Document:

<PAGE>   1
                                                                    Exhibit 4.15

                          AMBAC ASSURANCE CORPORATION,
                              as Policy Provider,

                          AMERICA WEST AIRLINES, INC.

                                      and
                           WILMINGTON TRUST COMPANY,
        not in its individual capacity but solely as Subordination Agent

                       INSURANCE AND INDEMNITY AGREEMENT

                          AMERICA WEST AIRLINES, INC.

                           PASS THROUGH CERTIFICATES,
                                 SERIES 2000-1G

                            Dated as of July 7, 2000
<PAGE>   2
                  (This Table of Contents is for convenience of reference only
and shall not be deemed to be part of this Agreement. All capitalized terms used
in this Agreement and not otherwise defined shall have the meanings set forth in
Article I of this Agreement.)

                                TABLE OF CONTENTS

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                                    ARTICLE I

                                   DEFINITIONS

Section 1.01          Defined Terms                                                                           2
Section 1.02          Other Definitional Provisions                                                           6

                                   ARTICLE II

                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 2.01          Representations and Warranties of AWA                                                   6
Section 2.02          Covenants of AWA                                                                        10
Section 2.03          Covenants of WTC and Subordination Agent                                                12
Section 2.04          Representations, Warranties and Covenants of the Policy Provider                        12

                                   ARTICLE III

                   THE POLICY; REIMBURSEMENT; INDEMNIFICATION

Section 3.01          Issuance of the Policy                                                                  13
Section 3.02          Payment of Fees and Premium.                                                            15
Section 3.03          Reimbursement Obligation                                                                16
Section 3.04          Indemnification                                                                         16
Section 3.05          Procedure for Payment of Fees and Premiums                                              17

                                   ARTICLE IV

                               FURTHER AGREEMENTS

Section 4.01          Effective Date; Term of the Insurance Agreement                                         17
Section 4.02          Further Assurances and Corrective Instruments                                           17
Section 4.03          Obligations Absolute.                                                                   18
Section 4.04          Assignments; Reinsurance; Third-Party Rights.                                           19
Section 4.05          Liability of the Policy Provider                                                        19
</TABLE>

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                                    ARTICLE V

                                  MISCELLANEOUS

Section 5.01           Amendments, Etc                                                          20
Section 5.02           Notices                                                                  20
Section 5.03           Severability                                                             21
Section 5.04           Governing Law                                                            21
Section 5.05           Consent to Jurisdiction                                                  21
Section 5.06           Consent of the Policy Provider                                           23
Section 5.07           Counterparts                                                             23
Section 5.08           Headings                                                                 23
Section 5.09           Trial by Jury Waived                                                     23
Section 5.10           Limited Liability                                                        23
Section 5.11           Entire Agreement                                                         23
</TABLE>

                                      -ii-
<PAGE>   4
                  INSURANCE AND INDEMNITY AGREEMENT (as may be amended, modified
or supplemented from time to time, this "Insurance Agreement"), dated as of July
7, 2000, by and among AMBAC ASSURANCE CORPORATION, as Policy Provider, AMERICA
WEST AIRLINES, INC. ("AWA") and WILMINGTON TRUST COMPANY, not in its individual
capacity but solely as Subordination Agent (the "Subordination Agent").

                              W I T N E S S E T H :

                  WHEREAS, AWA intends to finance (or refinance) the acquisition
of ten Aircraft either (i) through separate leveraged lease Transactions in
which AWA will lease the Leased Aircraft or (ii) through separate secured loan
Transactions in which AWA will own the Owned Aircraft;

                  WHEREAS, in the case of each Leased Aircraft, the Owner
Trustee acting on behalf of a corresponding Owner Participant, will issue
pursuant to an Indenture, on a non-recourse basis, two or more series of
Equipment Notes in order to finance a portion of its purchase price of such
Leased Aircraft;

                  WHEREAS, in the case of each Owned Aircraft, AWA will issue
pursuant to an Indenture, on a recourse basis, two or more series of Equipment
Notes to finance a portion of the purchase price of such Owned Aircraft;

                  WHEREAS, WTC, not in its individual capacity but as Trustee
under each of the Trust Agreements, will create the Trusts, which will acquire
the Equipment Notes under the Note Purchase Agreement;

                  WHEREAS, (i) Citibank, N.A., as Liquidity Provider, has
entered into two Liquidity Facilities, one for the benefit of the Class G
Certificateholders and one for the benefit of the Class C Certificateholders,
with WTC, as the Subordination Agent, as agent and Trustee for the applicable
Trust, and (ii) WTC, as the Subordination Agent and as Trustee of each Trust,
the Liquidity Provider, the Policy Provider and the Subordination Agent have
entered into the Intercreditor Agreement;

                  WHEREAS, pursuant to each Trust Agreement, a separate Trust
has been created to facilitate the sale of the Certificates;

                  WHEREAS, the Policy Provider has issued the Policy in respect
of the Class G Certificates, pursuant to which it has agreed to guarantee the
payment of interest to the Subordination Agent for the benefit of the Class G
Trustee and Class G Certificateholders, and the payment of principal of the
Class G Certificates on the Final Distribution Date for the Class G Certificates
and as otherwise provided herein;

                  WHEREAS, the Policy Provider shall be paid the Premium as set
forth herein; and
<PAGE>   5
                  WHEREAS, each of AWA and the Subordination Agent has agreed to
undertake certain obligations in consideration for the Policy Provider's
issuance of the Policy;

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.01 Defined Terms. Unless the context clearly
requires otherwise, all capitalized terms used but not defined herein shall have
the respective meanings assigned to them in the Intercreditor Agreement or, if
not defined therein, in the Policy described below. For purposes of this
Insurance Agreement, the following terms shall have the following meanings:

                  "Act" means Part A of subtitle VII of title 49, United States
Code.

                  "Aircraft" means any aircraft which is or will be part of the
Collateral.

                  "Airframe" means any airframe which is or will be part of the
Collateral.

                  "Bankruptcy Code" means the United States Bankruptcy Code, 11
U.S.C. Section 101 et seq.

                  "Citizen of the United States" is defined in Section
40102(a)(15) of the Act and in the FAA Regulations.

                  "Collateral" means the "Collateral" as defined or to be
defined in any Indenture with respect to an Owned Aircraft, and the "Trust
Indenture Estate" as defined or to be defined in any Indenture with respect to a
Leased Aircraft.

                  "Delivery Date" means with respect to each Participation
Agreement, the "Closing Date" as defined or to be defined in each such
Participation Agreement.

                  "Engine" means any engine which is or will be part of the
Collateral.

                  "Exchange Offer Registration Statement" has the meaning given
such term in the Trust Agreement.

                  "Expenses" means any and all liabilities, obligations, losses,
damages, settlements, penalties, claims, actions, suits, costs, expenses and
disbursements (including, without limitation, reasonable fees and disbursements
of legal counsel, accountants, appraisers, inspectors or other professionals,
and costs of investigation).

                  "Event of Loss" means any Event of Loss defined or to be
defined in any Participation Agreement.

                                        2
<PAGE>   6
                  "FAA" means the Federal Aviation Administration of the United
States of America or any Government Entity succeeding to the functions of the
Federal Aviation Administration.

                  "FAA Filed Documents" with respect to each Aircraft has the
meaning given such term in the related Participation Agreement.

                  "Final Dissolution Date" means, following the occurrence of a
Triggering Event, the Distribution Date next succeeding the date of receipt by
the Subordination Agent of the proceeds of the last Aircraft (or the related
Equipment Notes) then subject to the Lien of any Indenture.

                  "Final Distribution Date" means the date which is the earlier
of (i) the Final Legal Distribution Date or (ii) the Final Dissolution Date.

                  "Final Legal Distribution Date" means January 2, 2022.

                  "Financing Statements" means collectively, UCC-1 (and, where
appropriate, UCC-3) financing statements covering (A) in respect of each Owned
Aircraft, the related Collateral, executed by Owner, as debtor, showing
Mortgagee as secured party, for filing in Delaware and Arizona, unless the
revised Uniform Commercial Code has been adopted in Arizona and the Policy
Provider shall have received an opinion of counsel from AWA, acceptable to the
Policy Provider, that filing is not necessary in Arizona and each other
jurisdiction in which such filing is made on or before the related Delivery Date
and (B) with respect to each Leased Aircraft (a) the related Collateral,
executed by the related Owner Trustee as debtor, showing Mortgagee as secured
party, for filing in the Trust Company Jurisdiction (as defined in Schedule 3 to
the related Participation Agreement) and each other jurisdiction that, in the
opinion of Mortgagee, is necessary to perfect its Lien on the related Collateral
and (b) the related Lease and the Aircraft, as a precautionary matter, executed
by Lessee, as lessee, showing Owner Trustee as lessor and Mortgagee as assignee
of Owner Trustee, for filing in Delaware and Arizona, unless the revised Uniform
Commercial Code has been adopted in Arizona and the Policy Provider shall have
received an opinion of counsel from AWA, acceptable to the Policy Provider, that
filing is not necessary in Arizona.

                  "GAAP" means generally accepted accounting principles as set
forth in the statements of financial accounting standards issued by the
Financial Accounting Standards Board of the American Institute of Certified
Public Accountants, as such principles may at any time or from time to time be
varied by any applicable financial accounting rules or regulations issued by the
SEC and, with respect to any Person, shall mean such principles applied on a
basis consistent with prior periods except as may be disclosed in such Person's
financial statements.

                  "Government Entity" means (a) any federal, state, provincial
or similar government, and any body, board, department, commission, court,
tribunal, authority, agency or other instrumentality of any such government or
otherwise exercising any executive, legislative, judicial, administrative or
regulatory functions of such government or (b) any other government entity
having jurisdiction over any matter contemplated by the Operative Agreements or
relating

                                        3
<PAGE>   7
to the observance or performance of the obligations of any of the parties to the
Operative Agreements.

                  "Holder" has the meaning given such term in the Policy.

                  "Initial Purchasers" means Morgan Stanley & Co. Incorporated,
Salomon Smith Barney Inc., Deutsche Bank Securities Inc., Donaldson, Lufkin &
Jenrette Securities Corporation and Merrill Lynch, Pierce, Fenner & Smith
Incorporated.

                  "Insurance Agreement" has the meaning given such term in the
initial paragraph hereof.

                  "Intercreditor Agreement" means the Intercreditor Agreement
(2000-1), dated as the date hereof by and among WTC, as Trustee under each of
the Class G Trust and the Class C Trust, the Liquidity Provider, the Policy
Provider and the Subordination Agent.

                  "Investment Company Act" means the Investment Company Act of
1940, including, unless the context otherwise requires, the rules and
regulations thereunder, as amended from time to time.

                  "Lease Default" means, with respect to any Lease, any Event of
Default (as such term is defined in the Lease).

                  "Lien" means any mortgage, pledge, lien, charge, encumbrance
or security interest affecting the title to or any interest in property.

                  "Material Adverse Change" means, in respect of any Person as
at any date, a material adverse change in the ability of such Person to perform
its obligations under any of the Operative Agreements to which it is a party as
of such date, including any material adverse change in the business, financial
condition, results of operations or properties of such Person on a consolidated
basis with its subsidiaries which might have such effect.

                  "Moody's" means Moody's Investors Service, Inc., and any
successor thereto.

                  "Mortgagee" with respect to each Aircraft means WTC in its
capacity as Loan Trustee under the related Indentures.

                  "Offering Document" means the Offering Memorandum dated June
27, 2000, any supplemental Offering Memorandum relating to the Class G
Certificates, the Exchange Offer Registration Statement and any amendment or
supplement to any of the foregoing.

                  "Operative Agreements" (i) means this Insurance Agreement, the
Intercreditor Agreement, each Participation Agreement, the Note Purchase
Agreement, each Indenture, the Series G Equipment Notes, the Class G
Certificates, the Liquidity Facilities, the Class G Trust Agreement, the
Purchase Agreement, the Leases and the Policy Fee Letter, together with all
exhibits and schedules included with any of the foregoing.

                                        4
<PAGE>   8
                  "Owner" means, with respect to a Leased Aircraft, the related
Owner Trustee, and with respect to an Owned Aircraft, AWA.

                  "Person" means an individual, joint stock company, trust,
unincorporated association, joint venture, corporation, business or owner trust,
partnership or other organization or entity (whether governmental or private).

                  "Policy" means the Certificate Guaranty Insurance Policy No.
ABO379BE together with all endorsements thereto, issued by the Policy Provider
in favor of the Subordination Agent for the benefit of the Class G
Certificateholders and the Liquidity Provider to the extent provided therein.

                  "Policy Fee Letter" means the fee letter, dated as of July 7,
2000 between the Policy Provider and AWA setting forth the Premium and certain
other amounts payable in respect of the Policy.

                  "Policy Provider" means Ambac Assurance Corporation, or any
successor thereto, as issuer of the Policy.

                  "Policy Provider Information" means the information set forth
under the caption "Description of the Policy Provider" in the Offering Document.

                  "Premium" means the premium payable in respect of the Policy
on the Closing Date and on each Distribution Date thereafter in an amount equal
to 1/2 of the product of (i) the Premium Percentage and (ii) with respect to the
payment to be made on the Closing Date, the Pool Balance of the Class G
Certificates on the Closing Date, or with respect to the payments to be made on
each Distribution Date, the Pool Balance of the Class G Certificates on such
Distribution Date after giving effect to any distributions to be made on such
Distribution Date; provided, however, the fee payable on the Closing Date shall
be pro rated from the Closing Date to the first Distribution Date (based upon a
360 day year of twelve 30 day months).

                  "Premium Percentage" shall have the meaning set forth in the
Policy Fee Letter.

                  "Purchase Agreement" means the Purchase Agreement, dated June
27, 2000, among AWA, Morgan Stanley & Co. Incorporated, Salomon Smith Barney
Inc., Deutsche Bank Securities Inc., Donaldson, Lufkin & Jenrette Securities
Corporation and Merrill Lynch, Pierce, Fenner & Smith Incorporated, with respect
to the Certificates, as may be amended, modified or supplemented from time to
time.

                  "Registration Rights Agreement" has the meaning given such
term in the Purchase Agreement.

                  "S&P" means Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., and any successor thereto.

                  "SEC" means the Securities and Exchange Commission of the
United States of America, or any successor thereto.

                                        5
<PAGE>   9
                  "Section 1110" means 11 U.S.C. Section 1110 of the Bankruptcy
Code or any successor or analogous section of the federal bankruptcy law in
effect from time to time.

                  "Securities Act" means the Securities Act of 1933, including,
unless the context otherwise requires, the rules and regulations thereunder, as
amended from time to time.

                  "Security" means a "security" as defined in Section 2(1) of
the Securities Act.

                  "Series G Equipment Notes" means the 8.057% Series G Equipment
Notes issued pursuant to any Indenture by the related Owner Trustee or AWA, as
the case may be, and authenticated by the Loan Trustee thereunder, and any
Equipment Notes issued in exchange therefor or replacement thereof pursuant to
the terms of such Indenture.

                  "Transactions" means the Transactions contemplated by the
Operative Agreements, including the Transactions described in the Offering
Document.

                  "UCC" means the Uniform Commercial Code as in effect in any
applicable jurisdiction.

                  "U.S. Air Carrier" means any United States air carrier that is
a Citizen of the United States holding an air carrier operating certificate
issued by the Secretary of Transportation pursuant to the Act for aircraft
capable of carrying 10 or more individuals or 6000 pounds or more of cargo, and
as to which there is in force an air carrier operating certificate issued
pursuant to Part 121 of the FAA Regulations, or which may operate as an air
carrier by certification or otherwise under any successor or substitute
provisions therefor or in the absence thereof.

                  "WTC" means Wilmington Trust Company, a Delaware banking
corporation.

                  SECTION 1.02 Other Definitional Provisions. The words
"hereof," "herein" and "hereunder" and words of similar import when used in this
Insurance Agreement shall refer to this Insurance Agreement as a whole and not
to any particular provision of this Insurance Agreement. Section, subsection,
Schedule and Exhibit references are to this Insurance Agreement unless otherwise
specified. The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms. The words
"include" and "including" shall be deemed to be followed by the phrase "without
limitation."

                                   ARTICLE II

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

                  SECTION 2.01 Representations and Warranties of AWA. AWA
represents and warrants as of the Closing Date and as of each Delivery Date as
follows:

                  (a) Organization; Qualification. AWA is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the corporate power and authority to conduct its business in
which it is currently engaged and to own or hold

                                        6
<PAGE>   10
under lease its properties and to enter into and perform its obligations under
the Operative Agreements to which it is a party as of such date. AWA is duly
qualified to do business as a foreign corporation in good standing in each
jurisdiction in which the nature and extent of the business conducted by it, or
the ownership of its properties, requires such qualification, except where the
failure to be so qualified would not give rise to a Material Adverse Change to
AWA.

                  (b) Corporate Authorization. AWA has taken, or caused to be
taken, all necessary corporate action (including, without limitation, the
obtaining of any consent or approval of stockholders required by its certificate
of incorporation or by-laws) to authorize the execution and delivery of each of
the Operative Agreements to which it is a party as of such date, and the
performance of its obligations thereunder.

                  (c) No Violation. The execution and delivery by AWA of the
Operative Agreements to which it is a party as of such date, the performance by
AWA of its obligations thereunder and the consummation by AWA of the
Transactions contemplated thereby, do not and will not (a) violate any provision
of the certificate of incorporation or by-laws of AWA, (b) violate any law,
regulation, rule or order applicable to or binding on AWA or (c) violate or
constitute any default under (other than any violation or default that would not
result in a Material Adverse Change to AWA), or result in the creation of any
Lien (other than as permitted under the related Lease or as created by the
related Indenture) upon the Aircraft under, any indenture, mortgage, chattel
mortgage, deed of trust, conditional sales contract, lease, loan or other
material agreement, instrument or document to which AWA is a party or by which
it or any of its properties is bound.

                  (d) Approvals. The execution and delivery by AWA of the
Operative Agreements to which it is a party as of such date, the performance by
AWA of its obligations thereunder and the consummation by AWA of the
Transactions contemplated thereby do not and will not require the consent or
approval of, or the giving of notice to, or the registration with, or the
recording or filing of any documents with, or the taking of any other action in
respect of, (a) any trustee or other creditor of AWA and (b) any Government
Entity, other than the filing of (w) the FAA Filed Documents and the Financing
Statements (and continuation statements periodically), (x) filings, recordings,
notices or other ministerial actions pursuant to any routine recording,
contractual or regulatory requirements applicable to it, (y) filings,
recordings, notices or other actions contemplated by the Operative Agreements in
connection with the subleasing or reregistration of the Aircraft and (z)
filings, recordings, notices or other actions relating to the Securities Act as
contemplated by the Registration Rights Agreement.

                  (e) Valid and Binding Agreements. The Operative Agreements
executed and delivered by AWA on or prior to such date have been duly executed
and delivered by AWA and, assuming the due authorization, execution and delivery
thereof by the other party or parties thereto, constitute the legal, valid and
binding obligations of AWA and are enforceable against AWA in accordance with
the respective terms thereof, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, receivership, moratorium and other
similar laws affecting the rights of creditors generally and general principles
of equity, whether considered in a proceeding at law or in equity and subject to
principles of public policy limiting the right to enforce the indemnification
provisions contained herein, insofar as such provisions relate to
indemnification for liabilities arising under federal securities laws.

