Document:

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                                                                    EXHIBIT 10.4

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT entered into this 16th day of June, 2005, by
and between PINNACLE AIRLINES, INC., a Georgia corporation whose address is 1689
Nonconnah Boulevard, Suite 111, Memphis, Tennessee 38132 (the "Grantor"), and
FIRST TENNESSEE BANK NATIONAL ASSOCIATION, a national banking association whose
address is 165 Madison Avenue, Memphis, Tennessee 38103 (the "Bank").

                                   WITNESSETH:

         That for good and valuable considerations, the receipt and sufficiency
of which are hereby acknowledged, the Grantor hereby agrees with Bank as
follows:

         1. DEFINITIONS. (a) Reference is made to the Loan Agreement (the "Loan
Agreement") of even date herewith among the Grantor, Pinnacle Airlines Corp., a
Delaware corporation ("Guarantor"), and the Bank, said Loan Agreement being
incorporated herein by reference. All terms used in this Agreement which are
defined in the Loan Agreement or in the Uniform Commercial Code of the State of
Tennessee, as now or hereafter in effect (the "Code"), and which are not
otherwise defined herein shall have the same meanings herein as set forth
therein.

                           (b) The term "Event of Default" shall have the
                  meaning set out in Section 7 hereof.

         2. GRANT OF SECURITY INTEREST. As collateral security for all of the
Obligations (as defined in Section 3 hereof), the Grantor hereby pledges and
assigns to Bank, and grants to Bank a continuing security interest in, the
following personal property of Grantor wherever located and whether now or
hereafter existing (the "Collateral"):

                  (a) All furniture, fixtures and equipment of the Grantor,
          including without limitation all propellers, appliances and spare
          parts, rotable parts and ground service equipment owned by the Grantor
          but expressly excluding (i) all aircraft, (ii) all leased spare
          engines and (iii) all consigned goods;

                  (b) All records and documents related to Collateral,
         including, without limitation, computer programs;

                  (c) All spare parts (including appliances) now or hereafter
         owned by the Grantor that are appropriate for installation on or use
         in:

                           (i) any aircraft now or hereafter owned or leased by
                      Grantor; and

                           (ii) any engine utilized in any such aircraft;

                  together with all records relating to such spare parts and all
rights of Borrower with respect to such spare parts (all of the foregoing items
of collateral in this subsection (c) are

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collectively referred to hereinafter as "Inventory"). The spare parts included
in Inventory fall into two (2) categories: "rotables" and "expendables."
"Rotables" are spare parts that wear over time and can be repeatedly restored to
a serviceable condition over a period of time approximating the life of the
flight equipment to which they relate. "Expendables" consist of: (i) parts that
can be restored to a serviceable condition but which have a life less than that
of the related flight equipment; and (ii) parts that are generally used once and
thereby consumed or thereafter discarded. As stated above, the parties hereto
agree that spare engines are not included in the definition of "Inventory" or
the definition of "Collateral" as provided herein. The parties hereto further
agree that the lien of this Security Agreement will not apply to a particular
spare part or piece of Inventory for so long as such spare part or piece of
Inventory is installed upon, affixed to, or being used in any aircraft, engine,
or other spare part or piece of Inventory so installed, affixed, or being used.

                  (d) All Proceeds, including Cash Proceeds, of any and all of
         the foregoing Collateral except Inventory;

in each case, wherever located, whether now owned or hereafter acquired by the
Grantor. The Collateral described in subparagraphs (a), (b), and (c) of this
Section are sometimes hereinafter called the "Tangible Collateral."

