Document:

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                                                                    Exhibit 10.5

                             AIR SERVICES AGREEMENT

         This Agreement, dated as of June 11, 2001, but to be effective on
the SABRE Cutover Date (as defined below), is between AMR Corporation ("AA"),
a Delaware corporation having offices at 4333 Amon Carter Boulevard, Mail
Drop 5494, Fort Worth, Texas, 75261, and CHAUTAUQUA AIRLINES, INC.
("CONTRACTOR"), a New York corporation having its principal place of business
at Indianapolis International Airport, 2500 South High School Road,
Indianapolis, IN 46241.

                                   WITNESSETH:

         WHEREAS, AA holds a certificate of public convenience and necessity
issued pursuant to the federal transportation statutes authorizing it to engage
in air transportation of persons, property and mail, and is a major air carrier
providing scheduled domestic and international air transportation; and

         WHEREAS, Contractor holds a certificate of public convenience and
necessity issued pursuant to the Federal Transportation Statute authorizing it
to engage in air transportation of persons, property and mail, and is a regional
air carrier providing scheduled domestic air transportation; and

         WHEREAS, TWA Airlines, L.L.C., an Affiliate (as defined below) of AA,
and Contractor have entered into an agreement regarding the operation of Feeder
Air Service (as defined herein) utilizing turbo-prop aircraft and regional jets
pursuant to that certain Asset Purchase Agreement dated January 9, 2001; and

         WHEREAS, AA and Contractor desire to amend and restate said agreement,
namely the Amended and Restated Trans World Express Air Service Agreement dated
February 15, 2001.

         NOW, THEREFORE, in consideration of the foregoing premises, mutual
covenants and obligations hereinafter contained and subject to securing any and
all necessary corporate and Federal, State and local regulatory approvals, and
where necessary, airport consents or approvals, but only to the extent such
approvals and consents are required for the performance of services hereunder,
the parties agree as follows:

DEFINITIONS

         1.       "AA" means American Airlines, Inc.

         2.       "AADAMS" means American Airlines Digital Asset Management
                  System.

         3.       "AA TARIFFS" has the meaning ascribed to it in Exhibit H.

         4.       "AATV" means AA Travel Vouchers.

         5.       "AA UNAUTHORIZED OBLIGATION" has the meaning ascribed to it in
                  Section 6.02(b).

         6.       "ABR" means the name, as to be designated in writing by AA on
                  or prior to July 31, 2001, pursuant to which Contractor will
                  operate Feeder Air Service.

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Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 of the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.

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         7.       "ABR MARKS" shall mean those trademarks, service marks,
                  tradenames, logos, emblems, uniform designs, and distinctive
                  exterior and interior color decor and patterns for aircraft,
                  all as used in connection with the AA ABR brand of commuter
                  air service and listed or described on Exhibit B-1.

         8.       "ACCEPTED FREQUENT FLYER PROGRAM" means the AAdvantage
                  Frequent Flyer Program and any other carrier's frequent flyer
                  program designated by AA.

         9.       "ACQUIRING PARTY" has the meaning ascribed to it in Section
                  9.02(b).

         10.      "ACT" means the Securities Act of 1933, as amended.

         11.      "AFFILIATE" means, with respect to a Person, any other Person
                  controlling, controlled by, or under common control with, such
                  Person.

         12.      "AIRPORT SUPPORT SERVICES" means those Ground Handling,
                  Passenger Handling Duties associated with providing AA's
                  desired ground service levels in conjunction with the Feeder
                  Air Services contemplated herein.

         13.      "AMERICAN EAGLE" OR "AE" means AMR Corporation's wholly owned
                  regional airline, American Eagle Airlines, Inc.

         14.      "AMR ENTITIES" means AMR Corporation and its successors,
                  subsidiaries, Affiliates, parent companies, general partners,
                  limited partners, predecessors and assigns, including but not
                  limited to TWA, AA and AE.

         15.      "APPROVED AIRCRAFT" means any aircraft included in the Fleet
                  Plan and made a part of this Agreement.

         16.      "ATAC" means AA's automated agent check out system.

         17.      "ATA MANUAL" means the Air Transportation Association's Air
                  Cargo Council Trade Practice Manual.

         18.      "AUTOMATION EQUIPMENT" has the meaning ascribed to it in
                  Exhibit L.

         19.      "BAGGAGE CLAIM" means notification by a passenger that his
                  baggage has been lost, damaged, delayed, pilfered or stolen
                  and may originate in the form of a report prepared on behalf
                  of the passenger by airline personnel, which may or may not
                  entitle the passenger to receive compensation.

         20.      "BANKRUPT PARTY" has the meaning ascribed to it in Section
                  7.02(a).

         21.      "BLOCK HOUR" means that time that commences when an aircraft
                  moves under its own power for the purpose of flight and ends
                  when the aircraft comes to rest after landing.

         22.      "BMAS" or "BAGGAGE MANAGEMENT ANALYSIS SYSTEM" means an
                  internal AA baggage tracking system.

         23.      "CALL OPTION" has the meaning ascribed to it in Section 7.03.

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         24.      "CAUSE" means termination of this Agreement prior to the end
                  of the Term for any of the reasons specified in Section 7.02.

         25.      "CDO" means continual duty overnight.

         26.      "CHARTER FLIGHT" means an unpublished revenue flight marketed
                  by an AMR Entity and operated by Contractor with an Approved
                  Aircraft.

         27.      "CLAIMS" has the meaning assigned to it in Section 6.03(b).

         28.      "CLDR" means the Contractor Location Departure Ratio as
                  defined in Exhibit E.

         29.      "COMMON STOCK" has the meaning ascribed to it in Section
                  9.03(d).

         30.      "COMPLETION FACTOR" means number of Scheduled Flights operated
                  divided by number of Scheduled Flights.

         31.      "CONNECTING PASSENGERS" means passengers whose flight
                  itinerary involves a transfer to (or from) a Contractor flight
                  from (or to) an AA or AA Affiliate flight at the STL Hub,
                  Focus City or other such location where Contractor has
                  connections to multiple AA destinations.

         32.      "CONSUMER ADJUSTMENTS" has the meaning ascribed to it in
                  Exhibit F.

         33.      "CONSUMER PRICE INDEX" or "CPI" means the reference index
                  published by the Bureau of Labor Statistics Data, U.S.
                  Department of Labor Statistics Data, U.S. Department of Labor
                  for the Consumer Price Index - All-Urban Consumers, U.S. City
                  average, all items (Base year 1982-1984=100).

         34.      "CONTRACTOR" means Chautauqua Airlines, Inc.

         35.      "CONTRACTOR CONVERSION" means the complete assumption by
                  Contractor of ground operations at a Covered Location, which
                  results in the Covered Location becoming a Contractor
                  Location.

         36.      "CONTRACTOR LOCATION" means any airport terminal facility
                  where Contractor provides Feeder Air Services pursuant to this
                  Agreement and only Contractor has employees stationed, or
                  causes the delivery of vendor-provided services in lieu of
                  services provided by Contractor employees (including joint
                  locations where Contractor provides Feeder Air Services
                  pursuant to this Agreement at a different terminal facility
                  from which AA and/or its Affiliate operates in the same
                  airport).

         37.      "CONTRACTOR TICKETING LOCATION" has the meaning ascribed to it
                  in Exhibit F.

         38.      "CONTRACTOR UNAUTHORIZED OBLIGATION" has the meaning ascribed
                  to it in Section 6.02(a).

         39.      "CONVERSION EXPENSES" has the meaning ascribed to it in
                  Section 7.03.

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         40.      "CORPORATE COMPLAINT RATIO" means Corporate Complaints per
                  1,000 boarded passengers.

         41.      "CORPORATE COMPLAINTS" means total number of complaints
                  received by Contractor and AA from passengers which are
                  attributable to Contractor's ABR service, as tracked and
                  reported in AA's CAARE System or any successor system.

         42.      "COSTS" has the meaning ascribed to it in Exhibit E.

         43.      "COVERED CONVERSION" means the complete assumption by an AMR
                  Entity of ground operations at a Feeder Airport which results
                  in the Feeder Airport becoming a Covered Location.

         44.      "COVERED LOCATION" means any airport terminal facility where
                  Contractor and an AMR Entity both have operations and only the
                  AMR Entity has employees stationed in such terminal facility.

         45.      "CRS" means computerized reservation system.

         46.      "CUSTOMER SERVICE POLICIES AND PROCEDURES" means the
                  procedures prescribed in writing by AA from time to time, for
                  various activities relating to the provision of air
                  transportation services.

         47.      "DBC" means denied boarding compensation.

         48.      "DEFAULTING PARTY" has the meaning ascribed to it in Section
                  7.02(a).

         49.      "DESIGNATED USERS" has the meaning ascribed to it in Exhibit
                  L.

         50.      "DISCREPANCY NOTICES" has the meaning ascribed to it in
                  Exhibit F.

         51.      "DOD" means United States Department of Defense.

         52.      "DOT" means United States Department of Transportation.

         53.      "ESCALATION PERCENT" and "EP" shall be defined and calculated
                  pursuant to Schedule E-4.

         54.      "EXTRAORDINARY TRANSACTION" has the meaning ascribed to it in
                  Section 9.03(a).

         55.      "FAA" means United States Federal Aviation Administration.

         56.      "FEEDER AIR SERVICE" and "FEEDER AIR SERVICE FLIGHTS" means
                  scheduled air transportation utilizing the AA code, and
                  operated by Contractor as ABR or comparable AA fully branded
                  flights under a non-exclusive license to use the AA Marks in
                  connection with such transportation.

         57.      "FEEDER AIRPORT" means any airport, other than the Hub, where
                  Contractor provides Feeder Air Service Flights at the request
                  of AA pursuant to this Agreement.

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         58.      "FIRM APPROVED AIRCRAFT" has the meaning ascribed to it in
                  Schedule C-1.

         59.      "FLEET PLAN" shall mean the schedule of placing aircraft into
                  operation for Feeder Air Service and code share flights as
                  more fully set forth in Exhibit C.

         60.      "FOCUS CITY" shall mean any airport so designated by AA other
                  than the STL Hub where AA and/or an AA Affiliate has
                  connections to multiple points within the AA network.

         61.      "FORCE MAJEURE" has the meaning ascribed to it in Section
                  7.03.

         62.      "FOS" means AA's Flight Operations System.

         63.      "FTP" means File Transfer Protocol.

         64.      "GROUND HANDLING" and "GROUND HANDLING DUTIES" means the
                  provision of one or more of the following: (1) handling,
                  loading, and unloading of baggage, cargo and mail, (2) receipt
                  and dispatch, including , towing/pushback, and observing
                  aircraft engine start (3) baggage delivery, (4) servicing
                  potable water (5) connection and removal of ground power unit
                  and pre-conditioned air, (6) Light Aircraft Cleaning, and (7)
                  any other similar duties agreed upon by the parties in
                  writing.

         65.      "HOLDING COMPANY" has the meaning ascribed to it in Section
                  9.02.

         66.      "HUB" and "STL" means Lambert - St. Louis International
                  Airport, St. Louis, Missouri.

         67.      "INSECURE PARTY" has the meaning ascribed to it in Section
                  7.02(a).

         68.      "IPO" has the meaning ascribed to it in Section 9.03(d).

         69.      "IPO PARTICIPATION RIGHT" has the meaning ascribed to it in
                  Section 9.03(d).

         70.      "IPO SHARE PRICE" has the meaning ascribed to it in Section
                  9.03(d)(1).

         71.      "IPO SHARES" has the meaning ascribed to it in Section
                  9.03(d).

         72.      "LABOR CONTRACT RESTRICTIONS" means certain contractual
                  limitations related to AA commuter carriers and the operation
                  of regional jets as stated in the AA-Allied Pilots Association
                  collective bargaining agreement dated May 5, 1997, as amended
                  from time to time, or any successor agreement.

         73.      "LEASE" means a long-term aircraft lease for Approved Aircraft
                  that complies with the provisions hereof.

         74.      "LIGHT AIRCRAFT CLEANING" means wiping interior surfaces and
                  windows, sweeping/vacuuming, crossing seat belts, folding
                  blankets, trash removal, clean/restock seatback pockets and
                  overhead bins, mopping galley and lavatory, and lavatory
                  service on an as needed basis.

         75.      "MAGSA" has the meaning ascribed to it in Exhibit E.

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         76.      "MAIL" has the meaning ascribed to it in Schedule H-1.

         77.      "MARKS" means any trademark, trade name, trade dress, service
                  mark, domain name, or other indicia of ownership owned or used
                  by the AMR Entities.

         78.      "MISHANDLED BAGS" means total number of Baggage Claims
                  received by AA from Connecting Passengers for which Contractor
                  is at fault for lost, damaged, delayed, or pilfered baggage.

         79.      "MITIGATING FACTORS" means on days where AA operations control
                  has advised Contractor operations control that AA is
                  "thinning" its operation, Contractor's maximum 100% completion
                  number will be reduced by the percentage of flights cancelled
                  by AA and those "thinned" Contractor flights will be excluded
                  from the Completion Factor calculation.

         80.      "NEW AHI CALCULATED RATE" has the meaning ascribed to it in
                  Schedule E-3.

         81.      "NEW PLI CALCULATED RATE" has the meaning ascribed to it in
                  Schedule E-3.

         82.      "NTSB" means the National Transportation Safety Board.

         83.      "OAG" means the Official Airline Guide.

         84.      "ON-TIME ARRIVAL" means a Scheduled Flight that arrives prior
                  to 15 minutes after scheduled arrival time; cancelled and
                  diverted flights are not considered on-time arrivals.

         85.      "ONE-TIME CALL OPTION" has the meaning ascribed to it in
                  Section 7.03(b).

         86.      "ONE-TIME PUT OPTION" has the meaning ascribed to it in
                  Section 7.03.

         87.      "OPTION AIRCRAFT" has the meaning ascribed to it in Schedule
                  C-1.

         88.      "ORIGINAL APPROVED AIRCRAFT" has the meaning ascribed to it in
                  Schedule C-1.

         89.      "PASSENGER HANDLING" and "PASSENGER HANDLING DUTIES" means the
                  provision of one or more of the following in conformance with
                  Customer Service Policies And Procedures: (1) ticketing and
                  check-in of passengers, including boarding pass issuance,
                  re-accommodating and reprotecting passengers, (2) gate
                  passenger processing, including aircraft boarding and
                  deplaning duties via jetway or ramp level, (3) baggage service
                  office duties, (4) passenger security screening, (5) skycap
                  services, (6) special passenger assistance, and (7) any other
                  duties normally agreed upon by the parties in writing.

         90.      "PASS THROUGH COSTS" mean those specific costs identified in
                  Schedule E-3.

         91.      "PAWOB" means passengers arriving without bags.

         92.      "PAWOB RATIO" means Mishandled Bags divided by 50% of
                  Connecting Passengers measured per 1,000 Connecting
                  Passengers.

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         93.      "PERFORMANCE PERIOD" means a six (6) month period, from
                  January 1 - June 30, and from July 1 - December 31.

         94.      "PERSON" means a natural person, a corporation, a partnership,
                  a limited liability company, an estate, a governmental agency
                  or any other entity.

         95.      "PRIVATE PLACEMENT SHARES" has the meaning ascribed to it in
                  Section 9.03(d)(2).

         96.      "PROPOSED AGREEMENT" has the meaning ascribed to it in Section
                  10.04(c).

         97.      "REVENUE PASSENGER" means each passenger who holds a ticket
                  (electronic or otherwise), flight coupon, voucher, or other
                  form of document which is valid for travel. The term "Revenue
                  Passenger" includes all passengers boarded on a Contractor ABR
                  flight except AA, Contractor, and/or other airline employees,
                  dependents and other eligible persons traveling on a space
                  available or positive space basis in conjunction with an
                  employee travel benefits program.

         98.      "RJ TURN FEE" has the meaning ascribed to it in Exhibit E.

         99.      "RON" means remain over night.

         100.     "RPMS" means revenue passenger miles.

         101.     "SABRE CUTOVER DATE" means the date designated by AA that
                  Contractor discontinues the use of WorldSpan technology and
                  commences the use of Sabre Services in the performance of its
                  duties under this Agreement.

         102.     "SABRE SERVICES" means the computerized SABRE Reservations and
                  Ticketing Service (or any similar or substitute service
                  offered by or on behalf of AA), including associated support
                  systems as designated by AA that performs flight, hotel,
                  rental car and other travel related services, reservations and
                  ticket issuance functions.

         103.     "SCHEDULED FLIGHTS" means those flights published in AA's CRS
                  as of seven (7) days prior to departure date.

         104.     "SHARED CODE SHARING JET FLIGHTS" shall mean the regional jet
                  air transportation operated by Contractor, as may be
                  designated in writing by AA from time to time, which flights
                  are code shared with AA and a third party air carrier.

         105.     "SHIPMENTS" has the meaning ascribed to it in Exhibit H.

         106.     "SSIM" means Standard Schedules Information Manual.

         107.     "STANDARD MARKED" means Approved Aircraft painted with the
                  "ABR" markings and distinctive colors described in Exhibit B-1
                  in addition to being painted with Contractor's name in such
                  fashion as AA shall approve, such approval not to be
                  unreasonably withheld or delayed; PROVIDED, that with respect
                  to the Original Approved Aircraft, the term "Standard Marked"
                  means the TransWorld Express" markings and distinctive colors
                  described in Exhibit B-2.

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         108.     "TAX" or "TAXES" has the meaning ascribed to it in Article 8.

         109.     "TERM" has the meaning ascribed to it in Section 7.01(a).

         110.     "TP TURN FEE" has the meaning ascribed to it in Exhibit E.

         111.     "TWA" means TWA Airlines, LLC, a subsidiary of American
                  Airlines, Inc.

         112.     "TWA MARKS" shall mean those trademarks, service marks,
                  tradenames, logos, emblems, uniform designs, and distinctive
                  exterior and interior color decor and patterns for aircraft
                  all as used in connection with the TransWorld Express brand of
                  commuter air service and listed or described on Exhibit B-2.

         113.     "UNCONTROLLABLE CANCELLATIONS" means cancellations that are
                  not due to any failure of Contractor or its vendors or
                  subcontractors to provide equipment, facilities, personnel,
                  aircraft and crews necessary to operate scheduled Feeder Air
                  Service flights and include, without limitation cancellations
                  due to acts or omissions of AA or any other third party or
                  cancellations due to acts of God.

         114.     "USPS" means the United States Postal Service.

         115.     "WORLDTRACER" means an external AA baggage tracking system.

                                      * * *

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ARTICLE 1 - OPERATION OF FEEDER AIR SERVICES

1.01 - USE OF MARKS

         (a)      Contractor has no right or permission to use any of the Marks
                  without first receiving AA's express written approval to do
                  so. Subject to the terms of this Agreement, as amended,
                  Contractor is hereby granted the non-exclusive,
                  non-transferable right and license to use the TWA Marks (but
                  only to the extent affixed to the Original Approved Aircraft)
                  and to use the ABR Marks both in connection with the operation
                  of Contractor's Feeder Air Services. If Contractor receives
                  written permission to reproduce any additional Marks, then
                  Contractor will be given access to the AADAMS so that
                  Contractor may retrieve accurate renditions of such Marks.
                  Contractor acknowledges and agrees that it has permission to
                  use to the extent provided herein only the TWA Marks and the
                  ABR Marks and those Marks to which it has been granted access
                  on AADAMS. Contractor may not use the Marks in any manner
                  other than as contemplated by this Agreement, as amended.
                  Contractor acknowledges that the Marks are the property of the
                  AMR Entities, and upon termination of this Agreement,
                  Contractor will immediately cease use of the Marks. Under no
                  circumstances will Contractor: (1) use or display any Marks
                  (other than the TWA Marks) that Contractor obtained from a
                  source other than AADAMS; (2) alter the Marks in any way; or
                  (3) display the Marks without the appropriate proprietary
                  rights notices. Contractor agrees that it shall in no way
                  contest or deny the validity of, or the right or title of the
                  AMR Entities in or to the Marks, and shall not encourage or
                  assist others directly or indirectly to do so, whether during
                  the Term of this Agreement or thereafter. Contractor will take
                  no actions that are adverse to the AMR Entities' ownership
                  rights in the Marks. Contractor shall not utilize the Marks in
                  any manner that would diminish their value or harm the
                  reputation of the AMR Entities. Contractor shall not use or
                  register any domain name that is identical to or similar to
                  any of the Marks without first receiving AA's prior written
                  approval. Upon written request from AA, Contractor agrees to
                  provide AA with reports at least every ninety days setting
                  forth Contractor's use of the Marks. Contractor may combine
                  these reports with any other report Contractor provides to AA
                  under this Agreement. Contractor will not, under any
                  circumstances, transfer, sell, or give away to a third party
                  any products bearing the Marks that do not meet AA's quality
                  standards.

                  Notwithstanding the above, and except as may be otherwise
                  provided herein, Contractor shall have no right to use the TWA
                  Marks beyond the date that 145-08 is removed from service
                  under the phase out plan set forth in Schedule C-1.