                                        7
<PAGE>   11
                  (f) Litigation. Except as set forth in the most recent Annual
Report on Form 10-K, as amended, of America West Holdings Corporation
("Holdings"), the parent of AWA, filed by Holdings with the SEC on or prior to
the Closing Date or such Delivery Date, as the case may be, or in any Quarterly
Report on Form 10-Q or Current Report on Form 8-K filed by Holdings with the SEC
subsequent to such Form 10-K, no action, claim or proceeding is now pending or,
to the actual knowledge of AWA, threatened, against AWA or Holdings, before any
court, governmental body, arbitration board, tribunal or administrative agency,
which is reasonably likely to be determined adversely to AWA or Holdings and if
determined adversely to AWA or Holdings is reasonably likely to result in a
Material Adverse Change.

                  (g) Financial Condition. The audited consolidated balance
sheet of Holdings with respect to Holding's most recent fiscal year included in
Holding's most recent Annual Report on Form 10-K, as amended, filed by Holdings
with the SEC, and the related consolidated statements of operations and cash
flows for the period then ended have been prepared in conformity with GAAP and
present fairly in all material respects the financial condition of Holdings and
its consolidated subsidiaries as of such date and the results of its operations
and cash flows for such period, and since the date of such balance sheet, there
has been no material adverse change in such financial condition or operations of
Holdings, except for matters disclosed in (a) the financial statements referred
to above or (b) any subsequent Quarterly Report on Form 10-Q or Current Report
on Form 8-K filed by Holdings with the SEC on or prior to the Closing Date or
such Delivery Date, as the case may be.

                  (h) Registration and Recordation. Except for (a) the
registration of the Aircraft with the FAA pursuant to the Act in the name of
Owner Trustee in respect of a Leased Aircraft and AWA in respect of an Owned
Aircraft, (b) the filing for recordation (and recordation) of the FAA Filed
Documents, (c) the filing of the Financing Statements (and continuation
statements relating thereto at periodic intervals), (d) the taking of possession
and retention by Mortgagee of the original counterparts of the related Lease
with respect to the Leased Aircraft, (e) the affixation of the nameplates
referred to in Section 7.1.3 of the Lease in respect of a Leased Aircraft, and
Section 4.02(e) of the Indenture, with respect to Owned Aircraft, at the
Delivery Date with respect to each Aircraft, no further action, including any
filing or recording of any document (including any financing statement in
respect thereof under Article 9 of the UCC) is necessary in order to establish
and perfect (i) in respect of a Leased Aircraft, the right, title or interest of
Owner Trustee, and the Mortgagee's first priority perfected security interest in
such Aircraft and in the related Lease (subject only to Permitted Liens as
defined in the related Indenture), and (ii) in respect of an Owned Aircraft, the
Mortgagee's first priority perfected security interest in such Aircraft (subject
only to Permitted Liens as defined in the related Indenture), as against AWA and
any other Person, in each case, in any applicable jurisdictions in the United
States.

                  (i) Chief Executive Office. The chief executive office (as
such term is defined in Article 9 of the UCC) of AWA is located at 4000 E. Sky
Harbour Boulevard, Phoenix, Arizona 85034.

                  (j) No Default. On each Delivery Date, no event exists that in
respect of a Leased Aircraft delivered on such date constitutes a Lease Default
(as defined in the Lease for

                                        8
<PAGE>   12
such Aircraft), and no event exists that in respect of an Owned Aircraft
delivered on such date would constitute an Event of Default (as defined in the
Indenture for such Aircraft).

                  (k) No Event of Loss. With respect to each Delivery Date, no
Event of Loss has occurred with respect to the Airframe or any Engine which is
Collateral under the Indenture executed as of such Delivery Date, and to the
actual knowledge of AWA, no circumstance, condition, act or event has occurred
that, with the giving of notice or lapse of time or both gives rise to or
constitutes an Event of Loss with respect to such Airframe or any such Engine.

                  (l) Compliance with Laws.

                           (a) AWA is a Citizen of the United States and a U.S.
                  Air Carrier.

                           (b) AWA holds all licenses, permits and franchises
                  from the appropriate Government Entities necessary to
                  authorize AWA to lawfully engage in air transportation and to
                  carry on scheduled commercial passenger service as currently
                  conducted, except where the failure to so hold any such
                  license, permit or franchise would not give rise to a Material
                  Adverse Change to AWA.

                           (c) AWA is not an "investment company" or a company
                  controlled by an "investment company" within the meaning of
                  the Investment Company Act of 1940, as amended.

                  (m) Securities Laws. Neither AWA nor any person authorized to
act on its behalf has directly or indirectly offered any beneficial interest or
Security relating to the ownership of the Aircraft or any Lease or any interest
in any Trust Property and Trust Agreement, or any of the Equipment Notes or any
other interest in or security under any Indenture, for sale, to, or solicited
any offer to acquire any such interest or security from, or has sold any such
interest or security to, any Person in violation of the Securities Act.

                  (n) Section 1110. With respect to each Leased Aircraft
delivered on such Delivery Date, the Owner Trustee, as lessor under the related
Lease and the Mortgagee, as assignee under the related Indenture, and with
respect to each Owned Aircraft delivered on such Delivery Date, the related
Mortgagee, is entitled to the benefits of Section 1110 (as in effect on such
date) in the event of a case under Chapter 11 of the Bankruptcy Code in which
AWA is a debtor.

                  (o) Accuracy of Information. Neither the Operative Agreements
to which it is a party as of such date nor other material information relating
to the Aircraft or the operations or financial condition of AWA furnished to the
Policy Provider contains any statement of a material fact which was untrue or
misleading in any material respect when made. Except as disclosed in the
Offering Document under the caption "Risk Factors - Risk Factors Relating to
Holdings," or as provided in Section 2.01(f) hereof, AWA has no knowledge of any
circumstances that could reasonably be expected to cause a Material Adverse
Change with respect to AWA.

                                        9
<PAGE>   13
                  SECTION 2.02 Covenants of AWA. AWA covenants and agrees with
the Policy Provider as follows:

                  (a) Without the prior written consent of the Policy Provider
(which may be granted or withheld in its sole discretion), each Participation
Agreement and the other Financing Agreements (as defined in the Note Purchase
Agreement) to be entered into pursuant to such Participation Agreement, will not
vary the Mandatory Economic Terms and will contain the Mandatory Document Terms
in the form attached to the Note Purchase Agreement without modification in any
adverse respect (without regard to the materiality thereof) as regards the
interests, rights and remedies of the Policy Provider, notwithstanding the
provisions in the Note Purchase Agreement permitting such modifications to be
made if the effect thereof is not materially adverse to certain parties.

                  (b) With respect to the Mandatory Document Terms referred to
in the Note Purchase Agreement that relate to certain maintenance standards but
which are not required to be included in the Leases related to Participation
Agreements to which General Electric Capital Corporation (or any Affiliate
thereof) is the owner participant, America West shall adhere to such standards
as if they were contained in such Leases.

                  (c) Notwithstanding the provisions of any Lease or any other
Operative Agreement and in addition to and not in limitation of any other right
which the Policy Provider may have under any other Operative Agreement, AWA
agrees that the Policy Provider and its representatives may at least once in
every five year period following the issuance of the Class G Certificates, at
their expense, inspect any Aircraft or Aircraft Document (as defined in the
related Indenture), and may otherwise meet with the relevant officers and
managers of AWA (at any time) to discuss the affairs, finances and accounts of
AWA, upon reasonable request by the Policy Provider; provided that (i) each such
inspection or meeting shall be conducted during the business hours of AWA, (ii)
each such inspection or meeting shall not be conducted in any manner so as to be
unreasonably disruptive to the day to day operations of AWA or otherwise
interfere with AWA's quiet enjoyment of the Aircraft to the extent provided in
Section 4.3 of the related Lease (in the case of a Leased Aircraft) or Section
5.4.1 of the related Participation Agreement (in the case of an Owned Aircraft)
so long as the Lease is not in default, (iii) the Policy Provider shall give AWA
at least thirty (30) days notice of its intention to inspect any Aircraft or
Aircraft Document (as defined in Annex A to the related Participation
Agreement), and (iv) any inspection of the Aircraft hereunder shall be limited
to a visual, walk-around inspection, and shall not include the opening of any
panels, bays, or other components of the Aircraft. AWA will reasonably cooperate
with the Policy Provider in response to each such request by the Policy
Provider.

                  (d) Anything in the Note Purchase Agreement to the contrary
notwithstanding, without the consent of the Policy Provider, AWA agrees not to
utilize lease economics or debt in relation to the Aircraft to be financed under
the Note Purchase Agreement such that the principal amount of the Class G
Equipment Notes (assuming the amortization of the Class G Equipment Notes occurs
as set forth on the amortization schedule established on the delivery date with
respect to such Class G Equipment Notes or, if such amortization schedule is
modified thereafter, assuming the amortization of the Class G Equipment Notes
occurs as set forth on such modified amortization schedule), in aggregate or in
relation to an individual Owned Aircraft or Leased

                                       10

<PAGE>   14
Aircraft, as of the last day of each semi-annual period, expressed as a
percentage of the Appraised Current Market Value as of the delivery date of each
Aircraft, exceeds the applicable percentage set forth in the following schedule:

<TABLE>
<CAPTION>
SEMI-ANNUAL PERIOD                               SCHEDULE A      SCHEDULE B

<S>                                              <C>             <C>
Initial Date*                                       57.0%           57.0%
        1                                           57.0%           57.0%
        2                                           56.1%           57.0%
        3                                           54.5%           55.3%
        4                                           54.5%           55.3%
        5                                           52.0%           53.6%
        6                                           52.0%           53.6%
        7                                           50.0%           51.9%
        8                                           50.0%           51.9%
        9                                           48.2%           50.2%
        10                                          48.2%           50.2%
        11                                          46.1%           48.5%
        12                                          45.7%           48.5%
        13                                          43.2%           46.7%
        14                                          42.8%           46.7%
        15                                          42.1%           45.0%
        16                                          40.6%           45.0%
        17                                          39.4%           43.3%
        18                                          38.6%           43.3%
        19                                          36.6%           39.3%
        20                                          35.9%           39.3%
        21                                          34.7%           37.3%
        22                                          33.5%           37.3%
        23                                          32.1%           34.2%
        24                                          31.4%           34.2%
        25                                          29.6%           30.1%
        26                                          28.8%           30.1%
        27                                          26.1%           27.1%
        28                                          21.7%           27.1%
        29                                          20.0%           24.5%
        30                                          16.9%           23.3%
        31                                          16.9%           21.5%
        32                                          16.4%           21.5%
        33                                          15.2%           17.3%
        34                                          15.2%           17.3%
        35                                          13.2%           17.3%
        36                                          13.2%           17.3%
        37                                          11.6%           16.7%
        38                                          11.6%           16.7%
        39                                          11.6%           16.7%
        40                                          11.6%           16.7%
</TABLE>

Schedule A applies in the case of the aggregate of all Aircraft.

* The Initial Date for an individual Owned Aircraft or Leased Aircraft is the
delivery date and the Initial Date for the aggregate of all Aircraft is the
Closing Date.

                                       11
<PAGE>   15
Schedule B applies to any individual Leased Aircraft and any individual Owned
Aircraft.

                  SECTION 2.03 Covenants of WTC and Subordination Agent. WTC and
Subordination Agent shall perform and observe, in all material respects, all of
its covenants, obligations and agreements in any Operative Agreement to which it
is a party to be observed or performed by it.

                  SECTION 2.04 Representations, Warranties and Covenants of the
Policy Provider. The Policy Provider represents, warrants and covenants to AWA
and the Subordination Agent as follows:

                  (a) Organization and Licensing. The Policy Provider is duly
organized, validly existing and in good standing as a Wisconsin-domiciled stock
insurance company duly qualified to conduct an insurance business in every
jurisdiction where qualification may be necessary to accomplish the
Transactions.

                  (b) Corporate Power. The Policy Provider has the corporate
power and authority to issue the Policy, to execute and deliver this Insurance
Agreement and the other Operative Agreements to which it is a party and to
perform all of its obligations hereunder and thereunder.

                  (c) Authorization; Approvals. Proceedings legally required for
the issuance and execution of the Policy and the execution, delivery and
performance of this Insurance Agreement have been taken and licenses, orders,
consents or other authorizations or approvals of any governmental boards or
bodies legally required for the enforceability of the Policy have been obtained;
any proceedings not taken and any licenses, authorizations or approvals not
obtained are not material to the enforceability of the Policy.

                  (d) Enforceability. This Insurance Agreement constitutes, and
the Policy, when issued, will constitute, a legal, valid and binding obligation
of the Policy Provider, enforceable in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium, receivership and other
similar laws affecting creditors' rights generally and to general principles of
equity and subject to principles of public policy limiting the right to enforce
the indemnification provisions contained herein, insofar as such provisions
relate to indemnification for liabilities arising under federal securities laws.

                  (e) Financial Information. The balance sheet of the Policy
Provider as of December 31, 1999 and the related statements of income,
stockholders' equity and cash flows for the three fiscal years ended December
31, 1999, and the accompanying footnotes, together with an opinion thereon dated
January 21, 2000 of KPMG LLP, independent certified public accountants, a copy
of which is incorporated by reference into the Offering Document, fairly present
in all material respects the financial condition of the Policy Provider as of
such dates and for the periods covered by such statements in accordance with
generally accepted accounting principles consistently applied. The balance sheet
of the Policy Provider as of March 31, 2000 and the related statements of
operations, stockholders' equity and cash flows for the three-month period ended
March 31, 2000 and the accompanying footnotes, a copy of which is incorporated
by reference into the Offering Document, present fairly in all material respects
the financial condition of the Policy Provider as of such date and for such
three-month period in accordance

                                       12
<PAGE>   16
with generally accepted accounting principles consistently applied. Since March
31, 2000, there has been no material change in such financial condition of the
Policy Provider that would materially and adversely affect its ability to
perform its obligations under the Policy.

                  (f) Policy Provider Information. The Policy Provider
Information is true and correct in all material respects and does not contain
any untrue statement of a material fact.

                  (g) No Litigation. There are no actions, suits, proceedings or
investigations pending or, to the best of the Policy Provider's knowledge,
threatened against it at law or in equity or before or by any court,
governmental agency, board or commission or any arbitrator which, if decided
adversely, would materially and adversely affect its ability to perform its
obligations under the Policy or this Insurance Agreement.

                  (h) Compliance with Law, Etc. No practice, procedure or policy
employed, or proposed to be employed, by the Policy Provider in the conduct of
its business violates any law, regulation, judgment, agreement, order or decree
applicable to the Policy Provider that, if enforced, could result in a Material
Adverse Change with respect to the Policy Provider.

                  (i) No Acceleration Payments. The Policy Provider shall not
make any payment under the Policy except as specifically required in the
definition of "Deficiency Amount" therein and in respect of any "Preference
Amount" (as defined therein).

                                   ARTICLE III

                   THE POLICY; REIMBURSEMENT; INDEMNIFICATION

                  SECTION 3.01 Issuance of the Policy. The Policy Provider
agrees to issue the Policy on the Closing Date subject to satisfaction of the
conditions precedent set forth below on or prior to the Closing Date:

                  (a) Operative Agreements. The Policy Provider shall have
received a copy of (i) each of the Operative Agreements to be executed and
delivered on or prior to the Closing Date, in form and substance reasonably
satisfactory to the Policy Provider, duly authorized, executed and delivered by
each party thereto and (ii) a copy of the Offering Document;

                  (b) Certified Documents and Resolutions. The Policy Provider
shall have received (i) a copy of the certificate of incorporation and by-laws
of AWA and (ii) a certificate of the Secretary or Assistant Secretary of AWA
dated the Closing Date stating that attached thereto is a true, complete and
correct copy of resolutions duly adopted by the Board of Directors of AWA
authorizing the execution, delivery and performance by AWA of the Operative
Agreements to which it is a party and the consummation of the Transactions and
that such applicable organizational documents and resolutions are in full force
and effect without amendment or modification on the Closing Date;

                  (c) Incumbency Certificate. The Policy Provider shall have
received a certificate of the Secretary or an Assistant Secretary of each of AWA
and the Subordination Agent certifying the names and signatures of the officers
of AWA and the Subordination Agent

                                       13
<PAGE>   17
authorized to execute and deliver the Operative Agreements to which it is a
party on or prior to Closing Date and that, with respect to AWA, shareholder
consent to the execution and delivery of such documents by AWA, is not necessary
or has been obtained;

                  (d) Representations and Warranties. The representations and
warranties of AWA and the Subordination Agent dated the Closing Date set forth
or incorporated by reference in this Insurance Agreement shall be true and
correct on and as of the Closing Date;

                  (e) Documentation. The Policy Provider shall have received a
copy of each document, instrument, certificate and opinion delivered on or
before the Closing Date pursuant to the Operative Agreement, including each
opinion of counsel addressed to any of Moody's, S&P, the Trustee, AWA, the
Subordination Agent and the Initial Purchasers (except for the opinion of
counsel to the Initial Purchasers addressed only to the Initial Purchasers), in
respect of AWA and the Subordination Agent or any of the other parties to the
Operative Agreements and the Transactions dated the Closing Date in form and
substance reasonably satisfactory to the Policy Provider, addressed to the
Policy Provider (or accompanied by a letter from the counsel rendering such
opinion to the effect that the Policy Provider is entitled to rely on such
opinion as of its date as if it were addressed to the Policy Provider) and
addressing such matters as the Policy Provider may reasonably request, and the
counsel providing each such opinion shall have been instructed by its client to
deliver such opinion to the addressees thereof;

                  (f) Approvals, Etc. The Policy Provider shall have received
true and correct copies of all approvals, licenses and consents, if any,
including any required approval of the shareholders of AWA, required in
connection with the Transactions;

                  (g) No Litigation, Etc. No suit, action or other proceeding,
investigation or injunction, or final judgment relating thereto, shall be
pending or threatened before any court, governmental or administrative agency or
arbitrator in which it is sought to restrain or prohibit or to obtain damages or
other relief in connection with any of the Operative Agreements or the
consummation of the Transactions;

                  (h) Legality. No statute, rule, regulation or order shall have
been enacted, entered or deemed applicable by any government or governmental or
administrative agency or court that would make the Transactions illegal or
otherwise prevent the consummation thereof;

                  (i) Issuance of Ratings. The Policy Provider shall have
received confirmation that the risk secured by the Policy is rated no lower than
"A-" by S&P and "Baa2" by Moody's, the Class G Certificates, when issued, will
be rated "AAA" by S&P and "Aaa" by Moody's and that the Class C Certificates,
when issued, will be rated "BBB+" by S&P and "Baa3" by Moody's, and shall have
received the confirmation from S&P of a capital charge acceptable to the Policy
Provider;

                  (j) Satisfactory Documentation. The Policy Provider and its
counsel shall have reasonably determined that all documents, certificates and
opinions to be delivered in connection with the Certificates conform to the
terms of the related Trust Agreement, the Offering Document, this Insurance
Agreement and the Intercreditor Agreement.