         3. SECURITY FOR OBLIGATIONS. The security interest created hereby in
the Collateral constitutes continuing collateral security for all of the
following obligations, whether now existing or hereafter incurred (the
"Obligations"):

                  (a) The full and prompt payment when due of the indebtednesses
         evidenced by that certain Revolving Credit Note of even date herewith,
         in the principal sum of SEVENTEEN MILLION Dollars ($17,000,000.00)
         executed by Grantor and payable to the order of Bank, and any and all
         renewals, modifications and extensions thereof, in whole or in part,
         and including any obligations under any letters of credit issued under
         said line of credit pursuant to the terms of the Loan Agreement, and
         any and all renewals, modifications and extensions thereof, in whole or
         in part; and

                  (b) The due performance and observance by the Grantor of all
         of its covenants, agreements, representations, liabilities,
         obligations, and undertakings as set forth herein, or in the Loan
         Agreement (as the same may be modified renewed or extended from time to
         time), or in any other instrument or document which now or at any time
         hereafter evidences or secures all or any part of the Obligations
         hereby secured howsoever and whensoever arising, whether absolute or
         contingent, joint or several, matured or unmatured, direct or indirect,
         primary or secondary, and including without limitation, all future
         advances to Grantor, all liabilities of the Grantor under any guaranty
         agreement executed in favor of the Bank at any time and all obligations
         of the Grantor with respect to any letters of credit issued at any time
         by Bank for the benefit of Grantor.

         4. REPRESENTATIONS AND WARRANTIES. The Grantor represents and warrants
as follows:

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                  (a) All Tangible Collateral now existing is, and all Tangible
         Collateral hereafter existing will be, located at the locations
         described in Exhibit "A". The Grantor's chief place of business and
         chief executive office, the place where Grantor keeps Grantor's
         records, are located at the address specified for the Grantor in the
         initial paragraph hereof.

                  (b) The Grantor is a corporation. The Grantor's state of
         incorporation is the State identified in the certificate of existence
         attached as Exhibit "B," and the exact legal name of the Grantor is set
         forth in the initial paragraph hereof. The organizational
         identification number assigned to Grantor by its state of organization
         is J517167.

                  (c) The Grantor owns the Collateral free and clear of any
         lien, security interest or other charge or encumbrance except for the
         security interest created by this Agreement, and except for the
         financing statement filed in favor of Bank relating to this Agreement,
         no other financing statement or other instrument similar in effect
         covering all or any part of the Collateral is on file in any recording
         office.

                  (d) The exercise by Bank of its rights and remedies hereunder
         will not contravene any law or governmental regulation or any
         contractual restriction binding on or affecting the Grantor or any of
         the Grantor's properties and will not result in or require the creation
         of any lien, security interest or other charge or encumbrance upon or
         with respect to any of the Grantor's properties.

                  (e) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or other
         regulatory body is required either for the grant by the Grantor of the
         security interest created hereby in the Collateral or for the exercise
         by Bank of its rights and remedies hereunder.

                  (f) This Agreement creates a valid security interest in favor
         of the Bank in the Collateral. The filing of the financing statements
         with the Georgia Secretary of State pursuant to the Loan Agreement will
         perfect and establish the first priority of the Bank's security
         interest hereunder in the Collateral (other than the aircraft component
         equipment for which filing is required with the Federal Aviation
         Administration), subject to no other liens and encumbrances. Except as
         set forth in this Section 4(f), no action is necessary or desirable to
         perfect or otherwise protect such security interest.

         5. GRANTOR'S COVENANTS. So long as any of the Obligations shall remain
outstanding, unless Bank shall otherwise consent in writing:

                  (a) Further Assurances. The Grantor will at Grantor's expense,
         at any time and from time to time, promptly execute and deliver all
         further instruments and documents and take all further action that Bank
         deems necessary or desirable or that Bank may request in order (i) to
         perfect and protect the security interest created or purported to be
         created hereby; (ii) to enable Bank to exercise and enforce its rights
         and remedies hereunder in respect of the Collateral; or (iii) to
         otherwise effect the purposes of this Agreement, including, without
         limitation: (A) authorizing the filing of such financing or
         continuation statements, or amendments thereto, as Bank deems necessary
         or desirable or

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         that Bank may request in order to perfect and preserve the security
         interest created or purported to be created hereby; (B) furnishing to
         Bank from time to time statements and schedules further identifying and
         describing the Collateral and such other reports in connection with the
         Collateral as Bank may reasonably request, all in reasonable detail;
         (C) if any Inventory shall be represented by a warehouse receipt or
         other document of title, delivering such warehouse receipt or other
         document to Bank duly endorsed or assigned to Bank, all in form and
         substance satisfactory to the Bank; and (D) where Collateral consisting
         of Documents or Goods is held by a third-party bailee, furnish Bank
         evidence in form reasonable satisfactory to Bank of such bailee's
         acknowledgment that it is holding such Collateral for the benefit of
         Bank.

