Document:

<PAGE>
                                                                  Exhibit 10.164
                                    FORM OF
                                   $89,000,000

                                 LOAN AGREEMENT

                         DATED AS OF SEPTEMBER 27, 2005

                                      AMONG

                                US AIRWAYS, INC.
                                       AND
                          AMERICA WEST AIRLINES, INC.,
                                  AS BORROWERS,

                             US AIRWAYS GROUP, INC.,
                                  AS GUARANTOR,

                           AIRBUS FINANCIAL SERVICES,
                        AS INITIAL LENDER AND LOAN AGENT

                                       AND

                           WELLS FARGO BANK NORTHWEST,
                              NATIONAL ASSOCIATION
                               AS COLLATERAL AGENT

                            [Subject to Completion]

<PAGE>

                                TABLE OF CONTENTS

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                                                                                                           PAGE
<S>                                                                                                        <C>
ARTICLE I DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS...............................................     1
   SECTION 1.1       DEFINED TERMS.......................................................................     1
   SECTION 1.2       COMPUTATION OF TIME PERIODS.........................................................    21
   SECTION 1.3       ACCOUNTING TERMS AND PRINCIPLES.....................................................    22
   SECTION 1.4       CERTAIN TERMS.......................................................................    22

ARTICLE II THE LOANS.....................................................................................    22
   SECTION 2.1       THE LOANS...........................................................................    22
   SECTION 2.2       BORROWING PROCEDURES................................................................    24
   SECTION 2.3       SCHEDULED REPAYMENT OF THE LOANS....................................................    25
   SECTION 2.4       EVIDENCE OF DEBT; USE OF PROCEEDS...................................................    25
   SECTION 2.5       OPTIONAL PREPAYMENTS................................................................    27
   SECTION 2.6       MANDATORY PREPAYMENTS...............................................................    28
   SECTION 2.7       INTEREST............................................................................    30
   SECTION 2.8       FEES................................................................................    30
   SECTION 2.9       PAYMENTS AND COMPUTATIONS...........................................................    30
   SECTION 2.10      CERTAIN PROVISIONS GOVERNING THE LOANS..............................................    32
   SECTION 2.11      CAPITAL ADEQUACY....................................................................    34
   SECTION 2.12      SUBSTITUTION OF LENDERS.............................................................    35
   SECTION 2.13      TAXES...............................................................................    36
   SECTION 2.14      PRO RATA TREATMENT AND PAYMENTS.....................................................    41

ARTICLE III CONDITIONS TO CLOSING AND FUTURE FUNDINGS....................................................    41
   SECTION 3.1       CONDITIONS PRECEDENT................................................................    41

ARTICLE IV REPRESENTATIONS AND WARRANTIES................................................................    46
   SECTION 4.1       ORGANIZATION, POWERS, QUALIFICATION; AIR CARRIER  LICENSES, FRANCHISES AND PERMITS..    46
   SECTION 4.2       AUTHORIZATION OF BORROWING, ETC.....................................................    47
   SECTION 4.3       FINANCIAL CONDITION.................................................................    48
   SECTION 4.4       NO MATERIAL ADVERSE EFFECT..........................................................    49
   SECTION 4.5       TITLE TO PROPERTIES; LIENS..........................................................    49
   SECTION 4.6       LITIGATION; ADVERSE FACTS...........................................................    49
   SECTION 4.7       TAX RETURNS.........................................................................    49
   SECTION 4.8       NO DEFAULT OR EVENT OF DEFAULT......................................................    50
   SECTION 4.9       GOVERNMENTAL REGULATION.............................................................    50
   SECTION 4.10      EMPLOYEE BENEFIT PLANS..............................................................    50
   SECTION 4.11      COMPLIANCE WITH LAWS................................................................    50
   SECTION 4.12      SECURITY DOCUMENTS..................................................................    50
   SECTION 4.13      CONCERNING THE COLLATERAL...........................................................    50
   SECTION 4.14      REPRESENTATIONS AND WARRANTIES OF THE COLLATERAL AGENT..............................    52
</TABLE>

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ARTICLE V COVENANTS.....................................................................................    53
   SECTION 5.1       FINANCIAL STATEMENTS AND OTHER INFORMATION.........................................    53
   SECTION 5.2       CORPORATE EXISTENCE................................................................    55
   SECTION 5.3       PAYMENT OF TAXES...................................................................    56
   SECTION 5.4       MAINTENANCE OF PROPERTIES; INSURANCE...............................................    56
   SECTION 5.5       INSPECTION.........................................................................    56
   SECTION 5.6       COMPLIANCE WITH LAWS, ETC..........................................................    56
   SECTION 5.7       FURTHER ASSURANCES.................................................................    57
   SECTION 5.8       EMPLOYEE BENEFIT PLANS.............................................................    57
   SECTION 5.9       FAA MATTERS; CITIZENSHIP...........................................................    57
   SECTION 5.10      DELIVERY OF POST-RECORDING FAA OPINION.............................................    57
   SECTION 5.11      SOFTWARE...........................................................................    57
   SECTION 5.12      COMPLIANCE WITH MORTGAGE...........................................................    57
   SECTION 5.13      PROHIBITION ON LIENS...............................................................    57
   SECTION 5.14      MERGER OR CONSOLIDATION............................................................    60
   SECTION 5.15      CERTAIN APPROVALS UNDER THE ATSB LOAN AGREEMENT....................................    60

ARTICLE VI EVENTS OF DEFAULT............................................................................    61
   SECTION 6.1       EVENTS OF DEFAULT..................................................................    61
   SECTION 6.2       REMEDIES...........................................................................    63

ARTICLE VII THE LOAN AGENT AND THE COLLATERAL AGENT.....................................................    63
   SECTION 7.1       AUTHORIZATION AND ACTION...........................................................    63
   SECTION 7.2       AGENT'S RELIANCE, ETC..............................................................    64
   SECTION 7.3       AGENT AND AFFILIATES...............................................................    64
   SECTION 7.4       REPRESENTATIONS OF THE LENDERS.....................................................    65
   SECTION 7.5       EVENTS OF DEFAULT..................................................................    65
   SECTION 7.6       LOAN AGENT'S AND COLLATERAL AGENT'S RIGHT TO INDEMNITY.............................    65
   SECTION 7.7       INDEMNIFICATION OF LOAN AGENT AND COLLATERAL AGENT.................................    66
   SECTION 7.8       SUCCESSOR LOAN AGENT AND COLLATERAL AGENT..........................................    66
   SECTION 7.9       COLLATERAL AND GUARANTEE MATTERS...................................................    67

ARTICLE VIII GUARANTEE..................................................................................    67
   SECTION 8.1       GUARANTEE..........................................................................    67
   SECTION 8.2       NO SUBROGATION.....................................................................    68
   SECTION 8.3       AMENDMENTS, ETC. WITH RESPECT TO THE OBLIGATIONS...................................    68
   SECTION 8.4       GUARANTEE ABSOLUTE AND UNCONDITIONAL...............................................    68
   SECTION 8.5       REINSTATEMENT......................................................................    69
   SECTION 8.6       PAYMENTS...........................................................................    69

ARTICLE IX MISCELLANEOUS................................................................................    70
   SECTION 9.1       AMENDMENTS, WAIVERS, ETC...........................................................    70
   SECTION 9.2       SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS.............................    71
   SECTION 9.3       COSTS AND EXPENSES.................................................................    74
   SECTION 9.4       INDEMNITIES........................................................................    74
   SECTION 9.5       RIGHT OF SET-OFF...................................................................    75
</TABLE>