         (b)      The Feeder Air Services operated by Contractor shall be
                  identified as follows:

                           1. The name "ABR" and/or other ABR Marks shall be
                  painted on aircraft and ground equipment used for Contractor's
                  Feeder Air Service Flights in accordance with paint color and
                  graphic design specifications of AA; no other identification
                  shall appear on the aircraft and ground equipment except that
                  Contractor's name shall appear in such fashion as AA shall
                  approve. Use of the "ABR" painted aircraft for Charter Flight
                  use is also permitted.

                           2. Signage at the STL Hub and at Feeder Airport
                  ticket counters and gates shall depict the name "ABR" and/or
                  other ABR Marks in accordance with size, color and design
                  specifications of AA. "ABR" is a Mark as defined by this
                  Agreement and subject to the provisions relating to Marks,
                  including but not limited to Section 1.01(a).

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                           3. All Feeder Air Services shall be operated under
                  the name "ABR" or other such name, incorporating an AA Mark,
                  as AA shall from time to time approve. All Feeder Air Service
                  Flights shall be identified by an "AA" or "AA*" designator
                  code, as appropriate, in the OAG; in AA, Contractor, and third
                  party computer reservations systems, including internet
                  reservation systems; in AA timetables; in airport flight
                  information displays; and in passenger tickets and like media
                  distributed to or accessed by travel agents, other airlines or
                  the public.

                           4. Contractor personnel at Feeder Airports and Hub
                  ramp positions and gates used for "ABR" flights shall wear an
                  AA designed "ABR" uniform, if so designated by AA.

                           5. All ground equipment used by Contractor for the
                  Feeder Air Services shall be painted in an AA's color scheme,
                  and identified by an "ABR" marking.

                           6. All advertising and promotion of the Feeder Air
                  Services by Contractor or by AA shall use the name "ABR," and
                  not the Contractor name, except to the extent required by law
                  for disclosure of the operating carrier.

                           7. To the extent not already implemented, AA and
                  Contractor shall establish a Marks conversion timeline to
                  effect the usage of the ABR Marks at locations where TWA Marks
                  are in use.

         (c)      In the event AA adopts new or different ABR Marks for which AA
                  grants Contractor a license pursuant to subsection (a) above,
                  AA may require Contractor to use such new or different ABR
                  Marks in connection with Contractor's Feeder Air Services and
                  if AA does so, Contractor's right and license to use
                  previously licensed ABR Marks shall automatically terminate
                  upon completion of Contractor's changeover to the new ABR
                  Marks pursuant to Section 1.02(l). Contractor's right and
                  license to use any and all Marks shall also automatically
                  terminate after 10 days prior written notice and opportunity
                  to cure in the event Contractor does anything during the Term
                  of this Agreement to contest, infringe or abridge AA's rights
                  in any ABR Marks or TWA Marks.

         (d)      AA may from time to time change the Marks and logos used for
                  "ABR" service. At any time during the Term of this Agreement,
                  and in the sole discretion of AA, Contractor may be required
                  to use such new or different Marks, external or internal color
                  decor and patterns on its Approved Aircraft and uniform design
                  as AA may determine and to discontinue use of certain other
                  Marks; PROVIDED, Contractor will not be required to
                  discontinue its use of TWA Marks on the Original Approved
                  Aircraft. Upon written notice from AA, which will include the
                  specifications for any such changes, Contractor will effect
                  such changes as promptly as practicable. Contractor will pay
                  all costs it incurs in any painting and decor modification of
                  its aircraft as a result of a change in AA's specifications of
                  its external and internal decor; PROVIDED such modifications
                  occur at the end of the useful life of the existing decor. For
                  the purposes of this subsection, the parties agree that the
                  useful life shall be forty-eight (48) months from the date the
                  Approved Aircraft are decorated with the ABR Marks. If AA
                  requires a change to new or different ABR Marks on a
                  Contractor aircraft which has been previously decorated with
                  the ABR Marks within the last four years, the cost of such
                  modifications will be prorated between AA and Contractor based
                  upon forty-eight (48) month useful life commencing on the date
                  each aircraft is decorated with the ABR Marks. For example, if

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                  AA requires Contractor to repaint an Approved Aircraft at the
                  end of the third year (36th month) of its useful life,
                  Contractor would be responsible for 75% of the cost and AA
                  would be responsible for the remaining 25% of the cost.

1.02 - SERVICE DESCRIPTION

         (a)      Contractor will continue Feeder Air Service with Original
                  Approved Aircraft as described in the Fleet Plan in Schedule
                  C-1. Further, Contractor will commence Feeder Air Service with
                  Firm Approved Aircraft (as defined in Schedule C-1) upon the
                  Sabre Cutover Date (which shall not be prior to October 1,
                  2001), including obtaining all DOD, DOT, FAA and other
                  regulatory approvals and will phase-in operation of all Firm
                  Approved Aircraft in accordance with the in service dates
                  provided in the Fleet Plan in Schedule C-1. Contractor will
                  discontinue operation of all Original Approved Aircraft in
                  accordance with the phase-out dates indicated in the Fleet
                  Plan provided in Schedule C-1. Unless otherwise agreed by AA,
                  Contractor will operate all flights under this Agreement with
                  such aircraft type and passenger seat capacity as specified in
                  the Fleet Plan.

                  Contractor acknowledges that in the event such Firm Approved
                  Aircraft are not placed into service as of the date(s)
                  indicated in the Fleet Plan, except to the extent any such
                  delay or failure arises out of (i) an event that would give
                  rise to a right to terminate this Agreement for Force Majeure,
                  or (ii) a matter exempted from this Section 1.02(a) under the
                  terms of Section 7.03(c), AA will suffer damages in connection
                  with air transportation services AA intended to market and
                  sell in connection with the use of such Firm Approved
                  Aircraft. Accordingly, in such situation, Contractor agrees
                  to pay AA the sume of [*] per day of delay per regional jet,
                  as liquidated damages.

         (b)      Contractor agrees to operate Feeder Air Services from
                  concourse `B' or some other space at the STL Hub as designated
                  by AA that is adequate to perform its duties hereunder.
                  Contractor shall not operate Approved Aircraft in revenue
                  service at the Hub except for the Feeder Air Services (other
                  than occasional Charter Flights).

         (c)      Contractor acknowledges and agrees that participation in the
                  ABR program obligates Contractor to offer and maintain a
                  quality and professional level of service in terms of
                  schedules, customer service, and the like. Accordingly, at the
                  request of AA, the parties will: (1) meet to review and
                  discuss the services, operations, and objectives of Contractor
                  as an ABR carrier; and (2) jointly develop a written business
                  plan for the operations and services of Contractor. Contractor
                  will use its commercially reasonable best efforts to comply
                  with said business plan and to accommodate all reasonable
                  recommendations of AA in these respects.

         (d)      It is understood and agreed that the use of regional jets in
                  the performance of services under this Agreement is subject to
                  Labor Contract Restrictions. Further, with respect to AA, the
                  provision of Feeder Air Service on certain routes and with
                  certain aircraft types is subject to certain restrictions in
                  existing agreements with other parties. Accordingly,
                  Contractor agrees to dedicate such aircraft type and number to
                  accommodate such Labor Contract Restrictions. Notwithstanding
                  the foregoing, AA represents that Contractor shall have the
                  right to provide Contractor's Feeder Air Services with Firm
                  Approved Aircraft.

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         (e)      Contractor may operate its Feeder Air Services as an ABR
                  carrier only as directed in writing by AA. Pursuant to the
                  terms of this Agreement, AA hereby consents to Contractor's
                  operation as an ABR carrier with respect to such routes and
                  frequency of service designated by AA in writing.

                  At AA's request Contractor agrees to enter into such
                  agreements(s) with another air carrier (holding a valid and
                  effective Certificate of Public Convenience and Necessity or
                  other appropriate authority) as may be necessary to implement
                  Shared Code Sharing Jet Flights with such other carrier in
                  connection with the Feeder Air Service Flights which are the
                  subject of this Agreement, including, but not limited to,
                  passenger and baggage transit procedures.

         (f)      Contractor agrees to maintain the Feeder Air Service in
                  accordance with the criteria set forth in Exhibits A and C,
                  with respect to the aircraft types and operation of Feeder Air
                  Service Flights. Within the operating capability of the
                  aircraft used by Contractor, and subject to equipment
                  availability and the other provisions of this Agreement,
                  Contractor will comply with all requests by AA to increase,
                  decrease, or in any other way adjust or terminate the flight
                  frequencies or city pairs, or both, as operated and served
                  pursuant to the provisions of Exhibit A. AA will cooperate
                  with Contractor to optimize the use of its aircraft and crews
                  to maintain schedule integrity and efficiency. Contractor
                  agrees to assist AA with market planning and sales functions
                  as requested by AA. Coinciding with each regular AA schedule
                  change after the date hereof, Contractor shall adjust the
                  scheduled times of operation of its Feeder Air Service Flights
                  as directed by AA, based on a minimum connecting time of
                  twenty five (25) minutes or such other minimum connect time as
                  AA may from time to time publish. Additionally, the Feeder Air
                  Service Flights shall at all times be maintained by Contractor
                  at levels sufficient to satisfy the Scheduled Flights.

         (g)      AA shall be responsible for schedule production for
                  Contractor's Feeder Air Service Flights and input of such
                  schedules into AA's scheduling system. However, AA may
                  delegate certain of those functions and responsibilities to a
                  third party or by mutual agreement with Contractor, to
                  Contractor. Such schedule changes will be included in the
                  information sent to the OAG.

         (h)      Procedures for regular submission of schedules shall be set
                  forth in a procedures manual which will be jointly developed
                  by Contractor and AA scheduling departments.

         (i)      All aircraft used by Contractor to provide the Feeder Air
                  Services shall comply with the applicable portions of Parts
                  298 and 25 of the Economic Regulations of the DOT and Part 121
                  of the Federal Aviation Regulations, or their successor
                  regulations as applicable. Further, aircraft types shall be
                  subject to acceptance by AA in accordance with the approved
                  Fleet Plan provided for in Exhibit C.

         (j)      All aircraft used for the Feeder Air Services shall be
                  Standard Marked. From time to time, Contractor may
                  temporarily (for not more than 60 days, unless approved
                  in writing by AA, such approval not to be unreasonably
                  withheld or delayed) operate Approved Aircraft that are not
                  Standard Marked (as provided in Exhibit C(1)(A)(3)) but
                  utilize an AA flight designator. All of Contractor's airport
                  ticket counters and gates used for Feeder Air Services shall
                  display AA timetables (and such promotional material as is
                  from time to time furnished by AA), and shall be identified
                  by signage as described in Exhibit B-1. All Feeder Air Service
                  Flights shall display on the exterior (adjacent to the

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                  boarding door) and in the interior of the aircraft, an AA
                  approved sign or legend identifying the flight as an "ABR"
                  flight "operated by Chautauqua Airlines, Inc." Aircraft safety
                  briefing cards shall incorporate the ABR Marks. Contractor
                  shall also distribute or place American Way or other magazines
                  in the aircraft seat pockets as determined and provided by AA.
                  No other airline magazine shall be placed in aircraft used for
                  Feeder Air Services.

         (k)      Contractor shall require all of its personnel in job
                  classifications requiring direct public contact who provide
                  Contractor's Feeder Air Services to wear uniforms and
                  accessories furnished by Contractor which are of colors and
                  styles as approved by AA from time to time. Other Contractor
                  employees who are visible to the public and who provide
                  Contractor's Feeder Air Services are to wear industry standard
                  AA approved uniforms furnished by Contractor as are
                  appropriate for the locale and environment. AA will consider
                  modifications to such uniforms that may better represent the
                  demands of the regional airline employee (E.G. exposure to
                  elements and cross utilization).

1.03 - STANDARDS OF SERVICE AND PERFORMANCE

         Contractor agrees that, in providing services under this Agreement in
         conjunction with one or more of the AA Marks, it will maintain or
         exceed the Standards of Service and Performance Standards set forth in
         Exhibits D and J respectively. AA will have the right, from time to
         time, to inspect Contractor's Feeder Air Services to determine if they
         conform with such Standards. Failure on the part of AA to conduct such
         inspections will not relieve Contractor of its obligations to conform
         to the applicable standards. The extent to which Contractor meets,
         exceeds or fails to meet certain of the Performance Standards shall
         determine the amount of the performance incentive paid to Contractor
         by AA or performance penalty paid to AA by Contractor in accordance
         with the terms set forth in Exhibit J.

ARTICLE 2 - SUPPORT SERVICES AND FACILITIES

2.01 - GENERAL

         AA and Contractor agree that support services and facilities shall be
         required to provide a high quality, seamless Feeder Air Service to
         passengers. Facilities must, at all times, be kept clean, up-to-date,
         and have adequate signage and lighting. Both parties agree to adhere to
         the provisions described herein as the mechanism by which such support
         services and facilities shall be managed.

2.02 - RESERVATIONS SUPPORT SERVICES

         AA, at its sole cost, will handle reservations for all Feeder Air
         Service Flights in the same manner and within the same standards that
         AA utilizes to handle its own reservations.

2.03 - COMPUTERIZED RESERVATIONS SYSTEM AND ASSOCIATED SERVICES

         (a)      AA, at its sole cost, will provide Contractor with Sabre
                  Services, including without limitation, maintenance of the
                  Feeder Air Service Flights seat inventory and passenger
                  processing, and other associated support systems as directed
                  by AA .

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         (b)      Contractor will perform and maintain in effect its standard
                  SABRE equipment and systems use agreement at all times during
                  the Term of this Agreement. Contractor shall comply with the
                  provisions of Exhibit L.

         (c)      Unless otherwise agreed to in writing between Contractor and
                  AA, connecting reservations to or from AA or other air
                  carriers in an "AA*" itinerary will be made by AA and
                  Contractor (and their respective agents) and by other airlines
                  in accordance with AA's practices and any currently applicable
                  industry methods and procedures. In all cases, SABRE will be
                  used by Contractor to confirm the reservations of ABR
                  passengers through the entire itinerary of their scheduled
                  trips. AA will make reasonable efforts to notify passengers of
                  any last minute changes in Contractor's Feeder Air Service
                  schedules or operations, consistent with notification
                  practices and policies for AA's own flights.

         (d)      Contractor shall provide AA in a timely manner, and in the
                  format required by AA, such flight movement, bulkout, sales
                  and other information as AA reasonably requires to enable it
                  to carry out the reservations, sales, invoicing, audit,
                  planning, and other services to be performed by AA under this
                  Agreement.

         (e)      AA shall be responsible for the collection and remittance of
                  all booking fees, passenger facilities charges (PFCs),
                  transportation Taxes, and the like, applicable to Contractor's
                  Feeder Air Services.

2.04 - OPERATIONS

         (a)      Contractor will provide accurate updates of its flights'
                  planned and actual departure and arrival times (including
                  updates of irregularities) in SABRE as soon as the planned
                  flight schedule is changed, or the flight departs or arrives,
                  or suffers an irregularity. In the event of flight delays,
                  cancellations or other schedule irregularities affecting
                  Contractor's Feeder Air Services Flights, and as soon as
                  information concerning such irregularities is available,
                  Contractor shall update AA's FOS system via SABRE to reflect
                  such information. Further, when requested by AA, Contractor
                  will notify the designated AA department/personnel regarding
                  certain irregularities. For purposes of this Agreement, such
                  scheduled and actual departure and arrival and irregularity
                  information shall be known as "FLIFO." If Contractor becomes
                  aware of any station(s) which have any deficiencies in
                  reporting FLIFO as required by this Section, Contractor will
                  promptly take corrective action to remedy such problem
                  including, if requested by AA, the submission to AA of a
                  corrective action plan.

         (b)      Contractor will be solely responsible for, and AA will have no
                  obligations or duties with respect to, the dispatch of
                  Contractor's flights. For the purposes of this Section, the
                  term "flight dispatch" will include, but will not be limited
                  to, all planning of aircraft itineraries and routings, fueling
                  and flight release.

         (c)      Each party hereby represents, warrants and agrees that all air
                  transportation services performed, including the maintenance
                  of aircraft and engines, pursuant to this Agreement or
                  otherwise shall be conducted in full compliance with all
                  applicable statutes, orders, rules, regulations and
                  notifications, whether now in effect or hereafter promulgated,
                  of all governmental agencies having jurisdiction over its
                  operations, including, but not limited to, the FAA, DOD, and
                  DOT. Each party's compliance with such governmental statutes,
                  orders, rules, regulations and notifications will be the sole
                  and exclusive obligation of the

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                  operating carrier, and the non-operating carrier will have no
                  obligation, responsibility, or liability, whether direct or
                  indirect, with respect to such matters. Additionally,
                  Contractor will comply during the Term of this Agreement with
                  the AA/ABR Safety Standards, as described on Exhibit I.

         (d)      From time to time and upon the request of Contractor or its
                  flight crews, AA shall furnish Contractor's flight crews with
                  such U.S. Weather Bureau information or data as may be
                  available to AA, provided that in furnishing any such weather
                  information or data to Contractor: (1) neither AA nor its
                  employees or agents will be responsible or liable for the
                  accuracy thereof; and (2) that any and all costs incurred by
                  AA in connection with providing such weather information or
                  data will be paid by Contractor.

2.05 - STATION FACILITIES, EQUIPMENT AND GROUND SUPPORT SERVICES

         (a)      Covered Locations

                  At all Covered Locations, AA, at its sole cost, shall provide
                  Contractor with all Airport Support Services, equipment, and
                  facilities, with the exception of the following:

                           1.       aircraft on-call maintenance;
                           2.       crew lounge;
                           3.       equipment which is unique or specific for
                                    the operation of Approved Aircraft at that
                                    location; and

                           4.       fuel services, to include into plane
                                    services.

                  At Covered Locations where an AMR Entity has the capability to
                  provide the above excluded equipment and Airport Support
                  Services, Contractor agrees to allow AA to bid on these items,
                  and will use AA if competitively priced.

                  In the event that AA requests that Contractor utilize third
                  party vendors to provide Airport Support Services not excluded
                  above, Contractor shall directly enter into agreements with
                  such vendors. Charges associated with vendor service provided
                  to Contractor at Covered Locations shall be handled in
                  accordance with Exhibit E.

         (b)      Contractor Locations

                           1. At all Contractor Locations, Contractor, at its
                  sole cost, shall provide all manpower, equipment and airport
                  facilities necessary to provide Airport Support Services
                  for Contractor's Feeder Air Service Flights with the
                  exception of any incremental fluid, manpower, or vendor costs
                  associated with the de-icing of  Contractor aircraft.
                  Charges for such de-icing at Contractor Locations shall
                  be handled in accordance with Exhibit E(1)(C)(3-4).

                           2. Contractor agrees to staff Contractor Locations
                  that have three (3) or more daily round trips (weekdays)
                  with its own employees where facility constraints permit.
                  Contractor shall be given reasonable notice of schedule
                  changes that will require it to staff under this provision.

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                           3. In the event AA and/or its Affiliate(s) operates a
                  flight to a Contractor Location and requests Contractor to
                  handle such flight, AA agrees to pay Contractor for Airport
                  Support Services provided by Contractor, at the rate of [*]
                  per scheduled departure plus any incremental charges
                  unique to such aircraft versus Contractor jet aircraft.

                           However, where AA operates flight(s) to Contractor
                           Locations that utilize a third party vendor to
                           provide Airport Support Services, AA shall, if it
                           desires to use such vendor, directly enter into
                           agreement(s) with such vendor.

                           4. For the initial purchase of new Contractor
                  Location automation equipment, as defined in Exhibit L,
                  Contractor and AA agree to adhere to the terms set forth in
                  Exhibit E(3).

         (c)      The Hub

                           1. Except as provided in subsection 3 below, at the
                  Hub, Contractor, at its sole cost, shall be responsible for
                  the gate operations of its passengers and aircraft,
                  security screening charges, purchasing its equipment and
                  leasing its facilities, including facilities improvement
                  surcharges. Contractor, at its sole cost, shall enter into
                  and maintain an operating agreement with AA for space
                  adequate to perform its duties hereunder at Lambert -
                  St. Louis International Airport.

                           2. At the Hub, AA, at its sole cost, shall
                  be responsible for providing ticket counter services,
                  skycap services, all passenger busing resulting from
                  AA mandated remote parking of Contractor aircraft,
                  remote de-icing service for regional jet aircraft
                  (when such a remote de-icing operation is in effect for
                  AA), and de-icing fluid for on-gate de-icing. Charges
                  associated with the de-icing fluid for on-gate de-icing
                  shall be handled in accordance with the provisions set
                  forth in Exhibit E(1)(C)(3-4).

                           3. At AA's sole discretion, AA, and/or its Affiliate,
                  or a third party may assume all gate and ramp handling duties
                  at the Hub, as detailed in subsection 1 above, upon 120 days
                  prior written notice. In such case and for this purpose only,
                  the Hub would be considered a Covered Location. In such event,
                  AA and Contractor shall modify the cost model to reflect such
                  a change proportionately.

         (d)      Contractor Conversion

                  In the event AA or an AA Affiliate no longer staffs personnel
                  at a Covered Location, AA reserves the right to designate such
                  former Covered Location as a Contractor Location, and
                  Contractor will completely assume ground operations at such
                  former Covered Location.