                                       14
<PAGE>   18
                  (k) Filings. The Policy Provider shall have received evidence
that there shall have been made and shall be in full force and effect, all
filings, recordings and registrations, and there shall have been given or taken
any notice or similar action as is necessary in order to establish, perfect,
protect and preserve the right, title and interest of the Policy Provider
created by the Operative Agreements executed and delivered on or prior to the
Closing Date;

                  (l) Conditions Precedent. All conditions precedent to the
issuance of the Certificates under the Trust Agreements shall have been
satisfied, or waived with the consent of the Policy Provider. All conditions
precedent to the effectiveness of the Liquidity Facilities shall have been
satisfied or waived and all conditions precedent to the purchases of the
Certificates by the Initial Purchasers under the Purchase Agreement shall have
been satisfied or waived by the Initial Purchasers; and

                  (m) Expenses. The Policy Provider shall have received payment
in full of all amounts required to be paid to or for account of the Policy
Provider on or prior to the Closing Date.

                  SECTION 3.02 Payment of Fees and Premium.

                  (a) Legal Fees. On the Closing Date, AWA shall pay or cause to
be paid to, or as directed by, the Policy Provider, legal fees, disbursements
and charges incurred by the Policy Provider in connection with the issuance of
the Policy and this Agreement in accordance with the Policy Fee Letter. Any
additional fees of the Policy Provider's counsel or auditors payable in respect
of any amendment or supplement to the Offering Document or the preparation of
the Exchange Offering Registration Statement requested by AWA and incurred after
the Closing Date shall be paid by AWA promptly following receipt of
documentation thereof.

                  (b) Rating Agency Fees. AWA shall promptly pay the initial
fees of S&P and Moody's with respect to the Certificates and the Transactions
following receipt of a statement with respect thereto. All periodic and
subsequent fees of S&P or Moody's with respect to, and directly allocable to,
the Certificates shall be for the account of, and shall be billed to, AWA. The
fees for any other rating agency shall be paid by the party requesting such
other agency's rating unless such other agency is a substitute for S&P or
Moody's in the event that S&P or Moody's is no longer rating the Certificates,
in which case the fees for such agency shall be paid by AWA.

                  (c) Appraisal Fees. AWA shall pay as directed by the Policy
Provider on the Closing Date the cost of appraisals of the Aircraft performed by
Morten Beyer and Agnew, Inc. for the Policy Provider, not to exceed $2,000 in
total.

                  (d) Premium.

                   (i) In consideration of the issuance by the Policy Provider
         of the Policy, AWA shall pay or cause to be paid to the Policy
         Provider, the Premium, provided, however, such requirement shall not be
         duplicative of any payments in respect of Premiums made in accordance
         with Section 6(b) of the Note Purchase Agreement and the provisions of
         each Lease and each Owned Aircraft Indenture. AWA shall also pay any
         additional amounts, as and when due, to be paid by it under the Policy
         Fee Letter.

                                       15
<PAGE>   19
                  (ii) No portion of the Premium paid shall be refundable,
         without regard to whether the Policy Provider makes any payment under
         the Policy or any other circumstances relating to the Class G
         Certificates or provision being made for payment of the Class G
         Certificates prior to maturity.

                  SECTION 3.03 Reimbursement Obligation.

                  (a) As and when due in accordance with and from the funds
specified in Sections 2.4(b), 3.2 and 3.3 of the Intercreditor Agreement, the
Policy Provider shall be entitled to reimbursement for any payment made by the
Policy Provider under the Policy or to the Liquidity Provider under Section
2.6(c) of the Intercreditor Agreement, which reimbursement shall be due and
payable on the date provided in such Sections, in an amount equal to the amount
to be so paid and all amounts previously paid that remain unreimbursed. In
addition, to the extent that any such payment by the Policy Provider shall have
been made as a result of a default by a Liquidity Provider in its obligation to
make an Advance, as provided in the Intercreditor Agreement, the Policy Provider
shall be entitled to the payment of interest on such amounts to the extent, at
the time and in the priority that the Liquidity Provider would have been paid
pursuant to the Intercreditor Agreement had the Liquidity Provider made such
Advance.

                  (b) After the distribution to the Policy Provider of all
amounts distributable to it under the Intercreditor Agreement, AWA agrees to
reimburse the Policy Provider immediately, upon demand, to the extent of any
payment made under the Policy or to the Liquidity Provider under Section 2.6(c)
of the Intercreditor Agreement, less any amount in respect of such payment paid
to and received by the Policy Provider pursuant to the Operative Agreements.

                  (c) AWA agrees to pay to the Policy Provider any and all
charges, fees, costs and expenses that the Policy Provider may reasonably pay or
incur, including reasonable attorneys' and accountants' fees and expenses
(without duplication of amounts paid to the Policy Provider in respect of the
Operative Agreements), in connection with (i) the enforcement, defense or
preservation of any rights in respect of this Insurance Agreement, including
defending, monitoring or participating in any litigation or proceeding and (ii)
any amendment, waiver or other action requested by AWA with respect to, or
related to, any Operative Agreements or to any form document attached to any
Operative Agreement as an exhibit, schedule or annex thereto, whether or not
executed or completed. Provided that three Business Days' written notice of the
intended payment or incurrence shall have been given to AWA by the Policy
Provider, such reimbursement shall be due on the dates on which such charges,
fees, costs or expenses are paid or incurred by the Policy Provider.

                  SECTION 3.04 Indemnification. AWA agrees (i) that the Policy
Provider is hereby entitled to the full benefit of the General Indemnity
contained in, and the General Tax Indemnity contained in Annex A to, the forms
of Participation Agreement attached to the Note Purchase Agreement as if such
provisions were set forth in full herein, the Policy Provider were an Indemnitee
thereunder and the Operative Agreements referred to therein include this
Insurance Agreement and the Note Purchase Agreement and (ii) that it shall name
the Policy Provider as an Indemnitee in each Participation Agreement and that
the Policy Provider shall be entitled to the full benefit of the General Tax
Indemnity provisions set forth in or incorporated by reference in each
Participation Agreement; provided, however, any exclusion contained in any

                                       16
<PAGE>   20
Participation Agreement or form thereof related to any representation or
warranty by any Indemnitee other than the Policy Provider, the failure by any
Indemnitee other than the Policy Provider to perform or observe any agreement,
covenant or condition in any of the Operative Documents, the acts or omissions
involving the willful misconduct or gross negligence of any Indemnitee other
than the Policy Provider or any other action or omission of any other Person
other than the Policy Provider shall not apply to the indemnification
obligations of AWA to the Policy Provider.

                  SECTION 3.05 Procedure for Payment of Fees and Premiums. All
payments to be made to the Policy Provider under this Insurance Agreement shall
be made to the Policy Provider in lawful currency of the United States of
America in immediately available funds at the notice address for the Policy
Provider as specified in the Intercreditor Agreement on the date when due or as
the Policy Provider shall otherwise direct by written notice to the other
parties hereto. In the event that the date of any payment to the Policy Provider
or the expiration of any time period hereunder occurs on a day that is not a
Business Day, then such payment shall be made, or such expiration of time period
shall occur, on the next succeeding Business Day with the same force and effect
as if such payment was made or time period expired on the scheduled date of
payment or expiration date, as applicable.

                                   ARTICLE IV

                               FURTHER AGREEMENTS

                  SECTION 4.01 Effective Date; Term of the Insurance Agreement.
This Insurance Agreement shall take effect on the Closing Date and shall remain
in effect until the later of (a) such time as the Policy Provider is no longer
subject to a claim under the Policy and the Policy shall have been surrendered
to the Policy Provider for cancellation and (b) all amounts payable to the
Policy Provider by AWA or the Subordination Agent hereunder or from any other
source hereunder or under the Operative Agreements and all amounts payable under
the Class G Certificates have been paid in full; provided, however, that the
provisions of Section 3.04 hereof shall survive any termination of this
Insurance Agreement.

                  SECTION 4.02 Further Assurances and Corrective Instruments.

                  (a) Neither AWA nor the Subordination Agent shall grant any
waiver of rights or agree to any amendment or modification to any of the
Operative Agreements to which either of them is a party, which waiver,
amendment, or modification would have an adverse effect on the rights or
remedies of the Policy Provider, without the prior written consent of the Policy
Provider so long as the Policy Provider shall be the Controlling Party, and any
such waiver without prior written consent of the Policy Provider shall be null
and void and of no force or effect.

                  (b) To the extent permitted by law, each of AWA and the
Subordination Agent agrees that it will, from time to time, execute, acknowledge
and deliver, or cause to be executed, acknowledged and delivered, such
supplements hereto and such further instruments as the Policy Provider may
reasonably request and as may be required in the Policy Provider's reasonable
judgment to effectuate the intention of or facilitate the performance of this
Insurance Agreement.

                                       17
<PAGE>   21
                  SECTION 4.03 Obligations Absolute.

                  (a) So long as no Policy Provider Default shall have occurred
and be continuing beyond any grace period applicable thereto, the obligations of
AWA hereunder shall be absolute and unconditional and shall be paid or performed
strictly in accordance with this Insurance Agreement under all circumstances
irrespective of:

                   (i) any lack of validity or enforceability of, or any
         amendment or other modifications of, or waiver, with respect to any of
         the Operative Agreements or the Certificates;

                  (ii) any exchange or release of any other obligations
         hereunder;

                 (iii) the existence of any claim, setoff, defense, reduction,
         abatement or other right that AWA may have at any time against the
         Policy Provider or any other Person;

                 (iv) any document presented in connection with the Policy
         proving to be forged, fraudulent, invalid or insufficient in any
         respect or any statement therein being untrue or inaccurate in any
         respect;

                  (v) any payment by the Policy Provider under the Policy
         against presentation of a certificate or other document that does not
         strictly comply with the terms of the Policy;

                  (vi) any failure of AWA to receive the proceeds from the sale
         of the Certificates; and

                (vii) any other circumstances, other than payment in full, that
         might otherwise constitute a defense available to, or discharge of, AWA
         in respect of any Operative Agreements.

                  (b) So long as no Policy Provider Default shall have occurred
and be continuing beyond any period of cure applicable thereto and except as
expressly provided herein or in any Operative Agreement, AWA renounces the right
to assert as a defense to the performance of its obligations each of the
following: (i) to the extent permitted by law, any and all redemption and
exemption rights and the benefit of all valuation and appraisement privileges
against the indebtedness and obligations evidenced by any Operative Agreements
or by any extension or renewal thereof; (ii) presentment and demand for payment,
notices of nonpayment and of dishonor, protest of dishonor and notice of
protest; (iii) all notices in connection with the delivery and acceptance hereof
and all other notices in connection with the performance, default or enforcement
of any payment hereunder, except as required by the Operative Agreements; and
(iv) all rights of abatement, diminution, postponement or deduction, or to any
defense other than payment, or to any right of setoff or recoupment arising out
of any breach under any of the Operative Agreements, by any party thereto or any
beneficiary thereof, or out of any obligation at any time owing to AWA.

                  (c) AWA (i) agrees that any consent, waiver or forbearance
hereunder with respect to an event shall operate only for such event and not for
any subsequent event;

                                       18
<PAGE>   22
(ii) consents to any and all extensions of time that may be granted by the
Policy Provider with respect to any payment hereunder or other provisions hereof
and to the release of any security at any time given for any payment hereunder,
or any part thereof, with or without substitution, and to the release of any
Person or entity liable for any such payment; and (iii) consents to the addition
of any and all other makers, endorsers, guarantors and other obligors for any
payment hereunder, and to the acceptance of any and all other security for any
payment hereunder, and agrees that the addition of any such obligors or security
shall not affect the liability of AWA for any payment hereunder.

                  (d) No failure by the Policy Provider to exercise, and no
delay by the Policy Provider in exercising, any right hereunder shall operate as
a waiver thereof. The exercise by the Policy Provider of any right hereunder
shall not preclude the exercise of any other right, and the remedies provided
herein to the Policy Provider are declared in every case to be cumulative and
not exclusive of any remedies provided by law or equity.

                  (e) Nothing herein shall be construed as prohibiting AWA from
pursuing any rights or remedies it may have against any Person in a separate
legal proceeding.

                  Section 4.04 Assignments; Reinsurance; Third-Party Rights.

                  (a) This Insurance Agreement shall be a continuing obligation
of the parties hereto and shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns. The
Subordination Agent, except as provided in Section 8.1 of the Agreement, and
AWA, except for any transaction expressly permitted by Section 5.02 of the Class
G Trust Agreement, may not assign their respective rights under this Insurance
Agreement, or delegate any of their duties hereunder, without the prior written
consent of the other parties hereto. Any assignments made in violation of this
Insurance Agreement shall be null and void.

                  (b) The Policy Provider shall have the right to grant
participations in its rights under this Insurance Agreement and to enter into
contracts of reinsurance with respect to the Policy upon such terms and
conditions as the Policy Provider may in its discretion determine; provided,
however, that no such participation or reinsurance agreement or arrangement
shall relieve the Policy Provider of any of its obligations hereunder or under
the Policy or grant to any participant or reinsurer any rights hereunder or
under any Operative Agreement.

                  (c) Except as provided herein with respect to participants and
reinsurers, nothing in this Insurance Agreement shall confer any right, remedy
or claim, express or implied, upon any Person, including, particularly, any
Holder, other than upon the Policy Provider against AWA, or upon AWA against the
Policy Provider, and all the terms, covenants, conditions, promises and
agreements contained herein shall be for the sole and exclusive benefit of the
parties hereto and their successors and permitted assigns. Neither the Trustee
nor any Holder shall have any right to payment from the Premium paid or payable
hereunder or from any amounts paid by AWA pursuant to Sections 3.02 or 3.03.

                  Section 4.05 Liability of the Policy Provider. Neither the
Policy Provider nor any of its officers, directors or employees shall be liable
or responsible for: (a) the use that may be made of the Policy by the
Subordination Agent or for any acts or omissions of the

                                       19
<PAGE>   23
Subordination Agent in connection therewith; or (b) the validity, sufficiency,
accuracy or genuineness of documents delivered to the Policy Provider in
connection with any claim under the Policy, or of any signatures thereon, even
if such documents or signatures should in fact prove to be in any or all
respects invalid, insufficient, fraudulent or forged (unless the Policy Provider
shall have actual knowledge thereof). In furtherance and not in limitation of
the foregoing, the Policy Provider may accept documents that appear on their
face to be in order, without responsibility for further investigation.

                                    ARTICLE V

                                  MISCELLANEOUS

                  Section 5.01 Amendments, Etc. This Insurance Agreement may be
amended, modified, supplemented or terminated only by written instrument or
written instruments signed by the parties hereto; provided that if such
amendment, modification, supplement or termination would have a material adverse
affect on the interests of the Subordination Agent, a Pass Through Trustee or
any Certificateholder, Ratings Confirmation shall also be obtained prior to such
amendment, modification, supplement or termination being effective. AWA agrees
to provide a copy of any amendment to this Insurance Agreement promptly to the
Subordination Agent and the rating agencies maintaining a rating on the Class G
Certificates. No act or course of dealing shall be deemed to constitute an
amendment, modification, supplement or termination hereof.

                  Section 5.02 Notices. All demands, notices and other
communications to be given hereunder shall be in writing (except as otherwise
specifically provided herein) and shall be mailed by registered mail or
personally delivered and telecopied to the recipient as follows:

                  (a) To the Policy Provider:

                           Ambac Assurance Corporation
                           One State Street Plaza
                           New York, New York 10004
                           Attention: Surveillance Department
                           Facsimile:     (212) 363-1459
                           Confirmation:  (212) 668-0340

         In each case in which notice or other communication to the Policy
Provider refers to an event of default under any Operative Agreement, a claim on
the Policy or with respect to which failure on the part of the Policy Provider
to respond shall be deemed to constitute consent or acceptance, then a copy of
such notice or other communication should also be sent to the attention of the
general counsel of each of the Policy Provider (if by facsimile to (212)
208-3566) and AWA and, in all cases, both any original and all copies shall be
marked to indicate "URGENT MATERIAL ENCLOSED.")

                  (b) To AWA:

                                       20
<PAGE>   24
                           America West  Airlines,  Inc.
                           4000 E. Sky Harbour Blvd.
                           Phoenix, AZ 85034
                           Attention:  Vice President and Treasurer
                           Facsimile:     (480) 693-5886
                           Confirmation:  (480) 693-3685

                  (c) To the Subordination Agent:

                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, DE 19890-0001
                           Attention:  Corporate Trust Administration
                           Facsimile:  302-651-8882.

         A party may specify an additional or different address or addresses by
writing mailed or delivered to the other parties as aforesaid. All such notices
and other communications shall be effective upon receipt unless received after
business hours on any day, in which case on the opening of business on the next
Business Day.

                  Section 5.03 Severability. In the event that any provision of
this Insurance Agreement shall be held invalid or unenforceable by any court of
competent jurisdiction, the parties hereto agree that such holding shall not
invalidate or render unenforceable any other provision hereof. The parties
hereto further agree that the holding by any court of competent jurisdiction
that any remedy pursued by any party hereto is unavailable or unenforceable
shall not affect in any way the ability of such party to pursue any other remedy
available to it.

                  Section 5.04 Governing Law. This Insurance Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
including all matters of construction, validity and performance. This Agreement
is being delivered in New York.

                  Section 5.05 Consent to Jurisdiction.

                  (a) The parties hereto hereby irrevocably submit to the
non-exclusive jurisdiction of the United States District Court for the Southern
District of New York and any court of appropriate jurisdiction in the State of
New York located in the City and County of New York, and any appellate court
from any thereof, in any action, suit or proceeding brought against it and to or
in connection with any of the Operative Agreements or the Transactions or for
recognition or enforcement of any judgment, and the parties hereto hereby
irrevocably and unconditionally agree that all claims in respect of any such
action or proceeding may be heard or determined in such New York state court or,
to the extent permitted by law, in such federal court. The parties hereto agree
that a final unappealable judgment in any such action, suit or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. To the extent permitted by applicable
law, the parties hereto hereby waive and agree not to assert by way of motion,
as a defense or otherwise in any such suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of such courts, that

                                       21
<PAGE>   25
the suit, action or proceeding is brought in an inconvenient forum, that the
venue of the suit, action or proceeding is improper or that the related
documents or the subject matter thereof may not be litigated in or by such
courts.

                  (b) To the extent permitted by applicable law, the parties
hereto shall not seek and hereby waive the right to any review of the judgment
of any such court by any court of any other nation or jurisdiction which may be
called upon to grant an enforcement of such judgment.

                  (c) Service on AWA may be made by delivering, by U.S.
registered mail, messenger or courier service, copies of the summons and
complaint and other process which may be served in any suit, action or
proceeding to AWA addressed as follows: c/o Vedder, Price, Kaufman, Kammholz &
Day, 805 Third Avenue, New York, NY 10022, attention: Ron Scheinberg, and such
service shall be effective service of process for any litigation brought against
AWA in any court. Such address may be changed by AWA by written notice to the
other parties hereto.

                  (d) Nothing contained in this Insurance Agreement shall limit
or affect any party's right to serve process in any other manner permitted by
law or to start legal proceedings relating to any of the Operative Agreements
against any other party or its properties in the courts of any jurisdiction.