                                       ii
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<S>                                                                                                      <C>
SECTION 9.6       JOINT AND SEVERAL LIABILITY; MAXIMUM LIABILITY; WAIVER OF SUBROGATION..............    75
SECTION 9.7       SHARING OF PAYMENTS, ETC...........................................................    77
SECTION 9.8       NOTICES, ETC.......................................................................    78
SECTION 9.9       NO WAIVER; REMEDIES................................................................    78
SECTION 9.10      GOVERNING LAW......................................................................    78
SECTION 9.11      SUBMISSION TO JURISDICTION; SERVICE OF PROCESS.....................................    78
SECTION 9.12      WAIVER OF JURY TRIAL...............................................................    79
SECTION 9.13      MARSHALING; PAYMENTS SET ASIDE.....................................................    79
SECTION 9.14      SECTION TITLES.....................................................................    79
SECTION 9.15      EXECUTION IN COUNTERPARTS..........................................................    80
SECTION 9.16      SEVERABILITY.......................................................................    80
SECTION 9.17      CONFIDENTIALITY....................................................................    80
SECTION 9.18      APPOINTMENT OF INDENTURE TRUSTEE...................................................    81
</TABLE>

Annexes

Annex A       -      Notice Addresses
Annex B       -      Lending Office
Annex C       -      Lender Commitments

Schedules

Schedule 1.1(a)   -     Existing Pass Through Certificates
Schedule 1.1 (b)  -     Specified Engines
Schedule 4.12     -     Financing Statements, Filings and Recordings
Schedule 5.13     -     Liens

Exhibits

Exhibit A     -     Form of Assignment and Assumption
Exhibit B     -     Form of Note
Exhibit C     -     Form of Notice of Borrowing

                                      iii
<PAGE>

            LOAN AGREEMENT, dated as of September 27, 2005, among US AIRWAYS,
INC., a Delaware corporation ("US Airways"), AMERICA WEST AIRLINES, INC., a
Delaware corporation ("America West", and together with US Airways, the
"Borrowers", and each, a "Borrower"); US Airways Group, Inc., a Delaware
corporation, as guarantor (the "Guarantor"); AIRBUS FINANCIAL SERVICES as the
initial lender (together with its successors and permitted assigns, the "Initial
Lender"), as loan agent for the Lenders (in such capacity, together with its
successors and permitted assigns, the "Loan Agent"), and WELLS FARGO BANK
NORTHWEST, NATIONAL ASSOCIATION, as collateral agent (in such capacity, together
with its successors and permitted assigns, the "Collateral Agent").

                                   WITNESSETH:

            WHEREAS, on September 12, 2004 (the "Petition Date"), the Guarantor
and each of its domestic subsidiaries as of such date, including US Airways
(collectively, the "Debtors") filed voluntary petitions (the "Cases") for relief
under the Bankruptcy Code with the United States Bankruptcy Court for the
Eastern District of Virginia, Alexandria Division (the "Bankruptcy Court") and
continued in possession of their property and in the management of their
businesses pursuant to Bankruptcy Code Sections 1107 and 1108;

            WHEREAS, on May 19, 2005, the Guarantor, Barbell Acquisition Corp.,
a Delaware corporation and Wholly-Owned Subsidiary of the Guarantor (the "Merger
Sub"), and America West Holdings, Corporation entered into an Agreement and Plan
of Merger (the "Merger Agreement");

            WHEREAS, (x) the Bankruptcy Court has entered an order (the
"Confirmation Order") confirming the Plan of Reorganization under Chapter 11 of
the Bankruptcy Code (as in effect on the date of confirmation thereof pursuant
to the Confirmation Order, the "Plan of Reorganization") and (y) the Effective
Time (as defined in the Merger Agreement) has occurred, and the Borrowers have
requested that the Lenders make available to the Borrowers the Loans for the
purposes specified herein; and

            WHEREAS, the Lenders are willing to make available to the Borrowers
the Loans upon the terms and subject to the conditions set forth herein;

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

                                   ARTICLE I

                DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

            SECTION 1.1 DEFINED TERMS. As used in this Agreement, the following
terms have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

<PAGE>

            "A319/A320/A321 Purchase Agreement" means the A319/A320/A321
Purchase Agreement, dated as of October 31, 1997, as amended, between AVSA,
S.A.R.L. and the Guarantor.

            "A319/A320 Purchase Agreement" means the A319/A320 Purchase
Agreement, dated as of September 12, 1997, as amended, between AVSA, S.A.R.L.
and America West.

            "A330/A340 Purchase Agreement" means the A330/A340 Purchase
Agreement dated as of November 24, 1998, as amended, between AVSA, S.A.R.L. and
the Guarantor.

            "A321 Airbus Financings" mean the note purchase agreements, trust
indenture and mortgages, secured notes and related loan documents entered into
between Aviateur International Limited, as initial lender, and certain
Affiliates, on the one hand, US Airways Inc., on the other hand, and U.S. Bank
National Association (as successor in interest to State Street Bank and Trust
Company of Connecticut, N.A.), as Indenture Trustee, as amended or supplemented
from time to time, providing for the mortgage loan financing of five (5) Airbus
A321 model aircraft bearing FAA registration numbers N184US, N185UW, N186US,
N187US and N188US, respectively.

            "A321 Aircraft" means, individually or collectively as the context
may require, the Airbus A321 aircraft having FAA registration numbers N184US,
N185UW, N186US, N187US, and N188US.

            "A350/A340 Financing Letter Agreement" means the A350/A330 Financing
Letter Agreement dated as of September 27, 2005 as amended, among AVSA, S.A.R.L.
and the Obligors.

            "Actual Knowledge" means, with respect to any Person, actual
knowledge of a vice president or more senior officer of such Person or any other
officer of such Person having responsibility for the transactions contemplated
by the Loan Documents.

            "Affiliate" means, with respect to any Person, any other Person
that, directly or indirectly, controls, is controlled by or is under common
control with such Person. For the purposes of this definition, "control" means
the possession, directly or indirectly, of the power to direct or cause the
direction of management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

            "Aggregate Original Principal Amount" means the aggregate
outstanding principal amount of the Loans on the earliest of (x) the close of
business on December 31, 2007, (y) the date the Commitments are fully utilized
and (z) the date when the Commitments are terminated.

            "Agreement" means this Loan Agreement.

            "Airbus" means Airbus S.A.S.

<PAGE>

            "Aircraft Mortgage" means the five (5) Trust Indenture and Mortgages
dated the date hereof between US Airways and US Bank National Association, as
Indenture Trustee, providing for second mortgages on the A321 Aircraft, as
supplemented or amended from time to time.

            "Aircraft Related Equipment" means aircraft (including aircraft
engines installed thereon) in the fleet of any Obligor or any of their
Subsidiaries, spare aircraft engines and propellers, spare parts, aircraft
parts, simulators and other training devices, and passenger loading bridges or
other flight or ground equipment and Aircraft Related Facilities.

            "Aircraft Related Facilities" means (i) airport terminal facilities,
including without limitation, baggage systems, loading bridges and related
equipment, building, infrastructure and maintenance, club rooms, apron, fueling
systems or facilities, signage/image systems, administrative offices,
information technology systems and security systems, (ii) airline support
facilities, including without limitation, cargo, catering, mail, ground service
equipment, ramp control, deicing, hangars, aircraft parts/storage, training and
reservations facilities and (iii) all equipment used in connection with the
foregoing.

            "Applicable Interest Rate" means, for each Loan and for each
Interest Period, a rate per annum equal to LIBOR for such Interest Period plus
the Applicable Margin.
            "Applicable Margin" means [To be agreed by the Parties]
            "Asset Sale" means, with respect to any property, any sale, transfer
or other disposition (including by way of merger, consolidation, exchange of
assets or sale leaseback transactions or by reason of any condemnation or other
taking or permanent requisition) of such property, in one transaction or a
series of related transactions, by any Obligor or any of its Subsidiaries to any
Person other than such Obligor or any of its Subsidiaries; provided that sales
of spare parts subject to the Lien of the Spare Parts Mortgage which are made
pursuant to Section 3.02(b)(4) thereof shall not constitute Asset Sales.