                  (b) Location of Tangible Collateral. The Grantor will keep all
         of the Tangible Collateral, both now owned and hereafter acquired, at
         the locations set forth in Section 4(a) of this Agreement, or at such
         other location or locations to which Bank shall consent in writing in
         advance of placing Tangible Collateral at such location(s) which
         consent shall not be unreasonably withheld, delayed or conditioned.

                  (c) Taxes. The Grantor will pay promptly before delinquent all
         property and other taxes, assessments, and governmental charges or
         levies imposed upon, and all claims (including claims for labor,
         materials, and supplies) against, the Collateral, except to the extent
         the validity thereof is being contested diligently and in good faith by
         proper proceedings satisfactory to the Bank.

                  (d) Insurance.

                           (i) The Grantor will, at Grantor's own expense,
          maintain insurance with respect to the Tangible Collateral in such
          amounts, against such risks, in such form and with such insurers, as
          shall be satisfactory to Bank from time to time, and in accordance
          with the provisions of the Loan Agreement. The Bank acknowledges and
          agrees that the insurance presently maintained by Grantor is
          satisfactory to the Bank. Each policy for liability insurance shall
          provide for all losses to be paid on behalf of Bank and the Grantor as
          their respective interests may appear, and each policy for property
          damage insurance shall provide for all losses to be paid directly to
          Bank. Each such policy shall in addition (A) name the Grantor and Bank
          as insured parties thereunder (without any representation or warranty
          by or obligation upon Bank) as their interests may appear, (B) contain
          the agreement by the insurer that any loss thereunder shall be payable
          to Bank notwithstanding any action, inaction, or breach of
          representation or warranty by the Grantor, (C) provide that there
          shall be no recourse against Bank for payment of premiums or other
          amounts with respect thereto and (D) provide that at least ten (10)
          days' prior written notice of cancellation, amendment, or of lapse
          shall be given to Bank by the insurer. The Grantor will, if so
          requested by Bank, deliver to Bank original or duplicate policies of
          such insurance, or satisfactory certificates of insurance, and, as
          often as Bank may reasonably request, a report of a reputable
          insurance broker with respect to such insurance.

                           (ii) Reimbursement under any liability insurance
          maintained by the Grantor pursuant to this Section 5(d) may be paid
          directly to the party who shall have

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         incurred liability covered by such insurance. In case of any loss
         involving damage to Tangible Collateral as to which paragraph (iii) of
         this Section 5(d) is not applicable, the Grantor will, if so requested
         by Bank, make or cause to be made the necessary repairs to or
         replacements of such Tangible Collateral, and any proceeds of insurance
         maintained by the Grantor pursuant to this Section 5(d) shall be paid
         to the Grantor as reimbursement for the costs of such repairs or
         replacements.

                  (e) Upon the occurrence of an Event of Default or the actual
         or constructive total loss of the Tangible Collateral or any part of
         the Tangible Collateral, all insurance payments in respect of such
         Tangible Collateral shall be paid to Bank and, at Bank's option,
         applied as specified in Section 8(b) hereof.

                  (f) Transfers and Other Liens. Without the prior written
         consent of Bank, the Grantor will not (i) sell, assign (by operation of
         law or otherwise), exchange, or otherwise dispose of any of the
         Collateral (except for sale or other use of Collateral in the ordinary
         course of business); or (ii) create or suffer to exist any lien,
         security interest or other charge or encumbrance upon or with respect
         to any of the Collateral except for the security interest created by
         this Agreement. The Bank acknowledges and agrees that some of the
         Collateral may be used from time to time to repair aircraft leased or
         owned by Grantor (the "Aircraft"), and as such, may become so affixed
         to the Aircraft as to become a part thereof. For so long as the
         Collateral is affixed to the Aircraft, the Bank waives any rights to
         assert its lien on such Collateral, but such lien will remain in full
         force and effect once such Collateral is no longer affixed to the
         Aircraft, and is returned to Grantor to be held as equipment or
         inventory.