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         (e)      Covered Conversion

                  In the event of a Covered Conversion, AA, at its sole
                  discretion, may purchase and Contractor agrees to sell,
                  at Contractor's net book value, any existing equipment
                  necessary to operate AA flights. Furthermore, before hiring
                  new employees in that city, provided they meet AA's
                  eligibility requirements, AA shall allow Contractor's
                  employees to apply for appropriate positions in that
                  location.

2.06 - SALES; PROMOTION; PASSENGER SERVICE DOCUMENTS

         (a)      AA will be responsible for advertising the Feeder Air
                  Services except as otherwise provided for herein.

         (b)      Contractor agrees to dedicate sales representatives,
                  at its sole cost and expense to support the marketing
                  of Feeder Air Services hereunder, at the request of AA.

         (c)      Contractor will notify all Feeder Air Service passengers
                  connecting to AA flights, via AA-provided ticket jackets and
                  appropriate signage, AA's passenger liability limits (Warsaw
                  and domestic), conditions of carriage, denied boarding
                  compensation and like matters. Contractor also agrees to adopt
                  and maintain AA's domestic (and if applicable, international)
                  baggage liability rules as well as AA's PAWOB and DBC policies
                  as are from time to time in effect. In selling air
                  transportation of passengers, both on-line and off-line,
                  Contractor will use AA passenger ticket stock. Contractor will
                  report and remit to AA all ticket sales in accordance with the
                  Accounting Procedures set forth in Exhibit F.

         (d)      In the performance of its duties hereunder, Contractor will
                  follow the Customer Service Policies and Procedures using AA
                  passenger handling documents, including but not limited to
                  ticket stock, travel vouchers, baggage tags, passenger refund
                  and compensation checks, and the like. Contractor will
                  reimburse AA for any expenses incurred as a result of
                  Contractor's non-compliance with the Customer Service Policies
                  and Procedures, in accordance with Exhibit F.

         (e)      AA will include in its public timetables all of the Feeder
                  Airports and the scheduled Feeder Air Services provided by
                  Contractor pursuant to this Agreement, along with appropriate
                  notations showing that services between the Hub and such
                  Feeder Airports are flights operated by Contractor as an
                  independent contractor. All such references in AA's public
                  timetables shall also contain notations indicating that use of
                  the name "ABR" or any Marks by Contractor is pursuant to a
                  limited trademark license from AA.

         (f)      Area phone directories (white and yellow pages) for the Feeder
                  Airports will include, at the earliest possible time (at the
                  expense of AA), the AA toll free reservations phone number
                  which shall be answered by AA reservations personnel in
                  accordance with Section 2.02, and, if desired by AA, a local
                  phone number for the station.

         (g)      Contractor is authorized to, and shall, issue AA boarding
                  passes to those passengers checking in at the Feeder Airports
                  who are ticketed for AA, or an AA Affiliate and ABR
                  connections at the Hub. AA and its Affiliates, as appropriate
                  will issue boarding passes to those passengers checking in for
                  such Feeder Air Service Flights at all locations where AA or
                  an AA Affiliate provides Passenger Handling Duties.

<Page>

         (h)      AA shall be responsible for sales programs promoting "ABR" and
                  the Feeder Air Services including, without limitation,
                  Contractor participation in AA's "AAdvantage" Program. No
                  advertisement, solicitation, document or any other material
                  using any AA Mark will be published or otherwise promulgated
                  without AA's prior inspection and approval. No advertising
                  that relates in any way to AA, ABR or Contractor's Feeder Air
                  Services will be placed by Contractor with an advertising
                  agency unless AA has given its prior consent regarding copy,
                  layout and the specific media plan. In addition, if AA has
                  agreed to share the costs of any such advertising, Contractor
                  will obtain the prior consent of AA regarding the funds to be
                  expended for such advertising.

         (i)      Contractor shall participate in the AAdvantage Frequent Flyer
                  Program at no charge to Contractor. Feeder Air Service
                  passengers shall be eligible to accrue and redeem mileage on
                  such flights and on AA, and/or AA Affiliate flights consistent
                  with AA's policies for AA. Contractor shall carry all
                  passengers traveling pursuant to award travel from an Accepted
                  Frequent Flyer Program at no charge to AA.

2.07 - BAGGAGE HANDLING AND SETTLEMENT

         (a)      In the performance of its duties hereunder, Contractor will
                  follow the Customer Service Policies and Procedures related to
                  baggage handling, including procedures for delayed, pilfered,
                  lost, and damaged baggage. Baggage Claims shall be settled in
                  accordance with the procedures specified in Exhibit F.

         (b)      The parties agree to report and search for AA (and/or AA
                  Affiliate) and ABR lost baggage in accordance with AA's
                  procedures using WorldTracer and/or BMAS as appropriate..

ARTICLE 3 - PASSENGER FARES

3.01 - PASSENGER FARES

         AA has sole responsibility to establish all fares for Contractor's
         Feeder Air Services under this Agreement.

3.02 - CONTRACTOR COMPENSATION

         In consideration for the Feeder Air Services provided hereunder, AA
         shall pay Contractor the amounts set forth in Exhibit E.

3.03 - INVENTORY CONTROL

         AA shall establish and maintain all inventory and seat allocations on
         flights operated by Contractor pursuant to this Agreement. AA may at
         its discretion delegate this responsibility to a third party or to
         Contractor, subject to Contractor's concurrence to perform such duties
         for the time period requested by AA.

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ARTICLE 4 - SMALL PACKAGE, FREIGHT AND MAIL

         Terms for an ABR small package, freight and Mail service on Feeder Air
         Service Flights are set forth in Exhibit H. Settlement of all small
         package and Mail transportation transactions shall be in accordance
         with Exhibit F.

ARTICLE 5 - OTHER ACTIVITIES

         (a)      Contractor shall not either directly or indirectly engage (or
                  attempt to engage) on its own behalf in any revenue air
                  transportation (other than pursuant to this Agreement) in any
                  of the routes between the Hub and Feeder Airports.

         (b)      Nothing in this Agreement shall prohibit Contractor or its
                  Affiliates from operating such air services as they may
                  desire, except to the extent such activities directly conflict
                  with the express provisions of this Agreement. In this regard,
                  both parties recognize that this Agreement would be violated
                  if:

                           1. Contractor, or any Affiliate of Contractor,
                  entered into a cooperative marketing and service arrangement
                  comparable to this Agreement with another air carrier
                  providing feeder air service in connection with hub operations
                  at MEM, BNA, MCI, or any location within fifty (50) statute
                  miles of the STL Hub.

                           2. Contractor or any of its Affiliates operates
                  aircraft with Marks for non-Feeder Air Service (other than for
                  Charter Flights).

                           3. Contractor, or any Affiliate of Contractor,
                  markets any flight to or from the Hub with any name other than
                  as provided herein, including but not limited to, under
                  Contractor's or such Affiliate's own two letter airline code.

         (c)      Contractor agrees to not engage in any conflicting activity
                  referred to in (b) above unless the AA has given its advance
                  written consent for such activity to be undertaken, except as
                  may otherwise be provided for herein.

         (d)      Nothing in this Agreement shall prohibit any of the AMR
                  Entities from operating such air services as they may desire.
                  Further, nothing in this Agreement shall prohibit AA from
                  engaging in comparable "ABR" cooperative marketing and
                  services arrangements with other operators of aircraft.

         (e)      Contractor will not use any of the services, facilities or
                  equipment provided by AA to Contractor or its Affiliates
                  under this Agreement for air transportation or related
                  services provided by Contractor outside the scope of this
                  Agreement. Neither Contractor nor any of its Affiliates will
                  be permitted to operate aircraft bearing Marks in city pairs
                  other than those specified by AA without the prior written
                  consent of AA. Contractor will not, without AA's prior
                  written consent, permit any third party, whether under a
                  lease arrangement or otherwise, to operate any aircraft
                  in revenue service bearing Marks.

         (f)      AA reserves the right, at its sole discretion, to finance the
                  Option Aircraft and become the Lessor of such aircraft to
                  Contractor under the terms of a Lease.

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ARTICLE 6 - LIABILITY, INDEMNIFICATION AND INSURANCE

6.01 - INDEPENDENT CONTRACTORS

         (a)      The employees, agents, and independent contractors of
                  Contractor engaged in performing any of the services
                  Contractor is to perform pursuant to this Agreement shall be
                  deemed to be employees, agents or independent contractors of
                  Contractor for all purposes, and under no circumstances shall
                  be deemed to be employees, agents or independent contractors
                  of AA or any of the other AMR Entities. In its performance
                  under this Agreement, Contractor shall act, for all purposes,
                  as an independent contractor and not as an agent of AA or any
                  of the other AMR Entities. Neither AA nor any of the other AMR
                  Entities shall have supervisory power or control over any
                  employees, agents or independent contractors engaged by
                  Contractor in connection with its performance hereunder, and
                  all complaints or requested changes in procedures shall, in
                  all events, be transmitted by AA to a designated officer of
                  Contractor. Nothing contained in this Agreement is intended to
                  limit or condition Contractor's control over its operations or
                  the conduct of its business as an air carrier, and Contractor
                  and its principals assume all risks or financial losses which
                  may result from the operation of the air services to be
                  provided by Contractor hereunder.

         (b)      The employees, agents, and independent contractors of AA
                  engaged in performing any of the services AA is to perform
                  pursuant to this Agreement shall be deemed to be employees,
                  agents, and independent contractors of AA for all purposes,
                  and under no circumstances shall be deemed to be employees,
                  agents or independent contractors of Contractor. In its
                  performance under this Agreement, AA shall act, for all
                  purposes, as an independent contractor and not as an agent of
                  Contractor. Contractor shall have no supervisory power or
                  control over any employees, agents or independent contractors
                  engaged by AA in connection with its performance hereunder,
                  and all complaints or requested changes in procedures shall,
                  in all events, be transmitted by Contractor to a designated
                  officer of AA. Nothing contained in this Agreement is intended
                  to limit or condition AA's control over its operations or the
                  conduct of its business as an air carrier.

6.02 - UNAUTHORIZED OBLIGATIONS

         (a)      Nothing in this Agreement authorizes AA to make any contract,
                  agreement, warranty, or representation on Contractor's behalf,
                  or to incur any debt or obligation in Contractor's name
                  ("CONTRACTOR UNAUTHORIZED OBLIGATION"); and AA hereby agrees
                  to defend, indemnify, save, release, reimburse and hold
                  Contractor, its officers, directors, shareholders, employees
                  and agents harmless from any and all liabilities, claims,
                  judgments and obligations which arise as a result of or in
                  connection with, or by reason of any such Contractor
                  Unauthorized Obligation made by AA, its officers, directors,
                  shareholders, employees, agents or independent contractors in
                  the conduct of AA's operations.

         (b)      Nothing in this Agreement authorizes Contractor to make any
                  contract, agreement, warranty, or representation on AA's
                  behalf or on behalf of any other AMR Entity, or to incur any
                  debt or obligation in AA's name or on behalf of any other AMR
                  Entity ("AA UNAUTHORIZED OBLIGATION"); and Contractor hereby
                  agrees to defend, indemnify, save, release, reimburse and hold
                  AA, the AMR Entities, and their respective officers,
                  directors, shareholders, employees and agents harmless from
                  any and all liabilities, claims, judgments and obligations
                  which arise as a result of or in connection with, or by

<Page>

                  reason of any such AA Unauthorized Obligation made by
                  Contractor, its officers, directors, shareholders, employees,
                  agents or independent contractors in the conduct of
                  Contractor's operations.

         (c)      The fact that Contractor's operations are conducted under
                  Marks and listed under the TW designator code will not affect
                  their status as flights operated by Contractor for purpose of
                  this Agreement or any other agreement between the parties.
                  Further, both parties acknowledge that the Contractor's Feeder
                  Air Services are flights operated by Contractor and both
                  parties agree to advise passengers and all third parties of
                  Contractor's operation of these flights as required by
                  applicable law, rule, or regulation.

6.03 - INDEMNIFICATION AND INSURANCE

         (a)      Each party, with respect to its own employees, accepts full
                  and exclusive liability for the payment of worker's
                  compensation and/or employer's liability insurance premiums
                  with respect to such employees, and for the payment of all
                  Taxes, contributions or other payments for unemployment
                  compensation or old age benefits, pensions or annuities now or
                  hereafter imposed upon employers by the government of the
                  United States or by any state or local governmental body with
                  respect to such employees measured by the wages, salaries,
                  compensation or other remuneration paid to such employees, or
                  otherwise, and each party further agrees to make such payments
                  and to make and file all reports and returns, and to do
                  everything necessary to comply with the laws imposing such
                  Taxes, contributions or other payments.

         (b)      Contractor shall indemnify, defend, hold harmless and promptly
                  reimburse AA, the AMR Entities and their respective directors,
                  officers, employees and agents from and against any and all
                  claims, suits, penalties, liabilities, judgments, fines,
                  losses and expenses of any nature or kind ("CLAIMS") arising
                  out of, caused by or occurring in connection with (or alleged
                  to arise out of, be caused by or be occurring in connection
                  with):

                           1. The death of or injury to persons, or delay or
                  loss of or damage to property (including aircraft, baggage or
                  cargo) occurring while such persons or property are under the
                  control or in the custody of, or being transported by
                  Contractor (including, for the avoidance of doubt, claims
                  arising out of death of or injury to Feeder Air Service
                  passengers traveling on AA tickets that implement limits or
                  conditions of liability or jurisdictional rules with respect
                  to passenger claims that differ from those of Contractor),
                  except to the extent caused by the willful misconduct of AA or
                  another AMR Entity; and

                           2. Negligent acts or omissions of Contractor that are
                  in any way related to services contemplated by this Agreement,
                  except for Claims arising from the death of, or injury to,
                  persons, or delay or loss of or damage to property occurring
                  while such persons or property are in the control or custody
                  of, or being transported by, AA of the type referred to in
                  Section 6.03(c)(1), in which case AA shall indemnify and
                  reimburse Contractor, notwithstanding such negligent (but not
                  willful) acts or omissions of Contractor.

         (c)      AA shall indemnify, defend and hold harmless Contractor and
                  its directors, officers, employees and agents from and against
                  any and all Claims arising out of, caused by or occurring in
                  connection with (or alleged to arise out of, be caused by or
                  occurring in connection with):

<Page>

                           1. The death of or injury to persons, or delay or
                  loss of or damage to property (including aircraft, baggage or
                  cargo) occurring while such persons or property are under the
                  control or in the custody of, or being transported by, AA,
                  except to the extent caused by the willful misconduct of
                  Contractor.

                           2. Negligent acts or omissions of AA that are in any
                  way related to services contemplated by this Agreement, except
                  for Claims arising from the death of, or injury to, persons,
                  or delay or loss of or damage to property occurring while such
                  persons or property are in the control or custody of, or are
                  being transported by, Contractor of the type referred to in
                  Section 6.03(b)(1) (in which event Contractor shall indemnify
                  and reimburse AA notwithstanding such negligent (but not
                  willful) acts or omissions of AA); and

                           3. Passenger claims based on AA's failure to properly
                  issue and complete transportation documentation in accordance
                  with the provisions of the standard Airlines Clearing House or
                  IATA ticketing procedures, including the failure to put a
                  proper notice of the limits of liability on such documentation
                  (it being understood that in ticketing Feeder Air Service
                  passengers, AA is entitled to apply the limits of liability
                  provided for in its own conditions of carriage).

         (d)      During the Term of the Agreement, Contractor agrees to
                  maintain Airline Liability insurance, including
                  comprehensive/commercial general liability, passenger
                  (including passengers on Feeder Air Service flights, and all
                  other revenue and non-revenue passengers), baggage, cargo,
                  mail, and aircraft third party legal liability (all policies
                  shall be extended to include war risks, hijacking, and allied
                  perils), with limits of at least [*] per any one occurrence
                  or such higher limits as Contractor may have in effect
                  during the Term of this Agreement. Such insurance policies
                  shall be with an insurance company or companies of
                  recognized financial responsibility, and satisfactory to
                  AA, and which at a minimum shall:

                           1. Name AA, the AMR Entities, and their directors,
                  officers, employees, agents and representatives as Additional
                  Insureds,

                           2. Contain a Breach of Warranty Clause in favor of
                  AA and the other Additional Insureds, insuring AA's and their
                  interests regardless of any breach or violation by Contractor
                  of any warranties, declarations or conditions contained in
                  such policies,

                           3. Contain a Waiver of Subrogation Clause in favor
                  of AA and the other Additional Insureds, to the extent
                  Contractor has waived its rights against AA under this
                  Agreement,

                           4. Contain a Cross Liability clause, providing AA
                  and each of the other Additional Insureds the benefit of
                  all of the provisions of the policy, except the limits of
                  liability, in the same manner as if there were a separate
                  policy covering each insured,

                           5. Specifically state that the indemnification
                  agreement stated in (b) above is insured as a contractual
                  obligation of Contractor's insurers,

                           6. Contain a provision requiring Contractor's
                  insurers to provide AA with a written notice of any
                  cancellation or adverse material change in such insurance
                  and

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                  providing that the same shall not be effective as to the
                  benefit and interest of AA or any of the other Additional
                  Insureds for thirty (30) days after written notice of such
                  cancellation or adverse material change is received by
                  Contractor and AA,

                           7. Contain a provision stating that Contractor's
                  liability policy is primary without a right of contribution
                  from any Policy carried by AA or any of the other Additional
                  Insureds. The notice period in respect of war and allied
                  perils coverage shall be seven days or such lesser period
                  as is or may be available in accordance with policy
                  conditions, and

                           8. Contain a Date Recognition Limited Coverage
                  Write-Back clause or endorsement, in the event Contractor's
                  insurance policy contains a Date Recognition Exclusion
                  clause.

         (e)      Hull All Risk insurance, including war risk, which shall
                  include a waiver or subrogation in favor of the AMR Entities
                  to the extent of the indemnity specified in
                  Section 6.03(b), and

         (f)      Contractor agrees to furnish AA, in a timely manner, and not
                  later than the expiration date of each respective policy, with
                  certificates of insurance evidencing its maintaining and
                  renewal of the insurance required under (d) above.

6.04 - ENVIRONMENTAL

         With respect to all matters which relate to or may affect the
         environment, each party agrees to conduct its operations (including its
         compliance with all federal, state and local laws and regulations
         relating to pollution or the environment) in a prudent manner
         consistent with industry policies and practices related to
         environmental matters, including, without limitation, taking reasonable
         preventive measures consistent with such policies and practices to
         avoid liabilities related to environmental matters.

ARTICLE 7 - EFFECTIVE DATE, TERMINATION AND CANCELLATION

7.01 - EFFECTIVE DATE AND TERM

         (a)      This Agreement will become effective on the SABRE Cutover Date
                  and will continue in effect through February 1, 2013, unless
                  terminated or canceled at an earlier date pursuant to one or
                  more of the provisions of this Article 7 or Exhibit
                  J(2)(D)(the "TERM").

         (b)      In the event there is any change in the statutes governing the
                  economic regulation of air carriers, or in the applicable
                  rules, regulations or orders of the DOT or some successor
                  agency or department of the government having jurisdiction
                  over air transportation which change or changes materially
                  affect the rights and/or obligations presently in force with
                  respect to the air transportation services of AA or
                  Contractor, or both, or in the event for reasons wholly beyond
                  the control of the parties, the AA designator code cannot for
                  any reason be used as contemplated under this Agreement, then
                  the parties will consult within thirty (30) days after any of
                  the occurrences described herein, in order to determine what,
                  if any, changes to this Agreement are necessary or
                  appropriate, including but not limited to the early
                  termination and cancellation of this Agreement. If the parties
                  hereto are unable to agree whether any change or changes to
                  this Agreement are necessary or appropriate, or as to the
                  terms of such changes, or whether the Agreement should be

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                  cancelled in light of the occurrences described above, then
                  the parties shall submit the matter to a neutral third party
                  mediator who will assist the parties in reaching a mutually
                  agreeable settlement in accordance with the Commercial
                  Mediation Rules of the American Arbitration Association. Each
                  party covenants to cooperate in any such proceeding for up to
                  thirty (30) days.

7.02 - TERMINATION

         In addition to the foregoing provisions of this Article:

         (a)      If one party (the "DEFAULTING PARTY") becomes insolvent or
                  fails to pay debts as they become due; or if the Defaulting
                  Party takes steps leading to its cessation as a going concern;
                  makes an assignment for the benefit of creditors or a similar
                  disposition of the assets of the business; or if the
                  Defaulting Party either ceases or suspends operations for
                  reasons other than a strike, then the other party (the
                  "INSECURE PARTY") may on five (5) business days prior written
                  notice, terminate this Agreement on notice to the Defaulting
                  Party unless the Defaulting Party, within said five (5)
                  business days, gives adequate assurance of the future
                  performance of this Agreement by establishing an irrevocable
                  letter of credit, issued by a U.S. bank acceptable to the
                  Insecure Party, on terms and conditions acceptable to the
                  Insecure Party, and in an amount sufficient to cover all
                  amounts potentially due from the Defaulting Party under this
                  Agreement. Such letter of credit may be drawn upon by the
                  Insecure Party if the Defaulting Party does not fulfill its
                  obligations under this Agreement in a timely manner.

