) transfer of all baggage for
                  passengers connecting from Flights to AWA flights in a timely
                  manner to ensure all baggage is placed on those connecting
                  flights; and (vi) transportation of mail and other cargo
                  (other than hazardous materials) on Flights, at the order of
                  AWA, to the extent of available aircraft capacity. Mesa, at
                  its expense, shall provide all facilities, machinery,
                  equipment and inventory required to efficiently, timely and in
                  a manner consistent with best airline industry practices
                  provide the Other Services. Mesa shall require personnel
                  providing the Other Services to comply with all rules,
                  regulations and directives promulgated for all AWA operations
                  from time to time.

                  Mesa may outsource the Other Services performed by Mesa at any
                  station with the prior written consent of AWA, which consent
                  shall not be unreasonably withheld or delayed. Mesa shall
                  cause any subcontractor to which the Other Services are
                  outsourced to comply with and perform all of the duties and
                  obligations imposed on Mesa in this Agreement applicable to
                  the Other Services that have been outsourced.

                  Notwithstanding the foregoing, AWA shall provide the services
                  set forth in subsections (i) - (iii) above at Phoenix Sky
                  Harbor International Airport, McCarron International Airport
                  and any other airport that AWA designates with at least 90
                  days' prior written notice to Mesa (the "AWA Service
                  Locations"). In the event AWA elects to convert any airport to
                  an AWA Service Location, then AWA shall: (i) either assume
                  Mesa's lease at the airport or reimburse Mesa for the actual
                  out-of-pocket costs and expenses incurred by Mesa in
                  terminating the lease, at AWA's election; (ii) reimburse Mesa
                  for up to one week's compensation actually paid to airport
                  employees that are not offered employment by AWA; and (iii)
                  offer to purchase from Mesa or assume the lease of any
                  equipment owned or leased by Mesa at the airport that may be
                  used by AWA in AWA's operations and

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                  is in good condition and repair for a price equal to the fair
                  market value of such equipment at the time of such offer.

         2.4      Personnel; Training. Mesa shall hire, engage, employ and
                  maintain a sufficient number of competent, trained personnel
                  and subcontractors, including, but not limited to pilots,
                  flight attendants, ground crew, maintenance and cleaning
                  personnel, baggage handling personnel and customer service
                  personnel necessary to provide the Flight Services and Other
                  Services as required by this Agreement. Subject to FAA
                  approval, CRJ pilots shall be qualified to fly all models of
                  CRJs providing Flight Services pursuant to this Agreement. CRJ
                  pilots shall not be scheduled or dedicated to any particular
                  model line of CRJs without the prior written consent of AWA.
                  In addition, Mesa shall employ and maintain a commercially
                  reasonable number of reserve pilots and flight attendants
                  based in the Phoenix Metropolitan area based on the Flight
                  Services to be provided pursuant to this Agreement. Mesa shall
                  cause all Mesa personnel providing Flight Services or Other
                  Services to wear uniforms approved by AWA and shall comply
                  with all appearance guidelines required of all AWA personnel.

                  Mesa shall provide initial training, recurrent training and
                  customer service training to personnel and subcontractors
                  reasonably identified by AWA at programs approved by AWA. AWA
                  shall provide applicable training materials. In the event AWA
                  becomes a hazardous materials carrier, Mesa, at AWA's expense,
                  shall conduct all hazardous materials training required by AWA
                  or AWA's other code share partners.

         2.5      Service Quality and Level. All Flight Services and Other
                  Services shall be provided by Mesa at a service quality and
                  level of service equal to or greater than the service quality
                  and level of service provided by AWA to the extent applicable
                  to the type of Aircraft used to provide the Flight Services.
                  All Aircraft shall be equipped with service amenities
                  necessary to provide the service quality and level of service
                  required by this Section. If AWA changes AWA's service
                  requirements and as a result Mesa will be required to make any
                  capital upgrades to any Aircraft, Mesa, in writing, shall
                  advise AWA of the need for such upgrades together with the
                  estimated cost to complete such upgrades (the "Upgrade
                  Notice"). If, after receipt of the Upgrade Notice, AWA, in
                  writing, elects to require Mesa to comply with such changes in
                  service requirements, then AWA, within 30 days after receipt
                  of a written notice, shall reimburse Mesa for the actual
                  out-of-pocket capital costs incurred by Mesa in making such
                  capital upgrades. If AWA does not approve the making of the
                  capital upgrades, then Mesa shall not be required to meet the
                  new AWA service requirements.

         2.6      Maintenance.

                  2.6.1    Obligation. Mesa, at its own cost and expense, shall
                           be responsible for the service, repair, maintenance,
                           overhauling and testing of each Aircraft: (i) in
                           compliance with the maintenance program for each
                           Aircraft as approved by the FAA and pursuant to all
                           applicable aircraft maintenance

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                           manuals applicable to each Aircraft; (ii) so as to
                           keep each Aircraft in good and safe operating
                           condition; and (iii) so as to keep the Aircraft in
                           such operating condition as may be necessary to
                           enable the airworthiness certification of the
                           Aircraft to be maintained in good standing. Mesa
                           shall retain full authority and control over the
                           service, repair, maintenance, overhauling and testing
                           of each Aircraft. AWA shall have no obligations or
                           duties with respect to the service, repair,
                           maintenance, overhauling or testing of any Aircraft.

                  2.6.2    Ground Equipment. Mesa, at its sole cost and expense,
                           shall service, repair, maintain and clean (or cause
                           to be serviced, repaired, maintained or cleaned) all
                           ground equipment and facilities in accordance with
                           AWA guidelines, provided by AWA to Mesa, for
                           cleaning, maintenance and appearance.

                  2.6.3    Location. Mesa shall maintain three maintenance
                           bases, currently located in Fresno, California for
                           CRJs, Grand Junction, Colorado for Dash 8s, and
                           Farmington, New Mexico for Beech 1900s. Each Schedule
                           prepared by AWA shall provide for not less than 20%
                           of the Dash 8s and CRJs and 1 of the Beech 1900s to
                           remain overnight at the applicable maintenance base
                           each night. AWA acknowledges that a separate
                           maintenance base shall be maintained by Mesa for each
                           CRJ Subfleet. One Aircraft shall remain overnight for
                           10 hours and the remainder for at least 8 hours. Mesa
                           shall not relocate any maintenance base, without the
                           prior written consent of AWA, which consent may be
                           withheld if the new location fails to meet AWA's
                           maintenance base requirements. Each CRJ maintenance
                           base shall be staffed and equipped to maintain a
                           fleet of up to 25 Aircraft. Mesa shall add
                           maintenance bases as necessary to provide the Flight
                           Services and Other Services at locations which meet
                           AWA's maintenance base requirements and are approved
                           by AWA. AWA, by providing Mesa with at least 180
                           days' prior written notice, may require Mesa to close
                           any maintenance base. Upon Mesa assigning to AWA all
                           of its right, title and interest in the lease of the
                           maintenance base that is closed (together with any
                           required landlord consent), AWA shall reimburse Mesa
                           for all actual out-of-pocket costs and expenses
                           incurred by Mesa in closing such maintenance bases.

         2.7      Emergency Operations. Mesa and AWA shall coordinate to develop
                  a plan that complies with applicable Regulations (as defined
                  below) to be implemented in the event of any incident
                  involving personal injury or death to a passenger or crew
                  member on a Flight. The emergency response teams of AWA and
                  Mesa shall coordinate their efforts and shall cooperate fully
                  in response to such emergency.

         2.8      Fleet Configuration, Cleanliness and Appearance.

                  2.8.1    Configuration. All Dash 8 and Beech 1900 Aircraft in
                           the Fleet on the Contract Date and Dash 8 and Beech
                           1900 Aircraft added to the Fleet shall have a
                           passenger seating configuration and seating capacity
                           as provided on

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                           the Aircraft in the Fleet on the Contract Date. Each
                           CRJ in the Fleet on the Contract Date shall retain
                           the seating configuration and capacity as exists on
                           the Contract Date. Each CRJ added to the Fleet
                           pursuant to Section 2.2 shall have the seating
                           configuration and capacity as provided for such
                           Aircraft on Exhibit A. AWA, at AWA's cost and
                           expense, may require Mesa to reconfigure or change
                           the seating capacity of an Aircraft. All such
                           requested changes shall be implemented within 180
                           days after Mesa's receipt of written request from
                           AWA.

                  2.8.2    Cleanliness. Mesa, at its sole cost and expense,
                           shall cause all Aircraft to be cleaned and maintained
                           in an appearance in accordance with cleaning
                           standards, requirements and guidelines promulgated by
                           AWA from time to time and provided to Mesa in
                           writing.

         2.9      Post-Departure Procedures. Mesa shall perform airport
                  post-departure procedures (as defined in AWA's Customer
                  Service Manual) and be responsible for securing and
                  controlling all the contents in the ticket lift envelopes. All
                  ticket lift envelopes should be forwarded and co-mailed to
                  ELP/NPC within 24 hours after flight operations. Mesa shall be
                  liable for losses to AWA as a result of the loss, misuse,
                  theft or forgery of AWA passenger tickets (including lifted
                  flight coupons and auditor's coupons for sold tickets) in
                  Mesa's possession or control or the associated cash receipts.
                  If actual documented losses to AWA resulting from erroneous or
                  fraudulent system transactions due to Mesa's or its employees'
                  failure to adhere to AWA policies and procedures exceed the
                  actual documented losses incurred by AWA from erroneous or
                  fraudulent system transactions, calculated monthly on a rate
                  per passenger per month basis for each airline (the "Excess
                  Losses"), then Mesa, within 10 days after receipt of written
                  demand together with the calculation of Excess Losses, shall
                  pay to AWA an amount equal to the Excess Losses times the
                  number of passengers flown on Flights during the applicable
                  calendar month.

         2.10     Other Aircraft Handling and Ground Services. Mesa, at AWA's
                  request, shall provide the Other Services and aircraft ground
                  handling services for flights and aircraft operated by AWA and
                  its code share partners at stations at which Mesa provides the
                  Other Services pursuant to Section 2.3. The costs and expenses
                  of providing such Other Services and aircraft ground handling
                  shall be charged to the airline (other than AWA) at market
                  rates and in the case of AWA at actual out-of-pocket cost to
                  Mesa plus 8%.

         2.11     Airport Slots. Upon each written request by AWA to Mesa, Mesa
                  or the Affiliated Service Providers, as applicable, shall
                  transfer the rights to airport slots operated by Mesa and used
                  for America West Express service at New York LaGuardia (LGA),
                  Chicago O'Hare (ORD), Ronald Reagan Washington National (DCA)
                  and any other slot controlled airports to any carrier(s)
                  designated by AWA; provided, however, that Mesa or the
                  Affiliated Service Providers, as applicable, shall not be
                  required to transfer any slots at slot controlled airports

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                  acquired by Mesa or the Affiliated Service Providers, as
                  applicable, and used for flights other than Flights pursuant
                  to this Agreement. Upon receiving such request from AWA, Mesa
                  shall prepare and process, within thirty (30) days, all
                  documentation necessary to execute the transfer of the airport
                  slots requested by AWA in its notice.

         2.12     MAPPER System. AWA and Mesa, at AWA's cost and expense, shall
                  use commercially reasonable efforts to install AWA's internal
                  MAPPER System ("MAPPER System") at all airport stations to and
                  from which Flight Services are provided by September 1, 2001.
                  AWA, at AWA's cost and expense, shall train Mesa personnel on
                  the use of the MAPPER System. The MAPPER System shall be
                  installed in all new stations when such stations are
                  activated. Mesa shall cause its employees and subcontractors
                  to input all flight and other operational and passenger data
                  and information that the MAPPER System is capable of receiving
                  as soon as such data and information is available. All
                  operational statistics for each Flight shall be input into the
                  MAPPER System within 1 hour after each departure. Commencing
                  on the 90th day after the MAPPER System is installed at a
                  station, if Mesa fails to input any information or data into
                  the MAPPER System, then Mesa, within 10 days after receipt of
                  written demand, shall pay to AWA an amount equal to $100.00
                  for each entry not made. Mesa shall not be required to pay a
                  penalty for any data not entered into the MAPPER System as a
                  result of a system failure. Absent manifest error, MAPPER
                  System data, information and records shall be the controlling
                  data, information and records for all statistics used for
                  purposes of calculation of penalties, payments and bonuses
                  under this Agreement. No penalty for failure to input data
                  shall be assessed more than 180 days after the date the data
                  was to be entered.