<PAGE>

            "Assignment and Assumption" means an Assignment and Assumption
entered into by a Lender and an Assignee, in substantially the form of Exhibit A
or any other form approved by the Loan Agent.

            "ATSB" means the Air Transportation Stabilization Board, or any
successor thereto.

            "ATSB Loan Agreements" means (i) the Amended and Restated Loan
Agreement, dated as of September 27, 2005, among US Airways, the Guarantor, the
other subsidiaries of the Guarantor party thereto, the lenders from time to time
party thereto, the Loan Administrator and agents party thereto, and the ATSB,
and (ii) the Amended and Restated Loan Agreement, dated as of September 27,
2005, among America West, the Guarantor, the other subsidiaries of the Guarantor
party thereto, the lenders from time to time party thereto, the Loan
Administrator and agents party thereto, and the ATSB, each as in effect on the
Closing Date.

            "AWA Holdings" means America West Holdings Corporation.

            "Bankruptcy Code" means Title 11 of the United States Code as now
and hereafter in effect, or any successor statute.

            "Bankruptcy Court" has the meaning specified in the recitals hereto.

            "Borrower" has the meaning specified in the preamble to this
Agreement.

            "Borrowing" means the borrowing of a Loan on the Closing Date or on
another Funding Date.

            "Business Day" means any day other than a Saturday, Sunday, or other
day on which commercial banks in New York, New York, Dublin, Ireland, or
Phoenix, Arizona are authorized or required by law to remain closed; provided
that when used in connection with LIBOR, the term "Business Day" shall mean any
day on which banks in London, England are open for dealings in dollar deposits
in the interbank market.

            "Business Plan" means the business plan of the Borrowers dated as of
July 7, 2005, provided to the Loan Agent.

            "Cape Town Convention" means the Convention on International
Interests in Mobile Equipment and the Protocol to the Convention on Matters
Specific to Aircraft Equipment signed in Cape Town on 16 November 2001.

            "Capital Lease," as applied to any Person, means any lease of any
property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is required to be accounted for as a capital lease on the
balance sheet of that Person, and the amount of Indebtedness represented by such
lease shall be the capitalized amount of the obligations evidenced thereby
determined in accordance with GAAP.

<PAGE>

            "Capital Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person's capital stock, whether now
outstanding or issued after the date of this Agreement.

            "Cases" has the meaning specified in the recitals hereto.

            "Cash" means money, currency or a credit balance.

            "Cash Equivalents" has the meaning given in the ATSB Loan
Agreements.

            "Closing Date" means the date of this Agreement.

            "Code" means the Internal Revenue Code of 1986, as amended to the
date hereof and from time to time hereafter.

            "Collateral" means the property comprising the collateral security
provided by the Collateral Documents.

            "Collateral Documents" means, collectively, (i) the Aircraft
Mortgages, as amended or supplemented from time to time, (ii) the Spare Parts
Mortgage and Security Agreement, (iii) the Engine Mortgage and Security
Agreement, (iv) the Purchase Agreement Security Agreement, and (v) such other
security documents as may be executed and delivered by the Obligors pursuant to
the terms of Section 5.6.

            "Commitments" is a collective reference to the Tranche A
Commitments, the Tranche B Commitments, the Tranche C Commitments, the Tranche D
Commitments and the Tranche E Commitments. The initial aggregate amount of the
Commitments is $89,000,000.

            "Commodity Agreement" means any agreement or arrangement designed to
protect any Obligor or any of their Subsidiaries against fluctuations in the
prices of commodities used by any Obligor or any of their Subsidiaries in the
ordinary course of its business.

            "Confirmation Order" has the meaning specified in the recitals
hereto.

            "Consummation of the Plan" means substantial consummation of the
Plan of Reorganization within the meaning of Section 1101(2) of the Bankruptcy
Code.

            "Contractual Obligation," as applied to any Person, means any
provision of any equity security issued by that Person or of any material
indenture, mortgage, deed of trust, contract, undertaking, agreement or other
material instrument to which that Person is a party or by which it or any of its
properties is bound or to which it or any of its properties is subject.

            "Cross-Collateral" shall mean (i) all collateral security supporting
payment of the Cross-Default Obligations, and (ii) all right, title and
interest, if any, of

<PAGE>

any Obligor in, to or with respect to predelivery payments or deposits made
under any aircraft purchase agreement between any Obligor or any of its
Affiliates, on the one hand, and Airbus or any of its Affiliates, on the other
hand.

            "Cross-Default Obligations" means all Obligations of any Obligor (i)
held, directly or indirectly (through a trustee or otherwise) by Airbus or any
Affiliate under or with respect to (A) the A321 Airbus Financings, or (B) the
Other Loan Agreement or any other lease, loan, trade receivable, or other
extension of credit between Airbus or any of its Affiliates, on the one hand,
any Obligor or any of its Affiliates, on the other hand, whether such lease,
loan, trade receivable, or other extension of credit is direct or is indirect
through a lease, structured financing or otherwise, including without
limitation, any Pass Through Certificates listed on Schedule 1.1(a) or acquired
in an original issuance after the Closing Date, or (C) any aircraft purchase
agreement between any Obligor, on the one hand, and Airbus or any of its
Affiliates, on the other hand, or (ii) under any Principal Credit Facility. For
purposes of this definition, the term "Obligations" shall mean with respect to
any of the agreements referred to in clauses (A), (B) or (C) of the preceding
sentence, the unpaid principal of and interest thereon (including interest
accruing after the maturity thereof and interest accruing after the filing of
any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to any Obligor, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding)
and all other obligations and liabilities of the Obligors thereunder, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection
therewith, or any other document made, delivered or given in connection herewith
or therewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise.

            "Currency Agreement" means any foreign exchange contract, currency
swap agreement, futures contract, option contract, synthetic cap or other
similar agreement or arrangement designed to protect any Obligor or any of its
Subsidiaries against fluctuations in currency values.

            "Debtors" has the meaning specified in the recitals thereto.

            "Default" means any event which with the passing of time or the
giving of notice or both would, unless cured or waived, become an Event of
Default.

            "Designated Locations" has the meaning specified in the Spare Parts
Security Agreement.

            "Dollars" and the sign "$" each mean the lawful money of the United
States of America.

            "Effective Date" means the date on which the conditions precedent
set forth in Section 3.1(a), (j) and (p) have been satisfied, but not later than
December 2, 2005.

<PAGE>

            "Engine Mortgage and Security Agreement" means the Engine Mortgage
and Security Agreement dated as of the date hereof between America West and the
Collateral Agent.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time.

            "ERISA Affiliate" means, as applied to either Borrower, (i) any
corporation which is, or was at any time, a member of a controlled group of
corporations within the meaning of Section 414(b) of the Code of which such
Borrower is a member; (ii) any trade or business (whether or not incorporated)
which is a member of a group of trades or businesses under common control within
the meaning of Section 414(c) of the Code of which such Borrower is a member;
and (iii) any member of an affiliated service group within the meaning of
Section 414(m) or (o) of the Code of which such Borrower, any corporation
described in clause (i) above or any trade or business described in clause (ii)
above is a member.