                  (g) Condition of Collateral. The Grantor will cause all
         Equipment constituting part of the Collateral to be maintained and
         preserved in good and serviceable condition, repair and working order,
         and will forthwith, or in the case of any loss or damage to any thereof
         as quickly as practicable after the occurrence thereof, make or cause
         to be made all repairs, replacements, and other improvements in
         connection therewith which are necessary or desirable or that the Bank
         may request to such end. The Grantor will promptly furnish to the Bank
         a statement respecting any material loss or damage to any of the
         Tangible Collateral.

                  (h) Corporate Status. The Grantor will preserve its corporate
         existence and will not merge into or consolidate with any other entity,
         sell all or substantially all of its assets, change its state of
         incorporation or change its corporate name without providing Bank with
         thirty (30) days' prior written notice.

         6. ADDITIONAL PROVISIONS CONCERNING THE COLLATERAL. (a) The Grantor
hereby authorizes Bank to file, without the signature of the Grantor, one or
more financing or continuation statements, and amendments thereto, describing
the Collateral.

                  (b) The Grantor hereby irrevocably appoints Bank the Grantor's
         attorney-in-fact and proxy, with full authority in the place and stead
         of the Grantor and in the name of the Grantor or otherwise, from time
         to time in the Bank's discretion, to take any action and to execute any
         instrument which Bank may deem necessary or advisable to

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         accomplish the purposes of this Agreement, including, without
         limitation upon the occurrence of an Event of Default which is not
         cured within any applicable grace or cure period: (i) to obtain and
         adjust insurance required to be paid to Bank pursuant to Section 5(d)
         hereof; (ii) to ask, demand, collect, sue for, recover, compound,
         receive, and give acquittance and receipts for moneys due and to become
         due under or in respect of any of the Collateral; (iii) to receive,
         endorse, and collect any checks, drafts or other Instruments,
         Documents, and Chattel Paper in connection with clause (i) or (ii)
         above; and (iv) to file any claims or take any action or institute any
         proceedings which Bank may deem necessary or desirable for the
         collection of any of the Collateral or otherwise to enforce the rights
         of Bank with respect to any of the Collateral. Grantor hereby ratifies
         and approves all acts of said attorney; and the attorney shall have no
         liability to Grantor for any act or omission as such attorney.

                  (c) If the Grantor fails to perform any agreement contained
         herein, Bank may itself perform, or cause performance of, such
         agreement or obligation, and the expenses of Bank incurred in
         connection therewith shall be payable by the Grantor under Section 10
         hereof, and shall be fully secured hereby.

                  (d) The powers conferred on Bank hereunder are solely to
         protect its interest in the Collateral and shall not impose any duty
         upon it to exercise any such powers. Except for the safe custody of any
         Collateral in its possession and the accounting for moneys actually
         received by it hereunder, Bank shall have no duty as to any Collateral
         or as to the taking of any necessary steps to preserve rights against
         prior parties or any other rights pertaining to any Collateral.

                  (e) Anything herein to the contrary notwithstanding, (i) the
         Grantor shall remain liable under any contracts and agreements included
         in or relating to the Collateral to the extent set forth therein to
         perform all of the Grantor's obligations thereunder to the same extent
         as if this Agreement had not been executed; (ii) the exercise by Bank
         of any of its rights hereunder shall not release the Grantor from any
         of the Grantor's duties or obligations under the contracts and
         agreements included in or relating to the Collateral; and (iii) Bank
         shall not have any obligation or liability by reason of this Agreement
         under any contracts and agreements included in or relating to the
         Collateral, nor shall Bank be obligated to perform any of the
         obligations or duties of the Grantor thereunder or to take any action
         to collect or enforce any claim for payment assigned hereunder.