                                       22
<PAGE>   26
                  Section 5.06 Consent of the Policy Provider. No disclosure
relating to the Policy or the Policy Provider contained in the Exchange Offer
Registration Statement, which disclosure modifies, alters, changes, amends or
supplements the disclosure relating to the Policy or the Policy Provider
contained in the Offering Memorandum, shall be made without the Policy
Provider's prior written consent. In the event that the consent of the Policy
Provider is required under any of the Operative Agreements, the determination
whether to grant or withhold such consent shall be made by the Policy Provider
in its sole discretion without any implied duty towards any other Person, except
as otherwise expressly provided therein.

                  Section 5.07 Counterparts. This Insurance Agreement may be
executed in counterparts by the parties hereto, and all such counterparts shall
constitute one and the same instrument.

                  Section 5.08 Headings. The headings of Articles and Sections
and the Table of Contents contained in this Insurance Agreement are provided for
convenience only. They form no part of this Insurance Agreement and shall not
affect its construction or interpretation.

                  Section 5.09 Trial by Jury Waived. Each party hereby waives,
to the fullest extent permitted by law, any right to a trial by jury in respect
of any litigation arising directly or indirectly out of, under or in connection
with this Insurance Agreement or any of the other Operative Agreements or any of
the Transactions contemplated hereunder or thereunder. Each party hereto (A)
certifies that no representative, agent or attorney of any party hereto has
represented, expressly or otherwise, that it would not, in the event of
litigation, seek to enforce the foregoing waiver and (B) acknowledges that it
has been induced to enter into the Operative Agreements to which it is a party
by, among other things, this waiver.

                  Section 5.10 Limited Liability. No recourse under any
Operative Agreement shall be had against, and no personal liability shall attach
to, any officer, employee, director, affiliate or shareholder of any party
hereto, as such, by the enforcement of any assessment or by any legal or
equitable proceeding, by virtue of any statute or otherwise in respect of any of
the Operative Agreements, the Certificates or the Policy, it being expressly
agreed and understood that each Operative Agreement is solely an obligation of
each party hereto, and that any and all personal liability, either at common law
or in equity, or by statute or constitution, of every such officer, employee,
director, affiliate or shareholder for breaches of any party hereto of any
obligations under any Operative Agreement is hereby expressly waived as a
condition of and in consideration for the execution and delivery of this
Insurance Agreement.

                  Section 5.11 Entire Agreement. This Insurance Agreement, the
Policy, the Policy Fee letter and the other Operative Agreements set forth the
entire agreement between the parties with respect to the subject matter hereof
and thereof, and supersede and replace any agreement or understanding that may
have existed between the parties prior to the date hereof in respect of such
subject matter. This Insurance Agreement and the Policy are separate and
independent agreements. No breach by any party hereto of any representation,
warranty, covenant, agreement or undertaking contained herein shall in any way
affect the obligations of the Policy Provider under the Policy.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       23
<PAGE>   27
                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement, all as of the day and year first above mentioned.

                               AMBAC ASSURANCE CORPORATION,
                                  as Policy Provider

                               By: /s/ Signature
                                  ____________________________________
                                  Name:
                                  Title:

                               WILMINGTON TRUST COMPANY,
                                  not in its individual capacity but solely as
                                  Subordination Agent

                               By: /s/ Signature
                                  ____________________________________
                                  Name:
                                  Title:

                               AMERICA WEST AIRLINES, INC.

                               By: /s/ Signature
                                  ____________________________________
                                  Name:
                                  Title:

                                       B-1<PAGE>   1

                                                                    Exhibit 4.16

                                                                       EXECUTION

                             NOTE PURCHASE AGREEMENT

                            Dated as of July 7, 2000

                                      Among

                          AMERICA WEST AIRLINES, INC.,

                            WILMINGTON TRUST COMPANY,
                    as Pass Through Trustee under each of the
                          Pass Through Trust Agreements

                            WILMINGTON TRUST COMPANY,
                             as Subordination Agent

                            WILMINGTON TRUST COMPANY,
                                 as Escrow Agent

                                       and

                            WILMINGTON TRUST COMPANY,
                                 as Paying Agent
<PAGE>   2
                        INDEX TO NOTE PURCHASE AGREEMENT
<TABLE>
<CAPTION>
                                                                          Page
                                                                          ----
<S>                                                                      <C>
SECTION 1.  Financing of Aircraft.....................................      2

SECTION 2.  Conditions Precedent.......................................     7

SECTION 3.  Representations and Warranties.............................     8

SECTION 4.  Covenants .................................................    11

SECTION 5.  Notices ...................................................    14

SECTION 6.  Expenses ..................................................    14

SECTION 7.  Further Assurances........................................     16

SECTION 8.  Miscellaneous .............................................    16

SECTION 9.  Governing Law .............................................    17
</TABLE>

                                    Schedules

Schedule I     Aircraft and Scheduled Delivery Months
Schedule II    Pass Through Trust Agreements
Schedule III   Deposit Agreements
Schedule IV    Escrow and Paying Agent Agreements
Schedule V     Mandatory Document Terms
Schedule VI    Mandatory Economic Terms
Schedule VII   Aggregate Amortization Schedule

                                      Annex

Annex A        Definitions

                                    Exhibits

Exhibit A-1    Form of Leased Aircraft Participation Agreement
Exhibit A-2    Form of Lease
Exhibit A-3    Form of Leased Aircraft Indenture
Exhibit A-4    Form of Aircraft Purchase Agreement Assignment
Exhibit A-5    Form of Leased Aircraft Trust Agreement
Exhibit B      Form of Delivery Notice

                                      -i-
<PAGE>   3
Exhibit C-1    Form of Owned Aircraft Participation Agreement
Exhibit C-2    Form of Owned Aircraft Indenture
Exhibit D      Additional Subordination Provision for Series D Equipment Notes

                                      -ii-
<PAGE>   4
                             NOTE PURCHASE AGREEMENT

         This NOTE PURCHASE AGREEMENT, dated as of July 7, 2000, among (i)
AMERICA WEST AIRLINES, INC., a Delaware corporation (the "Company"), (ii)
WILMINGTON TRUST COMPANY ("WTC"), a Delaware banking corporation, not in its
individual capacity except as otherwise expressly provided herein, but solely as
trustee (in such capacity together with its successors in such capacity, the
"Pass Through Trustee") under each of the three separate Pass Through Trust
Agreements (as defined below), (iii) WILMINGTON TRUST COMPANY, a Delaware
banking corporation, as subordination agent and trustee (in such capacity
together with its successors in such capacity, the "Subordination Agent") under
the Intercreditor Agreement (as defined below), (iv) WILMINGTON TRUST COMPANY, a
Delaware banking corporation, as Escrow Agent (in such capacity together with
its successors in such capacity, the "Escrow Agent"), under each of the Escrow
and Paying Agent Agreements (as defined below) and (v) WILMINGTON TRUST COMPANY,
a Delaware banking corporation, as Paying Agent (in such capacity together with
its successors in such capacity, the "Paying Agent") under each of the Escrow
and Paying Agent Agreements.

                              W I T N E S S E T H:

         WHEREAS, capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in Annex A hereto;

         WHEREAS, the Company has obtained commitments from the Manufacturer
pursuant to the Aircraft Purchase Agreement for the delivery of the ten aircraft
listed on Schedule I hereto (together with any aircraft substituted therefor in
accordance with the Aircraft Purchase Agreement prior to the delivery thereof,
the "Aircraft");

         WHEREAS, pursuant to each of the Pass Through Trust Agreements set
forth in Schedule II hereto, and concurrently with the execution and delivery of
this Agreement, separate grantor trusts (collectively, the "Pass Through Trusts"
and, individually, a "Pass Through Trust") have been created to facilitate
certain of the transactions contemplated hereby, including, without limitation,
the issuance and sale of pass through certificates pursuant thereto
(collectively, the "Certificates") to provide for a portion of the financing of
the Aircraft;

         WHEREAS, the Company has entered into the Purchase Agreement dated as
of June 27, 2000 (the "Purchase Agreement") with the several initial purchasers
(the "Initial Purchasers") named therein, which provides that the Company will
cause each Pass Through Trustee to issue and sell the Certificates to the
Initial Purchasers;

         WHEREAS, concurrently with the execution and delivery of this
Agreement, (i) the Escrow Agents and the Depositary entered into the Deposit
Agreements set forth in Schedule III hereto (the "Initial Deposit Agreements")
whereby the applicable Escrow Agent agreed to direct the Initial Purchasers to
make certain deposits referred to therein on the Issuance Date (the "Initial
Deposits") and to permit the applicable Pass Through Trustee to make additional
deposits from time to time thereafter (the Initial Deposits together with such
additional deposits are collectively referred to as the "Deposits") and (ii) the
Pass Through Trustees, the Initial Purchasers, the Paying Agents and the Escrow
Agents entered into the Escrow and Paying
<PAGE>   5
                                                                               2

Agent Agreements set forth in Schedule IV hereto (the "Escrow and Paying Agent
Agreements") whereby, among other things, (a) the Initial Purchasers agreed to
deliver an amount equal to the amount of the Initial Deposits to the Depositary
on behalf of the applicable Escrow Agent and (b) the applicable Escrow Agent,
upon the Depositary receiving such amount, has agreed to deliver escrow receipts
to be affixed to each Certificate;

         WHEREAS, prior to (or, in the case of the utilization of bridge
financing, after) the delivery of each Aircraft from the Manufacturer, the
Company will determine whether to enter into a leveraged lease transaction as
lessee with respect to such Aircraft (a "Leased Aircraft") or to purchase as
owner such Aircraft pursuant to a secured loan transaction (an "Owned Aircraft")
and will give to the Pass Through Trustee a Delivery Notice (as defined below)
specifying its election;

         WHEREAS, upon receipt of a Delivery Notice with respect to an Aircraft,
subject to the terms and conditions of this Agreement, the applicable Pass
Through Trustees will enter into the applicable Financing Agreements relating to
such Aircraft;

         WHEREAS, upon the delivery of each Aircraft, each Pass Through Trustee
will fund its purchase of Equipment Notes with the proceeds of one or more
Deposits withdrawn by the applicable Escrow Agent under the related Deposit
Agreement bearing the same interest rate as the Certificates issued by such Pass
Through Trust;

         WHEREAS, concurrently with the execution and delivery of this
Agreement, (i) Citibank, N.A., a national banking association (the "Liquidity
Provider"), has entered into two revolving credit agreements (each, a "Liquidity
Facility"), one each for the benefit of the Certificateholders of each Pass
Through Trust, with the Subordination Agent, as agent for the Pass Through
Trustee on behalf of each such Pass Through Trust and (ii) the Pass Through
Trustee, the Liquidity Provider, the Policy Provider (as defined below) and the
Subordination Agent have entered into the Intercreditor Agreement, dated as of
the date hereof (the "Intercreditor Agreement"); and

         WHEREAS, concurrently with the execution and delivery of this Agreement
Ambac Assurance Corporation (the "Policy Provider") has entered into the
Insurance and Indemnity Agreement (the "Policy Provider Agreement"), with the
Company and the Subordination Agent, as agent and trustee for the Pass Through
Trustee of the Class G Trust on behalf of the Class G Trust, and the Policy
Provider has issued the certificate guaranty insurance policy (the "Policy")
provided for therein for the benefit of the Class G Certificateholders.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual agreements herein contained and other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the parties hereto
agree as follows:

         SECTION 1. Financing of Aircraft. (a) The Company confirms that it has
entered into the Aircraft Purchase Agreement with the Manufacturer pursuant to
which the Company has agreed to purchase, and the Manufacturer has agreed to
deliver, the Aircraft in the months specified in Schedule I hereto, all on and
subject to terms and conditions specified in the Aircraft Purchase Agreement.
The Company agrees to finance the Aircraft in the manner
<PAGE>   6
                                                                               3

provided herein, all on and subject to the terms and conditions hereof and of
the relevant Financing Agreements.

         (b) In furtherance of the foregoing, the Company agrees to give the
parties hereto, the Depositary, the Policy Provider and each of the Rating
Agencies not less than two Business Days' prior written notice in the form of
the notice set out in Exhibit B hereto (a "Delivery Notice") of the scheduled
delivery date (the "Scheduled Delivery Date") (or, in the case of a substitute
Delivery Notice under Section 1(e) or (f) hereof, one Business Day's prior
notice) in respect of each Aircraft under the Aircraft Purchase Agreement, or in
the case of the utilization of bridge financing as contemplated by Section 1(e)
hereof in respect of any Aircraft, one Business Day's prior notice of the date
of the financing of such Aircraft pursuant to the relevant Financing Agreements,
which notice shall:

                  (i) specify whether the Company has elected to treat such
         Aircraft as a Leased Aircraft or an Owned Aircraft;

                  (ii) specify the Scheduled Delivery Date of such Aircraft
         (which shall be a Business Day before the Cut-off Date and, except as
         provided in Section 1(f) hereof, the date (the "Funding Date") on which
         the financing therefor in the manner provided herein shall be
         consummated);

                  (iii) instruct the applicable Pass Through Trustee to execute
         and deliver to the relevant Escrow Agent a withdrawal certificate in
         the form of Exhibit B to the Escrow Agent so as to provide a Notice of
         Purchase Withdrawal to the Depositary with respect to the Equipment
         Notes to be issued in connection with the financing of such Aircraft;

                  (iv) instruct the applicable Pass Through Trustee to enter
         into the Participation Agreement included in the Financing Agreements
         with respect to such Aircraft in such form and at such a time on or
         before the Funding Date specified in such Delivery Notice and to
         perform its obligations thereunder;

                  (v) specify the aggregate principal amount of each series of
         Equipment Notes to be issued, and purchased by the Pass Through
         Trustees, in connection with the financing of such Aircraft scheduled
         to be delivered on such Funding Date (which shall in all respects
         comply with the Mandatory Economic Terms); and

                  (vi) if such Aircraft is to be a Leased Aircraft, certify that
         the related Owner Participant (A) is not an Affiliate of the Company
         and (B) based on the representations of such Owner Participant, is
         either (1) a Qualified Owner Participant or (2) any other person the
         obligations of which under the Owner Participant Agreements (as defined
         in the applicable Participation Agreement) are guaranteed by a
         Qualified Owner Participant.

         (c) Upon receipt of a Delivery Notice, the Pass Through Trustees shall,
and shall cause the Subordination Agent to, enter into and perform their
obligations under the Participation Agreement and other instructions specified
in such Delivery Notice, provided that such Participation Agreement and the
other Lease Financing Agreements or Owner Financing Agreements to be entered
into pursuant to such Participation Agreement shall be in the forms thereof
annexed hereto in all material respects with such changes therein as shall have
been requested by
<PAGE>   7
                                                                               4

the related Owner Participant (in the case of Lease Financing Agreements) or by
the initial purchasers of the Series D Equipment Notes or Class D Certificates
(as defined in the Intercreditor Agreement), agreed to by the Company and, if
modified in any material respect, as to which prior written consent of the
Policy Provider shall have been obtained and as to which Rating Agency
Confirmation shall have been obtained from each Rating Agency by the Company (to
be delivered by the Company to the applicable Pass Through Trustee on or before
the relevant Delivery Date, it being understood that if Policy Provider consent
and Rating Agency Confirmation shall have been received with respect to any
Financing Agreements and such Financing Agreements are utilized for subsequent
Aircraft (or Substitute Aircraft) without material modifications, no additional
Policy Provider consent or Rating Agency Confirmation shall be required);
provided, however, that the relevant Financing Agreements as executed and
delivered shall not vary the Mandatory Economic Terms and shall contain the
Mandatory Document Terms. Notwithstanding the foregoing, an Indenture may be
modified to the extent required pursuant to Section 4(a)(vi) of this Agreement.
The Company shall pay the reasonable costs and expenses of the Rating Agencies
in connection with obtaining any such Rating Agency Confirmation. With respect
to each Aircraft, the Company shall cause WTC (or such other person that meets
the eligibility requirements to act as mortgagee under the Leased Aircraft
Indenture or Owned Aircraft Indenture) shall execute as Loan Trustee the
Financing Agreements relating to such Aircraft to which such Loan Trustee is
intended to be a party, and the Company shall concurrently therewith execute
such Financing Agreements to which the Company is intended to be a party and
perform its respective obligations thereunder. Upon the request of the Policy
Provider or of either Rating Agency, the Company shall deliver or cause to be
delivered to such Rating Agency a true and complete copy of each Financing
Agreement relating to the financing of each Aircraft together with a true and
complete set of the closing documentation (including legal opinions) delivered
to the related Loan Trustee, Subordination Agent and Pass Through Trustee under
the related Participation Agreement.

         (d) If after giving any Delivery Notice, there shall be a delay in the
delivery of an Aircraft, or if on the Scheduled Delivery Date of an Aircraft the
financing thereof in the manner contemplated hereby shall not be consummated for
whatever reason, the Company shall give the parties hereto and the Policy
Provider prompt notice thereof. Concurrently with the giving of such notice of
postponement or subsequently, the Company shall give the parties hereto and the
Policy Provider a substitute Delivery Notice specifying the date to which such
delivery and related financing shall have been re-scheduled (which shall be a
Business Day before the Cut-off Date on which the Escrow Agents shall be
entitled to withdraw one or more Deposits under each of the applicable Deposit
Agreements to enable each applicable Pass Through Trustee to fund its purchase
of the related Equipment Notes). Upon receipt of any such notice of
postponement, each applicable Pass Through Trustee shall comply with its
obligations under Section 7.01 of each of the Pass Through Trust Agreements and
thereafter the financing of the relevant Aircraft shall take place on the
re-scheduled Delivery Date therefor (all on and subject to the terms and
conditions of the relevant Financing Agreements) unless further postponed as
provided herein.

         (e) Anything in this Section 1 to the contrary notwithstanding, the
Company shall have the right at any time on or before the Scheduled Delivery
Date of any Aircraft, and subsequent to its giving a Delivery Notice therefor,
to postpone the Scheduled Delivery Date of such Aircraft so as to enable the
Company to change its election to treat such Aircraft as a
<PAGE>   8
                                                                               5

Leased Aircraft or an Owned Aircraft by written notice of such postponement to
the other parties hereto. The Company shall subsequently give the parties hereto
a substitute Delivery Notice complying with the provisions of Section 1(b)
hereof and specifying the new Funding Date for such postponed Aircraft (which
shall be a Business Day occurring before the Cut-off Date and on which the
Escrow Agents shall be entitled to withdraw Deposits under each of the
applicable Deposit Agreements sufficient to enable each applicable Pass Through
Trustee to fund its purchase of the related Equipment Notes). In addition, the
Company shall have the further right, anything in this Section 1 to the contrary
notwithstanding, to accept delivery of an Aircraft under the Aircraft Purchase
Agreement on the Delivery Date thereof by utilization of bridge financing of
such Aircraft and promptly thereafter give the parties hereto a Delivery Notice
specifying a Funding Date not later than 90 days after the Delivery Date of such
Aircraft and no later than the Cut-off Date and otherwise complying with the
provisions of Section 1(b) hereof. All other terms and conditions of this Note
Purchase Agreement shall apply to the financing of any such Aircraft on the
re-scheduled Funding Date therefor except (i) the re-scheduled Funding Date
shall be deemed the Delivery Date of such Aircraft for all purposes of this
Section 1, (ii) the related Financing Agreements shall be amended to reflect the
original delivery of such Aircraft to the Company and (iii) the related
Financing Agreements shall be amended to reflect the seller of such Aircraft,
and the recipient of payment of the purchase price therefor, as the Company and
(iv) in the case of a Leased Aircraft, the Aircraft Purchase Agreement
Assignment shall be modified to cover only an assignment of the relevant
warranties.