3.    Rights, Responsibilities and Obligations of AWA.

         3.1      Flight Management Items. AWA, in its sole discretion, shall:
                  (i) designate from time to time, pursuant to each Schedule
                  Notice, the routes on and destinations to which Mesa is to
                  provide the Flight Services and the times of departure for the
                  Flights; (ii) set the fares to be paid for such Flights by the
                  passengers; and (iii) be responsible for the passenger
                  booking, yield management and overbooking of Flights, limited
                  only by the Fleet required to be maintained by Mesa pursuant
                  to this Agreement.

         3.2      Marketing/Revenue. AWA, in its sole discretion and at its sole
                  cost, shall market, advertise and sell tickets on all Flights.
                  AWA shall provide all reservation services for the Flight
                  Services and shall pay all ticketing and advertising expenses,
                  credit card charges, travel agent commissions and CRS fees
                  applicable to such services. AWA shall be entitled to retain,
                  and Mesa shall pay to AWA, all revenue and income generated by
                  the Flight Services. Mesa shall provide to AWA all tickets and
                  other revenue documentation collected or lifted by Mesa. Mesa,
                  on a daily basis, shall remit to AWA any revenue collected by
                  Mesa in connection with the Flight Services and Other Services
                  into bank accounts

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<PAGE>
                  established by AWA. Mesa shall be responsible for any revenue
                  shortfall not remitted to AWA and shall pay such shortfall
                  within 10 days after receipt of written demand from AWA which
                  demand shall document the shortfall in reasonable detail. AWA
                  shall process Mesa lifted passenger lift documents using
                  standard industry pricing procedures. Mesa agrees to cooperate
                  with AWA on any special pricing or reporting requirements.
                  Mesa shall supply AWA with specific traffic reporting
                  requirements.

         3.3      Airport Services. AWA, at its sole cost and expense, shall:
                  (i) provide curb-side service, check-in service, ticketing and
                  security services at AWA Service Locations for all Flights;
                  (ii) transfer all baggage for passengers connecting from AWA
                  flights to Flights in a timely manner to ensure all baggage is
                  placed on those connecting Flights; and (iii) provide such
                  other ground services selected by AWA at locations selected by
                  AWA in writing to Mesa. To the extent Other Services are
                  provided by AWA, the costs of such services shall not be
                  included in the Actual Costs or Guaranteed Non-Maintenance
                  Costs. AWA shall pay the rent for the terminal and gates at
                  Sky Harbor Airport.

         3.4      Other Code Share Partners. AWA shall have the right to enter
                  into code share, joint marketing, charter or other
                  alliance-type agreements with any other flight service
                  commuter operator to provide flight services to any
                  destinations or for any routes. AWA may permit any of AWA's
                  other code share partners to place their code on any Flight.
                  AWA or its code share partners shall pay all costs and
                  expenses incurred by Mesa in placing such other code on such
                  Flights.

         3.5      Charters. AWA, at its sole discretion, may market charter
                  flights on the Aircraft. Mesa shall operate such charter
                  flights provided flight crews and Aircraft are available and
                  not otherwise subject or committed to maintenance
                  requirements. Mesa is required to operate the charters in a
                  manner consistent with the terms of this Agreement. In respect
                  of any charter flight, AWA and Mesa, in good faith, shall
                  negotiate the costs and expenses to be paid by AWA for such
                  services. Mesa, upon 90 days' prior written notice to AWA, may
                  use any Aircraft for company business; provided, however, that
                  no such trips may disrupt scheduled Flights. If such trips
                  disrupt scheduled Flights, Mesa, within 10 days after receipt
                  of written demand, shall pay to AWA an amount equal to [***]
                  times the number of Flights disrupted (the "Disruption Fee").
                  If the Disruption Fee is not paid timely, then AWA may offset
                  the Disruption Fee against the next amounts due by AWA to
                  Mesa.

         3.6      Executive Travel. AWA shall provide Mesa with travel cards for
                  the five top executives of Mesa for business travel and
                  personal travel on AWA flights on the same terms and
                  conditions as provided to AWA officers. Mesa is not permitted
                  to offer barter travel on AWA flights or Flights in exchange
                  for goods or services. In the event of any breach of the terms
                  of this Section, Mesa, within 10 days after

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                  receipt of written request, shall pay to AWA the full coach
                  fare for the flight(s) taken in violation of the terms of this
                  Section.

4.    Compliance with Regulations.

         4.1      Regulations. Mesa shall perform its obligations and duties
                  under this Agreement, including, without limitation, all
                  Flight Services and Other Services in full compliance with any
                  and all applicable laws, ordinances, codes, statutes, orders,
                  directives, mandates, requirements, rules and regulations,
                  whether now in effect or hereafter adopted or promulgated, of
                  all governmental agencies having jurisdiction over Mesa's
                  operations, including but not limited to the FAA and the DOT
                  (collectively, "Regulations").

         4.2      Flight Operations. Mesa shall be responsible for the operation
                  of each Aircraft and the safe performance of the Flights in
                  accordance with the Regulations and airline industry standard
                  practice and shall retain full authority, operational control
                  and possession of the Aircraft to do so. Mesa, its agents or
                  employees, for the purpose of the safe performance of the
                  Flights, shall have absolute discretion in and shall have sole
                  responsibility for all matters concerning the preparation of
                  each Aircraft for its Flights, and all other matters relating
                  to the technical operation of the Aircraft. Mesa, insofar as
                  such relates to the safe operation of a Flight, shall have
                  sole and absolute discretion as to the load carried and its
                  distribution and as to the decision whether such Flight shall
                  be taken. Mesa shall be solely responsible for and AWA shall
                  have no obligations or duties with respect to the dispatch of
                  all Flights.

         4.3      Registration. All Aircraft shall remain registered in the
                  United States of America in accordance with the Regulations.

         4.4      Disclosure. Mesa, upon 2 business days' prior written request,
                  shall provide AWA the opportunity to review all operating
                  specifications, operational regulations, manuals and
                  calculations with respect to all Aircraft and flight
                  statistics with respect to all Flights at Mesa's corporate or
                  other relevant offices where such records are located.

         4.5      Review/Audit. AWA or its independent accountants, upon 2
                  business days' prior written notice, may review, at Mesa's
                  corporate office, airport ticket offices and other relevant
                  offices, all records, books, logs, files, documentation and
                  information maintained by Mesa, or any of its maintenance or
                  service contracts, in connection with Flight operation, safety
                  and regulatory compliance, employee training, Flight dispatch,
                  Aircraft use, operation, maintenance and repair, Flight
                  incidents and governmental orders, mandates and requirements.
                  AWA, to the extent AWA deems necessary, may make unannounced
                  visits and inspections at airport ticket offices and stations
                  to insure Mesa's and its employees', agents' and contractors'
                  compliance with the terms and conditions of this Agreement.

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<PAGE>
         4.6      Reporting. This Agreement shall be treated as a code share for
                  DOT reporting requirements. AWA shall provide Mesa with such
                  information necessary for Mesa to make the DOT reports and
                  disclosures.

5.    Operational Performance Criteria, Incentives and Penalties.

         5.1      DOT Complaint Rate Criteria. Mesa shall not permit its annual
                  DOT Complaint Rate (defined below) for Flight Services to
                  exceed the annual DOT Complaint Rate of AWA. The "DOT
                  Complaint Rate" is defined as the number of consumer
                  complaints received by the DOT for a given calendar year
                  expressed in terms of the number of complaints per 100,000
                  passengers flown during that calendar year by Mesa and AWA;
                  provided, however, that the DOT Complaint Rate shall exclude
                  consumer complaints relating solely to (i) overbooking; (ii)
                  fares; (iii) Aircraft size or suitability; (iv) schedule; and
                  (v) food service. For purposes of this Agreement, "AWA's DOT
                  Complaint Rate" shall mean AWA's actual DOT Complaint Rate
                  multiplied by 1.05. DOT complaints made against AWA for
                  America West Express service shall be allocated to Mesa for
                  the purpose of calculating Mesa's and AWA's DOT Complaint
                  Rates. If Mesa's DOT Complaint Rate exceeds AWA's DOT
                  Complaint Rate in any calendar year during the Term of this
                  Agreement, Mesa, within 10 days after receipt of written
                  demand from AWA, shall pay to AWA a penalty equal to [***]
                  multiplied by the amount by which Mesa's DOT Complaint Rate
                  exceeds AWA's DOT Complaint Rate. For example, if AWA's DOT
                  Complaint Rate for a given year is [***] per 100,000
                  passengers and Mesa's is [***] per 100,000 passengers, Mesa
                  would pay AWA the product of [***] x [***]. On each
                  anniversary date of the Contract Date, the penalty payment
                  amount shall be increased by the increase in the CPI, as
                  determined in accordance with Section 7.4.

         5.2      Mishandled Baggage Rate Criteria. Commencing January 1, 2002,
                  Mesa shall not permit its monthly MBR (defined below) for
                  Flight Services to exceed the monthly MBR of AWA. The "MBR" is
                  defined as the number of lost baggage claims entered into the
                  world tracer system for a given month expressed in the terms
                  of the number of entries per 1,000 bags handled during that
                  calendar month by Mesa and AWA. Mesa shall enter all lost
                  baggage claims into the world tracer system within 2 hours
                  after the lost baggage claim is made by a passenger. If Mesa's
                  MBR exceeds AWA's MBR by [***] or more any calendar month
                  during the Term of this Agreement, Mesa, within 10 days after
                  receipt of written demand from AWA, shall pay to AWA a penalty
                  equal to [***]. If Mesa's MBR exceeds AWA's MBR for three
                  consecutive calendar months, Mesa, within 10 days after
                  receipt of written demand, shall pay to AWA an additional
                  penalty of [***] for such three-month period and for each
                  consecutive month thereafter that Mesa's MBR exceeds AWA's
                  MBR, the penalty shall be [***] per month. On each anniversary
                  date of the Contract Date, the penalty payment amount shall be

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                  increased by the increase in the CPI, as determined in
                  accordance with Section 7.4.

         5.3      On Time Performance Rate Criteria. Mesa shall not permit
                  Mesa's OTP Rate (as defined below) for any Six Month Period
                  (as defined below) to fall below: (i) [***] percentage points
                  above AWA's OTP Rate for Schedules operated by Mesa out of the
                  Phoenix Sky Harbor International hub; and (ii) [***]
                  percentage points below the Industry's OTP Rate (as defined
                  below) for Schedules operated out of the Columbus, Ohio hub
                  (the "OTP Rate Threshold"). The Phoenix Sky Harbor
                  International hub and Columbus hub are each referred to as a
                  "Hub." The "OTP Rate" is defined as the percentage determined
                  by dividing the number of flight segments not Delayed (as
                  defined below) by the total number of flight segments during
                  the applicable Six Month Period. The "Industry's OTP Rate"
                  shall be the industry standard rate for flights in and out of
                  the Columbus, Ohio airport, calculated in accordance with the
                  methodology set forth on Exhibit F, attached hereto. For
                  purposes of this Agreement, "Delayed" means a flight segment
                  that does not arrive at the destination within 15 minutes
                  after the scheduled arrival time. All Flights will be included
                  for calculating the OTP Rate. A canceled flight (except ones
                  cancelled because of no passengers and the reasons set out in
                  Section 5.4(v)) is a Delayed flight. To the extent that Mesa's
                  OTP Rate for either Hub Schedule falls below the applicable
                  OTP Rate Threshold for any Six Month Period, Mesa, within 10
                  days after receipt of written demand, shall pay to AWA the OTP
                  Penalty Amount (as defined below) for each percentage point,
                  or portion thereof, by which Mesa's OTP Rate for either Hub
                  Schedule falls below the OTP Rate Threshold for such Six Month
                  Period. The "OTP Penalty Amount" for each Hub is an amount
                  equal to [***] times a fraction, the numerator of which is the
                  daily average of Aircraft providing Flight Services to and
                  from the Hub during the applicable Six Month Period and the
                  denominator of which is the daily average of all Aircraft
                  providing Flight Services during the applicable Six Month
                  Period. On each anniversary date of the Contract Date the
                  dollar amounts used for calculating the OTP Penalty Amount
                  shall be increased by the increase in the CPI, as determined
                  in accordance with Section 7.4. AWA, within 10 days after
                  receipt of written demand, shall pay to Mesa [***] for each
                  percentage point, or portion thereof, by which Mesa's OTP Rate
                  system wide exceeds [***] for any Calendar Quarter. On each
                  anniversary date of the Contract Date, the bonus amount shall
                  be increased by the increase in CPI, as determined in
                  accordance with Section 7.4. "Six Month Period" means each
                  January 1 - June 30 and July 1 - December 31 and "Calendar
                  Quarter" means each 3 calendar month period commencing January
                  1 of each year.