                  If bankruptcy proceedings are commenced with respect to either
                  party ("BANKRUPT PARTY") and if this Agreement has not
                  otherwise terminated, then the non-bankrupt party may suspend
                  all further performance of this Agreement until the Bankrupt
                  Party assumes or rejects this Agreement pursuant to Section
                  365 of the Bankruptcy Code or any similar or successor
                  provision. Within thirty (30) days of the commencement of such
                  bankruptcy proceeding, the Bankrupt Party agrees to move the
                  Court in which such bankruptcy proceeding is pending to assume
                  or reject this Agreement. Any such suspension of further
                  performance by the non-bankrupt party pending the Bankrupt
                  Party's assumption or rejection will not be a breach of this
                  Agreement and will not affect the non-bankrupt party's right
                  to pursue or enforce any of its rights under this Agreement or
                  otherwise.

         (b)      Unless provided for elsewhere in this Agreement, and except
                  for the failure to make payments of amounts when due, if
                  either party shall fail to perform, keep, and observe any of
                  the material terms, covenants or conditions herein contained
                  on the part of such party to be performed, kept or observed
                  (other than insurance requirements or any other condition or
                  requirement, noncompliance with which is specifically covered
                  under another subsection of this Article 7), the other party
                  may give notice in writing to correct the condition or cure
                  the default and, if the condition or default continues for
                  thirty (30) days after the receipt of notice by the defaulting
                  party and, if within that thirty (30) day period the
                  defaulting party has not prosecuted with due diligence and
                  corrected or commenced efforts to correct the condition or
                  default, the other party may then terminate this Agreement
                  upon an additional thirty (30) days prior written notice, and
                  this Agreement shall thereupon cease and expire at the end of
                  such additional thirty (30) days in the same manner and with
                  the same effect as if it were the expiration of the original
                  term. For purposes of this Article 7.02 (b), Contractor's
                  failure to comply with the Standards of Service as set forth
                  in Exhibit D hereof, shall be deemed a material default.

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                  If either party shall fail to make payment of amounts when due
                  under this Agreement after receiving written notice thereof,
                  the non-paying party shall have five (5) business days after
                  the receipt of such written notice to cure such non-payment.

         (c)      In the event Contractor fails to meet any of the milestones,
                  as may be provided in a corrective action plan pursuant to
                  Exhibit J(3)(D), AA may terminate this Agreement upon fifteen
                  (15) days written notice to Contractor.

         (d)      If the services of the Airline Clearing House are withdrawn as
                  to either party, or if either party suspends or is required to
                  suspend all system operations for any safety reason, the other
                  party may terminate this Agreement upon five (5) days prior
                  written notice.

         (e)      In the event of a material breach of any representation or
                  warranty of Article 2.04(c), that in AA's reasonable
                  discretion, creates a serious and imminent threat to the safe
                  operation of Contractor's ABR Services, AA may immediately
                  terminate this Agreement in writing.

         (f)      In the event of any material failure to comply with the
                  insurance provisions of Article 6.03, this Agreement may be
                  immediately terminated by AA.

         (g)      Early termination or cancellation of this Agreement based on
                  one or more of the provisions of this Article 7 shall not be
                  construed so as to relieve any party hereto of any debts or
                  monetary obligations to any other party that shall have
                  accrued hereunder prior to the effective date of such
                  termination or cancellation, or any damages suffered as a
                  result of such termination, if such termination is due to a
                  breach of this Agreement.

         (h)      In the event of the replacement of the President and Chief
                  Executive Officer of Contractor (or any executive performing
                  the duties of a chief executive officer however so titled)
                  (the "CEO"). Contractor shall have the right to designate an
                  interim CEO. At such time as Contractor identifies or selects
                  a proposed permanent replacement CEO (or at Contractor's
                  option, one or more candidates for the position of permanent
                  replacement CEO) (collectively, the "Proposed CEO"),
                  Contractor shall provide written notice to AA identifying such
                  Proposed CEO. AA shall have the right to approve (such
                  approval not to be unreasonably withheld) or disapprove (such
                  disapproval not to be unreasonably provided) such Proposed
                  CEO, and shall provide written notice to Contractor of its
                  approval or disapproval within 10 business days following AA's
                  receipt of notice of the Proposed CEO. In the event AA fails
                  to provide notice of its approval or disapproval within such
                  10 day period, AA shall be conclusively deemed to have
                  approved the Proposed CEO. In the event Contractor fails to
                  identify a Proposed CEO who is approved by AA as provided
                  herein within 180 days after the replacement of the CEO, AA
                  may terminate this Agreement.

         (i)      In the event of a termination of this Agreement prior to the
                  end of the Term for any reason, AA agrees to reimburse
                  Contractor for any pre-paid aircraft rents under any Lease for
                  all Firm Approved Aircraft upon the date of such termination.

         (j)      Upon termination of this Agreement for any reason, the right
                  to use Marks granted herein will immediately revert back to
                  AA.

         (k)      AA may terminate this Agreement without Cause upon 180 days
                  prior written notice; PROVIDED, that (1) such notice may not
                  be given prior to September 30, 2005, (2) AA shall

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                  reimburse Contractor for the unamortized portion of training
                  start up costs (principal only) pursuant to the 120-month
                  amortization table attached hereto as Exhibit M corresponding
                  to the month during which the Agreement terminates, and (3)
                  the provisions of Section 7.03 herein will apply. As a
                  condition to AA's conversion of the Option Aircraft to Firm
                  Approved Aircraft, AA and Contractor will negotiate a mutually
                  acceptable extension of the date set forth in clause (1) of
                  this Section 7.02(k) prior to conversion of the Option
                  Aircraft.

         (l)      A material failure to represent the AA brand to the same
                  extent as other users of the AA brand, including AE and other
                  ABR carriers, as reasonably specified by AA in writing and
                  uniformly applied to all users of the AA brand, including AE
                  and other ABR carriers, will be deemed cause for termination
                  of this Agreement as provided in Section 7.02, provided that
                  such failure is noted in two consecutive audits.

         (m)      The provisions of Sections 6.02, 6.03, 6.04, 7.03, 11.01,
                  11.02, 11.03, 11.04, 13.02 and Article 8 shall survive the
                  termination of this Agreement.

7.03 - RECIPROCAL OPTION FOR ASSIGNMENT OF LEASES

         (a)      In the event of a termination of this Agreement for Cause by
                  AA, Contractor grants to AA an option to be assigned any or
                  all of the Leases for the Firm Approved Aircraft (the "CALL
                  OPTION"), exercisable at its sole discretion, at the date
                  notice of such termination is delivered to Contractor. AA may
                  exercise this Call Option by written notice delivered to
                  Contractor, within 60 Days following delivery of the notice
                  of such termination, designating those Leases to be assigned
                  to AA. Upon delivery of notice of such exercised Call Option,
                  Contractor will be deemed to have assigned all of its rights
                  and duties under the designated Leases to AA. Contractor shall
                  pay within 30 days of invoice for any maintenance conversion
                  expenses required to transfer the Firm Approved Aircraft
                  subject to such Leases from compliance with the Contractor's
                  FAA-approved maintenance program to AA's FAA-approved
                  maintenance program ("CONVERSION EXPENSES"). Further, any
                  parts and components subject to "power-by-the-hour"
                  maintenance arrangements shall be paid in full by Contractor
                  through the date of termination of this Agreement.

         (b)      In the event of termination of this Agreement without Cause by
                  AA:

                           1. AA grants to Contractor a one-time option to
                  assign to AA any or all of the Leases for the Firm Approved
                  Aircraft (the "ONE-TIME PUT OPTION"), exercisable, at its sole
                  discretion, within 60 days after Contractor's receipt of
                  written notice of termination by AA. Contractor may exercise
                  this One-Time Put Option by written notice delivered to AA
                  within such 60 days exercising the One-Time Put Option and
                  designating those Leases to be put to AA. Upon delivery of
                  notice of such exercise of the One-Time Put Option, AA will be
                  deemed to assume the designated Leases on the schedule set
                  forth in subsection (3) below.

                           2. Contractor grants to AA a one-time Call Option
                  (the "ONE-TIME CALL OPTION") to be assigned any or all of the
                  Leases for the Firm Approved Aircraft, exercisable, at its
                  sole discretion, at the date notice of such termination is
                  delivered to Contractor. AA may exercise this One-Time Call
                  Option by written notice delivered to Contractor
                  contemporaneously with the notice of such termination. Upon
                  delivery of notice of such exercised One-Time Call Option,
                  Contractor will be deemed to have

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                  assigned all of its rights and duties under the designated
                  Leases to AA on the schedule set forth in subsection (3)
                  below.

                           3. Following notice of the One-Time Put Option or
                  One-Time Call Option under this subsection (b), the parties
                  shall meet not later than 90 days following such notice, to
                  effect a plan of orderly transition and wind down of the
                  Agreement. Such transition plan shall include, but not be
                  limited to a transition phasing of the designated aircraft
                  from Contractor to AA (beginning not later than the 181st day
                  following such notice), at a rate of two aircraft per month,
                  on the last day of each month, for five months, based on a
                  schedule to be determined by AA, followed by the remaining
                  five aircraft on the last day of the sixth month. In such
                  event, the Term of the Agreement will be deemed to continue
                  until the last designated aircraft is phased from Contractor
                  to AA, provided however that performance measurement pursuant
                  to Exhibit J shall not be applicable during such a transition.

         Contractor will not be liable for Conversion Expenses under this
         Section 7.03(b), provided that Contractor continues to operate each
         Firm Approved Aircraft in strict accordance with its approved
         maintenance program following notice of termination, up to and
         including the date of termination of this Agreement. Further, any parts
         and components subject to "power-by-the-hour" arrangements must be paid
         in full by Contractor through the date of termination of this Agreement
         in the event of the exercise of either a Put Option or Call Option
         pursuant to this Section 7.03(b).

         AA agrees to indemnify and hold harmless Contractor from and against
         any Claim arising from events or circumstances occurring after the date
         of assignment out of any Lease that AA is deemed to assume hereunder.

         Contractor agrees to indemnify and hold harmless AA from and against
         any Claim arising from events or circumstances occurring on or before
         the date of assignment out of any Lease that AA is deemed to assume
         hereunder.

         (c)      Contractor agrees not to enter into any lease or similar
                  arrangement (however so titled) for Firm Approved Aircraft
                  other than pursuant to a Lease. Contractor will not amend any
                  Leases, or waive any material rights thereunder, without the
                  prior written consent of AA, such consent not to be
                  unreasonably withheld.

                  Each Lease entered into by Contractor must, at a minimum,
                  contain terms providing for the following: (1) the Lease must
                  be not less than 13 years in duration; (2) the Lease must be
                  assignable to AA without the consent of the Lessor and may not
                  contain any provisions that, upon assignment of such Lease to
                  AA, impose a penalty or any other adverse action on AA as a
                  result of such assignment; (3) the Lease must be assignable to
                  AA under the exact same terms and provisions as existed in the
                  Lease immediately prior to such assignment and such terms may
                  not become more onerous to the Lessee over the Term of the
                  Lease; (4) shall contain a "half-life" return condition
                  provision; and (5) AA must have the ability to purchase the
                  leased aircraft on commercially reasonable terms reasonably
                  acceptable to AA.

                  AA will make its representative reasonably available for
                  consultation and assistance in negotiating a Lease. Once terms
                  and provisions of a Lease have been agreed upon by Contractor
                  and the third party, Contractor shall provide a copy of such
                  Lease to AA. AA will then have ten (10) business days to
                  approve the Lease (such approval not to be

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                  unreasonably withheld) or to disapprove the Lease (such
                  disapproval not to be unreasonably provided), and to provide
                  written notice to Contractor of such approval or disapproval.
                  If AA disapproves a Lease, it shall include in its notice of
                  disapproval a detailed statement of the reasons for its
                  disapproval and a detailed statement of any suggested
                  non-economic changes, which if obtained by Contractor, would
                  require AA to approve the Lease, as modified. In the event AA
                  fails to provide notice of its approval or disapproval within
                  such 10 business day period, AA shall be conclusively deemed
                  to have accepted the Lease. Approval or disapproval of a Lease
                  by AA shall not be considered a waiver of its rights hereunder
                  with respect to future Leases. In the event that AA desires to
                  change any non-economic term or provision of the Lease or add
                  a new term or provision and such changes are reasonable taking
                  into account the aircraft type subject to the proposed Lease
                  and the relative bargaining power of Contractor, Contractor
                  shall have 15 business days to seek to effect such changes.
                  Further, during both the period in which AA reviews and
                  comments on the Lease term (up to 10 business days) and the
                  period in which Contractor seeks to effect such changes (up to
                  15 business days), Contractor shall be exempt from the [*]
                  of delay liquidated damages provided for in Section 1.02(a).
                  If such changes cannot be agreed upon between
                  Contractor and the third party, then Contractor may not enter
                  into the Lease.

                  To the extent that AA requires changes to a Lease that cause a
                  delay in placing a Firm Approved Aircraft into service, AA
                  will not be entitled to, and Contractor will not be liable
                  for, the penalty of [*] of delay per regional jet, as
                  liquidated damages, provided for pursuant to Section 1.02(a).

7.04 - FORCE MAJEURE

         Except for any payments due hereunder, neither party shall be liable
         for delays or failure in performance hereunder caused by acts of God,
         acts of terrorism or hostilities, war, strike, labor disputes, work
         stoppage, fire, act of government, court order, or any other cause,
         whether similar or dissimilar, beyond the control of that party
         including but not limited to non-delivery or delay in delivery of
         aircraft to Contractor or delay in completion of required training of
         Contractor's employees by the aircraft manufacturer or delay in receipt
         of any necessary government approvals ("FORCE MAJEURE"). If any such
         event of Force Majeure substantially prevents one party's performance
         of the Agreement for a period of [*] or more, the other
         party may terminate this Agreement on [*] prior written
         notice.

ARTICLE 8 - TAXES

         Each of Contractor and AA shall be responsible for and agree to pay all
         Taxes, fees, levies, imposts, duties, charges and withholdings of any
         nature (together with any and all fines, penalties, additions to Tax or
         interest thereon or computed by reference thereto)(individually, a
         "TAX" and collectively, "TAXES") which are imposed by any government,
         governmental subdivision or other taxing authority of or in any
         jurisdiction, or by any international organization on the sale,
         delivery, use of materials, equipment or facilities or performance of
         services under this Agreement which are related to such party's
         respective operations or such party's performance of its respective
         obligations under this Agreement.

         Neither party shall be required by the foregoing Section to be
         responsible for any Taxes which are imposed by any government,
         governmental subdivision or other taxing authority of or in the United
         States or any foreign jurisdiction and which are based on or measured
         by the net income, capital, assets or net worth of the other party.

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ARTICLE 9 - ASSIGNMENT, MERGER AND EXTRAORDINARY TRANSACTION

9.01 - ASSIGNMENT

         This Agreement may be cancelled or terminated by either AA or
         Contractor if there is, by operation of law or otherwise, an assignment
         of this Agreement, or of any of the rights, duties or obligations
         created hereunder with respect to any party to this Agreement, without
         the written consent of the other party. In the event that this
         Agreement is assigned, whether by operation of law or otherwise,
         without such consent having been given in writing, the party not making
         the assignment shall have the right to terminate the Agreement
         following five (5) business days written notice to the other party and
         an opportunity to cure within such five (5) business days period.
         Notwithstanding the foregoing, (i) AA may, without consent of
         Contractor, assign and/or delegate any or all of its rights or
         obligations under this Agreement to any Affiliate or any company into
         which or with which AA or its successor may be merged, combined or
         consolidated, or which may otherwise succeed to all or any substantial
         portion of AA's assets; (ii) Contractor may, without consent of AA,
         assign or transfer this Agreement pursuant to a transaction permitted
         under Section 9.02(a) hereof; and (iii) either party shall have the
         right to assign as security all of its rights to money to be received
         so long as all offsets in favor of, and amounts due to, the party not
         assigning such rights, have been or shall be taken into account.

9.02 - MERGER

         In the event Contractor merges with or is controlled or acquired by
         another air carrier, or a corporation Affiliated with such an air
         carrier ("HOLDING COMPANY"), or a corporation owned, controlled or
         Affiliated with any such Holding Company and except for any such merger
         with or acquisition by an entity that is under common control, directly
         or indirectly, with Contractor, AA will have the option to terminate
         this Agreement without liability to Contractor except as otherwise
         provided in Section 9.03 (b) below.

9.03 - EXTRAORDINARY TRANSACTION

         (a)      For purposes of this Section, "EXTRAORDINARY TRANSACTION"
                  means any (1) merger of Contractor with another company not
                  under common control, directly or indirectly with Contractor,
                  (2) sale, transfer or lease by Contractor of all or
                  substantially all of its assets, rights or powers to an entity
                  not under common control, directly or indirectly, with
                  Contractor, or (3) the acquisition by another corporation or
                  entity not under common control, directly or indirectly, with
                  Contractor of all or a majority (at least 51%) of the
                  outstanding voting power of Contractor.

         (b)      Contractor may enter into an Extraordinary Transaction,
                  provided that AA's consent to assignment of this Agreement is
                  not otherwise required pursuant to Article 9.01 herein and
                  Contractor obtains for AA an affirmation from any such third
                  party, who succeeds to Contractor's interest in this
                  Agreement, that guarantees the full and faithful performance
                  of Contractor's Feeder Air Services under this Agreement. In
                  the event Contractor is unable to obtain such affirmation, AA
                  may, at its option, terminate this Agreement upon consummation
                  of the Extraordinary Transaction.

         (c)      Contractor agrees that (1) within thirty (30) days prior to
                  the closing of any Extraordinary Transaction with a third
                  party, or any initial or subsequent public offering of common
                  stock of Contractor, or (2) within seven (7) days prior to the
                  closing of any merger, sale,

<Page>

                  lease, or transfer of all or substantially all of its assets,
                  or acquisition by another entity which is not an Extraordinary
                  Transaction, Contractor will notify AA of such event.

         (d)      Contractor grants to AA a right to purchase up to five percent
                  (5%) of the common Stock of Contractor (the "COMMON STOCK")
                  offered for sale in connection with any initial public
                  offering of Common Stock ("IPO SHARES") by Contractor pursuant
                  to an effective registration statement under the Act or
                  comparable statement under any similar federal or other
                  statute then in force that will result in the IPO Shares being
                  listed or admitted to trading on a national securities
                  exchange or nationally recognized automated interdealer
                  quotation system ("IPO"). This right to purchase Common Stock
                  of Contractor granted to AA ("IPO PARTICIPATION RIGHT") shall
                  be subject to the following terms and conditions:

                           1. In the event that the effective date of the
                  registration statement covering the IPO Shares under the Act
                  occurs after February 15, 2002 (the one year anniversary of
                  the granting of the IPO Participation Right), AA may purchase
                  up to five percent (5%) of the IPO Shares in the IPO. The
                  purchase price of the IPO Shares subject to the IPO
                  Participation Agreement shall equal the per share price at
                  which the IPO Shares are offered to the public pursuant to the
                  IPO ("IPO SHARE PRICE"). AA may purchase less than all of the
                  IPO Shares available under the IPO Participation Right.

                           2. In the event that the effective date of the
                  registration statement covering the IPO Shares under the Act
                  occurs prior to February 15, 2002, AA may purchase up to a
                  number of shares of Common Stock equal to five percent (5%) of
                  the IPO Shares in the IPO in a private placement
                  contemporaneous with the IPO ("PRIVATE PLACEMENT SHARES"). The
                  purchase price of the Private Placement Shares subject to the
                  IPO Participation Right shall equal 75% of the IPO Share
                  Price. AA may purchase less than all of the Private Placement
                  Shares available under the IPO Participation Right.

                           3. Contractor shall give AA prompt notice of its
                  determination to conduct an IPO, but in no event later than
                  the date of the filing of the IPO Shares registration
                  statement under the Act. Contractor shall provide to AA a copy
                  of the preliminary prospectus concurrent with its distribution
                  to the public. Contractor shall provide AA no less than 72
                  hours notice of the commencement of public trading of the IPO.
                  AA shall inform Contractor of the number of IPO Shares or
                  Private Placement Shares that AA will purchase pursuant to the
                  IPO Participation Right no later than 48 hours prior to the
                  commencement of public trading of the IPO.

                  Further, in the event Contractor enters into an agreement with
                  another air carrier to provide regional air service under a
                  code share agreement and provides such other air carrier with
                  the right to participate in an IPO on terms more favorable to
                  such air carrier than the foregoing with respect to the type,
                  amount or pricing of participation, Contractor agrees, subject
                  to the provisions of this Section, to amend the type, amount
                  and/or pricing of rights granted to AA to participate in an
                  IPO so that they are not less favorable than the type, amount
                  and pricing or rights granted to such other air carrier.
                  Notwithstanding the foregoing, Contractor may provide another
                  air carrier with the right to participate in an IPO with a
                  type, amount or pricing of participation more favorable than
                  that available to AA, provided that such more favorable
                  treatment is proportionate to an increase in the number of
                  regional jets subject to such third party code share agreement
                  as compared to the Firm Approved Aircraft committed by AA to
                  be placed in service under the terms of this Agreement
                  (initially fifteen).