         (f) If the Scheduled Delivery Date for any Aircraft is delayed for any
reason (including the casualty loss thereof) more than 30 days beyond the last
day of the month set forth opposite such Aircraft under the heading "Scheduled
Delivery Months" in Schedule I hereto, the Company may identify for delivery a
substitute aircraft therefor meeting the following conditions (a "Substitute
Aircraft"): (i) a Substitute Aircraft must be an Airbus A319-100 or A320-200
aircraft manufactured after the date of this Agreement, (ii) one or more
Substitute Aircraft of the same or different types may be substituted for one or
more Aircraft of the same or different types so long as after giving effect
thereto such substitution does not vary the Mandatory Economic Terms and (iii)
the Company shall be obligated to obtain prior written consent of the Policy
Provider and to obtain Rating Agency Confirmation in respect of the replacement
of any Aircraft by Substitute Aircraft. Upon the satisfaction of the conditions
set forth above with respect to a Substitute Aircraft, the Aircraft to be
replaced shall cease to be subject to this Agreement and all rights and
obligations of the parties hereto concerning such Aircraft shall cease, and such
Substitute Aircraft shall become and thereafter be subject to the terms and
conditions of this Agreement to the same extent as such Aircraft.

         (g) The Company shall have no liability for the failure of the Pass
Through Trustees to purchase Equipment Notes with respect to any Aircraft or
Substitute Aircraft, other than the Company's obligation, if any, to pay the
Deposit Make-Whole Premium pursuant to Section 4(a)(i) of this Agreement.

         (h) The parties agree that if, in connection with the delivery of an
Aircraft or Substitute Aircraft, any Owner Participant who is to be a party to
any Lease Financing Agreement shall not be a "Citizen of the United States"
within the meaning of Section 40102(a)(15) of the Act, then the applicable Lease
Financing Agreements shall be modified, consistent with the Mandatory Document
Terms, (x) to require such Owner Participant to enter
<PAGE>   9
                                       6

into a voting trust, voting powers or similar arrangement satisfactory to the
Company that (A) enables such Aircraft or Substitute Aircraft to be registered
in the United States and (B) complies with the FAA regulations issued under the
Act applicable thereto and (y) to be otherwise consistent with such state of
affairs.

         (i) Anything herein to the contrary notwithstanding, the
Company shall not have the right, and shall not be entitled, at
any time to request the issuance of Equipment Notes of any series to any Pass
Through Trustee in an aggregate principal amount in excess of the amount of the
Deposits then available for withdrawal by the Escrow Agent under and in
accordance with the provisions of the related Deposit Agreement.

         (j) Notwithstanding the foregoing provisions of this Section 1, and
anything herein to the contrary notwithstanding, upon not less than 30 days'
prior written notice to the parties hereto, the Company shall have the right,
within 120 days after the date any Aircraft has been financed as an Owned
Aircraft, to sell such Owned Aircraft and transfer title to such Owned Aircraft
to an Owner Trustee for the benefit of an Owner Participant (which shall be a
Qualified Owner Participant) in a transaction in which such Owner Trustee
assumes all of the obligations of the Company under the relevant Equipment Notes
and the Owned Aircraft Indenture on a non-recourse basis (with the Company being
released from such obligations, except to the extent accrued prior thereto),
leases the Aircraft to the Company and assigns such lease to the Loan Trustee
pursuant to an amended and restated trust indenture (a "Sale/Leaseback
Transaction"). In connection with such Sale/Leaseback Transaction, the Company
and the relevant Note Holders will execute and deliver appropriate documentation
permitting the Owner Trustee to assume the obligations of the Company under the
relevant Equipment Notes and the Owned Aircraft Indenture on a non-recourse
basis, releasing the Company from all obligations in respect of such Equipment
Notes and the Owned Aircraft Indenture (except to the extent accrued prior
thereto), and take all other actions as are reasonably necessary to permit such
assumption by the Owner Trustee. In connection with any such Sale/Leaseback
Transaction, the parties hereto agree that (a) the documents to be utilized
shall be (i) an amended and restated participation agreement amending and
restating the Participation Agreement, such amended and restated participation
agreement to be substantially in the form of the Leased Aircraft Participation
Agreement, among the Company, the relevant Note Holders, the Owner Participant,
the Owner Trustee, and the Loan Trustee, with (x) such changes to such form to
reflect the assumption of such Equipment Notes by the Owner Trustee on a
non-recourse basis rather than the issuance thereof by the Owner Trustee and
original purchase thereof by the Note Holders and also to reflect the release of
the Company from all obligations under such Equipment Notes and the Owned
Aircraft Indenture (except to the extent accrued prior thereto) and (y) such
other changes as may be permitted in accordance with the provisions of Section
1(c) hereof applicable to a Leased Aircraft Participation Agreement in
connection with a leverage lease transaction, (ii) a lease agreement, such lease
agreement to be substantially in the form of the Lease between the Company and
the Owner Trustee with such changes as may be permitted in accordance with the
provisions of Section 1(c) hereof applicable to the Lease in connection with a
leveraged lease transaction, (iii) an amended and restated trust indenture
amending and restating the relevant Owned Aircraft Indenture, such amended and
restated trust indenture to be substantially in the form of a Leased Aircraft
Indenture, between the Owner Trustee and the Loan Trustee, with (x) such changes
to such form to reflect the assumption of all of the obligations of the Owner
Trustee under relevant Equipment Notes and the relevant Owned Aircraft Indenture
on a non-
<PAGE>   10
                                                                               7

recourse basis and the release of the obligations of the Company under such
Equipment Notes and the relevant Owned Aircraft Indenture and (y) such other
changes as may be permitted in accordance with the provisions of Section 1(c)
hereof applicable to a Leased Aircraft Indenture in connection with a leveraged
lease transaction, (iv) a purchase agreement assignment, such purchase agreement
assignment to be substantially in the form of the Aircraft Purchase Agreement
Assignment between the Company and the Owner Trustee with such changes as may be
permitted in accordance with the provisions of Section 1(c) hereof applicable to
an Aircraft Purchase Agreement Assignment in connection with a leveraged lease
transaction, and (v) a trust agreement, such trust agreement to be substantially
in the form of a Trust Agreement, between the Owner Trustee and the Owner
Participant with such changes as may be permitted in accordance with the
provisions of Section 1(c) hereof applicable to a Trust Agreement in connection
with a leveraged lease transaction and (b) the relevant Equipment Notes shall be
delivered to the Loan Trustee for cancellation in exchange for new equipment
notes to be issued to the Note Holders by the Owner Trustee upon the
authentication thereof by the Loan Trustee, such new equipment notes to be
substantially in the form contained in Section 2.01 of the Leased Aircraft
Indenture. Such new equipment notes will have the same payment terms except that
in the event that the Company enters into a Sale/Leaseback Transaction prior to
the Delivery Period Termination Date, the Company shall have the right to
reoptimize the new equipment notes to be issued to the Note Holders by the Owner
Trustee in compliance with the Mandatory Economic Terms and subject to obtaining
Rating Agency Confirmation with respect thereto.

         Notwithstanding the foregoing, the Company shall not have the right to
enter into a Sale/Leaseback Transaction unless the Company (i) causes to be
delivered to the Loan Trustee an opinion of counsel (both counsel and opinion
satisfactory to the Loan Trustee) to the effect that the Pass Through Trusts
will not be subject to Federal income tax as a result of such Sale/Leaseback
Transaction and (ii) furnishes to the Loan Trustee either (A) an opinion of
counsel to the effect that the Certificateholders will not recognize income,
gain or loss for Federal income tax purposes as a result of such Sale/Leaseback
Transaction and will be subject to Federal income tax on the same amount, in the
same manner and at the same time as would have been the case if such
Sale/Leaseback Transaction had not occurred or (B) furnishes to the Loan Trustee
both an opinion of counsel (both counsel and opinion satisfactory to the Loan
Trustee) that the Certificateholders should not recognize gain or loss for
Federal income tax purposes in connection with such Sale/Leaseback Transaction
and will be subject to Federal income tax on the same amount and in the same
manner and at the same time as would have been the case if such Sale/Leaseback
Transaction had not occurred and an indemnification in favor of the holders of
the Certificates in form and substance reasonably satisfactory to the Loan
Trustee and (ii) obtains Policy Provider consent and a Rating Agency
Confirmation with respect thereto. In addition, the Company agrees to otherwise
comply with the provisions of Sections 1(c) and 2 hereof in connection with any
Sale/Leaseback Transaction.

         SECTION 2. Conditions Precedent. The obligation of the Pass Through
Trustees to enter into, and to cause the Subordination Agent to enter into, any
Participation Agreement as directed pursuant to a Delivery Notice and to perform
its obligations thereunder is subject to satisfaction of the following
conditions:

                  (a) no Triggering Event shall have occurred;
<PAGE>   11
                                                                               8

                  (b) the Company shall have delivered a certificate to each
         such Pass Through Trustee, the Policy Provider and each Liquidity
         Provider stating that (i) such Participation Agreement and the other
         Financing Agreements to be entered into pursuant to such Participation
         Agreement do not vary the Mandatory Economic Terms and contain the
         Mandatory Document Terms, (ii) any substantive modification of such
         Financing Agreements from the forms of Financing Agreements attached to
         this Agreement do not materially and adversely affect the Policy
         Provider or the Certificateholders, and such certification shall be
         true and correct; and

                  (c) a copy of the Rating Agency Confirmations and the Policy
         Provider consent required under Section 1(c) or 1(j) shall have been
         delivered to each such Pass Through Trustee.

         Anything herein to the contrary notwithstanding, the obligation of each
Pass Through Trustee to purchase Equipment Notes shall terminate on the Cut-off
Date.

         SECTION 3. Representations and Warranties. (a) The Company represents
and warrants that:

                           (i) the Company is duly incorporated, validly
                  existing and in good standing under the laws of the State of
                  Delaware and is a "citizen of the United States" as defined in
                  Section 40102 of the Act, and has the full corporate power,
                  authority and legal right under the laws of the State of
                  Delaware to execute and deliver this Agreement and each
                  Financing Agreement to which it will be a party and to carry
                  out the obligations of the Company under this Agreement and
                  each Financing Agreement to which it will be a party;

                           (ii) the execution and delivery by the Company of
                  this Agreement and the performance by the Company of its
                  obligations under this Agreement have been duly authorized by
                  the Company and will not violate its Certificate of
                  Incorporation or by-laws or (other than any violation that
                  would not result in a Material Adverse Change to the Company)
                  the provisions of any indenture, mortgage, contract or other
                  agreement to which it is a party or by which it is bound; and

                           (iii) assuming the due authorization, execution and
                  delivery hereof by the other parties hereto this Agreement
                  constitutes the legal, valid and binding obligation of the
                  Company, enforceable against it in accordance with its terms,
                  except as the same may be limited by applicable bankruptcy,
                  insolvency, reorganization, moratorium or similar laws
                  affecting the rights of creditors generally and by general
                  principles of equity, whether considered in a proceeding at
                  law or in equity.

                  (b) WTC represents and warrants that:

                           (i) WTC is duly incorporated, validly existing and in
                  good standing under the laws of the State of Delaware and is a
                  "citizen of the United States" as defined in Section 40102 of
                  the Act, and has the full corporate power, authority
<PAGE>   12
                                                                               9

                  and legal right under the laws of the State of Delaware and
                  the United States pertaining to its banking, trust and
                  fiduciary powers to execute and deliver this Agreement and
                  each Financing Agreement to which it will be a party and to
                  carry out the obligations of WTC, in its capacity as
                  Subordination Agent, Pass Through Trustee or Paying Agent, as
                  the case may be, under this Agreement and each Financing
                  Agreement to which it will be a party;

                           (ii) the execution and delivery by WTC, in its
                  capacity as Subordination Agent, Pass Through Trustee or
                  Paying Agent, as the case may be, of this Agreement and the
                  performance by WTC, in its capacity as Subordination Agent,
                  Pass Through Trustee or Paying Agent, as the case may be, of
                  its obligations under this Agreement have been duly authorized
                  by WTC, in its capacity as Subordination Agent, Pass Through
                  Trustee or Paying Agent, as the case may be, and will not
                  violate its articles of association or by-laws or the
                  provisions of any indenture, mortgage, contract or other
                  agreement to which it is a party or by which it is bound; and

                           (iii) this Agreement constitutes the legal, valid and
                  binding obligations of WTC, in its capacity as Subordination
                  Agent, Pass Through Trustee or Paying Agent, as the case may
                  be, enforceable against it in accordance with its terms,
                  except as the same may be limited by applicable bankruptcy,
                  insolvency, reorganization, moratorium or similar laws
                  affecting the rights of creditors generally and by general
                  principles of equity, whether considered in a proceeding at
                  law or in equity.

         (c) The Pass Through Trustee hereby confirms to each of the other
parties hereto that its representations and warranties set forth in Section 7.15
of each Pass Through Trust Agreement are true and correct as of the date hereof.

         (d) The Subordination Agent represents and warrants that:

                           (i) the Subordination Agent is duly incorporated,
                  validly existing and in good standing under the laws of the
                  State of Delaware, and has the full corporate power, authority
                  and legal right under the laws of the State of Delaware and
                  the United States pertaining to its banking, trust and
                  fiduciary powers to execute and deliver this Agreement and
                  each Financing Agreement to which it is or will be a party and
                  to perform its obligations under this Agreement and each
                  Financing Agreement to which it is or will be a party;

                           (ii) this Agreement has been duly authorized,
                  executed and delivered by the Subordination Agent; this
                  Agreement constitutes the legal, valid and binding obligations
                  of the Subordination Agent enforceable against it in
                  accordance with its terms, except as the same may be limited
                  by applicable bankruptcy, insolvency, reorganization,
                  moratorium or similar laws affecting the rights of creditors
                  generally and by general principles of equity, whether
                  considered in a proceeding at law or in equity;
<PAGE>   13
                                                                              10

                           (iii) none of the execution, delivery and performance
                  by the Subordination Agent of this Agreement contravenes any
                  law, rule or regulation of the State of Delaware or any United
                  States governmental authority or agency regulating the
                  Subordination Agent's banking, trust or fiduciary powers or
                  any judgment or order applicable to or binding on the
                  Subordination Agent and do not contravene the Subordination
                  Agent's articles of association or by-laws or result in any
                  breach of, or constitute a default under, any agreement or
                  instrument to which the Subordination Agent is a party or by
                  which it or any of its properties may be bound;

                           (iv) neither the execution and delivery by the
                  Subordination Agent of this Agreement nor the consummation by
                  the Subordination Agent of any of the transactions
                  contemplated hereby requires the consent or approval of, the
                  giving of notice to, the registration with, or the taking of
                  any other action with respect to, any Delaware governmental
                  authority or agency or any federal governmental authority or
                  agency regulating the Subordination Agent's banking, trust or
                  fiduciary powers;

                           (v) there are no Taxes payable by the Subordination
                  Agent imposed by the State of Delaware or any political
                  subdivision or taxing authority thereof in connection with the
                  execution, delivery and performance by the Subordination Agent
                  of this Agreement (other than franchise or other taxes based
                  on or measured by any fees or compensation received by the
                  Subordination Agent for services rendered in connection with
                  the transactions contemplated by the Intercreditor Agreement
                  or any of the Liquidity Facilities), and there are no Taxes
                  payable by the Subordination Agent imposed by the State of
                  Delaware or any political subdivision thereof in connection
                  with the acquisition, possession or ownership by the
                  Subordination Agent of any of the Equipment Notes (other than
                  franchise or other taxes based on or measured by any fees or
                  compensation received by the Subordination Agent for services
                  rendered in connection with the transactions contemplated by
                  the Intercreditor Agreement or any of the Liquidity
                  Facilities); and

                           (vi) there are no pending or threatened actions or
                  proceedings against the Subordination Agent before any court
                  or administrative agency which individually or in the
                  aggregate, if determined adversely to it, would materially
                  adversely affect the ability of the Subordination Agent to
                  perform its obligations under this Agreement.

                  (e) The Escrow Agent represents and warrants that:

                           (i) the Escrow Agent is duly incorporated, validly
                  existing and in good standing under the laws of the State of
                  Delaware and has the full corporate power, authority and legal
                  right under the laws of the State of Delaware pertaining to
                  its banking, trust and fiduciary powers to execute and deliver
                  this Agreement, each Deposit Agreement and each Escrow and
                  Paying Agent Agreement
<PAGE>   14
                                       11

                  (collectively, the "Escrow Agent Agreements") and to carry out
                  the obligations of the Escrow Agent under each of the Escrow
                  Agent Agreements;

                           (ii) the execution and delivery by the Escrow Agent
                  of each of the Escrow Agent Agreements and the performance by
                  the Escrow Agent of its obligations hereunder and thereunder
                  have been duly authorized by the Escrow Agent and will not
                  violate its articles of association or by-laws or the
                  provisions of any indenture, mortgage, contract or other
                  agreement to which it is a party or by which it is bound; and

                           (iii) each of the Escrow Agent Agreements constitutes
                  the legal, valid and binding obligations of the Escrow Agent
                  enforceable against it in accordance with its terms, except as
                  the same may be limited by applicable bankruptcy, insolvency,
                  reorganization, moratorium or similar laws affecting the
                  rights of creditors generally and by general principles of
                  equity, whether considered in a proceeding at law or in
                  equity.

                  (f) The Paying Agent represents and warrants that:

                           (i) the Paying Agent is duly incorporated, validly
                  existing and in good standing under the laws of the State of
                  Delaware and has the full corporate power, authority and legal
                  right under the laws of the State of Delaware and the United
                  States pertaining to its banking, trust and fiduciary powers
                  to execute and deliver this Agreement and the Escrow and
                  Paying Agent Agreement (collectively, the "Paying Agent
                  Agreements") and to carry out the obligations of the Paying
                  Agent under each of the Paying Agent Agreements;

                           (ii) the execution and delivery by the Paying Agent
                  of each of the Paying Agent Agreements and the performance by
                  the Paying Agent of its obligations hereunder and thereunder
                  have been duly authorized by the Paying Agent and will not
                  violate its articles of association or by-laws or the
                  provisions of any indenture, mortgage, contract or other
                  agreement to which it is a party or by which it is bound; and

                           (iii) each of the Paying Agent Agreements constitutes
                  the legal, valid and binding obligations of the Paying Agent
                  enforceable against it in accordance with its terms, except as
                  the same may be limited by applicable bankruptcy, insolvency,
                  reorganization, moratorium or similar laws affecting the
                  rights of creditors generally and by general principles of
                  equity, whether considered in a proceeding at law or in
                  equity.