         7. EVENTS OF DEFAULT. An Event of Default shall be deemed to have
occurred hereunder upon the occurrence of a failure or default in the full,
faithful and prompt payment or performance of any one or more of the
Obligations, and shall include, but shall not be limited to:

                  (a) Any default in the full and prompt payment when due of all
         or any part of any indebtedness constituting part of the Obligations
         hereunder which is not cured within five (5) days after written notice
         of default;

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                  (b) Any default by Grantor in the full, faithful and prompt
         payment or performance of any covenant, agreement, liability,
         obligation, condition or undertaking on Grantor's part to be paid, met,
         kept, observed or performed pursuant to the provisions hereof, of the
         Loan Agreement, or of any other instrument or document now or hereafter
         securing all or any part of the Obligations which is not cured within
         thirty (30) days after written notice of default (or within any other
         specific grace or cure period expressly provided in any such document
         or agreement; or

                  (c) Any warranty or representation contained herein shall
         prove to have been false or materially misleading as of the time made.

         8. REMEDIES UPON DEFAULT. If an Event of Default shall have occurred
and shall not have been cured within any applicable grace or cure period:

                  (a) Bank may exercise in respect of the Collateral, in
         addition to other rights and remedies provided for herein or otherwise
         available to it, all the rights and remedies of a secured party on
         default under the Code (whether or not the Code applies to the affected
         Collateral), and also may (i) require the Grantor to, and the Grantor
         hereby agrees that the Grantor will at the Grantor's expense and upon
         request of Bank forthwith, assemble all or part of the Collateral as
         directed by Bank and make it available to Bank at a place to be
         designated by Bank which is reasonably convenient to both parties; and
         (ii) without notice except as specified below, sell the Collateral or
         any part thereof in one or more parcels at public or private sale, at
         any of Bank's offices or elsewhere, for cash, on credit or for future
         delivery, and at such price or prices and upon such other terms as Bank
         may deem commercially reasonable. The Grantor agrees that, to the
         extent notice of sale shall be required by law, at least ten (10) days'
         notice to the Grantor of the time and place of any public sale or the
         time after which any private sale is to be made shall constitute
         reasonable notification. Bank shall not be obligated to make any sale
         of Collateral regardless of notice of sale having been given. Bank may
         adjourn any public or private sale from time to time by announcement at
         the time and place fixed therefor, and such sale may, without further
         notice, be made at the time and place to which it was so adjourned.

                  (b) Any cash held by Bank as Collateral and all cash proceeds
         received by Bank in respect of any sale of, collection from, or other
         realization upon, all or any part of the Collateral under the
         provisions of the Code or this Agreement shall be applied as follows:

                           (i) First, to the repayment of the reasonable costs
          and expenses, including reasonable attorneys' fees and legal expenses,
          incurred by Bank in connection with (A) the administration of this
          Agreement, (B) the custody, preservation, use, or operation of, or the
          sale of, collection from, or other realization upon, any Collateral,
          (C) the exercise or enforcement of any of the rights of Bank
          hereunder, or (D) the failure of the Grantor to perform or observe any
          of the provisions hereof;

                           (ii) Second, at the option of Bank, to the payment or
         other satisfaction of any liens and other encumbrances upon any of the
         Collateral;

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                           (iii) Third, to the reimbursement of Bank for the
          amount of any obligations of the Grantor paid or discharged by Bank
          pursuant to the provisions of this Agreement, and of any expenses of
          Bank payable by the Grantor hereunder;

                           (iv) Fourth, to the satisfaction of the Obligations,
         in such order as Bank shall elect;

                           (v) Fifth, to the payment of any other amounts
          required by applicable law [including, without limitation, Section
          47-9-608(a)(1)(C) or 47-9-615(a)(3) of the Code or any successor or
          similar, applicable statutory provision]; and

                           (vi) Sixth, the surplus proceeds, if any, to the
          Grantor or to whomsoever shall be lawfully entitled to receive the
          same or as a court of competent jurisdiction shall direct.

                  (c) In the event that the proceeds of any such sale,
         collection or realization are insufficient to pay all amounts to which
         Bank is legally entitled, the Grantor shall be liable for the
         deficiency, together with interest thereon at such rate(s) as shall be
         fixed by instrument(s) evidencing the Obligation(s) with respect to
         which such deficiency exists, together with the costs of collection and
         the reasonable fees of any attorneys employed by Bank to collect such
         deficiency.