<Page>

         (e)      Sections 9.03 (b) and (c) herein above will not apply to any
                  proposed sale or disposition by Contractor of its aircraft or
                  assets that: (a) have become worn out or obsolete or are no
                  longer used and useful in Contractor's day to day business;
                  PROVIDED, however, that such sale or disposition does not
                  impair or negatively affect Contractor's ability to complete
                  scheduled service on a day to day basis under this Agreement;
                  or (b) are being replaced with other assets of a similar type
                  which are at least of equal quality and utility to Contractor
                  in carrying on its day to day business and meeting its
                  obligation under this Agreement.

ARTICLE 10 - COMMUNICATIONS, TRAINING AND BENEFITS

10.01 - MEDIA COMMUNICATIONS

         The corporate communications functions and personnel of Contractor and
         AA will operate independently but in coordination with respect to "ABR"
         joint marketing objectives. In the event of any Feeder Air Service
         accident or flight or ground incident involving the death of any
         person(s) or threat or injury or potential injury to persons or
         property, it is agreed that the provisions concerning emergency
         response procedures as set forth in Exhibit I shall apply and that the
         sole official spokespersons and liaison personnel with the media shall
         be those individuals designated in AA's Emergency Response Procedures
         Plan.

10.02 - TRAINING AND TRAINING MATERIALS

         Subject to the terms or specific training programs set forth in
         Exhibits D and H:

         (a)      For existing programs, AA will provide to Contractor at AA's
                  incremental cost, recurrent training and training materials
                  pertaining to any specialized programs Contractor will be
                  utilizing under this Agreement, such as WorldTracer and BMAS.

         (b)      For new programs, AA will provide initial training and
                  training materials to Contractor employees at AA's expense.
                  Contractor shall be responsible for all Contractor employee
                  expenses while attending such training.

         (c)      Should Contractor request AA instructors for the purpose of
                  exclusive training for Contractor employees either for
                  existing or new programs, and if such training is permitted by
                  AA, Contractor will pay AA the actual salary related costs,
                  including fringe benefits, plus any reasonable and customary
                  expenses incurred by the AA instructor(s).

10.03 - CONTRACTOR REPORTS

         (a)      Upon departure of each Contractor Feeder Air Service flight
                  from Feeder Air Service cities, flight close-out entries shall
                  be made by Contractor in SABRE as required by AA. If
                  Contractor becomes aware of any station(s) which have any
                  deficiencies in making "close-out "entries as required by this
                  Section, Contractor will promptly take corrective action to
                  remedy such problem including the submission to AA of a
                  corrective action plan.

         (b)      Contractor will furnish to AA operating performance reports in
                  accordance with Exhibit K.

<Page>

         (c)      Contractor will furnish to AA (1) within 45 days after the
                  end of each of the three interim calendar quarters, unaudited
                  financial statements including Contractor's then current
                  corporate balance sheet and profit and loss statement, and (2)
                  within 91 days after the end of Contractor's fiscal year,
                  Contractor's then current, audited financial statements
                  including, either separately or on a consolidated basis, the
                  balance sheet and the profit and loss statement, together with
                  associated footnotes, and a copy of the independent auditor's
                  report.

         (d)      AA may inspect Contractor's corporate records and accounts
                  related to Contractor's Feeder Air Services, from time to
                  time, upon reasonable notice during the life of this
                  Agreement.

         (e)      Each business day Contractor will furnish to AA (Attention: -
                  Director - Planning) daily operating reports for each day of
                  the week in a format specified by AA for the preceding day(s)
                  as per Exhibit K.

         (f)      Contractor will be responsible for filing all reports and
                  plans relating to its operations with the DOD, DOT, FAA, NTSB
                  or any state or airport authority, and Contractor will
                  promptly furnish AA with copies of all such reports and such
                  other available traffic and operating reports as AA may
                  request from time to time during the life of this Agreement
                  as per Exhibit K.

         (g)      Contractor will promptly furnish AA with a copy of every
                  report and plan that Contractor prepares, whether or not such
                  report is filed with the FAA, NTSB or any other governmental
                  agency, relating to any accident or incident involving an
                  aircraft used by Contractor in performing services under this
                  Agreement, whether or not such aircraft bears any Marks, when
                  such accident or incident is claimed to have resulted in the
                  death or injury to any person or the loss of, damage to or
                  destruction of any property.

         (h)      Contractor shall advise AA's legislative affairs department
                  (with a copy to AA Director-Planning) of all planned
                  communications, whether written or oral, with government
                  or civic officials in connection with Contractor's Feeder
                  Air Services. If requested by AA, Contractor shall provide
                  copies of any written communications. Further, each party
                  will endeavor to report to  the other party any unplanned
                  meetings (where it is anticipated that negative media
                  coverage could result) that occur between either party and
                  any local, state, or federal governmental officials regarding
                  Contractor's performance as an ABR carrier.

<Page>

10.04 -  AGREEMENTS WITH OTHER CARRIERS

         (a)      [*]

         (b)      Subject to Article 5 herein, in the event Contractor enters
                  into an agreement with a third party governing pursuant to
                  which Contractor will provide services substantially
                  similar to those provided to AA under this Agreement
                  employing ERJ-140 aircraft, Contractor shall: (i) provide
                  promptly to AA a copy of all documentation of same, and
                  (ii) offer, on an all-or-nothing basis, to AA, the
                  opportunity to amend this Agreement to incorporate
                  prospectively from the date of AA's election all of the
                  terms and conditions of such agreement to govern all
                  Approved Aircraft, including all Option Aircraft. AA, in
                  its sole discretion, may elect, within 10 business days
                  after receiving such notice from Contractor, to amend this
                  Agreement to reflect such terms and conditions, and
                  Contractor agrees to promptly approve such amendment in
                  writing in accordance with Section 13.01 herein. The rights
                  granted to AA pursuant to this Section 10.04(a) may be
                  exercised an unlimited number of times throughout the Term
                  of the Agreement.

         (c)      Subject to Article 5 herein, in the event Contractor reaches
                  agreement in principle on all of the material terms of a
                  contemplated agreement with a third party pursuant to which
                  Contractor proposes to provide services substantially similar
                  to those provided under the terms of this Agreement employing
                  aircraft other than ERJ-140 aircraft (a "PROPOSED AGREEMENT"),
                  Contractor shall (i) provide promptly to AA written notice of
                  such Proposed Agreement, including a detailed description of
                  all of the material terms and conditions thereof, and
                  (ii) offer, on an all-or-nothing basis, AA the opportunity to
                  enter into an agreement on the same terms and conditions as
                  such Proposed Agreement for the provision of the same type of
                  services by Contactor employing the same aircraft that
                  would be employed under such Proposed Agreement. AA shall
                  have the right, on only one occasion, within 10 business
                  days after receiving such notice from Contractor to elect
                  to enter into an agreement with Contractor on the same
                  terms and conditions as a Proposed Agreement, involving the
                  provision of the same type of services by Contractor with
                  the same aircraft as the Proposed Agreement; provided that
                  either (i) AA elects concurrently to exercise its Option
                  on all Option Aircraft for which the time to exercise such
                  option has not already expired or (ii) AA has exercised
                  all such options. If AA fails to accept such offer in
                  writing, Contractor will be permitted to consummate the
                  Proposed Agreement (on terms materially no more favorable
                  to the third party than were offered to AA) with a third
                  party within 120 days of such failure to accept;
                  provided, that if no transaction is consummated with a
                  third party on such terms and conditions within such
                  120-day period, the provisions of this Section 10.04(b)
                  shall again apply.

10.05 -  WAIVERS

         No failure by either party to exercise, or delay in exercising, any
         right, power or remedy, and no course of dealings between the parties
         shall constitute a waiver of such right, power or remedy. No waiver by
         either party or any default, misrepresentation or breach of warranty,
         whether intentional or not, shall be deemed to extend to any prior or
         subsequent default, misrepresentation or breach. No waiver shall be
         valid unless in writing.

         Notwithstanding the foregoing, neither party shall recover costs (with
         the exception of interline settlements made in accordance with
         Exhibit F) or enforce monetary penalties or incentive

----------
* Confidential
<Page>

         payments to which it is entitled by the terms of this Agreement if the
         party seeking such recovery or enforcement either knew or, with
         reasonable due diligence, should have known of the facts or conditions
         giving rise to its claim and failed to notify the other party in
         writing within twelve (12) months thereafter.

ARTICLE 11 - CONFIDENTIALITY

11.01 -  NONDISCLOSURE OF AGREEMENT

         Except as required by law or in any proceeding to enforce the
         provisions of this Agreement, AA and Contractor hereby agree not to
         disclose or publicize to any third party the terms or conditions of the
         Agreement or any related Agreement except in the sole discretion and
         with the prior written consent of AA.

         Notwithstanding the foregoing, either party may disclose the terms of
         this Agreement on a need-to-know basis to its Affiliates, financial
         advisors, outside law and accounting firms, bank lenders, or to other
         financial entities or underwriters, provided such entities acknowledge
         the confidential nature of such information and agree to be bound by
         the non-disclosure requirements of this Article 11.

11.02 -  NONDISCLOSURE OF INFORMATION

         For purposes of this Agreement, confidential information, whether oral,
         written or in any other form is that information which pertains to the
         business, marketing, or operational plans or procedures of the
         disclosing party and which should reasonably be understood by the
         receiving party by the circumstances of disclosure or by the nature of
         the information itself, to be proprietary and confidential to the
         disclosing party. Except as required by law or in any proceeding to
         enforce the provision of this Agreement, AA and Contractor hereby agree
         to use confidential information solely for purposes related to the
         performance of services under this Agreement and further agree not to
         disclose to any third party any confidential information received from
         the other party without the prior written consent of the party
         providing such confidential information or data. The foregoing
         restrictions for the use and/or disclosure of confidential information
         shall not apply to information that:

         (a)      was publicly known at the time such information was
                  communicated by the disclosing party to the receiving party;
                  or

         (b)      becomes publicly known through no fault of the receiving
                  party subsequent to the disclosure of such information; or

         (c)      was in the receiving party's possession, free of any
                  obligation of confidence at the time of the disclosing
                  party's communication to the receiving party; or

         (d)      is developed by the receiving party independently of and
                  without reference to the disclosing party's confidential
                  information or other information that the disclosing party
                  communicated in confidence to any third party; or

         (e)      is rightfully obtained by the receiving party from third
                  parties authorized to make such disclosure without
                  restriction; or

         (f)      is identified by the disclosing party as no longer proprietary
                  or confidential.

         (g)      is disclosed to an Affiliate on a need-to-know basis and that
                  Affiliate agrees to abide by the provisions of this Section
                  11.02.

<Page>

11.03 -  NOTIFICATION

         If either party is served with a subpoena or other process requiring
         the production or disclosure of any of the Agreement or confidential
         information referenced in Article 11.02, then the party receiving such
         subpoena or other process, before complying with such subpoena or
         other process, shall immediately notify the other party of same and
         permit the other party a reasonable period of time to intervene and
         contest disclosure or production.

11.04 -  RETURN OF INFORMATION

         Upon termination of this Agreement, each party must return to the other
         any confidential information or data received from the other and
         designated as such by the party providing such confidential information
         which is still in the recipient's possession or control.

ARTICLE 12 - RELATED AGREEMENTS

         (a)      Contemporaneously with the execution of this Agreement, AA and
                  Contractor acknowledge that the parties have or will enter
                  into the following additional agreements:

                           Reduced Rate Agreement for Employee Travel

                           Hub Real Estate Subleases

                           System Ground Handling Agreement

                           Warrant Agreement of even date herewith

                           Amendment No. 3 to the Amended and Restated Trans
                           World Express Air Services Agreement, dated February
                           15, 2001

         (b)      Upon execution of this Agreement, the parties shall promptly
                  meet and proceed to work together in good faith to negotiate
                  and conclude the terms and conditions of each of the Related
                  Agreements not executed simultaneously with this Agreement.

         (c)      The agreements enumerated in this Article 12 are herein
                  referred to as the "Related Agreements." Notwithstanding
                  anything to the contrary contained in the Related Agreements,
                  the term of each of the Related Agreements shall be
                  coterminous with the Term of this Agreement.

ARTICLE 13 - MISCELLANEOUS

13.01 -  ENTIRE AGREEMENT AND AMENDMENTS

         This Agreement, including any Appendices, Attachments and Exhibits
         attached hereto or thereto, contains the complete, final and exclusive
         agreement between the parties hereto with respect to the subject matter
         hereof, and supersedes all previous agreements and understandings, oral
         and written, with respect to such specific matter. This Agreement will
         not be modified, amended or terminated by mutual agreement or in any
         manner except by an instrument in writing, executed by the parties
         hereto.

<Page>

13.02 -  GENERAL

         (a)      Any and all notices, approvals or demands required or
                  permitted to be given under this Agreement shall be sufficient
                  if sent by certified or registered mail, postage prepaid, or
                  if sent by courier or overnight delivery service, or via
                  facsimile provided a confirming copy of such notice is sent
                  via one of the foregoing methods,

<Table>
<Caption>
                  if addressed to AA:                         with a copy to:
<S>                                                           <C>
                  Director - Planning                         Corporate Secretary
                  American Airlines, Inc.                     American Airlines, Inc.
                  4333 Amon Carter Blvd.                      4333 Amon Carter Blvd.
                  MD 5494                                     Ft. Worth, TX  76155
                  Ft. Worth, TX  76155
                  Fax: (817) 967-3407                         Fax: (817) 967-4313

                  and if to Contractor, addressed to:         with a copy to:

                  President and CEO                           Wexford Capital, LLC
                  Chautauqua Airlines, Inc.                   411 West Putnam Avenue
                  Indianapolis Int'l Airport                  Greenwich, CT  06830
                  Suite #160                                  Attention: President
                  2500 South High School Road                 Attention: General Counsel
                  Indianapolis, IN 46241
                  Fax # 317-484-4547                          Fax # 203-862-7312
</Table>

                  or to such other addresses as either party may hereafter
                  specify by notice as provided herein.

         (b)      This Agreement shall be governed by and construed and enforced
                  in accordance with the laws of the State of Texas.

         (c)      This Agreement may be executed in two or more counterparts,
                  each of which will be deemed an original and all of which
                  together will constitute one instrument.

         (d)      If any provision of this Agreement is held to be illegal,
                  invalid or unenforceable under present or future laws
                  effective during the Term, the legality, validity, and
                  enforceability of the remaining provisions of this Agreement
                  shall not be affected thereby, and in lieu of such illegal,
                  invalid, or unenforceable provision, there shall be added
                  automatically as a part of this Agreement a provision as
                  similar in terms to such illegal, invalid or unenforceable
                  provision as may be legal, valid, and enforceable.

         (e)      The prevailing party in any legal proceeding based upon this
                  Agreement shall be entitled to reasonable attorney's fees and
                  court costs, in addition to any other recoveries allowed by
                  law.

<Page>

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

CHAUTAUQUA AIRLINES, INC.                   AMR CORPORATION

By: /s/ Bryan Bedford                       By: /s/ Charles D. Marlett
   -------------------------------             ---------------------------------

Name:  Bryan Bedford                        Name:  Charles D. Marlett

Title:  President                           Title:
       ---------------------------                 -----------------------------

<Page>

                           EXHIBIT A - FEEDER AIRPORTS

1.       ST. LOUIS FEEDER AIRPORTS AND SCHEDULING STANDARDS

         A.       Subject to conditions specified elsewhere in the Agreement,
                  Contractor will provide Feeder Air Service between AA
                  designated Feeder Airports on the one hand, and the STL Hub on
                  the other hand during and upon completion of the Fleet Plan
                  phase-in.

         B.       In scheduling Contractor operated aircraft, AA will not unduly
                  require the use of more than one flight crew (pilots and
                  flight attendants) per overnight ("RON"). In the event the
                  marketing schedule does not provide the crew with "legal
                  rest," Contractor shall either "stage" a replacement crew at
                  the affected location or schedule the crew on a CDO. If a CDO
                  or staged RON is required, AA shall reimburse Contractor its
                  direct cost for such CDO or staged RON.

         C.       AA shall designate which Approved Aircraft type will be
                  operated to and from Feeder Airports and the STL Hub.

         D.       AA shall schedule the Approved Aircraft to maintain average
                  daily scheduled utilization within the minimum and maximum
                  parameters noted on schedules E-1a, E-1b, and E-2.

         E.       AA shall schedule the Approved Aircraft in an efficient
                  manner at the Hub and Feeder Airports.

         F.       AA shall have the discretion to change the frequency and
                  deployment of Feeder Air Service Flights between the Hub and
                  Feeder Airports provided reasonable notice, as defined in
                  Section 2 below, is given to Contractor.

2.       ROUTE CHANGES

         AA shall have the discretion to redeploy Approved Aircraft from time to
         time given reasonable prior written notice is provided to the
         Contractor. For the purposes of this Section, reasonable notice shall
         mean:

         A.       Thirty (30) days to add or delete service to Feeder Airports
                  that are Covered Locations or locations served by a third
                  party ABR provider; and

         B.       Sixty (60) days to add Feeder Airports that are new
                  Contractor Locations; and

         C.       Sixty (60) days to delete Feeder Airports that are Contractor
                  Locations.

         In the event AA requests Contractor to operate routes other than to or
         from the STL Hub, Contractor and AA shall meet to determine what, if
         any, changes are required to the STL cost model for the operation of
         such non-STL Hub Feeder Air Service Flights.

                                    *    *    *

<Page>

                             EXHIBIT B-1 -ABR MARKS

1.       THE ABR MARKS ARE:

         A.       "ABR," "ABR," and AA's aircraft interior and exterior decor,
                  colors, and logos. Such ABR Marks may be retrieved by
                  Contractor when granted access to AADAMS pursuant to Section
                  1.01(a) on or after the execution date of this Agreement. The
                  ABR Marks may be revised by AA from time to time.

         B.       "AA" and "AA*", as appropriate as code to designate Feeder Air
                  Service Flights in the OAG, airline and third party
                  reservations systems, airport flight information displays,
                  passenger tickets, and similar media.

         C.       The "AAdvantage" frequent traveler program for promotion and
                  benefits.

         D.       Any other ABRMark which AA from time to time may designate.

                                    *    *    *

<Page>

                             EXHIBIT B-2 - TWA MARKS

1.       THE TWA MARKS ARE:

         A.       "Trans World Express," "TWE," "TWExpress," and TWA's aircraft
                  interior and exterior decor, colors, and logos. Such TWA Marks
                  are depicted in the logo sheet previously furnished by TWA to
                  Contractor, and attached hereto, which may be revised by AA
                  from time to time.

         B.       "TW" and "TW*", as appropriate as code to designate Feeder Air
                  Service Flights in the OAG, airline and third party
                  reservations systems, airport flight information displays,
                  passenger tickets, and similar media.

         C.       The "Aviators" frequent traveler program for promotion and
                  benefits.

         D.       Any other TWA Mark which AA from time to time may designate.

                                    *    *    *

<Page>

                   EXHIBIT C - FLEET PLAN AND OTHER CONDITIONS

1.       FEEDER AIR SERVICE APPROVED AIRCRAFT

         A.       REGIONAL JET AND TURBO PROP AIR TRANSPORTATION SERVICE

                  (1)      As directed by AA and subject to certain Labor
                           Contract Restrictions, Contractor will utilize
                           Embraer regional jet aircraft, types 145 and 140,
                           (ERJ) configured in American Eagle specifications
                           (including but not limited to airframe, powerplant,
                           cabin interior, exterior trade dress, avionics, and
                           the like) , and Saab 340 (SF3) turbo prop aircraft,
                           configured with not less than 30 seats. Each
                           aircraft shall be equipped with cold galley,
                           lavatory, and 3 crew personnel. Unless otherwise
                           directed by AA, all ERJ aircraft operated by
                           Contractor will be the 140 LR version, although AA
                           may at its discretion change from the 140 LR version
                           to the 145 LR version. AA will give Contractor
                           timely notice of such change. Both parties agree
                           that the use of ERJ type 145 will require a
                           separate schedule of Block Hour and passenger
                           stipend charges.

                  (2)      Other regional jet and turbo-prop aircraft types may
                           be used subject to AA's prior approval and
                           corresponding amendment to this Agreement as
                           appropriate.

                  (3)      Contractor is permitted to assign one or more
                           Standard Marked Approved Aircraft as a spare aircraft
                           to protect operations pursuant to this Agreement.

         B.       RIGHT OF FIRST REFUSAL

                  Should Contractor have aircraft in excess of its operational
                  needs, Contractor will grant AA a right of first refusal to
                  place such aircraft in service for AA. All terms and
                  conditions contained in this Agreement shall apply to any
                  service operated by Contractor on behalf of AA with such
                  additional aircraft.

2.       IN-SERVICE DATES / PHASE OUT DATES

                  In-service and phase out dates shall be as indicated on
                  Schedule C-1.