            "ERISA Event" means (a) any "reportable event," as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which reporting is waived); (b) the existence with
respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA); (c) the filing pursuant to
Section 412(d) of the Code or Section 303(d) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by Guarantor or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e)(i) the
receipt by Guarantor or any ERISA Affiliate from the PBGC of a notice of
determination that PBGC intends to seek termination of any Plan or to have a
trustee appointed for any Plan, or (ii) the filing by Guarantor or any ERISA
Affiliate of a notice of intent to terminate any Plan; (f) the incurrence by
Guarantor or any of its ERISA Affiliates of any liability (i) with respect to
the withdrawal from a Multiemployer Plan pursuant to Sections 4063 and 4064 of
ERISA, (ii) with respect to a facility closing pursuant to Section 4062(e) of
ERISA, or (iii) with respect to the withdrawal or partial withdrawal from any
Multiemployer Plan; or (g) the receipt by Guarantor or any ERISA Affiliate of
any notice concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA.

            "Event of Default" has the meaning specified in Section 6.1.

            "Event of Loss" has the meaning specified in the Engine Mortgage and
Security Agreement or in the Aircraft Mortgages.

            "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, and any successor statute.

            "FAA" means the Federal Aviation Administration.

<PAGE>

            "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System, or any successor thereto.

            "Final Order" means an order or judgment of the Bankruptcy Court, or
other court of competent jurisdiction, as entered on the docket in the Cases or
the docket of any other court of competent jurisdiction, that has not been
reversed, stayed, modified or amended, and as to which the time to appeal or
seek reargument, reconsideration, or certiorari has expired and no appeal,
motion for reconsideration or reargument or petition for certiorari has been
timely taken, or as to which any appeal that has been taken or any petition for
certiorari, motion for reconsideration or reargument that has been or may be
filed has been resolved by the highest court to which the order or judgment was
appealed or from which reargument, reconsideration, or certiorari was sought and
the time to take any further appeal, petition for certiorari or move for
reargument shall have expired.

            "Fiscal Year" means the Borrowers' fiscal year referenced in the
financial statements to be delivered by the Borrowers pursuant to Section 5.1.

            "Funding Date" means each date on which one or more Borrowings of
Loans is made in accordance with Sections 2.1 and 2.2.

            "GAAP" means generally accepted accounting principles in the United
States of America.

            "GECC" means General Electric Capital Corporation.

            "Governmental Authority" means any nation or government, any state
or other political subdivision thereof and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative functions
of or pertaining to government.

            "Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness of any other Person
and, without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such first Person (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness of
such other Person (whether arising by virtue of partnership arrangements, or by
agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise) or (ii)
entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part), including any pledge of assets to secure
indebtedness of another or (iii) to maintain working capital, equity capital or
any other financial statement condition or liquidity or level of income or cash
flow of such other Person so as to enable such Person to pay such Indebtedness.
The term "Guarantee" used as a verb has a corresponding meaning.

            "Guarantor" has the meaning specified in the preamble to this
Agreement.

<PAGE>

            "Indebtedness" means, with respect to any Person at any date of
determination (without duplication), (i) all obligations of such Person for
borrowed money; (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments; (iii) all obligations of such
Person in respect of letters of credit or other similar instruments (including
reimbursement obligations with respect thereto); (iv) all obligations of such
Person to pay the deferred purchase price of property or services, which
purchase price is due more than six months after the date of placing such
property in service or taking delivery and title thereto or the completion of
such services, except (x) Trade Payables and similar obligations incurred in the
ordinary course of business and (y) earn-outs and other contingent payouts in
respect of acquisitions; (v) all Capital Lease obligations of such Person (the
amount of the Indebtedness in respect of Capital Lease obligations to be
determined as provided in the definition of Capital Lease in this Section 1.1);
(vi) all Indebtedness of other Persons secured by a Lien on any asset of such
Person, whether or not such Indebtedness is assumed by such Person; provided
that in the case of Indebtedness issued without recourse to such Persons, the
amount of such Indebtedness shall be the lesser of (A) the fair market value of
such asset at such date of determination and (B) the stated principal amount of
such Indebtedness, provided, however, that if such Indebtedness is assumed by
such Person or provides for recourse against such Person, the amount of such
Indebtedness shall be the greater of (A) and (B) above; (vii) all Indebtedness
of other Persons Guaranteed by such Person to the extent such Indebtedness is
Guaranteed by such Person; (viii) to the extent not otherwise included in this
definition and to the extent treated as a liability under GAAP, obligations
under Currency Agreements, Interest Rate Agreements and Commodity Agreements
(ix) the capitalized amount of remaining lease payments owing by such Person
under Synthetic Leases that would appear on the balance sheet of such Person if
such lease were treated as a Capital Lease; (x) the aggregate amount of
uncollected accounts receivable of such Person subject at such time to a sale of
receivables (or similar transaction) to the extent such transaction is effected
with recourse to such Person (whether or not such transaction would be reflected
on the balance sheet of such Person in accordance with GAAP); (xi) the
Indebtedness of any partnership or unincorporated joint venture in which such
Person is a general partner or a joint venturer to the extent such Indebtedness
is recourse to such Person; and (xii) all prepaid forward sales in bulk of
dividend miles or available seat miles or like transactions other than in the
ordinary course of business. The amount of Indebtedness of any Person at any
date shall be the outstanding balance at such date of all unconditional
obligations as described above and the maximum liability, upon the occurrence of
the contingency giving rise to the obligation, of any contingent obligations at
such date; provided that the amount outstanding at any time of any Indebtedness
issued with original issue discount is the face amount of such Indebtedness less
the remaining unamortized portion of the original issue discount of such
Indebtedness at such time as determined in conformity with GAAP. "Indemnified
Liabilities" has the meaning specified in Section 9.4.

            "Indemnified Taxes" has the meaning specified in Section 2.13(a).

            "Indemnitees" has the meaning specified in Section 9.4.

<PAGE>

            "Indenture Trustee" means U.S. Bank National Association, Indenture
Trustee under the Aircraft Mortgages, and its successors.

            "Initial Lender" has the meaning specified in the preamble to this
Agreement.

            "Intercreditor Agreement" means the intercreditor agreement with
GECC as described in Section 3.1(e).

            "Interest Payment Date" has the meaning specified in Section 2.7(b).

            "Interest Period" means, for each Loan, (a) initially, the period
commencing on September 26, 2005 and ending on the last day of the current
Interest Period for any other Tranche then outstanding, or if no other Tranche
is then outstanding, ending three months after the initial Funding Date, and (b)
thereafter, a period commencing on the last day of the immediately preceding
Interest Period therefor and ending three months thereafter; provided, however,
that:

                        (i) the final scheduled Interest Period shall end on the
      Loan Maturity Date;

                        (ii) if any Interest Period would otherwise end on a day
      which is not a Business Day, such Interest Period shall be extended to the
      next succeeding Business Day, unless the result of such extension would be
      to extend such Interest Period into another calendar month, in which event
      such Interest Period shall end on the immediately preceding Business Day
      and for the avoidance of doubt, interest computation shall be adjusted
      accordingly;

                        (iii) any Interest Period that begins on the last
      Business Day of a calendar month (or on a day for which there is no
      numerically corresponding day in the calendar month at the end of such
      Interest Period) shall end on the last Business Day of a calendar month;
      and

                        (iv) each "Interest Period" beginning after the
      occurrence and during the continuance of an Event of Default shall be for
      a period duration of one month.

            "Interest Rate Agreement" means any interest rate future agreement,
interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement designed to protect any Obligor or any of
their Subsidiaries against fluctuations in interest rates or under which any
Obligor or any of their Subsidiaries is a party or a beneficiary on the date of
this Agreement or becomes a party or a beneficiary thereafter.

            "IRS" means the Internal Revenue Service of the United States or any
successor thereto.

<PAGE>

            "Lenders" mean (i) the Initial Lender, and (ii) each financial
institution or other entity that from time to time becomes a party hereto as a
lender hereunder pursuant to an Assignment and Assumption, other than any such
Person that ceases to be a party hereto pursuant to an Assignment and Assumption
or otherwise.

