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                                                                   Exhibit 10.53

                         REPUBLIC AIRWAYS HOLDINGS INC.
                         (FKA WEXFORD AIR HOLDINGS INC.)
                             (FKA WEXFORD III CORP.)

                           11.5% NOTE DUE MAY 14, 2003

       18,879,828.01                                           May 15, 2002

         FOR THE VALUE RECEIVED of full satisfaction of principal and interest
due WexAir, LLC by Republic Airways Holdings Inc. (FKA Wexford Air Holdings
Inc., FKA Wexford III Corp.) under its 11.5% Note due May 14, 2003, the
undersigned, Republic Airways Holdings Inc. (FKA Wexford Air Holdings Inc., FKA
Wexford III Corp.) (herein called the "Company"), a corporation organized and
existing under the laws of the State of Delaware, hereby promises to pay to the
order of WexAir, LLC the principal sum of Eighteen Million Eight Hundred Seventy
Nine Thousand, Eight Hundred Twenty Eight Dollars and One Cent on May 14, 2003,
or if such day is a Saturday, Sunday or any day in which banks located in the
State of New York are authorized or obligated to close, then on the next day
which is not a Saturday, Sunday or day in which banks located in the State of
New York are authorized or obligated to close, or on such earlier date as the
Company may specify in written notice to WexAir, LLC, with interest (computed on
the basis of a 360-day year of twelve 30-day months and compounded semiannually)
(a) on the unpaid balance thereof at the rate of 11.5% per annum from the date
hereof, payable at maturity which interest rate reflects the increased cash flow
needs of the Company and its subsidiaries, and (b) to the extent permitted by
law, on any overdue payment (including any overdue prepayment) of principal and
any overdue payment of interest, payable as aforesaid (or, at the option of the
holder hereof, on demand), at a rate per annum from time to time equal to the
greater of (i) 15% or (ii) 5% over the rate of interest publicly announced by
the Chase Manhattan Bank from time to time in New York, Now York as its "base"
or "prime" rate.

         Payments of principal of and interest on this Note are to be made in
lawful money of the United States of America at the office of the Company or at
such other place as the Company shall have designated by written notice to the
holder of this Note.

         The Company agrees, and the holder agrees, that the indebtedness
evidenced by this Note is subordinate in right of payment, to the extent and in
the manner provided in this paragraph, to the prior payment in full of all
Senior Debt, and that the subordination is for the benefit of the holders of
Senior Debt. "Senior Debt" means any indebtedness for borrowed money, or any
guarantee of such indebtedness, of the Company outstanding at any time except
debt that by its terms is not senior in right of payment to this Note. Upon any
distribution to creditors of the Company in a liquidation or dissolution of the
Company or in a bankruptcy. reorganization, insolvency, receivership or similar
proceeding relating to the Company or its property, (1) holders of Senior Debt
shall be entitled to receive payment in full in cash of the principal of and
interest (including interest accruing after the commencement of any such
proceeding) to the date of payment

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on the Senior Debt before the holder shall be entitled to receive any payment of
principal of or interest on this Note; and (2) until the Senior Debt is paid in
full in cash, any distribution to which the holder would be entitled but for
this paragraph shall be made to holders of Senior Debt as their interests may
appear. The Company may not pay principal of or interest on this Note and may
not acquire this Note for cash or property other than capital stock of the
Company if a default on Senior Debt occurs and is continuing that permits
holders of such Senior Debt to accelerate its maturity, and if a distribution is
made to the holder that because of this paragraph should not have been made to
it, the holder who receives the distribution shall hold it in trust for holders
of Senior Debt and pay it over to them as their interests may appear. After all
Senior Debt is paid in full and until this Note is paid in full, the holder
shall be subrogated to the rights of holders of Senior Debt to receive
distributions applicable to Senior Debt to the extent that distributions
otherwise payable to the holders have been applied to the payment of Senior
Debt. Nothing in this paragraph shall impair, as between the Company and the
holder, the obligation of the Company, which is absolute and unconditional, to
pay principal of and interest on this Note in accordance with its terms.

         The Company may prepay this Note, in whole or in part, at any time
together with interest accrued to the date of such prepayment. Upon any sale,
assignment, transfer or other disposition of any stock of Chautauqua Airlines,
Inc., or upon any issuance or sale by the Company of any capital stock, the
Company shall prepay principal and interest on this Note in an amount equal to
the cash proceeds of any such disposition, issuance or sale, net of reasonable
costs and expenses and net of any repayments of indebtedness secured by a lien
on any such stock of Chautauqua Airlines, Inc.