3.       AIRCRAFT INTERIOR AND EXTERIOR SPECIFICATIONS

                  AA shall direct Contractor regarding the exterior trade dress
                  and interior fabric and color selection process of all
                  aircraft Contractor operates under this Agreement to ensure
                  consistency with AA's or AE's product appearance.

4.       MAINTENANCE

         A.       Contractor agrees to maintain the Firm Approved Aircraft fleet
                  to the highest service non-mandatory bulletin/modification
                  ("SB") status maintained on the other aircraft operated by
                  Contractor. Contractor and AA agree to cause their maintenance
                  personnel to meet at least once each calendar quarter, or more
                  often at the request of AA, to review the SB status of the
                  Firm Approved Aircraft fleet. In the event that Contractor
                  determines a particular SB is not cost beneficial, AA may
                  cause Contractor to perform the SB on the Firm Approved
                  Aircraft under the following circumstances:

<Page>

                  (1)      If AA performs an SB on its fleet and desires such SB
                           to be performed on Contractor's Firm Approved
                           Aircraft fleet when such SB is not already preformed
                           or is not intended to be performed on any of the
                           Contractor fleet, then:

                           If AA provides a part or component to Contractor at
                           no charge to Contractor, Contractor will provide, at
                           no additional charge to AA, up to 100 man-hours per
                           Firm Approved Aircraft of labor to comply with the
                           SB. Any man-hours in excess of 100 shall be
                           reimbursed by AA to Contractor at straight-time
                           rates.

         B.       During the Term, Contractor shall furnish to AA such
                  information concerning the location, condition, use and
                  operation of the Approved Aircraft as AA may reasonably
                  request. Contractor shall permit any Person designated in
                  writing by AA, at AA's expense, to visit and inspect (at any
                  reasonable time, provided that such inspection shall not
                  unreasonably interfere in any material respect with
                  Contractor's business operations or operation or maintenance
                  of the Approved Aircraft) the Approved Aircraft and the logs,
                  manuals, records and other documentation maintained in
                  connection therewith and, at AA's expense, to make copies of
                  such records as AA may reasonably designate. AA shall have no
                  duty to make any such inspection and shall not incur any
                  liability or obligation by reason of making or not making any
                  such inspection. Any such inspection of the Approved Aircraft
                  shall be a visual, walk-around inspection which may include
                  going on board the Approved Aircraft and shall not include
                  opening any panels, bays, or the like; PROVIDED, that any such
                  designee of AA shall be entitled to be present during any
                  maintenance check of any Approved Aircraft at which any
                  panels, bays or the like may be opened and shall have the
                  right to inspect such items during such maintenance check.
                  Upon written request from AA, Contractor shall provide AA with
                  the anticipated dates of any scheduled major maintenance
                  checks (including any "C", heavy "C" or "D" check) occurring
                  within the six-month period following such request. Contractor
                  shall promptly address any concerns of AA's Flight Operations,
                  Ground Operations, Maintenance and Safety Departments.

         C.       Contractor shall maintain, service, repair, overhaul and test
                  or cause to be maintained, serviced, repaired, overhauled and
                  tested each Approved Aircraft (and all parts and components
                  thereof) in accordance with its FAA approved maintenance
                  program, so as to keep each Approved Aircraft (and all parts
                  and components thereof) in at least as good an operating
                  condition as when delivered, ordinary wear and tear excepted,
                  and within the acceptable limits of performance provided in
                  the manufacturer's manuals.

                                    *    *    *

<Page>

                 SCHEDULE C-1 - FLEET PLAN AND IN-SERVICE DATES

         At the STL Hub, Contractor has agreed to continue to operate the
         following in service ERJ-145 LR and Saab 340 aircraft until the phase
         out dates listed (the ERJ-145 units and the SAAB 340 units are
         collectively referred to as "ORIGINAL APPROVED AIRCRAFT"), and to place
         the following 15 firm ERJ-140 LR units into service according to the
         following schedule (the ERJ-140 LR units are collectively referred to
         as "FIRM APPROVED AIRCRAFT"):

<Table>
<Caption>
   Contractor          Make/        In-Service   Total AA          Phase-out         Total AA
      Unit             Model           Date      SF3 Units           Date            RJ Units
----------------- ---------------- ------------- ---------- ------------------------ ----------
<S>                   <C>            <C>             <C>    <C>                         <C>
   SF 01 - 06           SF3                          6           April 1, 2002
     145-01           145 LR                                 F-08 in service date        1
     145-02           145 LR                                 F-09 in service date        2
     145-03           145 LR                                 F-10 in service date        3
     145-04           145 LR                                 F-11 in service date        4
     145-05           145 LR                                 F-12 in service date        5
     145-06           145 LR                                 F-13 in service date        6
     145-07           145 LR                                 F-14 in service date        7
     145-08           145 LR                                 F-15 in service date        8
      F-01            140 LR             Oct-01                                          9
      F-02            140 LR             Oct-01                                         10
      F-03            140 LR             Nov-01                                         11
      F-04            140 LR             Nov-01                                         12
      F-05            140 LR             Dec-01                                         13
      F-06            140 LR             Dec-01                                         14
      F-07            140 LR             Dec-01                                         15
      F-08            140 LR             Jan-02                                         15
      F-09            140 LR             Jan-02                                         15
      F-10            140 LR             Jan-02                                         15
      F-11            140 LR             Feb-02                                         15
      F-12            140 LR             Feb-02                                         15
      F-13            140 LR             Mar-02                                         15
      F-14            140 LR             Mar-02                                         15
      F-15            140 LR             Apr-02                                         15
</Table>

Note:    For the purposes of Section 1.02, specific "in-service" date shall be
         confirmed to AA by Contractor not less than 90 days prior to the
         scheduled date of delivery.

         Additional Approved Aircraft may be added to the Fleet Plan by mutual
         agreement between the parties and under the same terms and conditions
         stated herein.

<Page>

                                 OPTION AIRCRAFT

         The aircraft described in the table below are collectively known as the
"OPTION AIRCRAFT."

<Table>
<Caption>
                                                                                         Potential
   Option RJ                            Commitment         Notice to        Delivery     Total AA
     Unit           Make/ Model            Date             Convert           Date         Units
   ---------        -----------         ----------         ---------        --------     ---------
<S>                 <C>                   <C>                <C>             <C>            <C>
      O-01                                Jul-01             Jul-01          Apr-02         16
      O-02                                Jul-01             Jul-01             [*]         17
      O-03                                Jul-01             Jul-01             [*]         18
      O-04                                Jul-01             Jul-01             [*]         19
      O-05                                Jul-01             Jul-01             [*]         20
      O-06                                Jul-01             Oct-01             [*]         21
      O-07                                Jul-01             Oct-01             [*]         22
      O-08                                Aug-01             Nov-01             [*]         23
      O-09                                Aug-01             Nov-01             [*]         24
      O-10                                Sep-01             Dec-01             [*]         25
      O-11                                Sep-01             Dec-01             [*]         26
      O-12                                Oct-01             Jan-02             [*]         27
      O-13                                Oct-01             Jan-02             [*]         28
      O-14                                Nov-01             Feb-02             [*]         29
      O-15                                Nov-01             Feb-02             [*]         30
      O-16                                Dec-01             Mar-02             [*]         31
      O-17                                Dec-01             Mar-02             [*]         32
      O-18                                Jan-02             Apr-02             [*]         33
      O-19                                Jan-02             Apr-02             [*]         34
      O-20                                Feb-02             May-02             [*]         35
</Table>

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                        EXHIBIT D - STANDARDS OF SERVICE

1.       CUSTOMER SERVICE

         Contractor will perform all customer-related services in a
         professional, businesslike, and courteous manner.

         A.       In order to ensure a high level of customer satisfaction,
                  Contractor agrees that it will train or cause to be trained to
                  proficiency, all Contractor customer service employees
                  associated with Contractor's ABR Services.

         B.       Contractor will establish and maintain customer handling
                  procedures and policies which conform with Customer Service
                  Policies and Procedures or other such documentation as AA may
                  from time to time adopt, to the extent that such procedures
                  and policies are appropriate for an ABR operation.

                  Further, Contractor will establish, maintain, and enforce
                  employee conduct, appearance and training standards and
                  policies which are similar to those utilized by AA.

         C.       Contractor agrees to participate in any and all special
                  training or other programs that AA provides for its customer
                  service employees. Contractor may elect to accomplish such
                  training through the use of a "Train the Trainer" concept, if
                  permitted by AA.

         D.       Upon the request of either party, Contractor and AA will meet
                  to discuss and review Contractor's customer handling
                  procedures and policies and Contractor's employee conduct,
                  appearance, and training standards and policies to ensure
                  compliance with this Exhibit D.

         E.       Contractor shall resolve all customer complaints in accordance
                  with AA's Customer Service Policies and Procedures and will
                  forward all customer complaints to AA's Customer Relations
                  Department to ensure timely resolution of all customer
                  concerns associated with the ABR Services provided by
                  Contractor.

2.       IN-FLIGHT SERVICE PRODUCT AND DELIVERY

         Contractor shall cater flights as directed by AA. Contractor shall
         coordinate with AA's (or its Affiliate's) In-flight Services
         Department to ensure consistency and quality of Contractor's
         in-flight service product, including but not limited to non-safety
         related functions such as inflight marketing announcements, meal
         and beverage presentation and delivery, provisioning and usage of
         passenger amenity kits, and the like. Contractor shall implement
         suggestions made by AA's (or its Affiliate's) In-flight Services
         Department if such suggestions can be implemented without additional
         cost to Contractor. AA shall assist Contractor in obtaining
         commissary items (beverages and complimentary foodstuffs) at AA's
         actual cost, i.e., on a pass through basis. If meal service is
         required by AA, Contractor shall pass the additional cost through
         to AA.
..

         Contractor will coordinate with AA to ensure consistency with AA's
         product delivery, including but not limited to AA logo napkins, stir
         rods, cups and the like. AA shall provide such amenities at no charge
         to Contractor.

<Page>

3.       REPRESENTATION AND PRESENTATION OF THE AA BRAND

         A material failure to represent the AA brand to the same extent as
         other users of the AA brand, including AE and other ABR carriers as
         reasonably specified by AA in writing and uniformly applied to all
         users of the AA brand, including AE and other ABR carriers, will be
         deemed cause for termination of this Agreement as provided in
         Section 7.02, provided that such failure is noted in two
         consecutive audits.

                                    *    *    *

<Page>

                           EXHIBIT E - CHARGES PAYABLE

1.       CHARGES PAYABLE BY AA

         A.       BLOCK HOUR CHARGE

                  AA shall pay Contractor a fixed fee per actual Block Hour
                  flown in revenue service. The Block Hour rate is based upon
                  Contractor's fixed costs and will vary based upon the number
                  of scheduled Block Hours on an average daily basis for each
                  Approved Aircraft fleet (see Schedules E-1a and E-1b for
                  ERJ-145 and ERJ-140 respectively, and Schedule E-2).
                  Contractor will bear all product reliability and operating
                  cost risk unless otherwise stated herein. The rate per Block
                  Hour shall be adjusted only in conjunction with schedule
                  changes that affect the scheduled Block Hour utilization
                  subject to a minimum payment calculated on the basis of [*]
                  per day, regardless of whether the Approved Aircraft are
                  scheduled for such number of Block Hours per day.

                  For the avoidance of doubt, AA will schedule the Firm Approved
                  Aircraft for a minimum daily utilization of [*] per day on
                  average. For example, in the event that AA schedules the Firm
                  Approved Aircraft for an average of [*] hours per day, but
                  Contractor actually flies only [*], Contractor shall be
                  paid for [*] at the Block Hour rate corresponding to [*].

                  Certain components of the Block Hour cost shall be subject to
                  periodic adjustment based upon Section C below.

         B.       PASSENGER STIPEND

                  AA shall pay contractor a passenger stipend for each Revenue
                  Passenger carried onboard Contractor's aircraft. The
                  applicable amount of passenger stipend is detailed in
                  Schedules E-1a, E-1b and E-2.

         C.       ADJUSTMENTS TO CHARGES

                  In addition to the Block Hour charge and passenger stipend,
                  AA agrees to pay Contractor the following items:

                  (1)      AA agrees to reimburse Contractor for certain Pass
                           Through Costs fully or partially excluded from the
                           Block Hour charge or passenger stipend. These Pass
                           Through Costs and their associated rules of
                           application are listed in Schedule E-3(1)(I).

                  (2)      AA agrees to reimburse Contractor for all third
                           party vendor charges incurred in providing Feeder
                           Air Services at a Covered Location. Contractor
                           should contract such services when necessary, pay
                           the vendor directly, and then submit charges to AA
                           as Other Pass Through Costs as described in
                           Schedule E-3(1)(I).

                  (3)      AA agrees to reimburse Contractor for de-icing
                           services provided by vendors at all locations.
                           Contractor should contract such services when
                           necessary, pay the vendor directly, and then
                           submit charges to AA as other Pass Through Costs
                           as described in Schedule E-3(1)(I).

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                  (4)      AA agrees to reimburse Contractor for de-icing
                           fluid provided by AA maintenance at the Hub for
                           purposes of on-gate de-icing of Approved Aircraft.
                           Contractor should pay AA maintenance directly for
                           such fluid, and then submit charges back to AA as
                           Other Pass Through Costs as described in Schedule
                           E-3(1)(I).

                  (5)      The Block Hour charge contemplates Contractor
                           performing Passenger Handling and Ground Handling
                           Duties for [*]. That number will be adjusted for
                           actual deployment by use of CLDR (or Contractor
                           Location Departure Ratio) as defined herein. "CLDR"
                           means the number of scheduled, weekday Feeder Air
                           Service regional jet departures handled by
                           Contractor, divided by the total number of scheduled
                           weekday Feeder Air Service regional jet departures
                           operated by Contractor. AA shall recompute the CLDR
                           based upon the current marketing schedule then in
                           effect. The computation of CLDR shall be made at the
                           beginning of each calendar quarter when the total
                           regional jet fleet count is less than 20 units and
                           semi-annually (January 1 and July 1) when the total
                           regional jet fleet count is 20 units or more. For
                           purposes of Contractor cost reimbursement, the
                           following calculations shall be performed on a
                           monthly basis and AA agrees to reimburse Contractor
                           the amount generated by such calculation:

                                    [*]

                           NOTE: The [*] departure cost (the "RJ Turn Fee")
                           is based upon April 2000 economics and is subject
                           to the Escalation Percent (see Schedule E-4)
                           beginning April 1, 2002.

                  (6)      If, during any calendar quarter, the level of
                           Uncontrollable Cancellations incurred by Contractor
                           is more than [*] of scheduled Block Hours, then AA
                           shall pay to Contractor an amount determined in
                           accordance with the following formula:

                           [*]

                                    where

                           [*]

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<Page>

2.       CHARGES PAYABLE BY CONTRACTOR

         A.       AA GROUND AND PASSENGER SUPPORT SERVICES TRAINING

                  Contractor will provide, at no cost to AA, at no cost
                  to AA, all necessary training to enable AA, and/or its
                  Affiliate(s) to fulfill its obligations under any ground
                  handling agreements.

         B.       AUTOMATION

                  1.       Contractor shall pay all communications charges
                           in the Feeder Cities and Hub, as appropriate.

                  2.       Contractor shall pay all communications charges
                           associated with the transmission and reception of
                           ACARS data.

         C.       UNANTICIPATED COSTS

                  Any costs incurred by Contractor in conjunction with
                  Contractor's ABR Services shall remain the responsibility
                  of Contractor unless expressly subject to payment by AA
                  as provided elsewhere in this Agreement.

         D.       OTHER CHARGES INCURRED

                  1.       Contractor agrees to pay AA for all costs or
                           expenses, including fines and penalties ("COSTS")
                           imposed on AA directly arising out of Contractor's
                           failure to comply with AA's Customer Services
                           Policies and Procedures with regard to the
                           ticketing and boarding of any passenger for ABR
                           Services or any other passenger connecting to
                           transportation services offered by AA, including
                           but not limited to Costs arising out of Contractor's
                           failure to verify travel documents or under
                           collection or under remittance of fares, Taxes,
                           PFC's, security surcharges or the like, except to
                           the extent Contractor's non-compliance is due
                           to the failure of AA to comply with any such
                           applicable law, rule, regulation, or procedure.

                  2.       Any services, if requested by Contractor and
                           performed by TWA, that are not otherwise identified
                           in this Agreement shall be at [*] of Mutual
                           Assistance Ground Service Agreement ("MAGSA") rates.

         E.       TURBO-PROP AIRPORT SUPPORT SERVICES

                  Contractor shall pay AA [*] scheduled turbo-prop ("TP Turn
                  Fee") at each Covered Location where AA or its Affiliate
                  provides Airport Support Services. Contractor shall make
                  arrangements with AA Vendors, if applicable, to pay such
                  Vendors directly and may submit such bills back to AA for
                  credit/reimbursement from the TP Turn Fee.

                  Contractor's payment of the TP Turn Fee may be withheld from
                  the Contractor payment/wire transfer by AA at AA's option.

3.       SHARED COSTS

         AA and Contractor agree to share the following costs on an equal
         (50/50) basis:

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         A.       Ongoing SABRE automation equipment cost
         B.       Installation of initial SABRE automation equipment at
                  Contractor locations

         AA will purchase and install equipment, then bill Contractor
         fifty percent (50%) of such cost. AA will retain all rights to
         the equipment. In the event of a Covered Conversion, AA will
         reimburse Contractor's expenses for the initial purchase and
         installation.

4.       HUB RELOCATION

         In the event AA requires Contractor to relocate to different facilities
         at the Hub other than Concourse B, AA and Contractor shall modify the
         cost model to reflect any changes as a direct result of the relocation
         proportionately.

                                    *   *   *

<Page>

      SCHEDULE E-1a

                   CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                   WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                   TO A REQUEST FOR CONFIDENTIAL TREATMENT

                                    *   *   *

<Page>

   SCHEDULE E-1b

                   CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                   WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                   TO A REQUEST FOR CONFIDENTIAL TREATMENT

                                    *   *   *

<Page>

   SCHEDULE E-2

                   CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                   WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                   TO A REQUEST FOR CONFIDENTIAL TREATMENT

                                    *   *  *

<Page>

                        SCHEDULE E-3

1.       The following cost groups shall be reconciled on a monthly basis,
         with the cost difference passed through to either AA or Contractor.
         The difference between the direct costs to the Contactor and the
         cost assumed in the pricing model shall be reconciled monthly by
         Contractor and such reconciled difference shall be either reimbursed
         to Contractor (under payment) or credited to AA (over payment). The
         settlement date for all Pass Through Costs shall be made in
         accordance with the terms set forth in Exhibit F. AA reserves the
         right to audit Contractor's Pass Through Costs.

A.       Fuel (into-plane) - The Block Hour charge assumes a gross (into-plane
         including taxes and servicing) fuel price of [*] of Jet A fuel. To the
         extent that Contractor's actual fuel costs per gallon deviate from this
         amount, the difference, multiplied by the actual number of Jet A fuel
         gallons consumed by Contractor's Feeder Air Service Flights, shall
         either be reimbursed to Contractor or credited to AA.

B.       Landing Fees - The Block Hour charge assumes a gross landing fee (per
         1,000 lbs of maximum aircraft landing weight) [*] To the extent that
         actual landing fees paid by Contractor deviate from this amount, the
         difference, multiplied by the actual amount of landing weight for
         Contractor's Feeder Air Service Flights, shall either be reimbursed to
         Contractor or credited to AA.

C.       Passenger Liability Insurance - The Block Hour charge assumes an
         insurance cost of [*] 1,000 RPMs. Each year, on the anniversary date of
         Contractor's policy, the rate shall adjust up or down [*] To the
         extent that the insurance cost for Passenger Liability Insurance paid
         to Contractor by AA deviates from the New PLI Calculated Rate, the
         difference, multiplied by the actual number of RPMs (000) associated
         with Contractor's Feeder Air Service Flights shall be either reimbursed
         to Contractor or credited to AA. Alternatively, AA, at its sole
         discretion, may elect to offer Contract Passenger Liability Insurance
         coverage for its Feeder Air Service operations with terms and
         conditions to be mutually agreed to by the parties.

D.       Aircraft Hull Insurance - The Block Hour charge assumes a cost of [*]
         of Aircraft Hull value. Each year, on the anniversary date of
         Contractor's policy, the rate shall adjust up or down [*]. To the
         extent that the insurance cost for Aircraft Hull Insurance paid to
         Contractor by AA deviates from the New AHI Calculate Rate, the
         difference, multiplied by the actual Hull values divided by $100,
         associated with Contractor's Feeder Air Service Flight shall either be
         reimbursed to Contractor or credited to AA. Alternatively, AA, at its
         sole discretion, may elect to offer Aircraft Hull Insurance coverage
         for its Feeder Air Service operations with terms and conditions to be
         mutually agreed to by the parties.

E.       Aircraft Property Taxes - The Block Hour charge assumes a property Tax
         of [*] of assessed aircraft property value. To the extent that the
         actual property Tax ratio paid by Contractor deviates from this amount,
         the difference, multiplied by the actual assessed aircraft property
         value, shall either be reimbursed to Contractor or credited to AA.