         5.4      Flight Completion Factor. Mesa shall not permit its FCF
                  (defined below) for any Calendar Quarter to fall below: (i)
                  [***] for Schedules operated out of the Phoenix Sky Harbor
                  International Airport Hub; and (ii) [***] for Schedules
                  operated out of the Columbus, Ohio Hub (each, an "FCF
                  Threshold"). "FCF" is

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                  defined as the percentage of published, scheduled Flights
                  completed for a Calendar Quarter. Flights not completed due
                  to: (i) weather; (ii) cancellation or overflight because of no
                  passengers; (iii) air traffic control cancellations; (iv)
                  cancellations resulting from an emergency airworthiness
                  directive from the FAA affecting all aircraft similarly
                  equipped to the Aircraft in any Subfleet (not just those owned
                  or operated by Mesa); or (v) cancellations resulting from the
                  sole acts or omissions of AWA or its employees, including,
                  without limitation, damage to an Aircraft, will not be
                  included in either the numerator or denominator for
                  calculating the FCF. Mesa, within 10 days after receipt of
                  written demand, shall pay to AWA the FCF Penalty Amount for
                  each tenth of a percentage point, or portion thereof, by which
                  Mesa's FCF for either Hub Schedule falls below the applicable
                  FCF Threshold. The "FCF Penalty Amount" for each Hub is an
                  amount equal to [***] times a fraction, the numerator of which
                  is the daily average of Aircraft providing Flight Services to
                  and from the Hub during the Calendar Quarter and the
                  denominator of which is the daily average of all Aircraft
                  providing Flight Services under this Agreement during the
                  Calendar Quarter. On each anniversary date of the Contract
                  Date the dollar amount used for calculating the FCF Penalty
                  Amount shall be increased by the increase in the CPI, as
                  determined in accordance with Section 7.4. AWA, within 10 days
                  after receipt of written demand, shall pay to Mesa [***] for
                  each tenth of a percentage point by which Mesa's FCF system
                  wide exceeds [***] in any Calendar Quarter. On each
                  anniversary date of the Contract Date, the bonus amount shall
                  be increased by the increase in CPI, as determined in
                  accordance with Section 7.4.

         5.5      Records. Within 5 days after the end of each calendar month
                  Mesa shall provide to AWA statements certified by Mesa's chief
                  financial officer as to Mesa's OTP Rate and FCF for the prior
                  calendar month and, as applicable, the prior Calendar Quarter
                  and Six Month Period, together with such supporting
                  documentation and information as AWA may request. AWA or its
                  designee, upon 2 business days' prior written notice, may
                  review, at Mesa's corporate or other relevant offices, all
                  records and files maintained by Mesa in connection with
                  on-time performance and flight completions. If AWA's or its
                  designee's review of the records or files reveals that Mesa
                  has under or overstated, as applicable, Mesa's OTP Rate or
                  FCF, then Mesa, upon demand, shall pay all sums due based on
                  the accurate calculations, the actual out-of-pocket costs and
                  expenses of AWA in completing such review and the applicable
                  penalties payable based on such new calculation. If such under
                  or overstatement is willful or intentional, then Mesa, within
                  10 days after receipt of written demand, shall pay to AWA an
                  amount equal to [***] per occurrence.

         5.6      Limitation on Applicability of Standards, Criteria,
                  Incentives, and Penalties. AWA acknowledges that Mesa and the
                  Affiliated Service Providers operate flights and provide
                  flight services and other services under their own names
                  and/or under names or service marks other than America West
                  Express using

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                  aircraft that are not included in the Fleet and that are not
                  subject to this Agreement. Notwithstanding any other term,
                  condition or provision hereof to the contrary, the standards,
                  criteria, incentives and penalties set forth above in this
                  Section 5 apply only to Flight Services, Flights and Other
                  Services performed by Mesa and the Affiliated Service
                  Providers hereunder operating as America West Express and not
                  to any other flights, flight services or other services
                  performed by Mesa and the Affiliated Service Providers under
                  their own names or under a name or service mark other than
                  America West Express. Thus, in calculating Mesa's DOT
                  Complaint Rate, the MBR, the OTP Rate, the FCF, and all
                  incentives and penalties set forth above, only Flight Services
                  and Other Services performed by Mesa and the Affiliated
                  Service Providers under the service mark America West Express
                  shall be taken into account in calculating such rates and
                  assessing such incentives and penalties.

6.       Irregular Operations. The misconnect and denied boarding benefits
         provided by Mesa to passengers (each, a "Misconnect Benefit Package")
         shall be similar in amount and scope to those offered by AWA in similar
         circumstances and geographic areas (the "AWA Standards"). AWA shall not
         be required to reimburse Mesa for any Misconnect Benefit Package which
         is in excess of the AWA Standards.

7.       Payment of Fees/Revenue Sharing. Commencing on the Effective Date and
         retroactive to the Contract Date, Mesa and AWA hereby agree to pay the
         following sums as consideration for this Agreement and the provision of
         the Flight Services and Other Services provided for herein:

         7.1      Mesa Actual Costs. AWA, in accordance with Section 7.5, shall
                  reimburse to Mesa the following actual costs and expenses
                  actually paid by Mesa in connection with performing the Flight
                  Services and Other Services ("Actual Costs"):

                  7.1.1    Hull insurance premiums and commissions paid by Mesa
                           for each Aircraft for the prior calendar month.
                           Insurance shall be allocated and paid by AWA on a
                           monthly basis equally over the applicable premium
                           period for which the insurance is paid. Insurance
                           shall be prorated by Mesa in any premium period
                           during which an Aircraft is added or deleted from
                           this Agreement. If the monthly insurance payments
                           made by AWA are less than the actual premiums paid by
                           Mesa, then AWA shall pay such excess in the month
                           Mesa pays the insurance premiums. If the monthly
                           payments made by AWA exceed the actual insurance
                           premiums, then AWA shall be entitled to a credit
                           against the next payment of the Actual Costs in an
                           amount equal to such overpayment. Mesa, within 10
                           days after receipt, shall provide AWA with copies of
                           all premium notices received for insurance premiums.

                  7.1.2    Liability insurance premiums and commissions paid by
                           Mesa for the Flight Services on a revenue passenger
                           mile basis. Insurance shall be allocated and paid on
                           a monthly basis equally over the applicable premium

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<PAGE>
                           period for which the insurance is paid. Insurance
                           shall be prorated by Mesa in any premium
                           period during which this Agreement commences,
                           terminates or expires. If the monthly insurance
                           payments made by AWA are less than the actual
                           premiums paid by Mesa, then AWA shall pay such excess
                           in the month Mesa pays the insurance premiums. If the
                           monthly payments made by AWA exceed the actual
                           insurance premiums, then AWA shall be entitled to a
                           credit against the next payment of the Actual Costs
                           in an amount equal to such overpayment. Mesa, within
                           10 days after receipt, shall provide AWA with copies
                           of all premium notices received for insurance
                           premiums.

                  7.1.3    Property taxes paid by Mesa for each Aircraft or the
                           Fleet. Property taxes shall be allocated and paid on
                           a monthly basis equally over the applicable tax
                           period for which the property taxes are assessed and
                           paid. If an Aircraft is added to the Fleet after
                           property taxes are assessed for a tax period and Mesa
                           does not owe taxes for such Aircraft for such tax
                           period, then AWA shall not pay property taxes on the
                           Aircraft for such tax period. AWA shall pay the full
                           year property taxes for the year in which an Aircraft
                           is deleted from the Fleet in the manner provided
                           herein if such Aircraft is not placed in revenue
                           service outside this Agreement (in which case such
                           taxes shall be prorated). If the monthly tax payments
                           made by AWA are less than the actual property taxes
                           assessed and paid by Mesa, then AWA shall pay such
                           excess in the month Mesa pays the property taxes. If
                           the monthly payments made by AWA exceed the actual
                           property taxes assessed, then AWA shall be entitled
                           to a credit against the next payment of Actual Costs
                           in an amount equal to such overpayment. Mesa, within
                           10 days after receipt, shall provide AWA with copies
                           of all tax notices received for property taxes
                           assessed against any portion of the Fleet.

                  7.1.4    De-Icing expenses paid by Mesa for each Aircraft for
                           the prior calendar month.

                  7.1.5    Fuel costs paid by Mesa during the prior calendar
                           month, calculated as gallons of fuel burned per hour.
                           If in any calendar month Mesa's estimated fuel costs
                           exceed the Actual Costs for fuel for such calendar
                           month by more than 3%, then thereafter, for the
                           purpose of calculating Estimated Costs pursuant to
                           Section 7.5 below, Mesa shall use AWA's fuel forecast
                           for the fuel costs.

                  7.1.6    Landing fees calculated per Flight departure incurred
                           during the prior calendar month.

                  7.1.7    Security outside AWA Service Locations calculated per
                           America West Express passenger.

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                  7.1.8    Passenger and ground handling costs incurred at
                           stations maintained by Mesa more particularly
                           described on Exhibit B ("Station Costs"), not to
                           exceed in each calendar year the amount set forth in
                           the budget for each calendar year (the "Station
                           Budget"); provided, however, that if AWA changes a
                           Schedule and such change in the Schedule directly
                           results in any Station Costs exceeding the amount set
                           forth in the Station Budget, then Station Costs shall
                           include such costs in excess of the Station Budget to
                           the extent directly attributable to the Schedule
                           change. The Station Budget for each calendar year,
                           together with such backup information requested by
                           AWA, shall be prepared and provided to AWA by Mesa on
                           or before October 1 of the prior calendar year. The
                           Station Budget shall be based on Mesa's commercially
                           reasonable estimate of the actual costs that are to
                           be incurred during the next calendar year. If AWA
                           does not approve the Station Budget for any station,
                           then AWA may convert such station to an AWA Service
                           Location pursuant to Section 2.3.

                  Mesa shall not enter into any contract with an affiliate to
                  provide the services or materials for which AWA pays the
                  Actual Costs unless such contract is on commercially
                  reasonable terms substantially similar to those available in
                  the market place for arms-length transactions with third
                  parties. In the event any of the services or materials for
                  which AWA pays the Actual Costs are purchased for the Flight
                  Services and Other Services provided by this Agreement and for
                  other services provided by Mesa and its affiliates, then the
                  costs of such services and materials shall be equitably
                  allocated to Actual Costs payable by AWA such that AWA only
                  pays for the portion of such costs attributable to the Flight
                  Services or Other Services provided by this Agreement. Mesa
                  shall use commercially reasonable efforts to operate the
                  Flight Services and Other Services in an efficient and cost
                  effective manner to minimize the Actual Costs payable by AWA
                  while maintaining the quality and quantity of services
                  required by this Agreement. Mesa shall take all commercially
                  reasonable actions to minimize the taxes imposed on the Fleet.
                  If requested by AWA, in writing, AWA on behalf of Mesa may
                  pursue any tax protest or contest for property taxes imposed
                  on the Fleet or any Aircraft in the Fleet in the manner
                  prescribed by applicable law. An "affiliate" of Mesa means any
                  person or entity controlling, controlled by or under common
                  control with Mesa.

         7.2      Mesa Guaranteed Costs. AWA, in accordance with Section 7.5,
                  shall pay to Mesa:

                  (a)      the lesser of: (i) the actual costs and expenses
                           associated with certain of the Flight Services and
                           Other Services (the "Guaranteed Non-Maintenance
                           Costs") set forth in the cost and expense categories
                           set forth in Exhibit C, attached hereto (the
                           "Guaranteed Non-Maintenance Costs Schedule"), or (ii)
                           the amounts set forth in the Guaranteed
                           Non-Maintenance Costs Schedule for each cost and
                           expense category set forth in Exhibit C, attached
                           hereto (the "Guaranteed Non-Maintenance Costs Caps");
                           and

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                  (b)      an amount for maintenance costs and expenses equal to
                           the amounts set forth on Exhibit D (the "Guaranteed
                           Maintenance Costs").

                  The Guaranteed Non-Maintenance Costs Caps and Guaranteed
                  Maintenance Costs shall be adjusted on each anniversary of the
                  Contract Date in accordance with Section 7.4 below. If the
                  Term of this Agreement commences or expires or an Aircraft is
                  added or eliminated from the Fleet on other than the first or
                  last day of a calendar month, then the Guaranteed
                  Non-Maintenance Costs and Guaranteed Maintenance Costs payable
                  by AWA under this Agreement or for such Aircraft shall be
                  prorated based on the actual number of days this Agreement is
                  in effect or the Aircraft is in the Fleet during such month
                  and the actual number of days in such month. Payment of
                  Guaranteed Non-Maintenance Costs and Guaranteed Maintenance
                  Costs for an Aircraft shall commence on the Aircraft Scheduled
                  Delivery Date unless the Aircraft is delivered late in which
                  case payment will begin on the actual delivery date. If an
                  Aircraft, at AWA's written request, is placed into Flight
                  Services prior to the Scheduled Delivery Date, then payment of
                  the Guaranteed Non-Maintenance Costs and Guaranteed
                  Maintenance Costs for such Aircraft shall commence on the date
                  requested by AWA.