         If the Company defaults in the payment of any amount due hereon when
due, and payable, the principal of this Note together with all accrued and
unpaid interest hereon may be declared due and payable by the holder by notice
to the Company.

         This Note, and the rights associated herewith, may be transferred by
the Holder only by surrender to the Maker for reissuance along with appropriate
transfer instructions, The Maker shall reissue this Note as and when requested
by the Holder at any time prior to its maturity in accordance with those
instructions.

                                    REPUBLIC AIRWAYS HOLDINGS INC.
                                    (FKA WEXFORD AIR HOLDINGS INC.,
                                    FKA WEXFORD III CORP.)

                                    By: /s/ Jay L. Maymudes
                                       --------------------------
                                    Name: Jay L. Maymudes
                                    Title: Vice President<Page>

                                                              Exhibit 10.54(a)

                   LETTER AGREEMENT RELATING TO STOCK OPTIONS

         As of June 25, 1999, the undersigned (the "Executive") was granted
an option (the "Republic Option") to purchase 6 shares of Common Stock of
Republic Airways Holdings Inc. (formerly, Wexford III Corp. and hereinafter
"Republic") on the same terms, conditions and requirements that are
applicable to the Executive's option to purchase 120,000 shares of Common
Stock of Chautauqua Airlines, Inc. ("CAI") at a price per share of $26.75
granted pursuant to the employment agreement between the Executive and CAI
dated as of June 25, 1999 (the "Employment Agreement"), but subject to
adjustment by the Board of Director of Republic, in its sole discretion, to
reflect the assets and liabilities of Republic other than the Common Stock of
CAI. This letter agreement modifies certain terms and conditions of the
Republic Option and the CAI Option.

         1. In order to facilitate the anticipated initial public offering of
the Common Stock of Republic (the "Republic IPO") and for other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the Executive hereby agrees to irrevocably forego his right to
exercise the CAI Option, in whole or in part, from and after the date hereof.
The Executive further agrees and acknowledges that there is no assurance or
guarantee that the Republic IPO shall occur and that the provisions of this
Section 1 shall apply even if the Republic IPO does not occur.

         2. Upon the Republic IPO, the Executive's rights under Section
3(b)(iv) and (v) of the Employment Agreement with respect to the Republic
Option shall immediately terminate. The Executive shall not during the period
commencing on the date of the final prospectus relating to the Republic IPO
and ending on the date specified by Republic and the managing underwriter
(but not to exceed one hundred eighty (180) days) lend, offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, directly or indirectly, any shares of
Common Stock of Republic, or enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences
of ownership of the shares of Common Stock of Republic. The lock-up
provisions of this Section shall not apply to the sale of any shares to an
underwriter pursuant to an underwriting agreement.

         3. Upon the termination of the Executive's employment with CAI and
its affiliates due to his death, Disability or Retirement (as such terms are
defined in Republic's 2002 Equity Incentive Plan), the Executive (or, in the
event of death, his beneficiary) shall continue to have the right to exercise
the vested portions of the Republic Option, but only to the extent so vested
immediately prior to such termination, during the one year period following
the date of termination or, if earlier, until the expiration of the stated
term of any such portion of the Republic Option as provided in the last
sentence of Section 3(b)(i) of the Employment Agreement.

         4. Upon the termination of the Executive's employment with CAI and
its affiliates for any reason not described in Section 3 above, the Executive
shall continue to have the right to exercise the vested portions of the
Republic Option, but only to the extent so vested at the time of such
termination (after giving effect to any additional vesting rights the
Executive may have under Section 3(c) of the Employment Agreement), during
the thirty (30) day period (or, if the

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Executive is entitled to receive severance compensation pursuant to Section
3(c) of the Employment Agreement as a result of such termination, the one
year period) following the date of termination or, if earlier, until the
expiration of the stated term of any such portion of the Republic Option as
provided in the last sentence of Section 3(b)(i) of the Employment Agreement.

         5. Except as expressly modified hereby, the terms and conditions of the
Republic Option (but not the CAI Option) shall remain in full force and effect.

         IN WITNESS WHEREOF, the parties hereto have executed this letter
agreement as of March __, 2002.

                                                  REPUBLIC AIRWAYS HOLDINGS INC.

                                                  By: /s/ Robert H. Cooper
                                                     ---------------------------
                                                     Name:  ROBERT H. COOPER
                                                     Title: CFO

                                                  BRYAN K. BEDFORD

                                                  /s/ Bryan K. Bedford
                                                  ------------------------------

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