            "Lending Office" means, with respect to any Lender, the office of
such Lender specified as its "Lending Office" opposite its name on Annex B or on
the Assignment and Assumption by which it became a Lender or such other office
of such Lender as such Lender may from time to time specify to the Borrowers and
the Loan Agent.

            "LIBOR" means the rate per annum (rounded to the nearest 1/100 of
1%) equal to the quotation that appears on page 3750 of the Telerate Screen (or
otherwise on such screen or on such other screen, page or service as may replace
the Telerate Screen) as of 11:00 A.M., London time, two Business Days prior to
the beginning of the applicable Interest Period as the rate for dollar deposits
to be delivered on the first day of such Interest Period and maintained for such
Interest Period (or, in the case of the initial Interest Period, for three
months) in an amount comparable to the principal amount of the Loan. In the
event that such rate does not so appear on the Telerate Screen (or otherwise as
aforesaid), the "LIBOR" for purposes of this definition shall be the arithmetic
average (rounded to the nearest 1/100 of 1%) of the offered quotation to
first-class banks in the interbank Eurodollar market by each Reference Bank in
London for dollar deposits of amounts in same day funds comparable to the
principal amount of the Loan, with maturities comparable to the applicable
Interest Period (or, in the case of the initial Interest Period, for three
months) determined as of 11:00 A.M. (London time) on the date which is two
Business Days prior to the commencement of such Interest Period. If any one or
more of the Reference Banks shall not furnish such timely information to the
Loan Agent for the purpose of determining any such interest rate, the Loan Agent
shall determine such interest rate on the basis of timely information furnished
by the remaining Reference Bank or Reference Banks.

            "Lien" means, with respect to any asset, any lien, mortgage, pledge,
assignment for security purposes, security interest, charge, hypothecation,
lease or encumbrance of any kind on or of such asset (including any conditional
sale or other title retention agreement and any lease in the nature thereof, any
easement, right of way or other encumbrance on title to real property and any
agreement to give any security interest). "Loan" means any loan made by a Lender
pursuant to this Agreement.

            "Loan Agent" has the meaning specified in the preamble to this
Agreement.

            "Loan Documents" means, collectively, this Agreement, the Notes, the
Other Loan Agreement, the Other Loan Agreement Notes, the Collateral Documents,
the Intercreditor Agreement and each certificate, agreement or document executed
by the Borrowers and delivered to the Loan Agent or the Lenders in connection
with or pursuant to this Agreement.

<PAGE>

            "Loan Maturity Date" means December 31, 2010, except that if such
date is not a Business Day, then the Loan Maturity Date shall be the immediately
succeeding Business Day.

            "Material Adverse Change" means a material adverse change in the
financial condition of any Obligor between the Effective Date and the date of
provision of the relevant Loan which would materially and adversely affect such
Obligor's ability to perform any of its payment or other material obligations
under any Loan Document.

            "Merger Agreement" has the meaning specified in the recitals hereto.

            "Merger Sub" has the meaning specified in the recitals hereto.

            "Material Adverse Effect" means, with respect to the Obligors, (a)
an event of the type described in Section 6.1(f) or 6.1(g), or (b) the cessation
of commercial passenger service by either Borrower for a period of ten Business
Days, other than as a result of the action of any Governmental Authority, or (c)
a material adverse effect on (i) the validity or enforceability of any material
provision of this Agreement or any of the other Loan Documents or any of the
material rights or remedies of the Loan Agent, the Collateral Agent or the
Lenders hereunder or thereunder, or (ii) the Lien of the Collateral Documents.

            "MOU" means that certain Memorandum of Understanding between AVSA,
S.A.R.L., the Guarantor, and the Borrowers, dated as of May 18, 2005.

            "Multiemployer Plan" means a multiemployer plan as defined Section
4001(a)(3) of ERISA, and in respect of which Guarantor or any ERISA Affiliate is
(or with the application of Section 4212(c) of ERISA would be) (a) an "employer"
as defined in Section 3(5) of ERISA or (b) a "seller" as defined in Section 4204
of ERISA.

            "Net Cash Proceeds" means, with respect to any Asset Sale, the cash
proceeds of such Asset Sale, net of (i) reasonable and customary brokerage
commissions and other reasonable and customary fees and expenses (including
reasonable fees and expenses of counsel, investment bankers, accountants and
other professionals, consultants and advisors) related to such Asset Sale, (ii)
provisions for all taxes payable as a result of such Asset Sale without regard
to the consolidated results of operations of Guarantor, the Borrowers and their
respective Subsidiaries, taken as a whole, (iii) payments made to repay
Indebtedness or any other obligation outstanding at the time of such Asset Sale
(or any related expenses required to be paid to third parties pursuant to
documentation related to the financing of the assets subject to such Asset Sale)
that (A) is secured by a Lien on the property or assets sold and (B) is required
by its terms to be paid as a result of such Asset Sale and (iv) appropriate
amounts to be provided by any Obligor as a reserve against any liabilities
associated with such Asset Sale, including, without limitation, pension and
other post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as determined in conformity with GAAP, but limited to the
period of the required reserve.

<PAGE>

            "Net Insurance Proceeds" means an amount equal to: (i) any cash
payments or proceeds received by an Obligor under any casualty insurance policy
in respect of a covered loss thereunder constituting an Event of Loss with
respect to tangible, real or personal property, minus (ii) (a) any actual and
reasonable costs incurred by an Obligor in connection with the adjustment or
settlement of any claims of an Obligor in respect thereof (including reasonable
fees and expenses of counsel), (b) provisions for all taxes payable as a result
of such event without regard to the consolidated results of operations of
Guarantor, the Borrowers and their respective Subsidiaries, taken as a whole,
(c) the amount of any Indebtedness secured by a Lien on any property subject to
such covered loss and any related expenses of third parties, in each case,
required by the documentation related to such Indebtedness to be discharged or
paid from the proceeds thereof and (d) any amounts required to be paid to any
Person (other than an Obligor) owning a beneficial interest in the property
subject to such loss.

            "Non-Consenting Lender" has the meaning specified in Section 9.1(c).

            "Non-U.S. Person" means a Person that is not a United States person
as defined in section 7701(a)(30) of the Code.

            "Note" has the meaning specified in Section 2.4(d).

            "Notice of Borrowing" has the meaning specified in Section 2.2(a).

            "Obligations" means the unpaid principal of and interest on
(including interest accruing after the maturity of the Loans and interest
accruing after the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to any Obligor,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) the Loans and all other obligations and liabilities of the
Obligors to the Loan Agent, the Collateral Agent, the Indenture Trustee or to
any Lender, whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement or any other Loan Document, whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses (including all fees, charges and disbursements of counsel to the Loan
Agent, the Collateral Agent or to any Lender that are required to be paid by any
Obligor pursuant hereto) or otherwise.

            "Obligor" means Guarantor or either Borrower.

            "Officer's Certificate" means, as applied to any corporation, a
certificate executed on behalf of such corporation by its chairman of the board
(if an officer), president, one of its vice presidents, chief financial officer,
controller, treasurer or assistant treasurer or an assistant secretary.

            "Operating Lease" means, as applied to any Person, any lease
(including, without limitation, leases that may be terminated by the lessee at
any time) of any property (whether real, personal or mixed) under which such
Person is Lessee, that is not a Capital Lease.

<PAGE>

            "Other Loan Agreement" means, the Loan Agreement, dated as the date
hereof, among the parties hereto, providing for secured loans in the maximum
amount of $161,000,000.

            "Other Loan Agreement Loans" means the "Loans" (as defined in the
Other Loan Agreement).