         7.3      Contract Negotiation. AWA may assist Mesa in the negotiation
                  of contracts for the provision of materials or services
                  subject to the Actual Costs, Guaranteed Non-Maintenance Costs
                  and Guaranteed Maintenance Costs provided Mesa is not subject
                  to an existing contract for such services or materials.

         7.4      Guaranteed Costs Adjustment.

                  7.4.1    CPI Adjustment. For the purposes of calculating CPI
                           increases in Guaranteed Non-Maintenance Costs Caps,
                           increases in the Guaranteed Maintenance Costs,
                           increases in bonuses or penalties pursuant to Section
                           5 or increases in the base EAS Subsidies pursuant to
                           Section 7.7 the following definitions and formulas
                           shall be applied:

                           (a)      Definition. "CPI" shall mean the Consumer
                                    Price Index, U.S. City Average, Urban Wage
                                    Earners and Clerical Workers, All Items
                                    (base index year 1982-84 = 100) as published
                                    by the United States Department of Labor,
                                    Bureau of Labor Statistics. If the manner in
                                    which the Consumer Price Index as determined
                                    by the Bureau of Labor Statistics shall be
                                    substantially revised, including, without
                                    limitation, a change in the base index year,
                                    an adjustment shall be made by the parties
                                    in such revised index which would produce
                                    results equivalent, as nearly as possible,
                                    to those which would have been obtained if
                                    such Consumer Price Index had not been so
                                    revised. If the Consumer Price Index shall
                                    become unavailable to the public because
                                    publication is not readily available to
                                    enable the parties to make the adjustment
                                    referred to in this Section, then the
                                    parties shall mutually agree to substitute
                                    therefor a comparable

                                       20
<PAGE>
                                    index based upon changes in the cost of
                                    living or purchasing power of the consumer
                                    dollar published by any other governmental
                                    agency or, if no such index shall be
                                    available, then a comparable index published
                                    by a major bank or other financial
                                    institution or by a university or a
                                    recognized financial publication.

                           (b)      Adjustment Formula. On each anniversary of
                                    the Contract Date (each an "Adjustment
                                    Date"), to determine the amount of
                                    adjustment or increase based on CPI, the
                                    applicable Guaranteed Non-Maintenance Costs
                                    Caps, the Guaranteed Maintenance Costs,
                                    bonuses or penalties and EAS Subsidies, as
                                    applicable, in effect for the prior year,
                                    shall be adjusted by multiplying the
                                    Guaranteed Non-Maintenance Costs Caps on the
                                    Guaranteed Non-Maintenance Costs Schedule,
                                    the Guaranteed Maintenance Costs, bonuses or
                                    penalties and EAS Subsidies, as applicable,
                                    in effect for the prior year, by a fraction,
                                    the numerator which shall be the CPI for the
                                    third full calendar month immediately
                                    preceding the Adjustment Date, and the
                                    denominator of which shall be the CPI for
                                    the same calendar month in the immediately
                                    preceding calendar year (the "Adjustment").

                  7.4.2    Governmental Requirements. If any governmental rule,
                           order, regulation or requirement affecting: (i) all
                           aircraft similarly equipped as the Aircraft in any
                           Subfleet (not just those owned by Mesa); or (ii) all
                           airlines flying similar equipment as the Aircraft
                           (not just Mesa), results in an increase in any of the
                           Guaranteed Non-Maintenance Costs or Guaranteed
                           Maintenance Costs such that the actual Guaranteed
                           Non-Maintenance Costs or Guaranteed Maintenance Costs
                           will exceed the then applicable Guaranteed
                           Non-Maintenance Costs Cap or amounts set forth on
                           Exhibit D for the Guaranteed Maintenance Costs, then
                           the applicable Guaranteed Non-Maintenance Costs Cap
                           or Guaranteed Maintenance Costs shall be increased by
                           such amount, as of the effective date of such
                           governmental regulation, rule, order or requirement.

                  7.4.3    Amendment. Mesa and AWA shall execute an amendment to
                           Exhibit C and Exhibit D within 10 days after each
                           adjustment occurs pursuant to this Section 7.4. The
                           failure to execute such an amendment shall not affect
                           the effectiveness of any adjustment or the bases for
                           any subsequent adjustment. Each adjusted Guaranteed
                           Non-Maintenance Costs Cap and Guaranteed Maintenance
                           Costs shall be effective until the next adjustment of
                           such Guaranteed Non-Maintenance Costs Cap and
                           Guaranteed Maintenance Costs pursuant to this Section
                           7.4.

                  7.4.4    Guaranteed Maintenance Costs Reconciliation. Within
                           180 days after the expiration or termination of this
                           Agreement, AWA, by written notice to Mesa, may review
                           and audit Mesa's records and files relevant to the
                           actual

                                       21
<PAGE>
                           maintenance costs paid by Mesa in the categories set
                           forth on Exhibit D. If AWA's review of the records
                           and files reveals that the actual maintenance costs
                           paid by Mesa during the term of this Agreement was
                           less than the sum of all the Guaranteed Maintenance
                           Costs paid by AWA during the term of this Agreement
                           (the "Excess Maintenance Payments"), then Mesa,
                           within 30 days after receipt of written demand, shall
                           pay to AWA an amount equal to the Excess Maintenance
                           Payments. The terms and conditions of this Section
                           shall survive the termination or expiration of this
                           Agreement. Mesa shall maintain and retain all
                           maintenance cost and expense records and files for
                           the entire Term of this Agreement and for at least
                           one year after the expiration or termination of this
                           Agreement.

         7.5      Payment of Actual and Guaranteed Non-Maintenance Costs.

                  7.5.1    Estimates. AWA shall pay to Mesa the estimated Actual
                           Costs, Guaranteed Non-Maintenance Costs (using the
                           Guaranteed Maintenance Costs Caps) and Guaranteed
                           Maintenance Costs for each calendar month based on a
                           98% FCF (the "Estimated Costs") as follows: By the
                           20th day of each calendar month, Mesa shall provide
                           AWA with a good faith statement of the Estimated
                           Costs for the following calendar month. On or before
                           the 7th, 14th, 21st and 28th day of each calendar
                           month (or next business day thereafter if any such
                           dates is other than a business day), AWA shall pay
                           25% of the Estimated Costs for such calendar month.

                  7.5.2    Monthly Reconciliation. On or before the 120th day
                           after the last day of each calendar month, Mesa shall
                           submit to AWA a statement of the actual Guaranteed
                           Non-Maintenance Costs (using for each monthly
                           statement the applicable Guaranteed Non-Maintenance
                           Costs Caps), the Guaranteed Maintenance Costs and
                           Actual Costs incurred by Mesa (the "Incurred Costs")
                           and payable by AWA for such calendar month (the
                           "Incurred Costs Statement"). If the Estimated Costs
                           paid by AWA in any calendar month exceed the Incurred
                           Costs in any calendar month, then Mesa, together with
                           the Incurred Costs Statement for such calendar month,
                           shall reimburse AWA the amount by which the Estimated
                           Costs paid by AWA exceeded the Incurred Costs. If the
                           Incurred Costs in any calendar month exceed the
                           Estimated Costs paid by AWA in any calendar month,
                           then AWA, subject to the rights and procedures set
                           forth in Section 7.8, within 45 days after receipt of
                           the Incurred Costs Statement, shall reimburse and pay
                           to Mesa the amount by which the Incurred Costs exceed
                           the Estimated Costs paid by AWA for the subject
                           calendar month.

                  7.5.3    Annual Reconciliation. At any time within 120 days
                           after the expiration of each Contract Year (as
                           defined below), AWA, upon 2 Business Days prior
                           written notice to Mesa, may review and audit, or
                           cause its independent accountants to review and
                           audit, all records and files (including computer
                           databases) maintained by Mesa and relevant to the

                                       22
<PAGE>
                           calculation of the actual Guaranteed Non-Maintenance
                           Costs incurred by Mesa during the prior Contract Year
                           (the "GNMC Audit"). If the GNMC Audit reveals that
                           the actual Guaranteed Non-Maintenance Costs actually
                           paid by Mesa during the prior Contract Year was less
                           than the sum of all the Guaranteed Non-Maintenance
                           Costs Caps paid by AWA during such Contract Year (the
                           "Excess Non-Maintenance Payments"), then Mesa, within
                           30 days after receipt of written demand from AWA,
                           shall pay AWA an amount equal to the Excess
                           Non-Maintenance Payment. If Mesa does not pay the
                           Excess Non-Maintenance Payments to AWA timely, then
                           AWA shall have the setoff rights contained in Section
                           7.9 below. For the purposes of this section,
                           "Contract Year" means each one year period commencing
                           on April 1 of each calendar year and expiring on
                           March 31 of the next calendar year. For the purposes
                           of the first "Contract Year", the year shall commence
                           on the Contract Date and expire on March 31, 2002.
                           For purposes of the last Contract Year, the Contract
                           Year shall commence on April 1 and expire on the
                           Expiration Date. For the purpose of determining the
                           actual Guaranteed Non-Maintenance Costs incurred in
                           providing the Flight Services and Other Services,
                           Guaranteed Non-Maintenance Costs subject to
                           allocation to the Flight Services and Other Services
                           shall be allocated to this Agreement by Mesa using
                           the same methodology used by Mesa in establishing the
                           Guaranteed Non-Maintenance Costs Caps.

                  7.5.4    Finality. The Incurred Costs Statement issued by Mesa
                           shall include all and be the final statement for the
                           Guaranteed Non-Maintenance Costs and Actual Costs
                           payable by AWA for the period covered by each
                           Incurred Costs Statement. AWA shall not be obligated
                           to pay any Guaranteed Non-Maintenance Costs or Actual
                           Costs for a period that are not included in the
                           applicable Incurred Costs Statement when initially
                           issued by Mesa to AWA.

         7.6      Revenue Sharing. Commencing in the first calendar month after
                  the month in which the Effective Date occurs, AWA shall pay to
                  Mesa, by the 20th day of each calendar month, an amount equal
                  to the product obtained by multiplying the Segment Revenue
                  Percentage by the Segment Revenue generated during the prior
                  calendar month. For purposes of this Agreement, the following
                  terms have the following definitions:

                  "Segment Revenue" means the portion of the total fares paid by
                  passengers allocated to the Flights flown by Mesa or the
                  Affiliated Service Providers pursuant to this Agreement, less
                  all taxes, assessments, airport charges and other governmental
                  and quasi-governmental charges included in the fares. For
                  calculating Segment Revenue, the portion of the revenue
                  attributed to the Mesa Flight segment shall be determined in
                  accordance with Straight Prorate Rule 11B of the Passenger
                  Tariff Manual produced by the Airline Tariff Publishing
                  Company.

                                       23
<PAGE>
                  "Segment Revenue Percentage" means the following percentages
                  based on the type of Aircraft used to fly the Flight which
                  creates the Segment Revenue allocable to Mesa Flight segment:

                     Aircraft                       Segment Revenue Percentage
                     --------                       --------------------------

                     Beech 1900                               [***]
                     Dash 8                                   [***]
                     CRJ Model 200                            [***]
                     CRJ Model 700                            [***]
                     CRJ Model 900                            [***]

         7.7      Subsidies. Mesa, within 30 days after receipt, shall rebate to
                  AWA all EAS subsidies paid to Mesa by any governmental
                  entities for Flights (the "EAS Subsidies"). Notwithstanding
                  the foregoing to the contrary, if Mesa causes any EAS
                  Subsidies to be increased to an amount in excess of the EAS
                  Subsidies in effect on the Contract Date, increased annually
                  on the anniversary of each Contract Date by an amount equal to
                  an increase in the CPI as calculated pursuant to Section
                  7.4.1, then AWA shall pay to Mesa 50% of any such increase
                  within 30 days after receipt of written demand. AWA shall not
                  be responsible to the DOT for continuing service in any EAS
                  market. Notwithstanding the foregoing, if AWA directs Mesa to
                  bid to provide flight service to any EAS market, then AWA
                  shall be responsible for all liabilities incurred in
                  connection with discontinuing such service prior to the
                  expiration of any DOT hold-in order. AWA shall be entitled to
                  retain all payments, subsidies, revenue guarantees or other
                  similar payments generated from the Flight Services flown
                  under this Agreement and negotiated by AWA.