         SECTION 4. Covenants. (a) The Company covenants with each of the other
parties hereto that:

                  (i) on the date that the Depositary is obligated to pay the
         amount of the Final Withdrawal to the Paying Agent pursuant to a
         Deposit Agreement relating to any Trust, the Company shall pay to the
         Pass Through Trustee of such Trust no later than 12:30 p.m.
<PAGE>   15
                                                                              12

         (New York time) an amount equal to the Deposit Make-Whole Premium, if
         any, required to be paid in respect of such Final Withdrawal amount;

                  (ii) subject to Section 4(a)(iv) of this Agreement, the
         Company shall at all times maintain its corporate existence;

                  (iii) the Company shall at all times remain a U.S. Air Carrier
         (as defined in the Financing Agreements) and shall at all times be
         otherwise certificated and registered to the extent necessary to
         entitle (i) in the case of Leased Aircraft, the Owner Trustee (and the
         Loan Trustee as assignee of the Owner Trustee's rights under each
         Lease) to the rights afforded to lessors of aircraft equipment under
         Section 1110 and (ii) in the case of Owned Aircraft, the Loan Trustee
         to the rights afforded to secured parties of aircraft equipment under
         Section 1110;

                  (iv) Section 13.2.1 of each Lease is hereby incorporated by
         reference herein;

                  (v) the Company agrees to provide written notice to each of
         the parties hereto of the occurrence of the Cut-off Date no later than
         one Business Day after the date thereof; such notice to refer
         specifically to the Pass Through Trustee's obligation to assign,
         transfer and deliver all of its right, title and interest to the Trust
         Property (as defined in each Pass Through Trust Agreement) to the
         trustee of the Related Trust (as defined in each Pass Through Trust
         Agreement) in accordance with Section 11.01 of each of the Pass Through
         Trust Agreements;

                  (vi) the Company shall not issue Series D Equipment Notes
         pursuant to any Owned Aircraft Indenture or Leased Aircraft Indenture
         unless it shall have obtained written confirmation from each Rating
         Agency that the issuance of such Series D Equipment Notes will not
         result in (i) a reduction of the rating for any Class of Certificates
         below the then current rating for such Class of Certificates (without
         regard to the Policy) or (ii) a withdrawal or suspension of the rating
         of any Class of Certificates; if such conditions to the issuance of
         Series D Equipment Notes are satisfied, the parties hereto agree to
         enter into such amendments and modifications to the Intercreditor
         Agreement, each Pass Through Trust Agreement and the other Financing
         Agreements as shall be reasonably requested by the Company to
         facilitate the issuance of the same and any Series D Pass Through
         Certificates. The Company will (i) cause the Indenture under which any
         Series D Equipment Notes are issued to provide for the subordination of
         the Series D Equipment Notes to the Series C Equipment Notes, the
         Policy Provider Obligations (as defined in the Intercreditor
         Agreement), the Series G Equipment Notes and the Liquidity Obligations
         (as defined in the Intercreditor Agreement) in the same manner as the
         Series C Equipment Notes are subordinated to the Policy Provider
         Obligations, the Series G Equipment Notes and the Liquidity Obligations
         and (ii) if Series D Equipment Notes are initially issued to other than
         the pass through trustee for the Class D Certificates (as defined in
         the Intercreditor Agreement), (A) cause such Series D Equipment Notes
         to be subject to the provisions of the Intercreditor Agreement that
         allow for the "Controlling Party" (as defined in the Intercreditor
         Agreement), during the continuance of an "Indenture Default" (as
         defined in the Intercreditor Agreement), to direct the Loan Trustee in
         taking action under the applicable Indenture and (B) cause the
<PAGE>   16
                                                                              13

         Indenture under which such Series D Equipment Notes are issued to
         include, in substance, the provisions set forth in Exhibit D to this
         Agreement; and

                  (vii) On the Issuance Date, the Depositary's short-term
         unsecured rating shall be A-1+ from Standard & Poor's and P-1 from
         Moody's (the "Depositary Threshold Rating"). If the Depositary's
         short-term unsecured debt rating shall at any time fall below A-1+ from
         Standard & Poor's or P-1 from Moody's, the Company shall, within 45
         days of such event occurring, cause the Depositary to be replaced with
         a depository bank (a "Replacement Depositary") on the following terms
         and preconditions:

                  (A) the Replacement Depositary must be one that meets the
         Depositary Threshold Rating (unless the Company shall have obtained (i)
         written confirmation from each Rating Agency that such replacement will
         not cause a reduction of any rating then in effect for any Class of
         Certificates by such Rating Agency (without regard to any downgrading
         of any rating of the Depositary being replaced and without regard to
         the Policy) and (ii) the prior written consent of the Policy Provider)
         and the Company shall have obtained written confirmation from each
         Rating Agency that such replacement will not cause a reduction of any
         rating then in effect for any Class of Certificates by such Rating
         Agency (without regard to any downgrading of any rating of the
         Depositary being replaced and without regard to the Policy);

                  (B) the Company shall pay all fees, expenses and other amounts
         then owing to the replaced Depositary; and

                  (C) the Company shall cause the Escrow Agent and the
         Replacement Depositary to enter into a Replacement Deposit Agreement
         for each Class of Certificates and shall cause the Replacement
         Depositary to deliver to the Company, the Policy Provider and each
         Rating Agency legal opinions and other closing documentation
         substantially similar in scope and substance as those that were
         delivered by the Depositary being replaced in connection with the
         execution and delivery of the Deposit Agreement being replaced.

                  Upon satisfaction of the foregoing conditions, the Company
         shall instruct each Pass Through Trustee, and each Pass Through Trustee
         agrees, to execute and deliver to the Escrow Agent a duly completed
         Withdrawal Certificate (as defined in the Escrow and Paying Agent
         Agreements) together with a Notice of Replacement Withdrawal (as
         defined in the Escrow and Paying Agent Agreements).

                  Each of the parties hereto agrees, at the Company's request,
         to enter into any amendments to this Agreement, the Escrow and Paying
         Agent Agreements and any other Operative Agreements as may be necessary
         or desirable to give effect to the replacement of the Depositary with
         the Replacement Depositary and the replacement of the Deposit
         Agreements with the Replacement Deposit Agreements.

                  Upon the execution and delivery of the Replacement Deposit
         Agreements, the Replacement Depositary shall be deemed to be the
         Depositary with all of the rights and obligations of the Depositary
         hereunder and under the other Operative Agreements and the Replacement
         Deposit Agreements shall be deemed to be the Deposit Agreements
<PAGE>   17
                                                                              14

         hereunder and under the other Operative Agreements, except that the
         obligations of the replaced Depositary under the last two sentences of
         Section 1.4(a) of its Deposit Agreements shall remain in full force and
         effect notwithstanding the execution and delivery of the Replacement
         Deposit Agreements.

         (b) WTC, in its individual capacity, covenants with each of the other
parties to this Agreement that it will, immediately upon obtaining knowledge of
any facts that would cast doubt upon its continuing status as a "citizen of the
United States" as defined in Section 40102 of the Act and promptly upon public
disclosure of negotiations in respect of any transaction which would or might
adversely affect such status, notify in writing all parties hereto of all
relevant matters in connection therewith. Upon WTC giving any such notice, WTC
shall, subject to Section 8.02 of any Indenture then entered into, resign as
Loan Trustee in respect of such Indenture.

         (c) the Subordination Agent covenants with each of the other parties
hereto that it will not agree or consent to any amendment or modification to any
Liquidity Facility, the Policy Provider Agreement or the Intercreditor Agreement
without the Company's consent, if such amendment or modification would adversely
affect the interests of the Company.

         (d) The Escrow Agent covenants with each of the other parties hereto
that it will not agree or consent to any amendment or modification to (i) any
Deposit Agreement or Escrow and Paying Agent Agreement without the Company's
consent, if such amendment or modification would adversely affect the interests
of the Company or (ii) the Deposit Agreement for the Class G Trust or the Escrow
and Paying Agent Agreement for the Class G Trust without the Policy Provider's
consent, if such amendment or modification would adversely affect the interests
of the Policy Provider (such consent not to be unreasonably withheld or
delayed).

         SECTION 5. Notices. Unless otherwise expressly permitted by the terms
hereof, all notices, requests, demands, authorizations, directions, consents,
waivers and other communications required or permitted to be made, given,
furnished or filed hereunder shall be in writing (it being understood that the
specification of a writing in certain instances and not in others does not imply
an intention that a writing is not required as to the latter), shall refer
specifically to this Agreement, and shall be personally delivered, sent by
facsimile or telecommunication transmission (which in either case provides
written confirmation to the sender of its delivery), sent by registered mail or
certified mail, return receipt requested, postage prepaid, or sent by overnight
courier service, in each case to the respective address or facsimile number set
forth for such party below the signature of such party at the foot of this
Agreement, or to such other address, facsimile or other number as each party
hereto may hereafter specify by notice to the other parties hereto. Notice shall
be given to the Policy Provider at the address specified in the Intercreditor
Agreement. Each such notice, request, demand, authorization, direction, consent,
waiver or other communication shall be effective when received or, if made,
given, furnished or filed by facsimile or telecommunication transmission, when
received unless received outside of business hours, in which case on the next
open of business on a Business day.

         SECTION 6. Expenses. (a) The Company agrees to pay to the Subordination
Agent when due for application in accordance with the Intercreditor Agreement an
amount or amounts equal to the fees payable to the Liquidity Provider under
Section 2.03 of each Liquidity
<PAGE>   18
                                                                              15

Facility and the related Fee Letter (as defined in the Intercreditor Agreement)
multiplied by a fraction the numerator of which shall be the then outstanding
aggregate amount of the Deposits under the Deposit Agreements and the
denominator of which shall be the sum of (x) the then outstanding aggregate
principal amount of the Series G Equipment Notes and Series C Equipment Notes
issued under all of the Indentures and (y) the then outstanding aggregate amount
of the Deposits under the Deposit Agreements.

         (b) The Company agrees to pay to the Subordination Agent when due for
application in accordance with the Intercreditor Agreement an amount or amounts
equal to the fees payable to the Policy Provider under Section 3.02 of the
Policy Provider Agreement multiplied by a fraction the numerator of which shall
be the then outstanding aggregate amount of the Deposits under the Deposit
Agreement pertaining to the Class G Trust and the denominator of which shall be
the sum of (x) the then outstanding aggregate principal amount of the Series G
Equipment Notes issued under all of the Indentures and (y) the then outstanding
aggregate amount of the Deposits under the Deposit Agreement pertaining to the
Class G Trust.

         (c) So long as no Equipment Notes have been issued in respect of any
Aircraft, the Company agrees to pay (i) to the Subordination Agent when due (A)
the amount equal to interest on any Downgrade Advance (other than any Applied
Downgrade Advance) payable under Section 3.07 of each Liquidity Facility minus
Investment Earnings while such Downgrade Advance shall be outstanding, (B) the
amount equal to interest on any Non-Extension Advance (other than any Applied
Non-Extension Advance) payable under Section 3.07 of each Liquidity Facility
minus Investment Earnings while such Non-Extension Advance shall be outstanding
and (C) any other amounts owed to the Liquidity Provider by the Subordination
Agent as borrower under each Liquidity Facility (other than amounts due as
repayment of advances thereunder or as interest on such advances, except to the
extent payable pursuant to clause (A) or (B)), (ii) all compensation and
reimbursement of expenses, disbursements and advances payable by the Company
under the Pass Through Trust Agreements, (iii) all compensation and
reimbursement of expenses and disbursements payable to the Subordination Agent
under the Intercreditor Agreement (as may be modified by any separate letter
agreement) except with respect to any Unindemnified Taxes incurred by the
Subordination Agent in connection with the transactions contemplated by the
Intercreditor Agreement, (iv) all compensation and reimbursement of expenses and
disbursements payable to the Policy Provider under the Policy Provider
Agreement, and (v) in the event the Company requests any amendment to any
Operative Agreement, all reasonable fees and expenses (including, without
limitation, fees and disbursements of counsel) of the Escrow Agent, the Paying
Agent and/or the Policy Provider in connection therewith. For purposes of this
Section 6(b), the terms "Applied Downgrade Advance", "Applied Non-Extension
Advance", "Downgrade Advance", "Investment Earnings" and "Non-Extension Advance"
shall have the meanings specified in each Liquidity Facility.
<PAGE>   19
                                                                              16

         SECTION 7. Further Assurances. Each party hereto shall duly execute,
acknowledge and deliver, or shall cause to be executed, acknowledged and
delivered, all such further agreements, instruments, certificates or documents,
and shall do and cause to be done such further acts and things, in any case, as
any other party hereto shall reasonably request in connection with its
administration of, or to carry out more effectually the purposes of, or to
better assure and confirm unto it the rights and benefits to be provided under,
this Agreement.

         SECTION 8. Miscellaneous. (a) Provided that the transactions
contemplated hereby have been consummated, and except as otherwise provided for
herein, the representations, warranties and agreements herein of the Company,
the Subordination Agent, the Escrow Agent, the Paying Agent and the Pass Through
Trustee, and the Company's, the Subordination Agent's, the Escrow Agent's, the
Paying Agent's and the Pass Through Trustee's obligations under any and all
thereof, shall survive the financing of each Aircraft hereunder but shall
terminate on the expiration or other termination of this Agreement.

         (b) This Agreement may be executed in any number of counterparts (and
each of the parties hereto shall not be required to execute the same
counterpart). Each counterpart of this Agreement, including a signature page
executed by each of the parties hereto, shall be an original counterpart of this
Agreement, but all of such counterparts together shall constitute one
instrument. Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified orally, but only by an
instrument in writing signed by the party against which the enforcement of the
termination, amendment, supplement, waiver or modification is sought. The index
preceding this Agreement and the headings of the various Sections of this
Agreement are for convenience of reference only and shall not modify, define,
expand or limit any of the terms or provisions hereof. The terms of this
Agreement shall be binding upon, and shall inure to the benefit of, the Company
and its successors and permitted assigns, the Pass Through Trustee and its
successors as Pass Through Trustee (and any additional trustee appointed) under
any of the Pass Through Trust Agreements, the Escrow Agent and its successors as
Escrow Agent under the Escrow and Paying Agent Agreements, the Paying Agent and
its successors as Paying Agent under the Escrow and Paying Agent Agreement and
the Subordination Agent and its successors as Subordination Agent under the
Intercreditor Agreement.

         (c) This Agreement is not intended to, and shall not, provide any
person not a party hereto (other than the Initial Purchasers and each of the
beneficiaries of Section 6 hereof) with any rights of any nature whatsoever
against any of the parties hereto, and no person not a party hereto (other than
the Initial Purchasers and each of the beneficiaries of Section 6 hereof) shall
have any right, power or privilege in respect of, or have any benefit or
interest arising out of, this Agreement. To the extent that this Agreement
expressly confers upon, gives or grants any right, power, privilege, benefit,
interest, remedy or claim to any of the beneficiaries of Section 6 hereof
(including, but not limited to rights, powers, privileges, benefits, interests,
remedies and claims under Section 6) each such party is hereby recognized as a
third party beneficiary hereunder and may enforce any such right, power,
privilege, benefit, interest, remedy or claim.
<PAGE>   20
                                                                              17

         SECTION 9. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. THIS AGREEMENT
IS BEING DELIVERED IN THE STATE OF NEW YORK.
<PAGE>   21
                                                                              18

                        IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective officers thereunto duly
authorized as of the day and year first above written.

                                AMERICA WEST AIRLINES, INC.

                                By   /s/ signature
                                    ----------------------------------------
                                      Name:
                                      Title:

                                Address:     4000 East Sky Harbor Boulevard
                                             Phoenix, Arizona 85034
                                             Attention: Vice President
                                                - Treasurer
                                             Facsimile:  (602) 693-5886

                                WILMINGTON TRUST COMPANY,
                                not in its individual capacity, except as
                                otherwise provided herein, but solely as
                                Pass Through Trustee

                                By   /s/ signature
                                    ----------------------------------------
                                      Name:
                                      Title:

                                Address:   Rodney Square North
                                           1100 North Market Street
                                           Wilmington, Delaware 19890
                                           Attention:  Corporate Trust
                                                                Administration
                                           Facsimile:  (302) 651-8882
<PAGE>   22
                                                                              19

                                           WILMINGTON TRUST COMPANY,
                                           not in its individual capacity,
                                           except as otherwise provided herein,
                                           but solely as Subordination Agent

                                           By   /s/ signature
                                              --------------------------------
                                              Name:
                                              Title:

                                           Address:  Rodney Square North
                                                     1100 North Market Street
                                                     Wilmington, Delaware 19890
                                                     Attention:  Corporate Trust
                                                                 Administration
                                                     Facsimile:  (302) 651-8882

                                           WILMINGTON TRUST COMPANY,
                                               as Escrow Agent

                                           By   /s/ signature
                                              --------------------------------
                                              Name:
                                              Title:

                                           Address:  Rodney Square North
                                                     1100 North Market Street
                                                     Wilmington, Delaware 19890
                                                     Attention:  Corporate Trust
                                                                 Administration
                                                     Facsimile:  (302) 651-8882

                                           WILMINGTON TRUST COMPANY,
                                              as Paying Agent

                                           By   /s/ signature
                                              --------------------------------
                                              Name:
                                              Title:

                                           Address:  Rodney Square North
                                                     1100 North Market Street
                                                     Wilmington, Delaware 19890
                                                     Attention:  Corporate Trust
                                                                 Administration
                                                     Facsimile:  (302) 651-8882
<PAGE>   23
                                  SCHEDULE I to
                             Note Purchase Agreement

                     AIRCRAFT AND SCHEDULED DELIVERY MONTHS
<TABLE>
<CAPTION>
                                     Expected                  Expected
                                   Registration             Manufacturer's               Scheduled
             Aircraft Type            Number                Serial Number              Delivery Month
             -------------         ------------             -------------              --------------
<S>                                <C>                      <C>                        <C>
            Airbus A319-132           N815AW                     1323                   September 2000
            Airbus A319-132           N816AW                     1350                   October 2000
            Airbus A319-132           N817AW                     1373                   November 2000
            Airbus A319-132           N818AW                     1375                   November 2000
            Airbus A319-132           N819AW                     1395                   December 2000
            Airbus A319-132           N820AW                     1397                   January 2001
            Airbus A319-132           N821AW                     1406                   January 2001
            Airbus A319-132           N822AW                     1410                   January 2001
            Airbus A320-232           N662AW                     1274                   August 2000
            Airbus A320-232           N663AW                     1419                   March 2001
</TABLE>
<PAGE>   24
                                 SCHEDULE II to
                             Note Purchase Agreement

                          PASS THROUGH TRUST AGREEMENTS

Pass Through Trust Agreement dated as of the Issuance Date between the Company
and the Pass Through Trustee in respect of America West Airlines Pass Through
Trust, Series 2000-1G-O.

Pass Through Trust Agreement dated as of the Issuance Date between the Company
and the Pass Through Trustee in respect of America West Airlines Pass Through
Trust, Series 2000-1C-O.
<PAGE>   25
                                 SCHEDULE III to
                             Note Purchase Agreement

                               DEPOSIT AGREEMENTS

Deposit Agreement (Class G) dated as of the Issuance Date between the Depositary
and the Escrow Agent.

Deposit Agreement (Class C) dated as of the Issuance Date between the Depositary
and the Escrow Agent.
<PAGE>   26
                                 SCHEDULE IV to
                             Note Purchase Agreement

                       ESCROW AND PAYING AGENT AGREEMENTS

Escrow and Paying Agent Agreement (Class G) dated as of the Issuance Date among
the Escrow Agent, the Initial Purchasers, the Pass Through Trustee and the
Paying Agent.

Escrow and Paying Agent Agreement (Class C) dated as of the Issuance Date among
the Escrow Agent, the Initial Purchasers, the Pass Through Trustee and the
Paying Agent.
<PAGE>   27
                                  SCHEDULE V to
                             Note Purchase Agreement

                            MANDATORY DOCUMENT TERMS

                       (cross references to be confirmed)

The terms "Trust Indenture Form", "Lease Form" and "Participation Agreement
Form" shall have the respective meanings specified in Schedule VI to the Note
Purchase Agreement.