            "Other Loan Agreement Loan Agent" means the "Loan Agent" (as defined
in the Other Loan Agreement).

            "Other Loan Agreement Notes" means the "Notes" (as defined in the
Other Loan Agreement).

            "Other Loan Agreement Tranche A Commitment Reduction Amount" shall
mean the "Tranche A Commitment Reduction Amount", as defined in the Other Loan
Agreement.

            "Other Loan Agreement Tranche B Commitment Reduction Amount" shall
mean the "Tranche B Commitment Reduction Amount", as defined in the Other Loan
Agreement.

            "Other Loan Agreement Tranche C Commitment Reduction Amount" shall
mean the "Tranche C Commitment Reduction Amount", as defined in the Other Loan
Agreement.

            "Other Loan Agreement Tranche D Commitment Reduction Amount" shall
mean the "Tranche D Commitment Reduction Amount", as defined in the Other Loan
Agreement.

            "Other Loan Agreement Tranche E Commitment Reduction Amount" shall
mean the "Tranche E Commitment Reduction Amount", as defined in the Other Loan
Agreement.

            "Other Obligations" means the "Obligations" (as defined in the Other
Loan Agreement).

            "Other Taxes" has the meaning specified in Section 2.13(b).

            "Participant" has the meaning specified in Section 9.2(c)(i).

            "Pass Through Certificates" means the US Airways 2001-1C Trust
Certificates and any other certificates issued under a similarly structured
financing sponsored by an Obligor or an Affiliate thereof. References to amounts
"due and payable" on a given date, when used with respect to Pass Through
Certificates shall refer to amounts legally due and payable thereunder or to
amounts expected to be distributed on or before such date to the holders
thereof, and "default" when used with respect to Pass Through Certificates shall
have a correlative meaning.

<PAGE>

            "Permitted Acquisition Financing" means Indebtedness incurred by an
Obligor in connection with an acquisition, merger or consolidation which is
permitted under Section 6.5 and/or 6.9 (as applicable) of the ATSB Loan
Agreements if and to the extent used (i) to refinance existing Indebtedness of
the Person acquired or Indebtedness secured by the assets acquired or (ii) to
pay consideration or related expenses in connection with such transaction.

            "Permitted Encumbrances" means the following types of Liens (other
than any such Lien imposed pursuant to Section 401(a)(29) or 412(n) of the Code
or by ERISA) as applied to property

                  (i) Liens for taxes, assessments or governmental charges or
      claims the payment of which is either (a) not delinquent for a period of
      more than 30 days or (b) being contested in good faith by appropriate
      proceedings, if such reserve or other appropriate provision, if any, as
      shall be required by GAAP shall have been made therefor, as set forth in
      Section 5.3;

                  (ii) statutory Liens of landlords and Liens of carriers,
      vendors, warehousemen, repairmen, mechanics and materialmen and other
      Liens imposed by law incurred in the ordinary course of business for sums
      either (a) not delinquent for a period of more than thirty (30) days or
      (b) being contested in good faith by appropriate proceedings, if such
      reserve or other appropriate provision, if any, as shall be required by
      GAAP shall have been made therefor;

                  (iii) (A) Liens incurred or deposits (other than with respect
      to the Plans described in Section 4.10) made in the ordinary course of
      business in connection with workers' compensation, unemployment insurance
      and other types of social security, or to secure the performance of
      tenders, statutory obligations, surety and appeal bonds, bids, leases,
      government contracts, trade contracts, performance and return-of-money
      bonds, reimbursement obligations and chargeback rights of Persons
      performing services for an Obligor or a Subsidiary of an Obligor
      (including Liens securing Trade Payables arising from the Obligors' and
      their Subsidiaries' use in the ordinary course of business, consistent
      with past practice, of credit advance facilities to purchase goods and
      services) and other similar obligations (exclusive of obligations for the
      payment of borrowed money) and (B) Liens arising or granted in the
      ordinary course of business in favor of Persons performing credit card
      processing services, travel charge processing services or clearinghouse
      services for any Obligor or any of their Subsidiaries, including IATA,
      Diners Club, Discover Card, NPC, ARC and American Express, so long as such
      Liens are on cash and Cash Equivalents that are subject to holdbacks by,
      or are pledged (in lieu of such holdbacks) to, such Persons to secure
      amounts that may be owed to such Persons under the Obligors' or their
      Subsidiaries' agreements with them in connection with their provision of

<PAGE>

      credit card processing, travel charge processing or clearinghouse services
      to the Obligors or any of their Subsidiaries;

                  (iv) with respect to real property, easements, rights-of-way,
      restrictions, minor defects, encroachments or irregularities in title and
      other similar charges or encumbrances not interfering in any material
      respect with the ordinary conduct of the business of an Obligor or any of
      its Subsidiaries;

                  (v) Liens in favor of customs and revenue authorities arising
      as a matter of law to secure payment of customs duties in connection with
      the importation of goods in the ordinary course of business;

                  (vi) any interest or title of a lessor in property leased by
      an Obligor or any of their Subsidiaries under any Capital Lease obligation
      or Operating Lease which, in each case, is not prohibited under this
      Agreement;

                  (vii) Liens in favor of collecting or payor banks and other
      banks providing cash management services, in each case, having a right of
      setoff, revocation, refund or chargeback against money or instruments of
      any Obligor or any of their Subsidiaries on deposit with or in possession
      of such bank arising for the payments of bank fees and other similar
      amounts owed in the ordinary course of business;

                  (viii) Liens of creditors of any Person to whom any Obligor's
      or any of their Subsidiaries' assets are consigned for sale in the
      ordinary course of business;

                  (ix) Liens incurred or deposits made in connection with the
      Trust Agreements;

                  (x) any renewal of or substitution for any Lien permitted by
      any of the preceding clauses,; provided that the Indebtedness secured is
      not increased nor the Lien extended to any additional assets;

                  (xi) licensing or sublicensing of intellectual property in the
      ordinary course of business of the Obligors or their Subsidiaries;

                  (xii) Liens arising from precautionary UCC and similar
      financing statements relating to Operating Leases not otherwise prohibited
      under any Loan Document; and

                  (xiii) Liens created under the Collateral Documents.

<PAGE>

            "Permitted Invoice" means invoices for amounts due in respect of
goods and services purchased by the Guarantor or any of its Affiliates from
Airbus or any of its Affiliates.

            "Permitted Refinancing Indebtedness" has the meaning given in the
ATSB Loan Agreements.

            "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, estate, trust, limited liability company,
unincorporated association, joint venture or other entity, or a Governmental
Authority.

            "Petition Date" has the meaning specified in the recitals hereto.

            "Plan" means any "employee benefit plan" as defined in section 3(3)
of ERISA which is, or was at any time, maintained or contributed to or required
to be contributed to by the Borrowers or any of their ERISA Affiliates, other
than a multiemployer plan, within the meaning of section 4001(a)(3) of ERISA.

            "Plan Effective Date" means the date on which the Plan of
Reorganization became effective as provided therein.

            "Plan of Reorganization" has the meaning specified in the recitals
hereto.

            "Pledged Engines" means the "Engines" (as defined in the Engine
Mortgage and Security Agreement).

            "Pledged Spare Parts" has the meaning specified in the Spare Parts
Mortgage and Security Agreement.

            "Principal Credit Facility" shall mean, for any Obligor, (i) any
credit agreement to which it is a party guaranteed (or otherwise supported) in
whole or in part by the ATSB, and (ii) from and after the date on which any such
ATSB credit facility of a Borrower is repaid, refinanced or replaced, the
refinancing or replacing credit, note, bond or other loan facility (or, in the
absence of, or after the repayment, refinancing or replacement of, any such
refinancing or replacing facility, then the largest recourse credit, note or
other loan or note facility or issuance of the relevant Obligor from time to
time), other than any such facility or issuance which is secured by and is for
the purpose of financing or refinancing Aircraft Related Equipment and other
than any such facility or issuance which cannot be accelerated or terminated
upon nonperformance or default thereunder.