         7.8      Records, Statements and Audit Rights. Mesa shall maintain
                  separate accounting books and records for the Flight Services
                  and Other Services performed by Mesa under this Agreement. All
                  Incurred Costs Statements and other requests for payment made
                  by Mesa pursuant to this Section 7 shall be accompanied by
                  such supporting information, documentation and calculations
                  described on Exhibit E, attached hereto, and as AWA may
                  reasonably request from time to time (the "Backup
                  Information"). If AWA disputes the amount set forth in any
                  statement or the Backup Information is inadequate, incomplete
                  or inaccurate, then AWA shall pay the undisputed portion of
                  such statement and the portions for which the Backup
                  Information is adequate, complete and accurate, timely, and
                  together with such payment provide Mesa with a written
                  statement of any disputed amount and the amounts for which the
                  Backup Information is inadequate, incomplete or inaccurate.
                  AWA and Mesa shall meet and confer to resolve any disputed
                  amount and inadequate, incomplete or inaccurate Backup
                  Information within 30 days after AWA provides notice of the
                  dispute. Disputed amounts and amounts for which

----------
*** Confidential Treatment Requested

                                       24
<PAGE>
                  the Backup Information is inadequate, incomplete or inaccurate
                  shall not be payable until the dispute is resolved and then
                  shall be payable within 10 days after the dispute is resolved.

                  AWA, upon 2 business days' prior written notice, may review
                  and audit, or cause its independent accountants to review and
                  audit, all records and files (including computer data bases)
                  maintained by Mesa and relevant to the calculation of the
                  payments required to be made by AWA pursuant to this
                  Agreement. If AWA's review of the records and files reveals
                  that Mesa has overcharged AWA or underpaid AWA, then Mesa
                  shall pay to AWA, upon demand, the overpayments and/or
                  underpayments and the costs and expenses of AWA incurred in
                  completing such review and audit and, if such overcharge or
                  underpayment is willful or intentional or exceeds more than
                  10% of the sums actually payable or receivable by AWA, then
                  Mesa, within 10 days after receipt of written demand, shall
                  pay to AWA an amount equal to 3 times the overcharge or
                  underpayment. Mesa shall maintain all records, files,
                  information, data and documentation (including computer data
                  bases) used in calculating the sums payable or receivable by
                  AWA under this Agreement in good condition and order at Mesa's
                  corporate headquarters. AWA shall not be required to pay any
                  sums, and shall be entitled to receive a refund of any sum
                  paid, for which Mesa is unable to provide supporting
                  information, documentation or data.

         7.9      Setoff. All undisputed sums payable by Mesa to AWA pursuant to
                  this Agreement may, at AWA's election, be setoff against
                  amounts next due by AWA to Mesa pursuant to this Agreement.

8.       Term and Termination.

         8.1      Term. The term of this Agreement (the "Term") commences on the
                  Effective Date retroactive to the Contract Date (the
                  "Commencement Date") and shall expire ("Expiration Date") on
                  the 8th anniversary of the date that the last CRJ Aircraft is
                  added to the Fleet pursuant to Section 2.2.2 of the Agreement
                  (the "Last Delivery Date), unless earlier terminated as
                  provided in this Agreement. AWA, by written notice to Mesa at
                  least 180 days prior to the Expiration Date, may extend the
                  Expiration Date to the 10th anniversary of the Last Delivery
                  Date.

         8.2      Early Termination. If: (i) Mesa's OTP Rate for the Phoenix Hub
                  falls below AWA's OTP Rate for the Phoenix Hub for five of any
                  six calendar months or (ii) Mesa's FCF for the Phoenix Hub
                  falls below 96% for five of any of six consecutive calendar
                  months (each, a "Cancellation Event"), AWA, at its election,
                  may by written notice (a "Performance Notice") inform Mesa
                  that if the Cancellation Event is not cured within one hundred
                  twenty (120) days from receipt of such Performance Notice (the
                  "Cure Period"), AWA, at its option may give a Termination
                  Notice (as defined below). If the Cancellation Event relates
                  to Mesa's OTP Rate, the cure shall be effected by Mesa
                  bringing its OTP Rate for such Hub to a rate that is equal to
                  or above AWA's OTP Rate at the Phoenix Hub

                                       25
<PAGE>
                  during the Cure Period. If the Cancellation Event relates to
                  the Mesa's FCF for the Phoenix Hub, the cure shall be effected
                  by Mesa bringing its FCF at the Phoenix Hub to 97% or higher
                  during the Cure Period. If, after the Cure Period has expired
                  and Mesa has not cured the Cancellation Event as set forth
                  above, then AWA at any time during the thirty (30) day period
                  following the lapse of the Cure Period without cure may, upon
                  90 days' prior written notice to Mesa ("Termination Notice"),
                  terminate this Agreement. Such termination right shall be in
                  addition to any penalty payments set forth in Section 5 and
                  termination rights for an Event of Default pursuant to Section
                  13.

         8.3      Change of Control. This Agreement may be terminated by either
                  AWA or Mesa providing the other party with at least 90 days'
                  prior written notice (the "Change Termination Notice") in the
                  event of a change of control of the other party or a sale of
                  substantially all of the other party's assets. "Change of
                  Control" means any "person" or "group" (each as used in
                  Sections 13(d)(3) and 14(d)(2) of the Exchange Act) either
                  becomes the beneficial owner (as defined in Rule 13d-3 of the
                  Exchange Act), directly or indirectly, of voting securities of
                  either party (or securities converted into or exchangeable for
                  such voting securities) representing 50% or more of the
                  combined voting power of all voting securities of the party
                  (on a fully diluted basis) or otherwise has the ability,
                  directly or indirectly, to elect a majority of the board of
                  directors of the party or any person or two or more persons
                  acting in concert shall have acquired by contract or
                  otherwise, or shall have entered into a contract or
                  arrangement that, upon consummation thereof, will result in
                  its or their acquisition of the power to exercise, directly or
                  indirectly, a controlling influence on the management or
                  policies of the party.

         8.4      Effect of Termination. If AWA elects to terminate this
                  Agreement pursuant to this Section 8, AWA, in the Termination
                  Notice, shall establish as the termination date any date
                  between 90 and 180 days after delivery of the Termination
                  Notice or Change Termination Notice, as applicable. Mesa shall
                  continue to provide the Flight Services and Other Services
                  required by this Agreement until the termination date set
                  forth in the Termination Notice or Change Termination Notice,
                  as applicable. AWA and Mesa shall make all payments as
                  required by this Agreement for the period through and
                  including the termination date set forth in the Termination
                  Notice or Change Termination Notice, as applicable.

9.       Service Mark License For Services Provided By Mesa.

         9.1      Grant of License. For the payment of $1.00, AWA hereby grants
                  to Mesa a non-exclusive, non-transferable license to use such
                  AWA Service Marks as AWA may designate, in writing, from time
                  to time in connection with the Flight Services and Other
                  Services to be rendered by Mesa; provided, however, that at
                  any time prior to expiration or termination of this Agreement
                  AWA may alter, amend or revoke the license hereby granted and
                  require Mesa's use of any new or different AWA Service Mark in
                  conjunction with the Flight Services and Other Services
                  provided hereunder as AWA may determine in its sole discretion
                  and judgment.

                                       26
<PAGE>
         9.2      Operation under AWA Service Marks/Aircraft Decor. Mesa, at its
                  expense (subject to reimbursement in the next sentence), shall
                  cause the Fleet and any replacement or additional Aircraft
                  utilized by Mesa, or any of the Affiliated Service Providers,
                  to provide the Flight Services, to be painted, marked and
                  decorated to bear AWA Service Marks, consisting of AWA
                  aircraft exterior and interior color decor and pattern
                  provided by AWA and the name "America West Express." AWA shall
                  reimburse Mesa for 50% of the costs of painting, decorating or
                  marking any new CRJ added to the Fleet pursuant to Section
                  2.2. Upon written notice from AWA, which shall include the
                  specifications for any such changes in AWA Service Marks and
                  exterior or interior aircraft decor and patterns, Mesa shall
                  effect changes in the aircraft decor and patterns within 12
                  months from the date of such notice. AWA shall reimburse Mesa
                  for the cost of repainting the Fleet in the event that AWA
                  changes its logo and color decor and pattern from the design
                  existing as of the Effective Date. Mesa shall use and display
                  suitable signs on the interior and exterior of each Aircraft
                  identifying Mesa as the operator of the Services, such signs
                  shall be subject to the prior written consent of AWA as to
                  nature, size and location provided that the signs shall comply
                  with all Regulations. AWA shall reimburse Mesa for the actual
                  costs and expenses of repainting any Aircraft eliminated from
                  the Fleet pursuant to Section 2.2. All announcements, displays
                  or literature used or viewed by Mesa customers on Flights
                  shall highlight "America West Express." No such announcements,
                  displays or literature shall reference "Mesa Airlines," other
                  than to identify Mesa or the operator of the Services, on
                  briefing cards or as required by the Regulations.

         9.3      Terms and Conditions Governing Service Mark License.

                  9.3.1    Mesa hereby acknowledges AWA's ownership of the AWA
                           Service Marks, further acknowledges the validity of
                           the AWA Service Marks, and agrees that it shall not
                           do anything in any way to infringe or abridge upon
                           AWA's rights in the AWA Service Marks or directly or
                           indirectly to challenge the validity of the AWA
                           Service Marks.

                  9.3.2    To assure that the production, appearance and quality
                           of the AWA Service Marks is consistent with AWA's
                           reputation for high quality and the goodwill
                           associated with the AWA Service Marks, Mesa agrees to
                           maintain a level of quality consistent with AWA's
                           quality in the Flight Services and Other Services it
                           provides pursuant to this Agreement and to follow
                           AWA's written instructions regarding use of AWA's
                           Service Marks, as they may be amended from time to
                           time.

                  9.3.3    Mesa agrees that, in providing the Flight Services
                           and Other Services, it shall not advertise or make
                           use of the AWA Service Marks without the prior
                           written consent of AWA. AWA shall have absolute
                           discretion to withhold its consent concerning any and
                           all such advertising and use of the AWA Service Marks
                           in any advertising by Mesa. In the event AWA approves
                           the use of such AWA Service Marks in any advertising,
                           such

                                       27
<PAGE>
                           advertising shall identify AWA as the owner of such
                           Service Marks and conform with any additional
                           requirements specified by AWA.

                  9.3.4    To the extent that Mesa is licensed to use the AWA
                           Service Marks, the AWA Service Marks shall be used
                           only in connection with the Flight Services and Other
                           Services specifically covered by this Agreement and
                           not in connection with any other business or activity
                           of Mesa or any other entity.

                  9.3.5    Nothing in this Agreement shall be construed to give
                           Mesa the exclusive right to use the AWA Service Marks
                           or abridge AWA's right to use and license the AWA
                           Service Marks, and AWA hereby reserves the right to
                           continue to use the AWA Service Marks and to license
                           such other uses of the AWA Service Marks as AWA may
                           desire.

                  9.3.6    No term or provision of this Agreement shall be
                           construed to preclude the use of the AWA Service
                           Marks, including "America West Express," or the
                           aircraft exterior color decor and patterns by other
                           individuals or entities not covered by this
                           Agreement.

                  9.3.7    Upon the termination or expiration of this Agreement,
                           the license and use of the AWA Service Marks by Mesa
                           shall cease and such use shall not thereafter occur.

10.      Liability and Indemnification.

         10.1     Relationship Between the Parties. Nothing contained in this
                  Agreement will be deemed to create any agency or partnership
                  or similar relationship between AWA and Mesa. Nothing
                  contained in this Agreement will be deemed to authorize either
                  AWA or Mesa to bind or obligate the other. Mesa and the
                  Affiliated Service Providers and their employees engaged in
                  performing the Flight Services and Other Services shall be
                  employees of Mesa or the Affiliated Service Providers for all
                  purposes, and under no circumstances shall be deemed to be
                  employees, agents or independent contractors of AWA. AWA and
                  its employees engaged in performing the obligations of AWA
                  under this Agreement shall be employees, agents and
                  independent contractors of AWA for all purposes, and under no
                  circumstances shall be deemed to be employees, agents or
                  independent contractors of Mesa. Pursuant to this Agreement,
                  Mesa and the Affiliated Service Providers shall act, for all
                  purposes, as independent contractors and not as agents for
                  AWA. AWA shall have no supervisory power or control over any
                  employees engaged by Mesa and the Affiliated Service Providers
                  in connection with their performance hereunder, and all
                  complaints or requested changes in procedures shall be
                  transmitted by AWA to a designated officer of Mesa. Nothing
                  contained in this Agreement shall be intended to limit or
                  condition Mesa's and the Affiliated Service Providers' control
                  over their operations or the conduct of their business as air
                  carriers, and Mesa and the Affiliated Service Providers and
                  their principals assume all risks of financial losses which
                  may result form the operation of the

                                       28
<PAGE>
                  Flight Services and Other Services to be provided by Mesa and
                  the Affiliated Service Providers hereunder.