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<Page>

F.       De-Icing Services - The Block Hour charge does not include any expenses
         related to the cost of de-icing aircraft. Contractor shall pay for
         these services when required to do so and shall submit the direct cost
         of these services back to AA for reimbursement. AA shall reimburse
         Contractor for its actual cost of de-icing associated with Contractor's
         Feeder Air Service Flights.

G.       International Service Fees - The Block Hour charges does not include
         any cost associated with NAV-CANADA, customs clearance, or other
         services fees associated with operating service to non- US destination
         points. To the extent that Contractor incurs such costs in providing
         Feeder Air Service, AA agrees to reimburse Contractor its actual costs
         incurred.

H.       In-Flight Meals - The Block Hour charge does not include any expenses
         associated with meal service provided by Contractor on longer flights
         furnished in accordance with AA dining standards and directives. To the
         extent that Contractor incurs such costs in providing these meal
         services, AA agrees to reimburse Contractor it's actual costs incurred.

I.       Other Pass Through Costs - AA agrees to reimburse Contractor for
         certain costs directly related to Contractor's Feeder Air Services and
         costs associated with vendor services at Covered Locations as set forth
         in Section 2.05.

J.       Aircraft Ownership Costs

                     [*]

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<Page>

                        SCHEDULE E-4 - ESCALATION PERCENT

The escalation percent as computed below (the "ESCALATION PERCENT" or "EP")
shall be applied to the Block Hour rates and Revenue Passenger stipend rates in
Schedules E-1a, E-1b and E-2. The first escalation adjustment shall be made
effective April 1, 2002, and shall be computed based upon the change (expressed
as a percent) from the March 2000 CPI index of 171.2. Thereafter, the escalation
adjustment shall be made effective April 1 of each subsequent year and shall be
computed based upon the published report of CPI released during the immediately
preceding March. The escalation adjustment shall be used to adjust the rates for
the fiscal year beginning that April 1st by applying the EP to the rates in
effect for the prior year. However, in no event shall any EP adjustment for any
single year exceed [*]. The Escalation Percent shall be computed as follows:

                                       [*]

                                    *   *   *

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<Page>

                        EXHIBIT F - ACCOUNTING PROCEDURES

The following accounting procedures reflect the understanding between AA and
Contractor regarding various accounting, reporting and settlement procedures.
These procedures are based on Contractor using AA stock, and each
Contractor-operated AA ticketing location ("CONTRACTOR TICKETING LOCATION")
operating as if it were an AA-operated AA ticketing location.

1.       SALES REPORTING AND CASH TRANSFER

         A.       Each Contractor Ticketing Location will be automated with AA's
                  ATAC, and Contractor agrees to adhere to the same ticketing
                  procedures, ticket reporting and cash remittance timing as
                  required of a Covered Location, including:

                  (1)      Reporting of auditor coupons and other sale documents
                           daily to AA's ticket lift processing facility in
                           Juarez, Mexico.

                  (2)      Depositing cash and check sales the next business day
                           into the local AA depository bank. These funds will
                           be withdrawn automatically from the local depository
                           bank (on the second business day following the day of
                           the sale) by AA's central depository bank through
                           utilization of the Bank Automated Clearing House
                           system.

         B.       AA and Contractor have agreed to establish the local
                  depository bank accounts as AA accounts managed and overseen
                  by AA.

         C.       All sales by Contractor will be subject to the same sales
                  audits, to be conducted at such times as AA may elect, as may
                  be performed by AA on sales reports for any AA staffed
                  location. The audit will include establishing discrepancy
                  notices ("DISCREPANCY NOTICES") for ticketing errors, cash
                  under collections or shortages, and unreported sales which
                  have been determined to be the fault of Contractor. Contractor
                  will be charged for these errors (up to the amount of any
                  actual expense incurred by AA) in the same manner AA charges
                  any AA staffed location, if not corrected, except as provided
                  in Section 4.B of this Exhibit, within 90 days after the
                  Discrepancy Notice is established.

         D.       Sales will include those made using the same credit cards
                  accepted by AA. The sale amount will be billed directly to the
                  credit card companies for billing to their cardholders via
                  AA's Advance Credit Billing System programs through ATAC.

         E.       Contractor will be responsible for and will indemnify, hold
                  harmless and reimburse/pay AA the tariff value of, any
                  transportation furnished by AA or other carriers on AA ticket
                  stock lost, stolen or fraudulently issued after delivery of
                  the same to Contractor, up to the date that such ticket stock
                  is blacklisted. Blacklisted ticket stock accepted by
                  Contractor employees for transportation shall be subject to
                  full reimbursement by Contractor to AA.

2.       REFUNDS

         A.       Contractor shall be responsible for and shall indemnify, hold
                  harmless and reimburse/pay AA the tariff value of, any
                  transportation refunded by AA or other carriers on AA ticket
                  stock lost, stolen or fraudulently issued after delivery of
                  the same to Contractor, up to the date that such ticket stock
                  is blacklisted. Blacklisted ticket stock accepted by
                  Contractor

<Page>

                  employees for refund shall be subject to full reimbursement
                  by Contractor to AA, if the refund applied to AA.

         B.       Refunds made by Contractor are subject to audit and a
                  Discrepancy Notice will be established for any over refunds
                  issued at the error of Contractor. The original Discrepancy
                  Notice will be sent to the issuing location with a copy to
                  Contractor central accounting within 45 days of the issued
                  refund. If the discrepancy is not corrected, Contractor will
                  be charged 90 days after the Discrepancy Notice is
                  established.

         C.       Contractor shall adhere to AA's procedures pertaining to the
                  flow of refund documents (unused coupons, lost ticket
                  applications, and the like). AA will provide such procedures
                  to Contractor in writing.

         D.       Applications for refunds of lost AA tickets will follow
                  standard AA procedures, including but not limited to
                  collection and payment to AA by Contractor of the applicable
                  AA lost ticket charge.

         E.       For consumer adjustments, denied boarding, Baggage Claims or
                  involuntary refunds pertaining to Contractor flights
                  (collectively "CONSUMER ADJUSTMENTS"), Contractor shall be
                  authorized to issue appropriate settlement documents as AA may
                  direct and authorize from time to time, and in accordance with
                  AA's policies and procedures pursuant to Section 2.06(d).

3.       INTERLINE SETTLEMENTS AND WIRE TRANSFERS

         A.       Except as otherwise provided for herein, AA and Contractor
                  agree to settle all interline transactions using the rules
                  prescribed in the ACH Manual of Procedure and any other
                  applicable industry procedures.

         B.       AA shall pay Contractor for Feeder Air Services, via wire
                  transfer, according to the provisions set forth below:

                  (1)      AA shall estimate Contractor monthly payment based
                           upon the published flight schedule and shall pay
                           Contractor [*] of the estimated Block Hour charges
                           in the following installments:

                           (a)      On the 5th day of the month, or the next
                                    business day, AA shall pay Contractor [*]
                                    of the estimated Block Hour charge for the
                                    current month;

                           (b)      On the 10th day, or the next business day,
                                    AA shall pay Contractor [*] of the estimated
                                    Block Hour charge for the current month; and

                           (c)      On the 25th day, or the next business day AA
                                    shall pay Contractor [*] of the estimated
                                    Block Hour charge for the current month,
                                    plus the reconciliation of the prior month's
                                    Block Hours charges and prior month's
                                    passenger stipend, as detailed below, plus
                                    any amounts due Contractor for Freight and
                                    Small Package shipments under Section 6 of
                                    Exhibit F below.

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<Page>

                                    AA may offset amounts due AA by Contractor
                                    against the prior month's reconciled amount
                                    identified in Section 1.C above.

         C.       AA shall perform all revenue accounting functions for
                  passenger revenue to the same degree as it would for any AA
                  station, within the limits of AA's automation systems.
                  Contractor may audit AA's procedures at any time upon
                  reasonable notice.

         D.       Within 60 days of the conclusion of a performance period as
                  specified in Exhibit J, AA and Contractor will settle as
                  appropriate under Exhibit J, based upon Contractor's
                  performance and amount of bonus or penalty incurred. AA and
                  Contractor will be jointly responsible for determining the
                  payment to be made or any penalty to be credited to AA.

         E.       Ticket Stock, AATVs, and the like will be payable by
                  Contractor, and Contractor shall at all times be responsible
                  for all accountable items, including but not limited to AATVs,
                  ticket stock, and the like. There shall be no charge for
                  proper use of AATVs for DBC.

         F.- N.   [INTENTIONALLY OMITTED]

         O.       BAGGAGE SETTLEMENTS

                  Contractor shall handle all baggage related matters in
                  accordance with AA's procedures, as may be amended from time
                  to time. [*] Baggage Claims involving Connecting Passengers
                  in which the cause or blame cannot be determined shall be
                  [*].

4.       FURTHER DEDUCTIONS FROM INTERLINE SETTLEMENTS / WIRE TRANSFERS

         A.       [INTENTIONALLY OMITTED].

         B.       AA will deduct from its payment under Section 3.B above to
                  Contractor any Discrepancy Notices issued to Contractor
                  Locations which have not been paid or cleared within ninety
                  (90) days from date of issuance. If Contractor, after making a
                  good faith effort to collect, cannot do so because of the age
                  of the item at the time the discrepancy was established, AA
                  will consider adjusting the deduction, but is not obligated to
                  do so.

         C.       AA, in the exercise of its sole discretion, may elect to
                  deduct from AA's payment to Contractor under Section 3.B above
                  those charges to Contractor outlined in Exhibit E of this
                  Agreement, or any other amounts or charges payable to AA by
                  Contractor pursuant to this Agreement, or otherwise as may be
                  authorized by Contractor, including Performance Penalties
                  under Exhibit J(2)(C).

         D.       In lieu of Section 4.C above, AA, may invoice Contractor
                  through the ACH for passenger billings, non-transportation or
                  any other charges payable to AA.

5.       CREDIT TRANSACTIONS

         A.       AA authorization and form of payment procedures will be
                  followed for acceptance of credit cards and checks.

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<Page>

6.       SMALL PACKAGE, FREIGHT, AND MAIL

         A.       Exhibit H sets forth the applicable procedures and revenue
                  split for the carriage of Shipments, as that term is defined
                  in Exhibit H. Contractor shall use only AA documents for
                  Shipments.

                  (1)      Contractor will report all Shipment transactions in
                           accordance with AA's procedures.

                  (2)      AA payments to Contractor for Shipments shall be in
                           conjunction with AA's wire transfers under Section
                           3.B above on a mutually agreed schedule.

                  (3)      Billing discrepancies detected at the time of an
                           audit by AA will be handled consistent with Section 1
                           of this Exhibit F above.

                  (4)      In consideration of the revenue split detailed in
                           Exhibit H, AA shall provide Cargo Revenue Accounting
                           services for Shipments and applicable required
                           documents to Contractor at no additional charge.

         B.       Schedule H-1 sets forth the applicable procedures for the
                  carriage of Mail, as that term is define in Schedule H-1.
                  Contractor shall carry mail at no charge to AA. All mail
                  revenues accrue to AA.

7.       AUDIT AND SECURITY MATTERS

         A.       Contractor shall permit AA to examine Contractor Ticketing
                  Locations to the same extent any AA staffed location is
                  audited internally.

         B.       Security reviews will be conducted as required by AA's
                  Security Department.

         C.       Contractor will follow AA policy and procedures for security
                  of ticket stock, undeposited cash, and the like, copies of
                  which shall be furnished to Contractor upon request.

         D.       Contractor will observe all sine table security and other
                  computer security measures that AA adopts for its own airport
                  and sales functions.

8.       AA ACCOUNTS

         A.       AA shall maintain such books of accounts and records as shall
                  be necessary to perform the foregoing accounting and
                  settlement services, which books of accounts and records will
                  be available at all reasonable times upon reasonable prior
                  notice for inspection by Contractor or its designated
                  representatives.

         B.       AA will use the same degree of care and will apply the same
                  standards and safeguards for the accounting and settlement
                  services provided hereunder as AA uses for its own accounting
                  services.

                                    *   *   *

<Page>

                    EXHIBIT G - DIVISION OF PASSENGER REVENUE

         All passenger revenues shall accrue to the benefit of AA.

                                    *   *   *

<Page>

                   EXHIBIT H - SMALL PACKAGE, FREIGHT AND MAIL

1.       If requested by AA, Contractor will provide services under the terms of
         this Exhibit H. This Exhibit H sets forth the terms which will govern
         the transport of small packages ("AA TODAY DOOR TO DOOR" and "PRIORITY
         PARCEL SERVICE") and general air freight, but not mail (herein
         collectively referred to as "SHIPMENTS") carried from origin to
         destination in part on AA and in part on Contractor's Feeder Air
         Services. The attached Schedule H-1 states the terms governing the
         transport of Mail. Shipments shall be as defined in AA's tariffs, as
         published in the ATPCO Official Local Cargo Rate Tariff (the "AA
         TARIFFS") for Domestic shipments and the TACT for International
         shipments.

2.       All Shipments shall be transferred between AA and Contractor at the
         designated transfer city as shown on the airbill of each Shipment.
         However, general air freight shall be originated only at AA staffed
         stations. Freight routed inbound to an ABR city from the Hub may be
         accepted for carriage. ABR shall not carry hazardous materials, as that
         term is defined by federal aviation regulations and/or the DOT.

3.       The procedures which govern the interline transfer of Shipments between
         Contractor and AA, as described in this Exhibit H, shall be those set
         forth in the AA Tariffs and the ATA Manual, all as are in effect from
         time to time, except that (a) to the extent that any such procedures
         are inconsistent with the terms of this Agreement, this Agreement shall
         govern, and (b) to the extent the procedures set forth in the AA
         Tariffs and the ATA Manual are inconsistent, the AA Tariffs shall
         govern. Contractor agrees to adopt the AA Tariffs as from time to time
         are in effect.

4.       For all Shipments flown by both AA and Contractor, Contractor shall
         receive [*].

5.       AA and Contractor shall cooperate in the promotion of Shipment
         services.

6.       For Shipments carried from origin to destination entirely on
         Contractor, [*]. Contractor may establish its own rates which
         AA, at Contractor's request, shall relay to ATPCO for publication.
         Contractor acknowledges, however, that AA shall not be responsible in
         any way for the content of any rates which AA relays to ATPCO for
         Contractor hereunder, and Contractor shall be solely responsible for
         assuring the accuracy of any such information published by ATPCO. When
         cumulative ATPCO charges for Contractor tariff revisions exceed $1,000
         during any twelve (12) month period, that portion of the charges in
         excess of $1,000 will be billed to Contractor by AA, and Contractor
         will make prompt payment to AA of such charges in excess of $1,000.

7.       [INTENTIONALLY OMITTED]

8.       [INTENTIONALLY OMITTED]

9.       Refunds for small package service failures will be apportioned as
         follows:

         A.       When carriage is in part on AA and in part on Contractor,
                  [*]

         B.       When carriage to exclusively on Contractor, [*]

----------
* Confidential
<Page>

         C.       In the event that AA or Contractor discover repetitive refunds
                  or other unusual activity associated with a particular flight
                  or shipper, AA and Contractor shall promptly meet to discuss
                  the appropriate action to be taken.

         10.      From time to time Contractor shall permit AA to inspect
                  Contractor's cargo operations, including Contractor policies
                  and procedures for the handling of cargo; PROVIDED however
                  that any inspection of Contractor operations shall be
                  conducted by AA so as to minimize any disruption to
                  Contractor. Contractor shall promptly address all reasonable
                  concerns of AA noted during such inspection, to AA's
                  satisfaction.

         11.      Contractor agrees to pay for, adopt and implement, in
                  accordance with AA's policies and procedures, any automation
                  (to the extent that the cost/benefit of such automation allows
                  Contractor's to continue its cargo operations) required by any
                  regulatory authority in connection with the security, tracking
                  and accounting functions of handling and transporting small
                  package shipments by air. Contractor shall comply with AA's
                  reasonable request of Contractor to implement new
                  automation/technology that is not required by regulation. For
                  any new automation functions, AA will provide training to
                  Contractor training instructors per Section 10.02(b).

         12.      AA will make cargo training available to Contractor employees
                  requiring such training on a space available basis at no cost
                  to Contractor. However, Contractor will pay the cost of its
                  employee travel and expenses while attending such training.
                  Cargo training classes established exclusively for Contractor
                  personnel will be conducted by AA at a cost agreed upon by
                  Contractor and AA based on the locations and the number of
                  Contractor personnel to be trained.

                  A.       Each Contractor station manager shall receive
                           approved AA cargo training.

                  B.       Each Contractor employee who bills, handles or
                           processes small packages shall receive approved AA
                           cargo training.

                  C.       If, in AA's sole discretion, Contractor experiences
                           cargo service failures, AA will so advise Contractor
                           in writing. Within thirty (30) days thereafter,
                           Contractor shall discuss the situation with AA and
                           commence corrective action.

<Page>

                               SCHEDULE H-1 - MAIL

1.       This Schedule H-1 to Exhibit H sets forth the terms which will govern
         the carriage of mail, when carried by Contractor at AA's request. Mail
         shall be defined as all items offered by the USPS for carriage on
         flights operated by AA, Contractor, or both ("MAIL").

2.       The provisions of sections 10, 11, and 12 of Exhibit H shall equally
         apply to the carriage of Mail. However, Contractor bears the
         responsibility of obtaining any training that is provided or required
         by the USPS for the carriage of mail.

3.       All revenues for Mail shall accrue to AA.

4.       Contractor's compliance with the terms of this Schedule H-1 shall be at
         no additional cost to AA.

5.       Contractor shall not be responsible for service failures in the
         carriage of mail provided that identifiable service failure issues are
         promptly addressed to prevent future failures.

6.       Mail shall be handled and carried by Contractor (or an AA approved
         subcontractor) at no additional charge to AA. Contractor will arrange
         all necessary staffing and ground handling to pickup Mail from the
         origin airport Mail facility and insure such Mail is loaded on its
         flights. Mail scheduled for delivery to the Mail facility at a
         destination of a flight operated by the Contractor shall be delivered
         by the Contractor or its subcontractor to the designated facility.
         Contractor shall also be responsible to transfer Mail arriving on one
         of its flights to another Contractor flight, third party ABR operator,
         AE, or AA, when the USPS has designated such a flight routing on the
         destination and routing label affixed to the Mail container(s). At the
         STL Hub, such transfer shall occur at a mutually agreeable Mail
         exchange point.

7.       Contractor agrees to comply with all personnel screening requirements
         set forth by the USPS, and all other provisions of the USPS Air System
         Contract for transportation of Mail by air. The USPS Air System
         Contract shall be made available by AA to Contractor in the event
         Contractor is not already a signatory to the USPS offering. Contractor
         understands that any of its subcontractors who are engaged in mail
         handling as any part of their duties must comply with USPS personnel
         screening requirements in order to become and remain eligible
         subcontractors for mail handling services.

                                    *   *   *

<Page>

                        EXHIBIT I - ABR SAFETY STANDARDS

1.       Contractor shall comply with all applicable safety, operational,
         maintenance, and personnel standards. These shall include all
         applicable Federal Aviation Regulations; all DOD, DOT regulations; any
         appropriate directives from the NTSB and all special regulatory
         mandates, such as advisory circulars. Contractor shall coordinate with
         AA to ensure that Contractor's compliance with such initiatives is not
         inconsistent with AA's compliance (E.G. timing of placing
         defibrillators on board aircraft and associated training).

2.       AA is entitled to audit all relevant aspects of Contractor's operations
         and facilities, including safety, flight operations, maintenance, cargo
         and ground operations. These audits shall be of reasonable length, and
         shall be in sufficient depth and detail to permit AA's auditors to
         properly certify Contractor's safety and compliance with all applicable
         regulations. AA shall notify Contractor of an intended audit with
         reasonable notice of the audit dates. The audit shall not unreasonably
         disrupt Contractor's operations.

3.       AA and Contractor agree to fully comply with all provisions of the
         Family Assistance Act of 1996 and any amendments thereto. AA and
         Contractor shall maintain and file with the NTSB and DOT required plans
         which are fully compliant with the provisions of the Act. Copies of
         these plans shall be exchanged for effective planning purposes.

4.       Within a reasonable time following the execution of this Agreement, AA
         and Contractor shall meet to set forth, at AA's direction, each party's
         role, responsibilities, and obligations in the event of an aviation
         disaster and the activation of each carrier's family assistance plan.
         Both parties shall accomplish all training and preparation necessary
         for their respective full and complete compliance with every
         requirement under the Family Assistance Act and for the coordinated
         response to a disaster involving either party, as determined by AA.

                                    *   *   *

<Page>

           EXHIBIT J - PERFORMANCE STANDARDS, INCENTIVES AND PENALTIES

         Pursuant to Article 1.02 (c) of this Agreement, both parties recognize
the importance of maintaining the highest level of product delivery and customer
satisfaction. Accordingly, Contractor agrees to adhere to the performance
standards outlined in this Exhibit J.