         9. RIGHTS AND DUTIES OF BANK, ETC. Bank undertakes, as to this
Agreement, to exercise only such duties as are specifically set forth in this
Agreement and to exercise such of the rights, powers and remedies as are vested
in it by this Agreement or by law. In any instance hereunder where Bank's
approval or consent is required or the exercise of Bank's judgment is required,
the granting or denial of such approval or consent and the exercise of such
judgment shall be within the sole discretion of Bank, and Bank shall not, for
any reason or to any extent, be required to grant such approval or consent or
exercise such judgment. Bank may consult with counsel, and the written advice or
opinion of such counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

         10. INDEMNITY AND EXPENSES. (a) The Grantor agrees to indemnify Bank
from and against any and all claims, losses, and liabilities growing out of or
resulting from this Agreement (including, without limitation, enforcement of
this Agreement), except claims, losses, or liabilities resulting solely and
directly from Bank's gross negligence or willful misconduct.

         (b) The Grantor will upon demand pay to Bank the amount of any and all
costs and expenses, including the fees and disbursements of the Bank's counsel
and of any experts and agents, which Bank may incur in connection with (i) the
administration of this Agreement (excluding the salary of Bank's employees and
Bank's normal and usual overhead expenses); (ii) the custody, preservation, use,
or operation of, or the sale of, collection from, or other realization upon, any
Collateral; (iii) the exercise or enforcement of any of the rights of Bank
hereunder; or (iv) the failure by the Grantor to perform or observe any of the
provisions hereof,

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except expenses resulting solely and directly from Bank's gross negligence or
willful misconduct.

         11. NOTICES, ETC. All notices and other communications provided for
hereunder shall be in writing and shall be mailed, certified mail, return
receipt requested, if to Grantor, to Grantor at 1689 Nonconnah Boulevard, Suite
111, Memphis, Tennessee 38132, Attention: Peter D. Hunt, Chief Financial
Officer; if to Bank, to it at 165 Madison Avenue, Memphis, Tennessee 38103,
Attention: Metropolitan Division; or as to any such person to such other address
as shall be designated by such person in a written notice to the other party
complying as to delivery with the terms of this Section 11. All such notices and
other communications shall be effective (i) if mailed, when received or three
days after mailing, whichever is earlier; or (ii) if delivered, upon delivery.

         12. SECURITY INTEREST ABSOLUTE. All rights of Bank, all security
interests and all Obligations of the Grantor hereunder shall be absolute and
unconditional irrespective of: (i) any lack of validity or enforceability of the
Loan Agreement, any guaranty, or any other agreement or instrument relating
thereto; (ii) any change in the time, manner, or place of payment of, or in any
other term in respect of, all or any of the Obligations, or any other amendment
or waiver of or consent to any departure from this Agreement, the Loan
Agreement, any guaranty, or any other agreement or instrument relating thereto;
(iii) any increase in, addition to, or exchange, release, or non-perfection of,
any other collateral, or any release or amendment or waiver of or consent to
departure from any guaranty, for all or any of the Obligations; (iv) any other
circumstance which might otherwise constitute a defense available to, or a
discharge of, the Grantor in respect of the Obligations or this Agreement; or
(v) the absence of any action on the part of Bank to obtain payment or
performance of the Obligations from the Grantor or any other party.

         13. MISCELLANEOUS. (a) No amendment of any provision of this Agreement
shall be effective unless it is in writing and signed by the Grantor and Bank,
and no waiver of any provision of this Agreement, and no consent to any
departure by the Grantor therefrom, shall be effective unless it is in writing
and signed by Bank, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

                  (b) No failure on the part of Bank to exercise, and no delay
         in exercising, any right hereunder or under any other instrument or
         document shall operate as a waiver thereof; nor shall any single or
         partial exercise of any such right preclude any other or further
         exercise thereof or the exercise of any other right. The rights and
         remedies of Bank provided herein and in the other instruments and
         documents are cumulative and are in addition to, and not exclusive of,
         any rights or remedies provided by law. The rights of Bank under the
         Loan Agreement, any guaranty, any other instrument which now or
         hereafter evidences or secures all or part of the Obligations, or any
         related document against any party thereto are not conditional or
         contingent on any attempt by Bank to exercise any of its rights under
         any other such instrument or document against such party or against any
         other party.