         10.2     Indemnification by Mesa. Mesa agrees to indemnify, defend and
                  hold harmless AWA, its directors, officers, employees, agents,
                  parent corporation, subsidiaries and affiliates for, from and
                  against any and all loss, liability, claim, damage, penalty,
                  fine, charge, cause of action, demand, cost and expense
                  (including attorneys' and consultants' fees and costs)
                  whatsoever (collectively, "Damages"), as incurred, arising out
                  of, resulting from or incurred in connection with: (i) the
                  provision of the Flight Services and Other Services by Mesa
                  and the Affiliated Service Providers or any of their
                  employees, agents, licensees, contractors, suppliers, officers
                  or directors; (ii) Mesa's or the Affiliated Service Providers'
                  breach of this Agreement; (iii) damage or destruction of
                  property of any person, or injury or death of any person,
                  caused by, arising out of, or in connection with any act or
                  omission of Mesa or the Affiliated Service Providers, their
                  employees, agents, licensees, contractors, suppliers, officers
                  or directors; (iv) any taxes, impositions, assessments or
                  other governmental charges incurred by Mesa in providing the
                  Flight Services or Other Services or imposed on any revenue
                  generated by this Agreement (except as set forth in Section
                  7.1.3); (v) passenger complaints or claims by passengers using
                  the Flight Services; (vi) the failure or discontinuance of
                  service to any EAS market (except as specified in Section
                  7.7); and (vii) failure to comply with any Regulations. Mesa
                  agrees to indemnify, defend and hold harmless AWA, its
                  officers, directors, employees, agents, parent corporation,
                  subsidiaries and affiliates for, from and against any and all
                  Damages as incurred, arising out of, resulting from or
                  incurred in connection with any claims for consideration for
                  performance by the Affiliated Service Providers. Mesa shall
                  reimburse AWA or other Indemnified Party (as defined below)
                  for any legal and any other expenses reasonably incurred in
                  investigating, preparing or defending against any claim or
                  action arising out of or relating to any of the foregoing.

         10.3     Indemnification by AWA. AWA agrees to indemnify, defend and
                  hold harmless Mesa, its directors, officers, employees,
                  agents, parent corporation, subsidiaries and affiliates for,
                  from and against any and all Damages, as incurred, arising out
                  of, resulting from or incurred in connection with: (i) AWA's
                  breach of this Agreement; (ii) damage or destruction of
                  property of any person, or injury or death of any person,
                  caused by, arising out of, or in connection with any act or
                  omission of AWA, its employees, agents, licensees,
                  contractors, suppliers, officers or directors in performing
                  AWA's obligations under this Agreement to the extent not
                  covered by Mesa's or the Affiliated Service Providers'
                  insurance required to be maintained by this Agreement; and
                  (iii) any taxes, impositions, assessments or other
                  governmental charges incurred by AWA for revenue received by
                  AWA under this Agreement. AWA shall reimburse Mesa or other
                  Indemnified Party (as defined below) for any legal and any
                  other expenses reasonably incurred in investigating, preparing
                  or defending against any claim or action arising out of or
                  relating to any of the foregoing.

                                       29
<PAGE>
         10.4     Conduct of Indemnification Proceedings. The person or entity
                  claiming indemnification hereunder is referred to as the
                  "Indemnified Party" and the party against whom such claims are
                  asserted hereunder is referred to as the "Indemnifying Party".
                  Each Indemnified Party shall give reasonably prompt notice to
                  the Indemnifying Party of any action or proceeding or
                  assertion or threat of claim commenced against it in respect
                  of which indemnity may be sought hereunder, but failure to so
                  notify the Indemnifying Party (i) shall not relieve the
                  Indemnifying Party from any liability which it may have under
                  the indemnity agreement provided in this Agreement, unless and
                  to the extent it did not otherwise learn of such action,
                  threat or claim and the lack of notice by the Indemnified
                  Party results in the forfeiture by the Indemnifying Party of
                  substantial rights and defenses and (ii) shall not, in any
                  event, relieve the Indemnifying Party from any obligations to
                  the Indemnified Party other than the indemnification
                  obligation provided under Sections 10.2 and 10.3 above. If the
                  Indemnifying Party elects within a reasonable time after
                  receipt of notice, the Indemnifying Party may assume the
                  defense of the action or proceeding at Indemnifying Party's
                  own expense with counsel chosen by the Indemnifying Party and
                  approved by the Indemnified Party; provided, however, that, if
                  the Indemnified Party reasonably determines upon advice of
                  counsel that a conflict of interest exists where it is
                  advisable for the Indemnified Party to be represented by
                  separate counsel or that, upon advice of counsel, there may be
                  legal defenses available to it which are different from or in
                  addition to those available to the Indemnifying Party, then
                  the Indemnified Party shall be entitled to separate counsel at
                  the Indemnifying Party's expense, which counsel shall be
                  chosen by the Indemnified Party in its sole discretion. If the
                  Indemnifying Party does not assume the defense, after having
                  received the notice referred to in the second sentence of this
                  Section, the Indemnifying Party will pay the reasonable fees
                  and expenses of counsel for the Indemnified Party. Unless and
                  until a final judgment that an Indemnified Party is not
                  entitled to the costs of defense under the foregoing
                  provision, the Indemnifying Party shall reimburse, promptly as
                  they are incurred, the Indemnified Party's costs of defense.
                  The Indemnifying Party shall not settle or compromise any
                  claim for which an Indemnified Party is entitled to indemnity
                  without the prior written consent of the Indemnified Party.

         10.5     Insurance.

                  10.5.1   Mesa, at all times during the Term of this Agreement,
                           shall have and maintain and shall cause the
                           Affiliated Service Providers to have and maintain in
                           full force and effect, policies of insurance
                           satisfactory to AWA, of the types of coverage, and in
                           the minimum amounts stated below with insurance
                           companies satisfactory to AWA and under terms and
                           conditions satisfactory to AWA, including insurance
                           coverage on all Aircraft used to provide Flight
                           Services. Unless otherwise specified, the minimum
                           amounts of insurance coverage required hereunder
                           shall be per occurrence, combined single limit for
                           all insurance coverage required hereunder.

                                       30
<PAGE>
<TABLE>
<S>                                                                      <C>
                           1.  Aircraft Liability and Ground             $250,000,000 per Occurrence Combined Single
                               Liability Insurance (including            Limit of Liability for CRJs and Dash 8s and
                               Commercial General Liability)             $150,000,000 per Occurrence Combined Single
                                                                         Limit of Liability for Beech 1900s

                               a. Bodily Injury and Personal Injury -    Included in Combined Single Limit
                                  Passengers

                               b. Bodily Injury and Personal Injury -    Included in Combined Single Limit
                                  Third Parties

                               c. Property Damage                        Included in Combined Single Limit

                                                                         Per Accident
                                                                         ------------

                           2.  Worker's Compensation Insurance           Statutory
                               (Company Employees)

                           3.  Employers' Liability (Company Employees)  $500,000

                           4.  All Risk Hull Insurance on Aircraft       Replacement Cost or Such Lesser Amount as
                               Performing Services Hereunder             may be Consented to by AWA, in writing

                           5.  Baggage Liability                         $1,250 (per Passenger)

                           6.  Cargo Liability                           $100,000 any One Aircraft

                                                                         $100,000 any One Disaster with Terms,
                                                                         Limitations and Conditions Acceptable to AWA
</TABLE>

                  10.5.2   The parties hereby agree that from time to time
                           during the Term of this Agreement, AWA may require
                           Mesa and the Affiliated Service Providers to have and
                           maintain amounts of insurance coverage different from
                           those amounts set forth in Section 10.5.1, should
                           AWA, in its reasonable judgment, deem the
                           circumstances and conditions of the Flight Services
                           and Other Services to require increases in any or all
                           of the foregoing minimum insurance coverages.

                                       31
<PAGE>
                  10.5.3   Mesa shall cause all policies of insurance which it
                           and the Affiliated Service Providers maintain
                           pursuant to this Agreement, to be duly and properly
                           endorsed by Mesa's and the Affiliated Service
                           Providers' insurance underwriters as follows:

                           10.5.3.1 To provide that any waiver of rights of
                                    subrogation against other parties by Mesa or
                                    the Affiliated Service Providers shall not
                                    affect the coverage provided hereunder with
                                    respect to AWA.

                           10.5.3.2 To provide that Mesa's and the Affiliated
                                    Service Providers' underwriters shall waive
                                    any and all subrogation rights against AWA,
                                    its directors, officers, agents and
                                    employees without regard to any breach of
                                    warranty by Mesa or the Affiliated Service
                                    Providers or to provide other evidence of
                                    such waiver of recourse against AWA, its
                                    directors, officers, agents, or employees as
                                    shall be acceptable to AWA.

                           10.5.3.3 Be duly and properly endorsed to provide
                                    that each such policy or policies or any
                                    part or parts thereof shall not be canceled,
                                    terminated, or materially altered, changed
                                    or amended by Mesa's and the Affiliated
                                    Service Providers' insurance underwriters,
                                    until after 30 days' written notice to AWA
                                    which 30 days' written notice shall commence
                                    to run from the date such notice is actually
                                    received by AWA.

                  10.5.4   With respect to policies of insurance described as
                           Aircraft Liability and Ground Liability Insurance,
                           Mesa will provide that Mesa's and the Affiliated
                           Service Providers' policies:

                           10.5.4.1 Endorse AWA, its directors, officers,
                                    agents, parents, subsidiaries and employees
                                    as Additional Insureds thereunder.

                           10.5.4.2 Constitute primary insurance for such claims
                                    and acknowledge that any other insurance
                                    policy or policies of AWA will be secondary
                                    or excess insurance;

                           10.5.4.3 Cover AWA's costs of defending against such
                                    insured claims including, without
                                    limitation, to the extent permitted by the
                                    policies, costs incurred in the retention of
                                    separate legal counsel of its choice; and

                           10.5.4.4 Provide a cross-liability clause acceptable
                                    to AWA, and a specific contractual liability
                                    insurance provision covering liability
                                    assumed by Mesa and the Affiliated Service
                                    Providers under this Agreement.

                                       32
<PAGE>
                  10.5.5   With respect to policies of insurance for coverage
                           described as Aircraft Liability and Ground Liability
                           Insurance and All Risk Hull Insurance, Mesa shall
                           cause its insurance underwriters to provide a breach
                           of warranty clause.

                  10.5.6   All aircraft hull insurance provided pursuant to this
                           Agreement shall be provided on agreed value basis
                           and, except with the consent of AWA, shall not be
                           subject to more than the standard market deductibles.
                           In the event of loss, settled on the basis of a total
                           loss, all losses shall be payable in full.

                  10.5.7   Upon request by AWA, Mesa shall furnish to AWA
                           evidence satisfactory to AWA of the aforesaid
                           insurance coverage and endorsements, including
                           certificates certifying that the aforesaid insurance
                           policy or policies with the aforesaid policy limits
                           are duly and properly endorsed as aforesaid and are
                           in full force and effect.

                  10.5.8   With respect to policies of insurance obtained
                           directly from foreign underwriters, Mesa shall cause
                           such insurance underwriters to provide that AWA may
                           maintain against Mesa's and the Affiliated Service
                           Providers' underwriters a direct action in the United
                           States upon such insurance policies and to this end
                           to provide a standard service of suit clause
                           designating an agent for service of process in the
                           United States of America.

                  10.5.9   In the event Mesa or the Affiliated Service Providers
                           fails to maintain in full force and effect any of the
                           insurance and endorsements described in Section 10.5,
                           AWA shall have the right (but not the obligation) to
                           procure and maintain such insurance or any part
                           thereof. The cost of such insurance shall be payable
                           by Mesa to AWA upon demand by AWA. The procurement of
                           such insurance or any part thereof by AWA shall not
                           discharge or excuse Mesa's or the Affiliated Service
                           Providers' obligation to comply with the provisions
                           of Section 10.5. Mesa agrees not to cancel, terminate
                           or materially alter, change or amend any of the
                           policies referred to in Section 10.5 without 30 days'
                           prior written notice to AWA of its intent to cancel,
                           terminate or materially alter, change or amend said
                           policies or insurance which 30 day notice period
                           shall commence to run from the date notice is
                           actually received by AWA.

                  10.5.10  AWA shall maintain cargo liability coverage, in types
                           and amounts required by law, for all air freight
                           transported by Mesa or the Affiliated Service
                           Providers under an AWA airbill on any Flights.