            "Pro Forma Balance Sheet" has the meaning given in Section 4.3(a).

            "Proposed Change" has the meaning specified in Section 9.1(c).

            "Purchase Agreement Security Agreement" means the Purchase Agreement
Security Agreement, dated as of the date hereof, between the Borrower and the
Collateral Agent.

<PAGE>

            "Reference Banks" means Citibank, N.A., Calyon and JPMorgan Chase
Bank, and each of their respective successors.

            "Register" has the meaning specified in Section 2.4(e).

            "Replacement Secured Financing" means any financing transaction,
whether structured as Indebtedness, sale-leaseback or otherwise, (a) which is
secured by any of the Obligors' (i) Slots, (ii) rotable, repairable and
expendable spare parts, (iii) aircraft, or (iv) spare engines, in each case
which immediately prior to such transaction constituted Collateral for purposes
of the ATSB Loan Agreements and (b) which satisfies the further definitional
requirements set forth in the ATSB Loan Agreements.

            "Requisite Lenders" means, collectively, Lenders having greater than
fifty percent (50%) of (i) the aggregate principal amount of Loans then
outstanding plus the aggregate unused Commitments then in effect or, (ii) prior
to the making of the initial Loan, the aggregate Commitments in effect.

            "Responsible Officer" means, with respect to any Person, any of the
Chief Executive Officer, Executive Vice Presidents and Chief Financial Officer
of such Person, but in any event, with respect to financial matters, the Chief
Financial Officer, Treasurer or Controller of such Person.

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

            "SEC" means the United States Securities and Exchange Commission, or
any United States Governmental Authority succeeding to the functions of such
Securities and Exchange Commission.

            "Senior Mortgages" shall mean each of the "Senior Engine Mortgage"
and the "Senior Spare Parts Mortgage," each as defined in the Spare Parts
Mortgage and Security Agreement or the Engine Mortgage and Security Agreement

            "Slot Regulations" means 49 U.S.C. Section 40103 and 14 C.F.R.
Sections 93.211 - 93.227, and any amendment, supplement or other modification
thereto, or successor, replacement or substitute federal law or regulation
concerning the right or operational authority to conduct landing or takeoff
operations at any airports.

            "Slots" means all of the rights and operational authority granted
under the Slot Regulations and now or hereafter acquired or held by each Obligor
to conduct one instrument flight rule landing or takeoff operation in a
specified time period at Ronald Reagan Washington National Airport, John F.
Kennedy International Airport, LaGuardia Airport, or any other airport.

            "Software" has the meaning specified in the Spare Parts Security
Agreement.

<PAGE>

            "Solvent" means, with respect to any Person, that as of the date of
determination (a) the then fair saleable value of the business of such Person is
not less than the amount that will be required to pay the probable liabilities
on such Person's then existing debts as they become absolute and matured
considering all financing alternatives and potential asset sales reasonably
available to such Person; (b) such Person's capital is not unreasonably small in
relation to its business or any contemplated or undertaken transaction; and (c)
such Person does not intend to incur, or believes that it will not incur, debts
beyond its ability to pay such debts as they become due. For purposes of this
definition, the amount of any contingent liability at any time shall be computed
as the amount that, in light of all of the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

            "Spare Parts Mortgage and Security Agreement" means the Spare Parts
Mortgage and Security Agreement dated as of the date hereof between America West
and the Collateral Agent.

            "Specified Engines" means the Pledged Engines listed on Schedule
1.1(b), each of which is eligible for the benefits of Section 1110 of the
Bankruptcy Code.

            "Subsidiary" means, with respect to any Person, any corporation,
partnership, association, limited liability company, trust or estate, joint
venture or other business entity of which more than 50% of the issued and
outstanding shares of Voting Stock at the time of determination are owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof.

            "Taxes" means any and all present or future taxes, levies, fees,
duties, imposts, deductions, charges or withholdings of any nature, and all
interest, penalties and other liabilities thereon or computed by reference
thereto imposed, levied, collected, withheld or assessed by any Governmental
Authority.

            "Title 49" shall mean Title 49 of the United States Code, as amended
and in effect from time to time, and the regulations promulgated pursuant
thereto.

            "Trade Payables" means, with respect to any Person, any accounts
payable or any other Indebtedness or monetary obligation to trade creditors
created, assumed or Guaranteed by such Person or any of its Subsidiaries and
arising in the ordinary course of business in connection with the acquisition of
goods or services.

            "Tranche" means a Tranche of the Loans, consisting of Tranche A
Loans, Tranche B Loans, Tranche C Loans, Tranche D Loans and Tranche E Loans.

            "Tranche A Loan" has the meaning specified in Section 2.1(a).

            "Tranche A Commitment" means, as to any Lender, the obligation of
such Lender to make Tranche A Loans hereunder in a principal amount not to
exceed the amount set forth opposite such Lender's name in Annex C. The
aggregate amount of the Tranche A Commitments is initially zero; provided that
the aggregate amount of the

<PAGE>

Tranche A Commitments of the Lenders shall be automatically increased by the
Tranche A Commitment Increase Amount of the Lenders.

            "Tranche A Commitment Increase Amount" shall mean the Other Loan
Agreement Tranche A Commitment Reduction Amount of the Lenders.

            "Tranche A Note" means a promissory note evidencing Tranche A Loans,
substantially in the form of Exhibit B hereto.

            "Tranche B Loan" has the meaning specified in Section 2.1(b).

            "Tranche B Commitment" means, as to any Lender, the obligation of
such Lender to make Tranche B Loans hereunder in a principal amount not to
exceed the amount set forth opposite such Lender's name in Annex C. The
aggregate amount of the Tranche B Commitments is initially zero; provided that
the aggregate amount of the Tranche B Commitments of the Lenders shall be
automatically increased by the Tranche B Commitment Increase Amount of the
Lenders.

            "Tranche B Commitment Increase Amount" shall mean the Other Loan
Agreement Tranche B Commitment Reduction Amount of the Lenders.

            "Tranche B Note" means a promissory note evidencing Tranche B Loans,
substantially in the form of Exhibit B hereto.

            "Tranche C Loan" has the meaning specified in Section 2.1(c).

            "Tranche C Commitment" means, as to any Lender, the obligation of
such Lender to make Tranche C Loans hereunder in a principal amount not to
exceed the amount set forth opposite such Lender's name in Annex C. The
aggregate amount of the Tranche C Commitments is initially zero; provided that
the aggregate amount of the Tranche C Commitments of the Lenders shall be
automatically increased by the Tranche C Commitment Increase Amount of the
Lenders.

            "Tranche C Commitment Increase Amount" shall mean the Other Loan
Agreement Tranche C Commitment Reduction Amount of the Lenders.

            "Tranche C Note" means a promissory note evidencing Tranche C Loans,
substantially in the form of Exhibit B hereto.

            "Tranche D Loan" has the meaning specified in Section 2.1(d).

            "Tranche D Commitment" means, as to any Lender, the obligation of
such Lender to make Tranche D Loans hereunder in a principal amount not to
exceed the amount set forth opposite such Lender's name in Annex C. The
aggregate amount of the Tranche D Commitments is initially zero; provided that
the aggregate amount of the Tranche D Commitments of the Lenders shall be
automatically increased by the Tranche D Commitment Increase Amount of the
Lenders.

<PAGE>

            "Tranche D Commitment Increase Amount" shall mean the Other Loan
Agreement Tranche D Commitment Reduction Amount of the Lenders.