1.       PERFORMANCE STANDARDS

         Contractor agrees to use its best efforts to meet the target range
         standards of completion, on-time performance, customer service
         performance (complaints), and baggage delivery during each month of the
         Term of this Agreement, as indicated in the following table:

<Table>
<Caption>
            SERVICE                     BONUS                   TARGET                PENALTY           DEFAULT
            CATEGORY                    LEVEL                   RANGE                  LEVEL             LEVEL
         ----------------------- -------------------- --------------------------- ----------------- -----------------
<S>                                   <C>                     <C>                      <C>               <C>
         Completion                   [*]                      [*]                     [*]               [*]
         Factor                       or greater                                       or lower          or lower

         On-Time                      [*]                      [*]                     [*]               [*]
         Arrivals                     or greater                                       or lower          or lower

         Corporate Complaint          [*]                      [*]                     [*]               [*]
         Ratio                        or less                                          or greater        or greater

         PAWOB                        [*]                      [*]                     [*]               [*]
         Ratio                        or less                                          or greater        or greater
</Table>

         The above service categories shall be measured according to DOT
         definitions and rules unless otherwise agreed by AA and Contractor.
         Contractor shall make available to AA its statistics within 15 days of
         the close of each calendar month and in accordance with Exhibit K of
         this Agreement. AA may periodically audit Contractor statistics for
         accuracy and compliance to definitions.

         Contractor shall be held accountable to the PAWOB ratio performance
         standards to the extent Contractor performs Ground Handling Duties at
         the Hub.

         The parties agree to review performance status upon delivery of the
         15th regional jet aircraft (as delineated in Exhibit C) to Contractor.
         Contractor agrees to negotiate in good faith other performance criteria
         that AA may request.

2.       INCENTIVES/PENALTIES

         A.       BONUS LEVEL

                  In the event that Contractor meets the bonus level for any
                  performance category on average for a Performance Period,
                  AA shall pay to Contractor an amount equal to [*] per Revenue
                  Passenger boarded during the Performance Period for each
                  performance category met or exceeded, up to a maximum bonus
                  of [*] per enplaned Revenue Passenger.

----------
* Confidential
<Page>

         B.       TARGET RANGE

                  Should Contractor fall within the target range levels for any
                  performance category on average for a Performance Period,
                  there shall be no payment due to/from Contractor for the
                  performance category measured.

         C.       PENALTY LEVEL

                  In the event that Contractor falls within or below the penalty
                  level for any performance category for a Performance Period,
                  then Contractor shall pay to AA a penalty of [*] per
                  Revenue Passenger enplaned during the Performance Period
                  for each performance category within the penalty level
                  range on average for the Performance Period, for a maximum
                  penalty of [*] per Revenue Passenger enplaned.

         D.       DEFAULT LEVEL

                  In the event that Contractor fails to achieve a level of
                  performance above the lesser of (i) the default level, or (ii)
                  [*]. In the event that Contractor fails to meet the
                  milestones of such approved plan, then AA may terminate this
                  Agreement pursuant to Section 7.02(c).

                  For each Performance Period in which Contractor's performance
                  falls within the Default Level provided in the chart above in
                  any category, [*]

         E.       MEASUREMENT AND PAYMENT PARAMETERS

                  (1)      Measurement of the service categories shall be made
                           on a semi-annual basis, from January 1 - June 30, and
                           from July 1 - December 31.

                  (2)      The first Performance Period measured shall be
                           January - July 2002, and thereafter all Performance
                           Periods shall follow regularly.

                  (3)      AA and Contractor shall measure Contractor's monthly
                           and semi-annual performance based upon the most
                           recent information pursuant to the provision of
                           reports in Exhibit K of this Agreement. Contractor
                           and AA shall jointly share responsibility for
                           performance measurement and calculation of incentive
                           or penalty. Verification of performance shall be
                           accomplished within 25 days following the end of
                           every month and semi-annual Performance Period as
                           appropriate, unless otherwise agreed to by the
                           parties.

                  (4)      Contractor shall be eligible to receive the bonus
                           payment from AA, or required to make its penalty
                           payment to AA, within 60 days of the conclusion of
                           the end of each Performance Period. All payments will
                           be made by wire transfer between the parties.

                                    *   *   *

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* Confidential
<Page>

                               EXHIBIT K - REPORTS

1.       BOARDING INFORMATION. Information reports containing data covering
         boarding and other information agreed to by the parties for
         Contractor's operations hereunder will be produced from the close-out
         entries and provided by AA to Contractor, on a monthly basis as soon as
         available.

2.       QUARTERLY COST DATA. Contractor will furnish to AA in a Microsoft
         Excel(R) spreadsheet format, within forty-five (45) days after the end
         of each quarter, the following reports: DOT Form 41 Schedule P-1.2
         (Statement of Operations) and P-5.2 (Aircraft Operating Expenses by
         type). Contractor agrees to provide this information to AA regardless
         of its obligation to report to the DOT.

3.       DAILY / MONTHLY OPERATIONS. Each day Contractor will furnish to AA
         (Attention: Director - Planning) daily operating reports for the
         preceding day which will include the number of revenue passengers
         boarded; the number of denied boardings, in both raw numbers and
         percentage terms (using a base of 1,000 passenger boardings); the
         number of scheduled flight departures; the number and percentage
         (compared to schedule) of actual flight departures; the reason for each
         flight cancellation; number of flight departures on time within five
         minutes; percentage of On-Time Arrivals in accordance with a format to
         be provided by AA or other mutually agreed upon format. The foregoing
         flight departure, flight cancellation and on-time performance response
         shall show a break down by equipment type.

         The above report shall be furnished to AA by Contractor and will
         include month-to-date numbers and an attachment describing Mitigating
         Factors, if any.

4.       PASSENGER IRREGULARITY REPORTS. Contractor shall provide a copy
         (Attention: AA's Managing Director - Inflight) of any irregularity
         report involving a passenger travelling on Contractor's Feeder Air
         Services that is deemed reportable to any governing authority.

5.       FURTHER INFORMATION. Additional information as may be reasonably
         requested by AA shall be furnished by Contractor upon request.

                                    *   *   *

<Page>

                       EXHIBIT L - AUTOMATION INTEGRATION

1.       COMPUTER RESERVATIONS SYSTEM USE

         A.       INSTALLATION AND TRAINING

                  Subject to the provisions of this Agreement, and
                  notwithstanding any separate agreement between Contractor and
                  SABRE, Contractor will maintain a minimum complement (as
                  designated by AA, consistent with its standard automation
                  installations) of terminals plus associated equipment for
                  printing messages, data, air tickets, boarding passes, baggage
                  tags, and the like ("AUTOMATION EQUIPMENT") at each of
                  Contractor's Feeder Air Service airport locations and selected
                  administrative locations. Any and all modifications,
                  enhancements, improvements or developments pertaining to the
                  Automation Equipment, or other new related technology, may be
                  made available to Contractor by AA, in its sole discretion,
                  under terms and conditions to be determined by AA on a
                  case-by-case basis. AA will train Contractor employees in
                  accordance with Section 10.02 of this Agreement, as
                  applicable, in the proper use of SABRE and Automation
                  Equipment. Where permitted by AA, Contractor agrees to
                  establish a training program with internal instructors. Only
                  qualified personnel who have satisfactorily completed an AA
                  prescribed training program will be permitted to operate any
                  Automation Equipment (hereinafter "DESIGNATED USERS"). AA may,
                  at its discretion, monitor or test the proficiency level of
                  Designated Users. If AA determines that their proficiency
                  levels are insufficient for the proper use of the Automated
                  Equipment or SABRE, then Contractor must arrange for its
                  Designated Users to undertake any further training which AA
                  determines necessary to bring such Designated Users to the
                  desired proficiency level.

         B.       STANDARDS OF USE

                  (1)      To maintain an effective interconnection between
                           SABRE and the Automation Equipment and to prevent
                           misuse thereof, Contractor agrees that SABRE and the
                           Automation Equipment will be used and operated (1) in
                           strict accordance with operating instructions
                           provided by AA , and (2) solely for the performance
                           of the specific business functions designated by AA.
                           Any undesignated business use and all non-business
                           uses are strictly prohibited. Prohibited uses
                           include, but are not limited to, personal messages,
                           servicing subscribers, travel agencies, or any other
                           third party, training any other party or any other
                           use designated as prohibited in the SABRE Manual.
                           Contractor will maintain a list of all employees and
                           agents who have access to SABRE and their assigned
                           file number and passwords. AA may at any time deny
                           access to SABRE to any employee of Contractor if such
                           employee is found by AA to have engaged in
                           unauthorized operation of SABRE or abused the
                           Automation Equipment. Contractor will take all
                           precautions necessary to prevent unauthorized
                           operation or use of SABRE and the Automation
                           Equipment.

                  (2)      Contractor will not alter or change the SABRE
                           Services display as provided by AA or its Affiliates
                           without the consent of AA as reflected in an
                           amendment to this Agreement. Contractor may not
                           provide SABRE or its data base to any other person or
                           entity without the consent of AA as reflected in a
                           written amendment to this Agreement.

<Page>

                  (3)      Except as expressly permitted in this Agreement or
                           other written agreement with AA, Contractor will not
                           allow (or permit) SABRE (including, but not limited
                           to, its software, data bases, intellectual property,
                           and customer information) to be used (as a basis for
                           any software development or otherwise), commercially
                           exploited, copied, redistributed, retransmitted,
                           published, sold, rented, leased, marketed,
                           sublicensed, pledged, assigned, disposed of,
                           encumbered, transferred, or otherwise altered,
                           modified or enhanced, without the express written
                           permission of AA.

                  (4)      Contractor will not engage in any speculative booking
                           or reservation of space for any airline, hotel,
                           rental car company, or any other vendor's service or
                           product available through SABRE.

2.       TECHNOLOGY INTERFACE

         AA agrees to provide the necessary support to ensure dynamic transfer
         of operational data directly to Contractor's System Operational Control
         center in Indianapolis, IN. [*]

         AA may require Contractor to install and operate certain support
         programs necessary for AA's internal reporting systems. In such case,
         AA shall bear responsibility for purchase, installation, and training
         of Contractor employees for use of such support programs.

                                    *   *   *

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* Confidential
<Page>

                        EXHIBIT M

                   CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                   WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                   TO A REQUEST FOR CONFIDENTIAL TREATMENT<Page>

                                                                 Exhibit 10.5(a)

                                          December 31, 2001

Mr. Bryan K. Bedford
President and CEO
Chautauqua Airlines, Inc.
Indianapolis Int'l Airport
Suite #160
2500 South High School Road
Indianapolis, IN 46241

Sent via Fax to (317) 484-6060

   Air Services Agreement, dated as of June 11, 2001 by and between Chautauqua
            Airlines, Inc. ("Chautauqua") and AMR Corporation ("AMR")

Dear Mr. Bedford:

                  We refer to the agreement described above (the "Air Services
Agreement"). (Unless otherwise defined in this letter, capitalized terms that we
use below have the meaning set forth in the Air Services Agreement.)

Chautauqua has informed AMR that Chautauqua wishes to take delivery of three
Firm Approved Aircraft under a financing arrangement that is not a Lease
meeting the requirements of Section 7.03(c) of the Air Services Agreement
(such financing arrangement, and any refinancing of such arrangement that is
also not a Lease meeting the requirements of such Section 7.03(c), an
"Alternative Financing"). The three Firm Approved Aircraft referred to above
have serial numbers 145538, 145543 and 145544, respectively (each, a
"Specified Aircraft"). AMR consents, on the following terms, to such
deliveries under such Alternative Financing arrangements.

1)   Until such time as Chautauqua is able to close an Alternative Financing
     arrangement with Banco Nacional de Desenvolvimento Economico e Social or
     its affiliate Agencia Especial de Financimento Industrial - FINAME
     (either being referred to hereafter as "BNDES"), Chautauqua will only
     enter into an Alternative Financing with Embraer (or an affiliate
     thereof) (an "Embraer Alternative Financing"), and thereafter, Chautauqua
     will only enter into an Alternative Financing (including, without
     limitation, a refinancing of an Embraer Alternative Financing other than
     pursuant to a Lease meeting the requirements of Section 7.03(c) of the Air
     Services Agreement) with BNDES.

2)   Chautauqua acknowledges that AMR and AA intend to negotiate with BNDES
     forms of leveraged lease documentation (the "AA/BNDES Form Lease") based on
     existing

----------
Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 of the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.

<Page>

     aircraft loans by BNDES to AMR affiliates and acceptable to AMR for
     submission to lessors (which may include Solitair Corp., an affiliate of
     Chautauqua; Chautauqua or a subsidiary of Chautauqua (each a "CAI
     Affiliate") as the equity participant) with respect to any Firm Approved
     Aircraft financed by BNDES that are subsequently leased to AA or an AMR
     affiliate (a "Permitted Assignee") pursuant to either the "put" or "call"
     provisions of the Air Services Agreement. Any AA/BNDES Form Lease shall be
     subject to the approval of the lessor under such leveraged lease.
     Chautauqua and AMR intend to negotiate leveraged lease documentation based
     on the AA/BNDES Form Lease and acceptable to AMR for lease to an AMR
     affiliate with a CAI Affiliate as equity participant acting through a trust
     or similar entity (such lease, a "Chautauqua Leasing Arrangement"). AMR and
     Chautauqua and their respective affiliates shall not have any liability
     under this letter for any failure to reach agreement as to an AA/BNDES Form
     Lease, as to a Chautauqua Leasing Arrangement, or as to any Alternative
     Financing or other arrangement.

3)   Until the date that (i) AMR and BNDES agree to the terms of an AA/BNDES
     Form Lease, (ii) AMR and Chautauqua agree on the terms of a Chautauqua
     Leasing Arrangement and, (iii) financing for a Specified Aircraft has
     been put in place with BNDES that permits such Specified Aircraft to be
     leased to a Permitted Assignee pursuant to an AA/BNDES Form Lease (and,
     if applicable, under a Chautauqua Leasing Arrangement) upon exercise of
     any put or call option referred to below, Chautauqua will not enter into
     any Alternative Financing for any Specified Aircraft other than the
     Embraer Alternative Financing. If the conditions of the preceding
     sentence are satisfied, Chautauqua may enter into an Alternative
     Financing of a Specified Aircraft on such agreed terms without further
     approval by AMR of such financing (a "Definitive Alternative
     Arrangement") for purposes of the Air Services Agreement.

4)   At the time of (a) a transfer to AMR or an affiliate of a leasehold
     interest in a Specified Aircraft or (b) a lease to an AMR affiliate
     under a Chautauqua Leasing Arrangement, in either case pursuant to a
     One-Time Put Option, a Call Option or a One-Time Call Option, the
     Specified Aircraft shall be subject only to the lien of the Alternative
     Financing (but otherwise free and clear of all liens, including liens
     permitted by the Alternative Financing).

5)   At such time as Chautauqua enters into an [*], provided that (a) the
     "Lender's Debt Rate" shall be the interest rate charged by [*], and (b)
     the illustrative Average Monthly Accounting Rent shall be [*] rather
     than the figure set forth on such [*] in each case subject to further
     adjustment as provided in [*]. In the event Chautauqua subsequently
     enters into a Definitive Alternative Financing with BNDES, Chautauqua's
     reimbursable aircraft

----------
* Confidential

<Page>

     ownership costs with respect to the respective Specified Aircraft shall
     be recalculated pursuant to [*], as if such aircraft was leased by
     Chautauqua, provided that the illustrative Average Monthly Accounting
     Rent shall be [*] rather than the figure set forth on such Exhibit P
     subject to further adjustment as provided in Exhibit P. The foregoing is
     not intended to amend or modify Schedule E-3, Section 1. J of the Air
     Services Agreement or Schedule E-3, Section 1. K of the current proposed
     draft of the Amended and Restated Air Services Agreement.

6)   AMR agrees that it may not exercise either of its One-Time Call Option
     or its Call Option under 7.03 of the Air Services Agreement and
     Chautauqua agrees that it may not exercise its One-Time Put Option under
     Section 7.03 of the Air Services Agreement with respect to any Specified
     Aircraft that is subject to an Alternative Financing until such time, if
     any, that a Definitive Alternative Financing or a Lease is entered into
     with respect to such aircraft.

7)   Except as otherwise expressly provided herein, this letter does not limit
     (a) any of AMR's One-Time Call Option or AMR's Call Option or
     Chautauqua's One-Time Put Option pursuant to Section 7.03 of the Air
     Services Agreement, which options will remain in effect with respect to
     each Specified Aircraft, or (b) any of the other rights or obligations
     of Chautauqua or AMR under the Air Services Agreement.

8)   This letter agreement does not apply to any Firm Approved Aircraft other
     than the Specified Aircraft.

9)   AMR agrees that each Specified Aircraft shall be placed into service under
     the Air Services Agreement and waives any claim for any delay in placing
     such Aircraft into service, including any claim for liquidated damages
     under Section 1.02(a) of the Air Services Agreement. AMR further
     acknowledges and agrees that Chautauqua has the right under certain
     circumstances to return the Specified Aircraft to Embraer and agrees that
     in the event Chautauqua exercises such right, (a) such Aircraft shall
     be removed from service under the Air Services Agreement, (b) such
     Aircraft shall no longer be subject to the terms and conditions of the
     Air Services Agreement, (c) the Air Services Agreement shall be amended
     mutatis mutandi to reflect the removal from service of such Aircraft,
     and (d) AMR consents to the removal from service of such Aircraft.

         Except as modified hereby, the Air Services Agreement remains in
effect. This letter agreement shall be governed by the internal laws of Texas
without reference to conflict of laws rules.

         This letter agreement may be executed in separate counterparts, each of
which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.
Execution may be effected by delivery of facsimiles of signature pages (and the
parties shall follow such delivery by prompt delivery of originals of such
pages). This letter agreement may be executed in any

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* Confidential

<Page>

number of counterparts (and each of the parties hereto shall not be required to
execute the same counterpart). Any counterpart may be executed by facsimile
signature and such

         [Intentionally Blank.  Continued on next page.]

<Page>

facsimile signature shall be deemed an original. Each counterpart of this letter
agreement including a signature page executed by each of the parties hereto
shall be an original counterpart of this letter agreement, but all of such
counterparts together shall constitute one instrument.

         If you are in agreement with the foregoing, please countersign a copy
of this letter agreement and return a copy to the parties set forth in the
notice provisions of the Air Services Agreement.

Very Truly Yours,

AMR CORPORATION

By:
   -------------------------------

Its:
    ------------------------------

AGREED AND ACCEPTED:

CHAUTAUQUA AIRLINES, INC.

By:
   -------------------------------

Its:
    ------------------------------

cc:      Wexford Capital, LLC, 411 West Putnam Avenue, Greenwich, CT  06830;
         Attention: Joseph Jacobs, President; Attention: Arthur Amron,
         General Counsel;
         Fax # 203-862-7312
         Tom Bacon - American Eagle
         Gary Foss - American Eagle
         Holly Stroud - American Airlines
         Lisa May - Haynes & Boone, Fax # 214-200-0511
         John Hoyns - Hughes Hubbard & Reed, Fax # 212-422-4726
         Debevoise & Plimpton, 919 Third Avenue, New York, NY 10022;
         Attn: Nilima Muttana; Fax # 212-909-6836

<Page>

                          ATTACHMENT TEXT OF EXHIBIT P

Note: input items marked with an asterisk (*) will be adjusted in the manner
specified. The figures included below are based on GECC indicative financing as
of November 7, 2001.

Purchase Price*:    [*]

Closing Date*:      November 23, 2001 (to be adjusted to reflect the actual
                    delivery date of the respective Firm Approved Aircraft).

5-yr Generic
US Swap Rate*:      [*] (determined using Bloomberg page "IRSB18." To be
                    adjusted to reflect the rate in effect on the Closing Date).

Equity After-Tax
Yield*:             [*]

Composite
Tax Rate:           35%

Lender's
Debt Rate*:         CIRR Rate (as adjusted for the rate in effect on date of
                    closing, which is [*] as of November __, 2001).

CIRR                Rate: For any day, the Commercial Interest Reference Rate
                    for the U.S. dollar with respect to loans with a tenor
                    exceeding 17 semi-annual repayment periods applicable for
                    such day, as published for monthly periods by the United
                    States Export-Import Bank, at its official website address
                    under the heading "Commercial Interest Reference Rate
                    (CIRRS)."

Rent Structure:     [*]

Average Monthly
Accounting Rent:    [*] (to be determined using the Warren & Selbert ABC
                    Program using the input items set forth herein; provided,
                    however, that in no event shall the rent be less than the
                    Lender's debt service).

----------
* Confidential

<Page>

Residual:           [*] of Purchase Price

Early Buyout Date:  [*] Anniversary of the Closing Date.

Early Buyout Price: The greater of (a) the termination value, as determined
                    according to the Warren & Selbert ABC Program, and (b) the
                    estimated fair market value as of the Early Buyout Date of
                    the respective Firm Approved Aircraft determined by an
                    outside appraiser on the Closing Date.

----------
* Confidential

<Page>

                            Note to Exhibit 10.5(a)

The two additional Letter Agreements are substantially identical in all
material respects to the filed Letter Agreement except as follows:

Date of Letter Agreement             Serial Numbers Covered
------------------------             ----------------------

February 20, 2002                    145569

March 27, 2002

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