11.      Confidentiality.

         11.1     AWA and Mesa agree that the terms of this Agreement shall be
                  treated as confidential and shall not be disclosed to third
                  parties without the express written

                                       33
<PAGE>
                  consent of AWA and Mesa, or as required by law. In the event
                  of disclosure required by law, only those portions of this
                  Agreement required to be disclosed shall be disclosed. The
                  disclosing party shall make good faith efforts to minimize the
                  portions to be disclosed and shall seek confidential treatment
                  by the receiving party or agency for any portions disclosed.
                  In the event of one party being served a subpoena or discovery
                  request, prior to responding to the subpoena or request, the
                  party served shall notify the other party to provide the other
                  party an opportunity to contest the disclosure of any terms of
                  this Agreement.

         11.2     "Confidential Information" means any information in any form,
                  including, without limitation, the terms of this Agreement,
                  written documents, oral communications, recordings, videos,
                  software, data bases, business plans, and electronic and
                  magnetic media, provided to or observed by AWA or Mesa
                  pursuant to this Agreement, including information owned or
                  provided by either party to the other party, except for
                  information generally available to the public. AWA and Mesa
                  agree that they shall maintain all Confidential Information in
                  confidence and use such Confidential Information solely for
                  purposes of performance under this Agreement. Such
                  Confidential Information shall be distributed within each
                  party's company only to personnel and to its legal counsel,
                  auditors and other consultants on a need-to-know basis for
                  purposes related to this Agreement or in compliance with a
                  court order or statutory or regulatory requirements. Except
                  for legal counsel and auditors, and as permitted by Section
                  11.1, in no event shall either party disclose Confidential
                  Information to any third parties except subcontractors and
                  independent consultants and then only if approved by both
                  parties in writing in advance of such disclosure. Confidential
                  Information does not include information that is available to
                  the general public other than as a result of disclosure by the
                  disclosing party or information that was known or
                  independently developed by the receiving party prior to
                  disclosure, as evidenced by records kept in the ordinary
                  course of business.

         11.3     Mesa acknowledges and agrees that any Confidential Information
                  shared or given to AWA pursuant to this Agreement may be
                  shared by AWA on a confidential basis with America West
                  Holdings Corporation, The Leisure Company and other
                  subsidiaries and affiliates of AWA. AWA acknowledges and
                  agrees that any Confidential Information shared or given to
                  Mesa pursuant to this Agreement may be shared by Mesa on a
                  confidential basis with Mesa Air Group, Inc. and other
                  subsidiaries or affiliates of Mesa.

12.      Taxes. Mesa shall pay, prior to delinquency, all airport, property,
         sales, use, excise or any other taxes, impositions, assessments or
         other governmental charges incurred in connection with the provision of
         the Flight Services and Other Services under this Agreement and all
         taxes imposed or any sums paid by AWA to Mesa under this Agreement. AWA
         shall pay, prior to delinquency, all taxes imposed on any sums paid by
         Mesa to AWA under this Agreement.

                                       34
<PAGE>
13.      Defaults and Remedies.

         13.1     Default by Mesa. The occurrence of any one or more of the
                  following events shall constitute a material default and
                  breach of this Agreement by Mesa (an "Event of Default"):

                  13.1.1   The failure of Mesa to make any payment required to
                           be made by Mesa to AWA hereunder, as and when due,
                           and such failure continues for 10 business days after
                           Mesa's receipt of written notice from AWA;

                  13.1.2   If Mesa or any of the Affiliated Service Providers is
                           required by the FAA or DOT to suspend a substantial
                           portion of its operations for any safety reason and
                           has not resumed such operation within 3 business days
                           of the suspension or if Mesa suspends a substantial
                           portion of the Flight Services for any other reason,
                           except as a result of an emergency airworthiness
                           directive from the FAA affecting all aircraft
                           similarly equipped to the Aircraft (not just those
                           owned or operated by Mesa);

                  13.1.3   The failure of Mesa or any of the Affiliated Service
                           Providers to observe or perform any of the covenants,
                           conditions or provisions of this Agreement to be
                           observed or performed by Mesa or any of the
                           Affiliated Service Providers, other than as described
                           in Sections 8 or 13.1.1 or 13.1.2 above, and such
                           failure shall continue for a period of 15 days after
                           written notice thereof from AWA to Mesa or such
                           longer period as may be reasonably necessary to
                           complete the cure of such failure (not to exceed an
                           additional 30 days); provided Mesa commences such
                           cure during the initial 15-day period and
                           continuously and diligently pursues the cure to
                           completion;

                  13.1.4   (i) the cessation of Mesa's business operations as a
                           going concern; (ii) the making by Mesa of any general
                           assignment, or general arrangement for the benefit of
                           creditors; (iii) the failure of Mesa to generally pay
                           Mesa's debts as they come due or Mesa's written
                           admission of its inability to pay its debts as they
                           come due; (iv) the filing by or against Mesa of a
                           petition to have Mesa adjudged bankrupt or a petition
                           for reorganization or arrangement under any law
                           relating to bankruptcy (unless, in the case of
                           petition filed against Mesa, the same is dismissed,
                           stayed or vacated within 60 days); (v) an
                           adjudication of Mesa's insolvency; (vi) appointment
                           of a trustee or receiver to take possession of
                           substantially all of Mesa's assets which is not
                           dismissed, stayed or vacated within 60 days; or (vii)
                           the attachment, execution or other judicial seizure
                           of all of Mesa's assets.

                  13.1.5   Upon an Event of Default, AWA may: (a) by written
                           notice to Mesa (a "Default Termination Notice")
                           terminate this Agreement effective as of the date set
                           forth in the Default Termination Notice which date
                           shall not be less than 30 nor more than 180 days
                           after the date of the Default unless

                                       35
<PAGE>
                           the event in 13.1.2 occurs, in which case immediate;
                           and/or (b) pursue all other rights and remedies
                           available at law or in equity to AWA for the Event of
                           Default, including, without limitation, injunctive
                           relief, specific performance and damages. After
                           receipt of a Default Termination Notice, Mesa and the
                           Affiliated Service Providers shall continue to
                           provide the Flight Services and Other Services in
                           accordance with this Agreement until the termination
                           date set forth in the Default Termination Notice. No
                           remedy or election by AWA hereunder shall be deemed
                           exclusive, but shall, wherever possible, be
                           cumulative with all other rights and remedies at law
                           or in equity.

         13.2     AWA Default. The occurrence of any one or more of the
                  following events shall constitute a material default and
                  breach of this Agreement by AWA (an "AWA Event of Default"):

                  13.2.1   The failure of AWA to make any payment required to be
                           made to Mesa by AWA hereunder, as and when due, and
                           such failure continues for 10 business days after
                           AWA's receipt of written notice from Mesa;

                  13.2.2   The failure of AWA to observe or perform any of the
                           covenants, conditions or provisions of this Agreement
                           to be observed or performed by AWA, and such failure
                           shall continue for a period of 15 days after written
                           notice thereof from Mesa to AWA or such longer period
                           as may be reasonably necessary to complete the cure
                           of such failure (not to exceed an additional 30
                           days); provided AWA commences such cure during the
                           initial 15-day period and continuously and diligently
                           pursues the cure to completion;

                  13.2.3   (i) the cessation of AWA's business operations as a
                           going concern; (ii) the making by AWA of any general
                           assignment, or general arrangement for the benefit of
                           creditors; (iii) the failure of AWA to generally pay
                           AWA's debts as they come due or AWA's written
                           admission of its inability to pay its debts as they
                           come due; (iv) the filing by or against AWA of a
                           petition to have AWA adjudged bankrupt or a petition
                           for reorganization or arrangement under any law
                           relating to bankruptcy (unless, in the case of
                           petition filed against AWA, the same is dismissed,
                           stayed or vacated within 60 days); (v) an
                           adjudication of AWA's insolvency; (vi) appointment of
                           a trustee or receiver to take possession of
                           substantially all of AWA's assets which is not
                           dismissed, stayed or vacated within 60 days; or (vii)
                           the attachment, execution or other judicial seizure
                           of all of AWA's assets which is not dismissed, stayed
                           or vacated within 60 days.

                  13.2.4   Upon the occurrence and continuance of an AWA Event
                           of Default, Mesa may: (a) by written notice to AWA
                           (an "AWA Default Notice") terminate this Agreement
                           effective as of the date set forth in the AWA Default
                           Notice which date shall not be less than 30 nor more
                           than 180 days after the date of the AWA Event of
                           Default; and/or (b) pursue all other rights

                                       36
<PAGE>
                           and remedies available at law or in equity to Mesa
                           for the AWA Event of Default, including, without
                           limitation, injunctive relief, specific performance
                           and damages. After receipt of an AWA Default Notice,
                           AWA shall continue to perform its obligations under
                           this Agreement until the termination date set forth
                           in the AWA Default Notice. No remedy or election by
                           Mesa hereunder shall be deemed exclusive, but shall,
                           wherever possible, be cumulative with all other
                           rights and remedies at law or in equity.

14.   Records and Reports.

         14.1     Retention of Records. Mesa shall keep accurate and complete
                  books and records of all Flight Services and Other Services
                  performed under this Agreement as well as any additional
                  records that the parties agree may be required in accordance
                  with AWA's procedures and the Regulations. Mesa shall retain
                  such records in accordance with applicable law, AWA's
                  procedures and the Regulations.

         14.2     Provision of Financial Records. Upon AWA's request, and until
                  such time as AWA advises Mesa that such reports are no longer
                  necessary, Mesa shall furnish to AWA, within 60 days following
                  the close of the first three fiscal quarters of Mesa,
                  unaudited financial statements including Mesa's current
                  corporate balance sheets and profit and loss statements, and
                  within 120 days after the close of its fiscal year, Mesa shall
                  furnish AWA with audited financial statements of Mesa (or its
                  parent company) including, either separately or on a
                  consolidated basis, the balance sheet and profit and loss
                  statements of that party. The appropriate reports filed on
                  Form 10-Q and 10-K shall be satisfactory to fulfill such
                  obligation.

         14.3     Provision of Additional Records. Mesa shall promptly furnish
                  AWA with a copy of every report that it prepares and is
                  required to submit to the DOT, FAA, National Transportation
                  Safety Board or any other governmental agency, relating to any
                  accident or incident involving an Aircraft used in performing
                  Flight Services under this Agreement, when such accident or
                  incident is claimed to have resulted in the death of or
                  substantial injury to any person or the loss of, damage to, or
                  destruction of any property.

         14.4     Additional Reports. Mesa shall promptly notify AWA in writing
                  of: (i) any change in or relinquishment of control of Mesa;
                  (ii) any agreement contemplating such a change or
                  relinquishment with a copy of such agreement, if in writing,
                  to AWA; or (iii) any change or contemplated change in the
                  Chief Executive Officer position of Mesa.

15.   Miscellaneous Provisions.

         15.1     Notices. All notices, consents, approvals or other instruments
                  required or permitted to be given by either party pursuant to
                  this Agreement shall be in writing and given by: (i) hand
                  delivery; (ii) facsimile; (iii) express overnight delivery
                  service; or (iv) certified or registered mail, return receipt
                  requested. Notices shall be provided to the parties and
                  addresses (or facsimile numbers, as

                                       37
<PAGE>
                  applicable) specified below and shall be effective upon
                  receipt or the rejection of such delivery, except if delivered
                  by facsimile outside of business hours in which case they
                  shall be effective on the next succeeding business day:

                     If to AWA:    America West Airlines, Inc.
                                   4000 E. Sky Harbor Blvd.
                                   Phoenix, Arizona 85034
                                   Attn:  Vice President and General Counsel
                                   Telephone:(602) 693-5805
                                   Facsimile:(602) 693-5932

                     If to Mesa:   Mesa Air Group
                                   410 N. 44th Street, Suite 700
                                   Phoenix, Arizona  85008
                                   Attn:  General Counsel
                                   Telephone:(602) 685-4051
                                   Facsimile:(602) 685-4352

         15.2     Waiver and Amendment. No provisions of this Agreement shall be
                  deemed waived or amended except by a written instrument
                  unambiguously setting forth the matter waived or amended and
                  signed by the party against which enforcement of such waiver
                  or amendment is sought. Waiver of any matter shall not be
                  deemed a waiver of the same or any other matter on any future
                  occasion.

         15.3     Captions. Captions are used throughout this Agreement for
                  convenience of reference only and shall not be considered in
                  any manner in the construction or interpretation hereof.

         15.4     Attorneys' Fees. In the event of any judicial or other
                  adversarial proceeding between the parties concerning this
                  Agreement, the prevailing party shall be entitled to recover
                  its attorneys' fees and other costs in addition to any other
                  relief to which it may be entitled.

         15.5     Entire Agreement. This Agreement constitutes the entire
                  agreement between the parties with respect to the subject
                  matter hereof, and there are no other representations,
                  warranties or agreements, written or oral, between AWA and
                  Mesa with respect to the subject matter of this Agreement.