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                  (c) Any provision of this Agreement which is prohibited or
         unenforceable in any jurisdiction shall, as to such jurisdiction, be
         ineffective to the extent of such prohibition or invalidity without
         invalidating the remaining portions hereof or thereof or affecting the
         validity or enforceability of such provision in any other jurisdiction.

                  (d) This Agreement shall create a continuing security interest
         in the Collateral and shall (i) remain in full force and effect until
         the termination of the duties and obligations of Grantor under the Loan
         Agreement, and, thereafter, until the payment in full of the
         Obligations, (ii) be binding on the Grantor and the Grantor's
         successors and permitted assigns and shall inure, together with all
         rights and remedies of Bank hereunder, to the benefit of Bank and its
         respective successors, transferees, and assigns. None of the rights or
         obligations of the Grantor hereunder may be assigned or otherwise
         transferred without the prior written consent of Bank.

                  (e) Upon the termination of the duties and obligations of
         Grantor under the Loan Agreement and the satisfaction in full of the
         Obligations, Bank will, upon the Grantor's request and at the Grantor's
         expense, (i) return to the Grantor such of the Collateral as shall not
         have been sold or otherwise disposed of or applied pursuant to the
         terms hereof; and (ii) execute and deliver to the Grantor such
         documents as the Grantor shall reasonably request to evidence
         termination of the security interest herein granted.

                  (f) This Agreement shall be governed by and construed in
         accordance with the laws of the State of Tennessee, except as required
         by mandatory provisions of law and except to the extent that the
         validity or perfection of the security interest created hereby, or
         remedies hereunder, in respect of any particular Collateral are
         governed by the laws of a jurisdiction other than the State of
         Tennessee. If any provision hereof is in conflict with the provisions
         of the Loan Agreement, the provisions of the Loan Agreement shall
         control.

                  (g) The captions or headings of the Sections of this Agreement
         are inserted merely for convenience of reference and shall not be
         deemed to limit or modify the terms and provisions hereof.

         IN WITNESS WHEREOF, the Grantor has executed and delivered this
Agreement (or caused the execution and delivery of this Agreement by its duly
authorized officers) on the date first above written.

                                          PINNACLE AIRLINES, INC., a
                                          Georgia corporation

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

                                                                         GRANTOR

                                          FIRST TENNESSEE BANK
                                          NATIONAL ASSOCIATION

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

                                                                            BANK

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                                   EXHIBIT "A"
                                       TO
                               SECURITY AGREEMENT
================================================================================

                             Locations of Collateral

                                 [SEE ATTACHED]

                                      A-1
<PAGE>

                                   EXHIBIT "B"
                                       TO
                               SECURITY AGREEMENT
================================================================================

                            Certificate of Existence

                                 [SEE ATTACHED]

                                      A-2<PAGE>

                                                                    EXHIBIT 10.5

                            NEGATIVE PLEDGE AGREEMENT

         THIS NEGATIVE PLEDGE AGREEMENT, dated this the 16th day of June, 2005,
made by PINNACLE AIRLINES, INC., a Georgia corporation, party of the first part
("Borrower"), in favor of FIRST TENNESSEE BANK NATIONAL ASSOCIATION, a national
banking association having its principal place of business at 165 Madison
Avenue, Memphis, Tennessee 38103, party of the second part ("Bank").

                                   WITNESSETH:

         WHEREAS, the Borrower has made application to the Bank for certain
loans and financial accommodations in the maximum principal amount of Fifteen
Million Dollars ($15,000,000.00), to be currently evidenced by a Fifteen Million
Dollar $15,000,000.00) revolving credit note of even date herewith and possibly
to be evidenced in the future by certain other promissory notes and standby
letters of credit (collectively, the "Note") as described in that certain Loan
Agreement of even date herewith by and among the Borrower, the Bank, and
Pinnacle Airlines Corp., a Delaware corporation (the "Guarantor" and the "Loan
Agreement"); and

         WHEREAS, the Guarantor has guaranteed such indebtedness of the Borrower
to the Bank; and

         WHEREAS, the Bank is unwilling to make such loans unless Guarantor
further enters into this Agreement with the Banks;

         NOW, THEREFORE, for and in consideration of the premises, and other
good and valuable considerations, the receipt and sufficiency of which are
hereby acknowledged, Guarantor does hereby agree with the Bank as follows:

         1. So long as Borrower is indebted to Bank pursuant to the Note,
Borrower will not, either directly or indirectly, incur, create, assume, or
permit to exist any mortgage, pledge, security interest, encumbrance, lien, or
charge of any kind upon any of the property (the "Property") owned by Borrower
and described in EXHIBIT "A," attached hereto and made a part hereof as fully as
if set out verbatim herein.