1.       May not modify in any material adverse respect the Granting Clause of
         the Trust Indenture Form so as to deprive the Note Holders of a
         security interest in and mortgage lien on the Aircraft and, in the case
         of a Leased Aircraft Indenture, the Lease or to eliminate any of the
         "Secured Obligations" as defined therein or otherwise modify in any
         material adverse respect as regards the interests of the Note Holders,
         the Subordination Agent, the Liquidity Provider, the Policy Provider or
         the Mortgagee the provisions of Article II or III or in the case of a
         Leased Aircraft Indenture Section 4.02, 4.03, 4.04, 5.02, 5.06,
         9.01(b), 10.04, 10.11 or 10.12 of the Trust Indenture Form or in the
         case of an Owned Aircraft Indenture Article IV, Section 5.01, 5.02,
         6.02, 10.01, 11.04, 11.11 or 11.12 of the Trust Indenture Form.

2.       May not modify in any material adverse respect as regards the interests
         of the Note Holders, the Subordination Agent, the Liquidity Provider,
         the Policy Provider or the Mortgagee the provisions of Section
         3.2.1(e), 3.3(c), 4.7, the final sentence of 7.1.1, 10.3.1(d)(ii),
         13.3, 16, 17.3, 18.3 or 18.6(a) of the Lease Form or otherwise modify
         the terms of the Lease Form so as to deprive the Mortgagee of rights
         expressly granted to the "Mortgagee" therein.

3.       May not modify in any material adverse respect as regards the interests
         of the Note Holders, the Subordination Agent, the Liquidity Provider or
         the Mortgagee the provisions of Section (Owned Aircraft Section
         references shown in '[ ]') 5.1.9[3.1.7], 5.1.10[3.1.8], 5.1.11[3.1.9],
         5.1.12[3.1.10], 7.5[5.3], 12[9], 15.7(a)[11.7(a)] or 15.9[11.9] of the
         Participation Agreement Form or of the provisions of Section
         5.1.2(xxiii)[3.1.2(xvi)] or 10.1.1(a)(iv) of the Participation
         Agreement Form so as to eliminate the requirement to deliver to the
         Loan Participant or the Mortgagee, as the case may be, the legal
         opinions to be provided to such Persons thereunder (recognizing that
         the lawyers rendering such opinions may be changed) or of the
         provisions of Section 7.6.11(a)(ii)[5.4.5(a)(ii)] of the Participation
         Agreement Form as regards the rights of the Mortgagee thereunder or of
         the provisions of Section 5.1.16[3.1.14] of the Participation Agreement
         Form so as to deprive the Note Holders of a first priority security
         interest as provided therein in and mortgage lien on the Aircraft and
         the Lease or otherwise modify the terms of the Participation Agreement
         Form to deprive the Trustees, the Subordination Agent, the Liquidity
         Providers or the Mortgagee of any indemnity or right of reimbursement
         in its favor for Expenses or Taxes.
<PAGE>   28
                                                                              2

4.       May not modify, in any material adverse respect as regards the
         interests of the Note Holders, the Subordination Agent, the Liquidity
         Providers or the Mortgagee, the definition of "Make Whole Amount" in
         Annex A to the Participation Agreement Form.

         Notwithstanding the foregoing, any such Mandatory Document Term may be
modified to correct or supplement any such provision which may be defective or
to cure any ambiguity or correct any mistake, provided that any such action
shall not materially adversely affect the interests of the Note Holders, the
Subordination Agent, the Liquidity Providers, the Policy Provider, the Mortgagee
or the Certificateholders.
<PAGE>   29
                                 SCHEDULE VI to
                             Note Purchase Agreement

                            MANDATORY ECONOMIC TERMS

Equipment Notes

Obligor:                            America West Airlines, Inc. or an Owner
                                    Trust

Maximum Principal Amount:           the maximum principal amount of all the
                                    Equipment Notes issued with respect to an
                                    Aircraft may not exceed the maximum
                                    principal amount of Equipment Notes
                                    indicated for each such Aircraft as set
                                    forth in "Offering Memorandum Summary --
                                    Equipment Notes and the Aircraft" under the
                                    column "Maximum Principal Amount of
                                    Equipment Notes";

Initial Average Life:               the average life per aircraft of the Series
                                    G Equipment Notes shall not be less than
                                    10.5 years or extend beyond 13.0 years and
                                    of the Series C Equipment Notes shall not be
                                    more than 4.0 years, in each case from the
                                    Issuance Date;

Average Life (in years):            as of the first Regular Distribution Date
                                    following the delivery of the last Aircraft
                                    to be delivered, the average life of the
                                    Class G Certificates not to be less than
                                    11.0 years nor more than 11.7 years and of
                                    the Class C Certificates not to be less than
                                    1.8 years nor more than 2.2 years, in each
                                    case from the Issuance Date;

Loan to Aircraft Value:             the loan to aircraft value ratio with
                                    respect to each Aircraft at the time of
                                    issuance of the related Equipment Notes and
                                    on any Regular Distribution Date thereafter
                                    shall not exceed 57.0% in the case of the
                                    Series G Equipment Notes and 62.0% in the
                                    case of the Series C Equipment Notes (in
                                    each case computed on the basis of an
                                    assumed value of such Aircraft no greater
                                    than the value for such Aircraft set forth
                                    under "Offering Memorandum Summary --
                                    Equipment Notes and the Aircraft" under the
                                    column "Appraised Value" and the
                                    depreciation assumption contained in
                                    footnote 1 in the chart under "Offering
                                    Memorandum Summary -- Loan to Aircraft Value
                                    Ratios")

Final Maturity Date:                the final maturity date of (a) the Series G
                                    Equipment Notes may not be extended beyond
                                    July 2, 2020 and (b) the Series C Equipment
                                    Notes may not be extended beyond July 2,
                                    2006;

Principal Amount:                   At the Delivery Period Termination Date, the
                                    aggregate principal amount of all Series G
                                    Equipment Notes to be equal to the aggregate
                                    face amount of the Class G Certificates and
<PAGE>   30
                                                                               2

                                    the aggregate principal amount of all Series
                                    C Equipment Notes not to exceed, but may be
                                    less than, the original aggregate face
                                    amount of the Class C Certificates (it being
                                    understood that the Pool Balance (as defined
                                    in the Intercreditor Agreement) of the Class
                                    C Certificates at such date shall be reduced
                                    to the extent it exceeds the aggregate
                                    principal amount of all Series C Equipment
                                    Notes);

Debt Rate:                          the interest rate applicable to each Series
                                    of Equipment Notes must be equal to the rate
                                    applicable to the Certificates issued by the
                                    corresponding Pass Through Trust;

Payment Due Rate:                   Debt Rate plus 1% per annum

Payment Dates:                      January 2 and July 2 commencing with the
                                    first such date after the applicable
                                    Equipment Notes are issued

Make-Whole Premiums:                as provided in Article II of the form of
                                    Trust Indenture marked as Exhibits A-3 and
                                    C-2 of the Note Purchase Agreement (the
                                    "Trust Indenture Form")

Redemption and Purchase:            as provided in Article II of the Trust
                                    Indenture Form

Lease

Term:                               The Base Lease Term shall expire by its
                                    terms on or after final maturity date of the
                                    related Series G or Series C Equipment Notes

Lease Payment Dates:                January 2 and July 2 commencing with the
                                    first such date after the Lease is entered
                                    into, to and including the last such date in
                                    the Term

Minimum Rent:                       Basic Rent due and payable on each Payment
                                    Date shall be at least sufficient to pay in
                                    full, as of such Payment Date (assuming
                                    timely payment of the related Equipment
                                    Notes prior to such Date), the aggregate
                                    principal amount of scheduled installments
                                    due on the related Equipment Notes
                                    outstanding on such Payment Date together
                                    with accrued and unpaid interest thereon

Supplemental Rent:                  Sufficient to cover the sums described in
                                    clauses (a) through (d) of such term as
                                    defined in Annex A to the form of Lease (the
                                    "Lease Form") marked as Exhibit A-2 of the
                                    Note Purchase Agreement
<PAGE>   31
                                                                               3

EBO Amount (if any):                At all times equal to or greater than the
                                    then outstanding principal amount of the
                                    related Equipment Notes together with
                                    accrued interest thereon

Stipulated Loss Value:              At all times equal to or greater than the
                                    then outstanding principal amount of the
                                    related Equipment Notes together with
                                    accrued interest thereon

Termination Value:                  At all times equal to or greater than the
                                    then outstanding principal amount of the
                                    related Equipment Notes together with
                                    accrued interest thereon

All-risk hull insurance:            not less than Stipulated Loss Value, subject
                                    to Lessee's right to self-insure on terms no
                                    more favorable to Lessee in any material
                                    respect than those set forth in Annex D of
                                    the form of Lease marked as Exhibit A-2.

Minimum Liability Insurance         as set forth in Schedule 1 to the form of
Amount:                             Lease marked as Exhibit A-2.

Payment Due Rate:                   as set forth in Annex A to the form of Lease
                                    marked as Exhibit A-2.

SLV Rate:                           as set forth in Schedule 1 to the form of
                                    Lease marked as Exhibit A-2.

Participation Agreement

Mortgagee, Subordination Agent, Liquidity Providers, the Policy Provider, Pass
Through Trustees, and Escrow Agents indemnified against Expenses and Taxes to
the extent set forth in Section 9 of the form of the Participation Agreement
(the "Participation Agreement Form") marked as Exhibits A-1 and C-1 to the Note
Purchase Agreement
<PAGE>   32
                                 SCHEDULE VII to
                             Note Purchase Agreement

                         AGGREGATE AMORTIZATION SCHEDULE
<TABLE>
<CAPTION>

                            2000-1G Trust Scheduled            2000-1C Trust Scheduled
    Date                       Principal Payment                  Principal Payment
    ----                    -----------------------            -----------------------
<S>                         <C>                                <C>
January 2, 2001               $   972,612.72                      $10,432,986.55
July 2, 2001                    2,528,818.86                          447,984.20
January 2, 2002                10,994,858.35                          854,780.73
July 2, 2002                            0.00                        1,016,345.13
January 2, 2003                 8,878,112.27                        1,698,263.93
July 2, 2003                            0.00                        1,195,700.13
January 2, 2004                 9,390,659.25                        1,742,224.19
July 2, 2004                            0.00                          927,815.35
January 2, 2005                10,537,302.52                                0.00
July 2, 2005                            0.00                          458,599.85
January 2, 2006                11,184,423.20                                0.00
July 2, 2006                            0.00                        1,654,299.94
January 2, 2007                11,885,870.94                                0.00
January 2, 2008                 2,829,081.00                                0.00
July 2, 2008                    8,028,496.07                                0.00
January 2, 2009                 2,829,081.00                                0.00
July 2, 2009                    5,155,271.83                                0.00
January 2, 2010                 8,108,742.03                                0.00
July 2, 2010                    4,208,027.89                                0.00
January 2, 2011                 4,686,298.80                                0.00
July 2, 2011                    4,114,669.89                                0.00
January 2, 2012                 5,133,205.24                                0.00
July 2, 2012                    4,303,035.81                                0.00
January 2, 2013                 6,885,347.27                                0.00
July 2, 2013                    5,396,695.74                                0.00
January 2, 2014                 7,633,903.32                                0.00
July 2, 2014                    8,425,230.03                                0.00
January 2, 2015                 6,986,542.86                                0.00
July 2, 2015                   22,831,109.22                                0.00
July 2, 2016                    2,413,540.65                                0.00
January 2, 2017                 5,120,956.11                                0.00
January 2, 2018                 8,002,991.70                                0.00
January 2, 2019                 6,699,888.48                                0.00
July 2, 2020                   36,733,226.95                                0.00
</TABLE>
<PAGE>   33
                                   ANNEX A to
                             Note Purchase Agreement

                                   DEFINITIONS

"Act" means 49 U.S.C. Sections 40101-46507.

"Adjusted Treasury Yield" means the Treasury Yield plus, in the case of a
distribution to holders of Class G Certificates, 197 basis points and, in the
case of a distribution to holders of Class C Certificates, 275 basis points.

"Affiliate" means, with respect to any person, any other person directly or
indirectly controlling, controlled by or under common control with such person.
For purposes of this definition, "control" means the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such person, whether through the ownership of voting securities or by contract
or otherwise and "controlling," "controlled by" and "under common control with"
have correlative meanings.

"Aircraft" has the meaning set forth in the second recital to the Note Purchase
Agreement.

"Aircraft Purchase Agreement" means the Airbus A319/A320 Purchase Agreement,
dated as of September 12, 1997, between the Company and the Manufacturer
(including all exhibits thereto, together with all letter agreements entered
into that by their terms constitute part of any such Purchase Agreement).

"Aircraft Purchase Agreement Assignment" means an Assignment and Delegation
Agreement substantially in the form of Exhibit A-4 to the Note Purchase
Agreement.

"Assumed Amortization Schedule" means Schedule VII to the Note Purchase
Agreement.

"Average Life Date" means, for any Equipment Note, the date which follows the
time of determination by a period equal to the Remaining Weighted Average Life
of such Equipment Note.

"Bankruptcy Code" means the United States Bankruptcy Code, 11 U.S.C.
Section 101 et seq.

"Business Day" means any day, other than a Saturday, Sunday or other day on
which commercial banks are authorized or required by law to close in New York,
New York, Phoenix, Arizona, Hartford, Connecticut or Wilmington, Delaware.

"Certificate" has the meaning set forth in the third recital to the Note
Purchase Agreement.

"Certificateholder" means the Person in whose name a Certificate is registered
in the Register.

"Class" means the class of Certificates issued by each Pass Through Trust.

"Class G Trust " has the meaning specified in the Intercreditor Agreement.

"Company" means America West Airlines, Inc., a Delaware corporation.
<PAGE>   34
                                                                               2

"Corporate Trust Office" with respect to any Pass Through Trustee or any Loan
Trustee, means the office of such trustee in the city at which at any particular
time its corporate trust business shall be principally administered.

"Cut-off Date" means the earlier of (a) the day after the Delivery Period
Termination Date and (b) the date on which a Triggering Event occurs.

"Delivery Period Termination Date" means the earlier of (a) June 30, 2001, or,
if the Equipment Notes relating to all of the Aircraft (or Substitute Aircraft
in lieu thereof) have not been purchased by the Pass Through Trustees on or
prior to such date due to any reason beyond the control of the Company and not
occasioned by the Company's fault or negligence, September 30, 2001 and (b) the
date on which Equipment Notes issued with respect to all of the Aircraft (or
Substitute Aircraft in lieu thereof) have been purchased by the Pass Through
Trustees in accordance with the Note Purchase Agreement.

"Delivery Date" means the Business Day on which an Aircraft is delivered to and
accepted by the Company or otherwise becomes subject to any Financing Agreement.

"Deposit" has the meaning set forth in the fifth recital to the Note Purchase
Agreement.

"Deposit Agreement" shall mean the Initial Deposit Agreements set forth on
Schedule III hereto and, from and after the transfer of the Deposits to a
Replacement Depositary, shall refer to the corresponding Replacement Deposit
Agreements between the Escrow Agent and the Replacement Depositary.

"Deposit Make-Whole Premium" means, with respect to the distribution of unused
Deposits to holders of any Class of Certificates, as of any date of
determination, an amount equal to the excess, if any, of (a) the present value
of the excess of (i) the scheduled payment of principal and interest to maturity
of the Equipment Notes, assuming the maximum principal amount thereof (the
"Maximum Amount") minus any Non-Premium Amount applicable to such Class of
Certificates and, in the case of Class C Certificates only, the Par Redemption
Amount were issued, on each remaining Regular Distribution Date for such Class
under the Assumed Amortization Schedule over (ii) the scheduled payment of
principal and interest to maturity of the Equipment Notes actually acquired by
the Pass Through Trustee for such Class on each such Regular Distribution Date,
such present value computed by discounting such excess on a semiannual basis on
each Regular Distribution Date (assuming a 360-day year of twelve 30-day months)
using a discount rate equal to the Adjusted Treasury Yield over (b) the amount
of such unused Deposits to be distributed to the holders of such Certificates
minus any Non-Premium Amount applicable to such Class of Certificates and, in
the case of Class C Certificates only, the Par Redemption Amount (the remainder
of such subtraction, the "Net Deposits") plus accrued and unpaid interest on the
Net Deposits to but excluding such date of determination from and including the
preceding Regular Distribution Date (or if such date of determination precedes
the first Regular Distribution Date, the Issuance Date).

"Depositary" means Citibank, N.A., a national banking association and, from and
after the transfer of the Deposits to a Replacement Depositary, shall mean such
Replacement Depositary.
<PAGE>   35
                                                                               3

"Equipment Notes" means and includes any equipment notes issued under any
Indenture in the form specified in Section 2.01 thereof (as such form may be
varied pursuant to the terms of such Indenture) and any Equipment Note issued
under any Indenture in exchange for or replacement of any other Equipment Note.

"Escrow Agent" has the meaning set forth in the first paragraph of the Note
Purchase Agreement.

"Escrow and Paying Agent Agreement" has the meaning set forth in the fifth
recital to the Note Purchase Agreement.

"FAA" means the Federal Aviation Administration of the United States.

"Final Withdrawal" with respect to each Escrow and Paying Agent Agreement, has
the meaning set forth in Section 1.02 thereof.

"Financing Agreements" means, collectively, the Lease Financing Agreements and
the Owner Financing Agreements.

"Government Entity" means (a) any federal, state, provincial or similar
government, and any body, board, department, commission, court, tribunal,
authority, agency or other instrumentality of any such government or otherwise
exercising any executive, legislative, judicial, administrative or regulatory
functions of such government or (b) any other government entity having
jurisdiction over any matter contemplated by the Operative Agreements or
relating to the observance or performance of the obligations of any of the
parties to the Operative Agreements.

"H.15(519)" means the weekly statistical release designated as such, or any
successor publication, published by the Board of Governors of the Federal
Reserve System.

"Indentures" means, collectively, the Leased Aircraft Indentures and the Owned
Aircraft Indentures.

"Initial Purchasers" has the meaning set forth in the fourth recital to the Note
Purchase Agreement.

"Intercreditor Agreement" has the meaning set forth in the ninth recital to the
Note Purchase Agreement.

"Issuance Date" means the date of the original issuance of the Certificates.

"Law" means (a) any constitution, treaty, statute, law, decree, regulation,
order, rule or directive of any Government Entity, and (b) any judicial or
administrative interpretation or application of, or decision under, any of the
foregoing.

"Lease" means a Lease Agreement substantially in the form of Exhibit A-2 to the
Note Purchase Agreement.

"Lease Financing Agreements" means, collectively, the Aircraft Purchase
Agreement Assignment, the Leased Aircraft Participation Agreement, the Lease,
the Leased Aircraft
<PAGE>   36
                                                                               4

Indenture, the Equipment Notes issued thereunder and the Trust Agreement
relating to the financing of a Leased Aircraft.

"Leased Aircraft" means an Aircraft subject to a Lease.

"Leased Aircraft Indenture" means a Trust Indenture and Mortgage substantially
in the form of Exhibit A-3 to the Note Purchase Agreement.