         15.6     Jurisdiction; Choice of Law. For purposes of any action or
                  proceeding arising out of this Agreement, the parties hereto
                  hereby expressly submit to the jurisdiction of all federal and
                  state courts located in the State of Arizona. This Agreement
                  shall be governed by and construed in accordance with the laws
                  of the State of Arizona.

         15.7     Severability. If this Agreement, any one or more of the
                  provisions of this Agreement, or the applicability of this
                  Agreement or any one or more of the provisions of this
                  Agreement to a specific situation, shall be held invalid,
                  illegal

                                       38
<PAGE>
                  or unenforceable or in violation of any contract or agreement
                  to which Mesa or AWA are a party, then AWA and Mesa shall in
                  good faith amend and modify this Agreement, consistent with
                  the intent of Mesa and AWA, as evidenced by this Agreement, to
                  the minimum extent necessary to make it or its application
                  valid, legal and enforceable and in accordance with the
                  applicable agreement or contract, and the validity or
                  enforceability of all other provisions of this Agreement and
                  all other applications of any such provision shall not be
                  affected thereby.

         15.8     Counterparts. This Agreement may be executed in one or more
                  counterparts, each of which shall be deemed an original.

         15.9     Binding Effect. This Agreement shall be binding upon and inure
                  to the benefit of AWA and Mesa and their respective successors
                  and permitted assigns.

         15.10    No Assignment. The rights, obligations and duties of AWA and
                  Mesa under this Agreement may not be assigned or delegated,
                  except as may otherwise be mutually agreed by AWA and Mesa, in
                  their sole and absolute discretion.

                                      AWA:

                                      America West Airlines, Inc.,
                                      a Delaware corporation

                                      By:  /s/ William A. Franke
                                      Name:  William A. Franke
                                      Title:  Chairman of the Board and
                                              Chief Executive Officer

                                      MESA:

                                      Mesa Airlines, Inc.,
                                      a Nevada corporation

                                      By:  /s/ Jonathan G. Ornstein
                                      Name:  Jonathan G. Ornstein
                                      Title:  Chief Executive Officer

                                       39
<PAGE>
                                    EXHIBITS

Exhibit A            Delivery Schedule
Exhibit B            Station Costs
Exhibit C            Guaranteed Non-Maintenance Costs
Exhibit D            Guaranteed Maintenance Costs
Exhibit E            Backup Information

                                       40
<PAGE>
                                    EXHIBIT A

                                DELIVERY SCHEDULE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                                          Convertible
  In Service Months            Additional             Firm                Firm                Firm            Option
Delivery           Month        CRJ-200             CRJ-700             CRJ-900            CRJ-7/900         CRJ 7/900
-----------------------------------------------------------------------------------------------------------------------
 Seating Configuration            50Y               6F/58Y              6F/74Y

-----------------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>                  <C>                 <C>               <C>                <C>
                   Apr-01        [***]
                   May-01
                   Jun-01        [***]
                  July-01
                   Aug-01
                   Sep-01        [***]
                   Oct-01
                   Nov-01        [***]
                   Dec-01        [***]
-----------------------------------------------------------------------------------------------------------------------
                   Jan-02        [***]
                   Feb-02        [***]
                   Mar-02                            [***]
                   Apr-02        [***]               [***]
                   May-02        [***]
                   Jun-02        [***]               [***]
                  July-02
                   Aug-02                            [***]
                   Sep-02                            [***]
                   Oct-02                            [***]
                   Nov-02                            [***]
                   Dec-02                            [***]
-----------------------------------------------------------------------------------------------------------------------
                   Jan-03                                                [***]
                   Feb-03
                   Mar-03                            [***]               [***]
                   Apr-03                            [***]               [***]
                   May-02                            [***]               [***]
                   Jun-03                            [***]               [***]
                  July-03                            [***]               [***]
                   Aug-03                            [***]               [***]
                   Sep-03                            [***]               [***]
                   Oct-03                                                [***]              [***]
                   Nov-03                                                [***]              [***]
                   Dec-03                                                [***]              [***]
-----------------------------------------------------------------------------------------------------------------------
                   Jan-04                                                [***]              [***]
                   Feb-04                                                [***]              [***]
                   Mar-04                                                [***]              [***]
                   Apr-04                                                [***]              [***]
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>                  <C>                 <C>               <C>                <C>
                   May-04                                                                   [***]
                   Jun-04                                                                   [***]
                  July-04                                                                                      [***]
                   Aug-04                                                                                      [***]
                   Sep-04                                                                                      [***]
                   Oct-04                                                                                      [***]
                   Nov-04                                                                                      [***]
                   Dec-04                                                                                      [***]
-----------------------------------------------------------------------------------------------------------------------
Each calendar month                                                                                            [***]
thereafter through Oct-07
-----------------------------------------------------------------------------------------------------------------------
                                 [***]               [***]               [***]              [***]              [***]
[***]

[***]

      [***]
</TABLE>

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*** Confidential Treatment Requested
<PAGE>
                                    EXHIBIT B

                                  STATION COSTS

[***]

Note 1 - Some or all of these expenses are already included in pass through
amounts.

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*** Confidential Treatment Requested
<PAGE>
                            EXHIBITS C AND D - PAGE 1
                                  (SEE NOTE 4)

GUARANTEED NON-MAINTENANCE COSTS (EXHIBIT C)

<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------------------------------
        COST CATEGORY                   UNIT          B1900D        DHC-82          CRJ 200         CRJ 700        CRJ 900
        ------------------------------------------------------------------------------------------------------------------
<S>     <C>                          <C>              <C>           <C>             <C>             <C>            <C>
        Aircraft Lease & Overhead    A/C MONTH
Note 1      Ownership                                  [***]         [***]            [***]           [***]          [***]
Note 2      Overhead                                   [***]         [***]            [***]           [***]          [***]
Note 2      Crew RON                                   [***]         [***]            [***]           [***]          [***]
            Total                                      [***]         [***]            [***]           [***]          [***]

        Flight Crew                    BLK HR
Note 3      Pilot                                      [***]         [***]            [***]           [***]          [***]
Note 3      Flight Attendant                           [***]         [***]            [***]           [***]          [***]
            Total                                      [***]         [***]            [***]           [***]          [***]

Note 2  Dispatchers                     DEP            [***]         [***]            [***]           [***]          [***]
</TABLE>
<PAGE>
        GUARANTEED MAINTENANCE COSTS (EXHIBIT D)

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------
        COST CATEGORY                         UNIT       B1900D      DHC-82    CRJ 200    CRJ 700    CRJ 900
        ----------------------------------------------------------------------------------------------------
<S>     <C>                                <C>           <C>         <C>       <C>        <C>        <C>
        Maintenance cost per aircraft      A/C MONTH
Note 2      MX Employees                                  [***]       [***]     [***]      [***]      [***]
Note 2      Engine & APU Depreciation                     [***]       [***]     [***]      [***]      [***]
                                                         ---------------------------------------------------
            Total                                         [***]       [***]     [***]      [***]      [***]

        Maintenance Base Cost              BASE/MONTH
Note 2      Rent & Utilities                              [***]       [***]     [***]      [***]      [***]
Note 2      Personnel                                     [***]       [***]     [***]      [***]      [***]
Note 2      Parts Depreciation                            [***]       [***]     [***]      [***]      [***]
Note 2      Equipment Depreciation                        [***]       [***]     [***]      [***]      [***]
                                                         ---------------------------------------------------
            Total                                         [***]       [***]     [***]      [***]      [***]

        Maintenance cost per block hour      BLK HR
Note 2      Engine MX - Contractual                       [***]       [***]     [***]      [***]      [***]
Note 2      Engine MX - Other                             [***]       [***]     [***]      [***]      [***]
Note 2      Airframe MX                                   [***]       [***]     [***]      [***]      [***]
                                                         ---------------------------------------------------
            Total                                         [***]       [***]     [***]      [***]      [***]

        Maintenance cost per departure        DEP
Note 2      Airframe MX                                   [***]       [***]     [***]      [***]      [***]
Note 2      Engine MX                                     [***]       [***]     [***]      [***]      [***]
                                                         ---------------------------------------------------
            Total                                         [***]       [***]     [***]      [***]      [***]
</TABLE>

Note 1 - These items will be adjusted on each contract date based on CPI as
defined in the contract.

Note 2 - [***].

Note 3 - The maintenance reserve rates above are based on the following
operating assumptions---changes to these assumptions will Result in revised
costs and/or guarantees from our engine and airframe manufacturers. If that
occurs both parties agree to mutually agree to new rates as stated above. Mesa
will furnish America West with a sensitivity chart of these costs as part of our
final contract with the manufacturer.

Note 4 - [***].
                 ASSUMPTIONS:
                 Flight Hours Per Year               [***]     [***]    [***]
                                                   ----------------------------
                 Average Flight Hours Per Cycle      [***]     [***]    [***]

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*** Confidential Treatment Requested
<PAGE>
                            EXHIBITS C AND D - PAGE 2

                        CRJ -2000 A/C OWNERSHIP SCHEDULE

<TABLE>
<CAPTION>
    ----------------------------------------------------------------------------
                                                                        MONTHLY
    ----------------------------------------------------------------------------
                                     TAIL                                AMOUNT
    ----------------------------------------------------------------------------
<S>                                 <C>                     <C>         <C>
 1                                                          [***]         [***]
 2                                                          [***]         [***]
 3                                                          [***]         [***]
 4                                                          [***]         [***]
 5                                                          [***]         [***]
 6                                                          [***]         [***]
 7                                                          [***]         [***]
 8                                                          [***]         [***]
 9                                                          [***]         [***]
10                                                          [***]         [***]
11                                                          [***]         [***]
12                                                          [***]         [***]
13                                                          [***]         [***]
14                                                          [***]         [***]
15                                                          [***]         [***]
16                                                          [***]         [***]
17                                                          [***]         [***]
18                                                          [***]         [***]
19                                                          [***]         [***]
20                                                          [***]         [***]
21                                                          [***]         [***]
22                                                          [***]         [***]
23                                                          [***]         [***]
24                                                          [***]         [***]
25                                                          [***]         [***]
    ----------------------------------------------------------------------------

    ----------------------------------------------------------------------------
                                    AVERAGE                               [***]
    ----------------------------------------------------------------------------
</TABLE>

----------
*** Confidential Treatment Requested
<PAGE>
                                    EXHIBIT E

                                 MESA CODESHARE

                    Minimum Required Backup - Trueup Billings

<TABLE>
<CAPTION>
               COSTS                              BACKUP REQUIRED                       MINIMUM FREQUENCY
               -----                              ---------------                       -----------------
<S>                                       <C>                                 <C>
Actual Costs (All use actual $ rates)
    Hull Insurance                        Insurance Policy/Bill               Annually or when changes occur
    Liability Insurance                   Insurance Policy Bill/              Annually or when changes occur
    Property Taxes                        All Invoices & Assessment Notices   Semi-Annually
    De-Icing                              All Invoices                        Monthly
    Fuel Costs                            Station Invoices                    Audited Basis
    Catering                              All Invoices                        Monthly
    Landing Fees                          All Invoices                        Monthly
    Security Service                      All Invoices                        Monthly
    Station Rent                          All Invoices                        Monthly
    CRJ Leases                            Lease Payment Schedule              Every new Delivery or Change in Lease
    Station Costs                         All Invoices                        Monthly
</TABLE>EXHIBIT 4.12

                             CERTIFICATE OF TRUST
                                      OF
                           CUMMINS CAPITAL TRUST II

     THIS Certificate of Trust of Cummins Capital Trust II (the "Trust"),
dated May 15, 2002, is being duly executed and filed by The Bank of New York
(Delaware), a Delaware banking corporation, and BNY Midwest Trust Company, an
Illinois banking corporation, as trustees, to form a business trust under the
Delaware Business Trust Act (12 Del. C. ss.3801 et seq.).

          1. Name. The name of the business trust formed hereby is Cummins
Capital Trust II.

          2. Delaware Trustee. The name and business address of the trustee of
the Trust in the State of Delaware is The Bank of New York (Delaware), Route
273, White Clay Center, Newark, Delaware 19711, Attention: Corporate Trust
Administration.

          3. Effective Date. This Certificate of Trust shall be effective upon
filing.

          IN WITNESS WHEREOF, the undersigned, being the trustees of the
Trust, have executed this Certificate of Trust as of the date first-above
written.

                                 THE BANK OF NEW YORK (DELAWARE)

                                 By: /s/ Michael Santino
                                     --------------------------------
                                     Name:  Michael Santino
                                     Title:  Senior Vice President

                                 BNY MIDWEST TRUST COMPANY

                                 By: /s/ C. Potter
                                     --------------------------------
                                     Name:  C. Potter
                                     Title:  Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]