         2. Borrower hereby acknowledges to the Bank that the identity of
Borrower was and continues to be material circumstances upon which the Bank has
relied in connection with, and which constitutes valuable consideration to the
Bank for, the extending to Borrower of the loan evidenced by the Note. Borrower
therefore covenants and agrees with the Bank that the entire indebtedness
evidenced by the Note shall, at the absolute option of the Bank, be and become
immediately due and payable should the Borrower, without the prior written
consent of the Bank (which consent may be given or withheld in the sole and
absolute discretion of the Banks), sell, assign, transfer (other than for
purposes of collection of checks and instruments in the ordinary course of
business), convey, lease with option to purchase, enter into a contract for
sale, grant an option to purchase, or further encumber any or all of Borrower's
interest in the Property, or any portion thereof, or permit the same to be sold,
assigned, transferred, conveyed, contracted for or encumbered.

<PAGE>

         3. Any mortgage, pledge, security interest, or other lien or
encumbrance on the Property granted or created by Borrower, or any conveyance or
sale of the Property, without the prior written consent of the Bank, shall be
void and of no force and effect.

         4. In the event of a default hereunder, the Bank shall be entitled to
exercise all of their rights and remedies set forth in (a) the Note and (b) the
Loan Agreement.

         5. This Agreement shall be binding upon Borrower, its successors and
assigns, shall inure to the benefit of the Bank, its successors and assigns, and
shall remain in full force and effect until all indebtednesses, liabilities, and
obligations of Borrower to the Bank evidenced by the Note and any renewals,
modifications or extensions thereof, due or to become due, absolute or
contingent, shall have been fully paid and satisfied.

         6. This Agreement shall be governed by and construed under the laws of
the State of Tennessee.

         7. It is understood and agreed that the Bank may at its option record
this Negative Pledge Agreement, and/or cause evidence thereof to be filed in
such governmental offices as the Bank deems advisable.

                        [SEPARATE SIGNATURE PAGE FOLLOWS]

                                       2
<PAGE>

                                 SIGNATURE PAGE
                                       TO
                            NEGATIVE PLEDGE AGREEMENT

         IN TESTIMONY WHEREOF, the undersigned has caused this Negative Pledge
Agreement to be executed by its duly authorized officers on the day and year
first above written.

                                             "Borrower"

                                             PINNACLE AIRLINES, INC.

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

STATE OF TENNESSEE
COUNTY OF SHELBY

         Before me, ______________________________, a Notary Public in and for
the State and County aforesaid, personally appeared
_________________________________, with whom I am personally acquainted (or
proved to me on the basis of satisfactory evidence), and who, upon oath,
acknowledged himself (or herself) to be the ______________________ of PINNACLE
AIRLINES, INC., the within-named bargainor, a corporation, and that _he as such
________________________, being duly authorized so to do, executed the foregoing
instrument for the purposes therein contained, by signing the name of the
corporation by ___self as such ____________________.

         WITNESS my hand and seal at office, on this the ____ day of June, 2005.

                                             -----------------------------------
                                              Notary Public

My Commission Expires:

----------------------

                                       S-1
<PAGE>

                                   EXHIBIT "A"
                                       TO
                            NEGATIVE PLEDGE AGREEMENT

         All of the Borrower's accounts, accounts receivable, cash, chattel
paper, instruments, marketable securities, and other obligations of any kind,
whether or not evidenced by an instrument or chattel paper, and whether or not
it has been earned by performance whether now or hereafter existing, arising out
of or in connection with the sale or lease of goods or the rendering of services
or otherwise, and all rights now or hereafter existing in and to all security
agreements, leases and other contracts securing or otherwise relating to any
such accounts receivable.

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