"Leased Aircraft Participation Agreement" means a Participation Agreement
substantially in the form of Exhibit A-1 to the Note Purchase Agreement.

"Liquidity Facility" has the meaning set forth in the ninth recital to the Note
Purchase Agreement.

"Liquidity Provider" has the meaning set forth in the tenth recital to the Note
Purchase Agreement.

"Loan Trustee" means the "Mortgagee" as defined in the Financing Agreements.

"Mandatory Document Terms" means the terms set forth on Schedule V to the Note
Purchase Agreement.

"Mandatory Economic Terms" means the terms set forth on Schedule VI to the Note
Purchase Agreement.

"Manufacturer" means Airbus Industrie G.I.E., solely in its capacity as
manufacturer or seller of Aircraft.

"Material Adverse Change" means, with respect to any Person, any event,
condition or circumstance that materially and adversely affects such Person's
business or consolidated financial condition or its ability to observe or
perform its obligations, liabilities and agreements under the Operative
Agreements.

"Non-Premium Amount" means, with respect to any Class of Certificates, if any
Aircraft has not been delivered by the Manufacturer on or prior to the Delivery
Period Termination Date due to any reason not occasioned by the Company's fault
or negligence and no Substitute Aircraft has been provided in lieu of such
Aircraft, an amount equal to the maximum principal amount of Equipment Notes
with respect to such Aircraft that could have been issued and acquired by the
Pass Through Trust that issued such Class of Certificates in accordance with the
Mandatory Economic Terms.

"Note Holder" means at any time each registered holder of one or more Equipment
Notes.

"Note Purchase Agreement" means the Note Purchase Agreement to which this Annex
A is attached.

"Notice of Purchase Withdrawal" with respect to each Deposit Agreement, has the
meaning set forth in Section 2.3 thereof.
<PAGE>   37
                                                                               5

"Operative Agreements" means, collectively, the Pass Through Trust Agreements,
the Escrow and Paying Agent Agreements, the Deposit Agreements, the Liquidity
Facilities, the Policy Provider Agreement, the Policy, the Intercreditor
Agreement, the Registration Rights Agreements, the Trust Agreements, the
Equipment Notes, the Certificates and the Financing Agreements.

"Owned Aircraft Indenture" means a Trust Indenture and Mortgage substantially in
the form of Exhibit C-2 to the Note Purchase Agreement.

"Owned Aircraft Participation Agreement" means a Participation Agreement
substantially in the form of Exhibit C-1 to the Note Purchase Agreement.

"Owner Financing Agreements" means, collectively, the Owned Aircraft
Participation Agreement, the Owned Aircraft Indenture and the Equipment Notes
issued thereunder.

"Owner Participant" means, with respect to any Leased Aircraft, the Person named
as the Owner Participant in the Participation Agreement with respect to such
Leased Aircraft.

"Owner Trust" means with respect to any Leased Aircraft, the trust created by
the "Trust Agreement" referred to in the Leased Aircraft Indenture related
thereto.

"Owner Trustee" means with respect to any Leased Aircraft, the "Owner Trustee"
party to the "Trust Agreement" referred to in the Leased Aircraft Indenture
related thereto.

"Par Redemption Amount" means $4,000,000.

"Participation Agreements" means, collectively, the Leased Aircraft
Participation Agreements and the Owned Aircraft Participation Agreements.

"Pass Through Trust" has the meaning set forth in the third recital to the Note
Purchase Agreement.

"Pass Through Trust Agreement" has the meaning set forth in the third recital to
the Note Purchase Agreement.

"Pass Through Trustee" has the meaning set forth in the first paragraph of the
Note Purchase Agreement.

"Paying Agent" has the meaning set forth in the first paragraph of the Note
Purchase Agreement.

"Person" means any individual, firm, partnership, joint venture, trust, trustee,
Government Entity, organization, association, corporation, limited liability
company, government agency, committee, department, authority and other body,
corporate or incorporate, whether having distinct legal status or not, or any
member of any of the same.

"Policy " has the meaning set forth in the tenth recital to the Note Purchase
Agreement.

"Policy Obligations" has the meaning specified in the Intercreditor Agreement.
<PAGE>   38
                                                                               6

"Policy Provider" has the meaning set forth in the tenth recital to the Note
Purchase Agreement.

"Policy Provider Agreement" has the meaning set forth in the tenth recital to
the Note Purchase Agreement.

"Qualified Owner Participant" means any bank, trust company, insurance company,
financial institution, limited liability company, partnership or corporation, in
each case with a combined capital and surplus or net worth of at least
$50,000,000.

"Rating Agencies" means, collectively, at any time, each nationally recognized
rating agency which shall have been requested to rate the Certificates and which
shall then be rating the Certificates. The initial Rating Agencies will be
Moody's Investors Service, Inc. and Standard & Poor's Rating Services, a
division of The McGraw-Hill Companies Inc.

"Rating Agency Confirmation" means, with respect to any action proposed to be
taken, a written confirmation from each of the Rating Agencies that such action
would not result in (i) a reduction of the rating for any Class of Certificates
below the then current rating for such Class of Certificates (without regard to
the Policy) or (ii) a withdrawal or suspension of the rating of any Class of
Certificates.

"Register" means the register maintained pursuant to Sections 3.04 and 7.12 of
each Pass Through Trust Agreement.

"Registration Rights Agreement" means the Exchange and Registration Rights
Agreement dated as of the Issuance Date, among the Initial Purchasers, the Pass
Through Trustees and the Company, as amended, supplemented or otherwise modified
from time to time in accordance with its terms.

"Regular Distribution Dates" shall mean January 2 and July 2 of each year,
commencing January 2, 2001.

"Remaining Weighted Average Life" means, on a given date with respect to any
Equipment Note, the number of days equal to the quotient obtained by dividing
(a) the sum of each of the products obtained by multiplying (i) the amount of
each then remaining scheduled payment of principal of such Equipment Note by
(ii) the number of days from and including such determination date to but
excluding the date on which such payment of principal is scheduled to be made,
by (b) the then outstanding principal amount of such Equipment Note.

"Replacement Depositary" has the meaning set forth in Section 4(a)(vii) of the
Note Purchase Agreement.

"Replacement Deposit Agreement" means, for each Class of Certificates, a deposit
agreement substantially in the form of the replaced Deposit Agreement for such
Class of Certificates as shall permit the Rating Agencies to confirm in writing
their respective ratings then in effect for such Class of Certificates (before
the downgrading of such ratings, if any, as a result of the downgrading of the
Depositary and without regard to the Policy).

"Scheduled Delivery Date" has the meaning set forth in Section 1(b) hereof.
<PAGE>   39
                                                                               7

"Section 1110" means 11 U.S.C. Section 1110 of the Bankruptcy Code or any
successor or analogous Section of the federal bankruptcy Law in effect from time
to time.

"Series C Equipment Notes" means Equipment Notes issued under an Indenture and
designated as "Series C" thereunder.

"Series D Equipment Notes" means Equipment Notes issued under an Indenture and
designated as "Series C" thereunder, if any.

"Series G Equipment Notes" means Equipment Notes issued under an Indenture and
designated as "Series G" thereunder.

"Subordination Agent" has the meaning set forth in the first paragraph of the
Note Purchase Agreement.

"Substitute Aircraft" has the meaning set forth in Section 1(f) of the Note
Purchase Agreement.

"Taxes" means all license, recording, documentary, registration and other
similar fees and all taxes, levies, imposts, duties, charges, assessments or
withholdings of any nature whatsoever imposed by any Taxing Authority, together
with any penalties, additions to tax, fines or interest thereon or additions
thereto.

"Taxing Authority" means any federal, state or local government or other taxing
authority in the United States, any foreign government or any political
subdivision or taxing authority thereof, any international taxing authority or
any territory or possession of the United States or any taxing authority
thereof.

"Treasury Yield" means, as of any date of determination, with respect to any
Equipment Note (utilizing the Assumed Amortization Schedule applicable thereto),
the interest rate (expressed as a decimal and, in the case of United States
Treasury bills, converted to a bond equivalent yield) determined to be the per
annum rate equal to the semi-annual yield to maturity for United States Treasury
securities maturing on the Average Life Date (of such Equipment Note) and
trading in the public securities markets either as determined by interpolation
between the most recent weekly average yield to maturity for two series of
United States Treasury securities, trading in the public securities markets, (A)
one maturing as close as possible to, but earlier than, the Average Life Date
(of such Equipment Note) and (B) the other maturing as close as possible to, but
later than, the Average Life Date (of such Equipment Note), in each case as
published in the most recent H.15(519) or, if a weekly average yield to maturity
for United States Treasury securities maturing on the Average Life Date (of such
Equipment Note) is reported on the most recent H.15(519), such weekly average
yield to maturity as published in such H.15(519).

"Triggering Event" has the meaning assigned to such term in the Intercreditor
Agreement.

"Trust Agreement" means a Trust Agreement substantially in the form of Exhibit
A-5 to the Note Purchase Agreement.

"Unindemnified Taxes" has the meaning assigned to such term in the Intercreditor
Agreement.
<PAGE>   40
                                                                               8

"WTC" has the meaning set forth in the first paragraph of the Note Purchase
Agreement.
<PAGE>   41
                                 EXHIBIT A-1 to
                             Note Purchase Agreement

                 FORM OF LEASED AIRCRAFT PARTICIPATION AGREEMENT
<PAGE>   42
                                 EXHIBIT A-2 to
                             Note Purchase Agreement

                                  FORM OF LEASE
<PAGE>   43
                                 EXHIBIT A-3 to
                             Note Purchase Agreement

                        FORM OF LEASED AIRCRAFT INDENTURE
<PAGE>   44
                                 EXHIBIT A-4 to
                             Note Purchase Agreement

                 FORM OF AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT
<PAGE>   45
                                 EXHIBIT A-5 to
                             Note Purchase Agreement

                     FORM OF LEASED AIRCRAFT TRUST AGREEMENT
<PAGE>   46
                                  EXHIBIT B to
                             Note Purchase Agreement

                             FORM OF DELIVERY NOTICE

                         Dated as of __________ __, ____

To each of the addressees listed

            in Schedule A hereto

                  Re:      Delivery Notice in accordance with Note Purchase
                           Agreement referred to below

Gentlemen:

            Reference is made to the Note Purchase Agreement dated as of July 7,
2000 among America West Airlines, Inc. (the "Company"), Wilmington Trust
Company, as Pass Through Trustee under each of the Pass Through Trust Agreements
(as defined therein) (the "Pass Through Trustee"), Wilmington Trust Company, as
Subordination Agent (the "Subordination Agent"), Wilmington Trust Company, as
Escrow Agent (the "Escrow Agent") and Wilmington Trust Company, as Paying Agent
(the "Paying Agent") (as in effect from time to time, the "Note Purchase
Agreement"). Unless otherwise defined herein, capitalized terms used herein
shall have the meanings set forth in the Note Purchase Agreement or, to the
extent not defined therein, the Intercreditor Agreement.

            Pursuant to Section 1(b) of the Note Purchase Agreement, the
undersigned hereby notifies you, in respect of the Airbus ___ aircraft with
manufacturer's serial number _______ (the "Aircraft"), of the following:

(1)      The Company has elected to treat the Aircraft as a
         [Leased](1)[Owned](2)
         Aircraft;

(2)      The Scheduled Delivery Date of the Aircraft is __________ __, ____; and

(3)      The aggregate amount of each series of Equipment Notes to be issued,
         and purchased by the respective Pass Through Trustees, on the Scheduled
         Delivery Date, in connection with the financing of such Aircraft is as
         follows:

         (a)      the Class G Trustee shall purchase Series G Equipment Notes in
                  the amount of $__________; and

         (b)      the Class C Trustee shall purchase Series C Equipment Notes in
                  the amount of $__________.

------------------------
1        To be inserted in the case of a Leased Aircraft.

2        To be inserted in the case of an Owned Aircraft.
<PAGE>   47
                                       2

            The Company hereby instructs the Class G Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated _____ __, ____ [a
date which is no later than one Business Day prior to the Scheduled Delivery
Date] and attach thereto a Notice of Purchase Withdrawal dated such date
completed as set forth on Exhibit A hereto and (ii) deliver such Withdrawal
Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

            The Company hereby instructs the Class C Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated _____ __, ____ [a
date which is no later than one Business Day prior to the Scheduled Delivery
Date] and attach thereto a Notice of Purchase Withdrawal dated such date
completed as set forth on Exhibit B hereto and (ii) deliver such Withdrawal
Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

            The Company hereby instructs each Pass Through Trustee to (i)
purchase Equipment Notes of a series and in an amount set forth opposite such
Pass Through Trustee in clause (3) above with a portion of the proceeds of the
withdrawals of Deposits referred to in the applicable Notice of Purchase
Withdrawal referred to above and (ii) re-deposit with the Depositary the excess,
if any, of the amount so withdrawn over the purchase price of such Equipment
Notes.

            The Company hereby instructs each Pass Through Trustee to (a) enter
into the Participation Agreement dated as of _____ __, ____ among the Company,
as [Lessee](3)[Owner](4), the Subordination Agent, the Pass Through Trustee,
___________________, as Mortgagee [and Loan Participant, _____________________,
as Owner Trustee and _________, as Owner Participant](5), (b) perform its
obligations thereunder and (c) deliver such certificates, documents and legal
opinions relating to such Pass Through Trustee as required thereby.

            [The Company hereby certifies that the Owner Participant with
respect to the Aircraft is (a) not an Affiliate of the Company and (b) a
[Qualified Owner Participant/person whose obligations under the Owner
Participant Agreements (as defined in the Participation Agreement) are
guaranteed by a Qualified Owner Participant].](6)

Yours faithfully,

America West Airlines, Inc.

By: _______________________________________________
      Name:
      Title:

_________________________________________

3           To be inserted in the case of a Leased Aircraft.

4           To be inserted in the case of an Owned Aircraft.

5           To be inserted in the case of a Leased Aircraft.

6           To be inserted in the case of a Leased Aircraft.
<PAGE>   48
                                   SCHEDULE A

Wilmington Trust Company, as
   Pass Through Trustee, Subordination
   Agent, Escrow Agent and Paying Agent
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention: Corporate Trust
              Administration
Facsimile: (302) 651-8882

Standard & Poor's Ratings Services
55 Water Street, 35th Floor
New York, New York  10041
Attention:  Betsy R. Snyder
Facsimile:  (212) 438-7811

Moody's Investors Service, Inc.
99 Church Street
New York, New York  10007
Attention:  Richard Bittenbender
Facsimile:  (212) 553-4661
<PAGE>   49
                             WITHDRAWAL CERTIFICATE

                                  (Class __)(7)

Wilmington Trust Company,
as Escrow Agent

Dear Sirs:

         Reference is made to the Escrow and Paying Agent Agreement, dated as of
July 7, 2000 (the "Agreement"). We hereby certify to you that the conditions to
the obligations of the undersigned to execute a Participation Agreement pursuant
to the Note Purchase Agreement have been satisfied. Pursuant to Section 1.02(c)
of the Agreement, please execute the attached Notice of Withdrawal and
immediately transmit by facsimile to the Depositary, at (212) 657-3866.

                                          Very truly yours,

                                          WILMINGTON TRUST COMPANY, not in its
                                          individual capacity by solely as
                                          Pass Through Trustee

                                          By:
                                              --------------------------------
                                             Name:
                                             Title:

Dated:             ,
       -------- ---   ----

-----------

7        Insert letter of appropriate class of Certificates.
<PAGE>   50
                                                                       EXHIBIT A

                          NOTICE OF PURCHASE WITHDRAWAL

Citibank, N.A.
111 Wall Street, 5th Floor, Zone 2
New York, NY  10005
Attention: Global Agency & Trust Services
Telecopier:  (212) 657-3866

Gentlemen:

         Reference is made to (i) the Deposit Agreement (Class G) dated as of
July 7, 2000 (the "Deposit Agreement") between Wilmington Trust Company, as
Escrow Agent, and Citibank, N.A., as Depositary (the "Depositary").

         In accordance with Section 1.5(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$_______, Account No. ____________.

         The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to [________________, Account No. _____, Reference: _________] on
_________ __, ____, upon the telephonic request of a representative of the Pass
Through Trustee.

                                       WILMINGTON TRUST COMPANY,
                                       as Escrow Agent

                                       By:________________________________
                                          Name:
                                          Title:

Dated: _______ __, ____
<PAGE>   51
                                                                       EXHIBIT B

                          NOTICE OF PURCHASE WITHDRAWAL

Citibank, N.A.
111 Wall Street, 5th Floor, Zone 2
New York, NY  10005
Attention: Global Agency & Trust Services
Telecopier:  (212) 657-3866

Gentlemen:

         Reference is made to (i) the Deposit Agreement (Class C) dated as of
July 7, 2000 (the "Deposit Agreement") between Wilmington Trust Company, as
Escrow Agent, and Citibank, N.A., as Depositary (the "Depositary").

         In accordance with Section 1.5(b) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$_______, Account No. ____________.

         The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to [________________, Account No. _____, Reference: _________] on
_________ __, ____, upon the telephonic request of a representative of the Pass
Through Trustee.

                                            WILMINGTON TRUST COMPANY,
                                            as Escrow Agent

                                            By: _____________________________
                                                Name:
                                                Title:

Dated: _______ __, ____
<PAGE>   52
                                 EXHIBIT C-1 to
                             Note Purchase Agreement

                 FORM OF OWNED AIRCRAFT PARTICIPATION AGREEMENT
<PAGE>   53
                                 EXHIBIT C-2 to
                             Note Purchase Agreement

                        FORM OF OWNED AIRCRAFT INDENTURE
<PAGE>   54
                                  EXHIBIT D to
                             Note Purchase Agreement

         ADDITIONAL SUBORDINATION PROVISION FOR SERIES D EQUIPMENT NOTES

                  Subordination.

                  (a)      As between the Note Holders, this Trust Indenture
                           shall be a subordination agreement for purposes of
                           Section 510 of the United States Bankruptcy Code, as
                           amended, from time to time.

                  (b)      If any Note Holder receives any payment in respect of
                           any obligations owing hereunder, which is
                           subsequently invalidated, declared preferential, set
                           aside and/or required to be repaid to a trustee,
                           receiver or other party, then, to the extent of such
                           payment, such obligations intended to be satisfied
                           shall be revived and continue in full force and
                           effect as if such payment had not been received.

                  (c)      Each of the Note Holders may take any of the
                           following actions without impairing its rights under
                           this Trust Indenture:

                           (i)      obtain a Lien on any property to secure any
                                    amounts owing to it hereunder,

                           (ii)     obtain the primary or secondary obligation
                                    of any other obligor with respect to any
                                    amounts owing to it hereunder,

                           (iii)    renew, extend, increase, alter or exchange
                                    any amounts owing to it hereunder, or
                                    release or compromise any obligation of any
                                    obligor with respect thereto,

                           (iv)     refrain from exercising any right or remedy,
                                    or delay in exercising such right or remedy,
                                    which it may have, or

                           (v)      take any other action which might discharge
                                    a subordinated party or a surety under
                                    applicable law;

                           provided, however, that the taking of any such
                           actions by any of the Note Holders shall not
                           prejudice the rights or adversely affect the
                           obligations of any other party under this Trust
                           Indenture.

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