            "Tranche D Note" means a promissory note evidencing Tranche D Loans,
substantially in the form of Exhibit B hereto.

            "Tranche E Loan" has the meaning specified in Section 2.1(e).

            "Tranche E Commitment" means, as to any Lender, the obligation of
such Lender to make Tranche E Loans hereunder in a principal amount not to
exceed the amount set forth opposite such Lender's name in Annex C. The
aggregate amount of the Tranche E Commitments is initially zero; provided that
the aggregate amount of the Tranche E Commitments of the Lenders shall be
automatically increased by the Tranche E Commitment Increase Amount of the
Lenders.

            "Tranche E Commitment Increase Amount" shall mean the Other Loan
Agreement Tranche E Commitment Reduction Amount of the Lenders.

            "Tranche E Note" means a promissory note evidencing Tranche E Loans,
substantially in the form of Exhibit B hereto.

            "Trust Agreements" means all special purpose trust funds established
by any Obligor to manage the collection and payment of amounts collected by the
Obligors for the express benefit of third-party beneficiaries identified as such
in the ATSB Loan Agreements.

            "United States Citizen" has the meaning specified in Section 4.1(b).

            "Voting Stock" means any class or classes of Capital Stock pursuant
to which the holders thereof have the general voting power under ordinary
circumstances to vote for the election of directors, managers or trustees of any
Person (or Persons performing similar functions) irrespective of whether or not
at the time stock of any such class or classes will have or might have such
voting power by the reason of the happening of any contingency.

            "Wholly-Owned" denotes a Subsidiary all of the Voting Stock of which
(other than any director's qualifying shares or investments by foreign nationals
mandated by applicable law) is owned directly or indirectly by the Person named.

            "Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

            SECTION 1.2 COMPUTATION OF TIME PERIODS. In this Agreement, in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding" and the word "through" means "to and including."

<PAGE>

            SECTION 1.3 ACCOUNTING TERMS AND PRINCIPLES. All accounting terms
not specifically defined herein shall be construed in conformity with GAAP and
all accounting determinations required to be made pursuant hereto shall, unless
expressly otherwise provided herein, be made in conformity with GAAP.

            SECTION 1.4 CERTAIN TERMS.

                  (a) The words "herein," "hereof" and "hereunder" and similar
      words refer to this Agreement as a whole, and not to any particular
      Article, Section, subsection or clause in, this Agreement.

                  (b) Except as otherwise expressly provided, references in this
      Agreement to an Exhibit, Schedule, Article, Section, subsection or clause
      refer to the appropriate Exhibit or Schedule to, or Article, Section,
      subsection or clause in this Agreement.

                  (c) Each agreement defined in this Article I shall include all
      appendices, exhibits and schedules thereto. If the prior written consent
      of any Person is required hereunder for an amendment, restatement,
      supplement or other modification to any such agreement and the consent of
      each such Person is obtained, references in this Agreement to such
      agreement shall be to such agreement as so amended, restated, supplemented
      or modified. If no such consent is required, references in this Agreement
      shall be to such agreement as so amended, restated, supplemented, or
      modified.

                  (d) References in this Agreement to any statute shall be to
      such statute as amended or modified and in effect at the time any such
      reference is operative.

                  (e) The term "including" when used in any Loan Document means
      "including without limitation" except when used in the computation of time
      periods.

                                   ARTICLE II

                                   THE LOANS

            SECTION 2.1 THE LOANS.

                  (a) Tranche A Loans. On the terms and subject to the
      conditions contained in this Agreement and in reliance upon the
      representations and warranties of the Obligors set forth herein, each
      Lender agrees to make one or more Loans to the Borrowers (each, a "Tranche
      A Loan") on Funding Dates occurring on or after the date of delivery of
      the last A319/A320 Aircraft currently on order by America West and not
      rescheduled in accordance with paragraph 5 of the MOU, as requested by a
      Borrower in a Notice of Borrowing given in accordance with Section 2.2 in
      an amount not to exceed, in the aggregate for all Tranche A Loans made by
      such Lender on all Funding Dates, the Tranche A Commitment of such Lender.
      No

<PAGE>

Tranche A Loan shall be made prior to the date of delivery of the last A319/A320
aircraft on order by America West on the date hereof and not rescheduled in
accordance with paragraph 5 of the MOU. The last such aircraft is currently
scheduled to be delivered in February 2006. There may be multiple Borrowings of
Tranche A Loans. Tranche A Loans repaid or prepaid may not be reborrowed
hereunder.

                  (b) Tranche B Loans. On the terms and subject to the
conditions contained in this Agreement and in reliance upon the representations
and warranties of the Obligors set forth herein, each Lender further agrees to
make one or more Loans to the Borrowers (each, a "Tranche B Loan") on the
Closing Date and on each other Funding Date requested by a Borrower in a Notice
of Borrowing given in accordance with Section 2.2 in an amount not to exceed, in
the aggregate for all Tranche B Loans made by such Lender on all Funding Dates,
the Tranche B Commitment of such Lender. No Tranche B Loan, when combined with
the aggregate amount of prior Tranche B Loans, shall exceed the principal and
interest amount paid or prepaid under the Airbus A321 Financings from and after
the date of the MOU (May 18, 2005) to and including the Funding Date for such
Tranche B Loan (including, for the avoidance of doubt, principal and interest to
be paid with the proceeds of the proposed Tranche B Loan). No Tranche B Loan
shall be made unless all amounts which are due and payable on the Funding Date
for such Tranche B Loan under the A321 Airbus Financings have been, or
immediately following the application of the proceeds of such Tranche B Loan
will have been, paid in full. There may be multiple Borrowings of Tranche B
Loans. Tranche B Loans repaid or prepaid may not be reborrowed hereunder.

                  (c) Tranche C Loans. On the terms and subject to the
conditions contained in this Agreement and in reliance upon the representations
and warranties of the Obligors set forth herein, each Lender further agrees to
make one or more Loans to the Borrowers (each, a "Tranche C Loan") on the
Closing Date and each other Funding Date requested by a Borrower in a Notice of
Borrowing given in accordance with Section 2.2 in an amount not to exceed, in
the aggregate for all Tranche C Loans made by such Lender on all Funding Dates,
the Tranche C Commitment of such Lender. No Tranche C Loan shall be made prior
to the due date for the payment of the Permitted Invoices with respect to which
such Tranche C Loan is being made. Each Tranche C Loan shall be in an amount not
to exceed the aggregate amount of all Permitted Invoices not used to support
prior Borrowings of Tranche C Loans. No Tranche C Loan shall be made until at
least thirty (30) days after all issued and outstanding Permitted Invoices
relating to such Tranche C Loan have been paid in full. Copies of the Permitted
Invoices supporting each Tranche C Loan shall be attached to the applicable
Notice of Borrowing. There may be multiple Borrowings of Tranche C Loans.
Tranche C Loans repaid or prepaid may not be reborrowed hereunder.

                  (d) Tranche D Loans. On the terms and subject to the
conditions contained in this Agreement and in reliance upon the representations
and warranties of the Obligors set forth herein, each Lender further agrees to
make one or

<PAGE>

more Loans to the Borrowers (each, a "Tranche D Loan") on any Funding Date, as
requested by a Borrower in a Notice of Borrowing given in accordance with
Section 2.2 in an amount not to exceed, in the aggregate for all Tranche D Loans
made by such Lender on all Funding Dates, the Tranche D Commitment of such
Lender. There may be multiple Borrowings of Tranche D Loans. Tranche D Loans
repaid or prepaid may not be reborrowed hereunder.

                  (e) Tranche E Loans. On the terms and subject to the
conditions contained in this Agreement and in reliance upon the representations
and warranties of the Obligors set forth herein, each Lender further agrees to
make one or more Loans to the Borrowers (each, a "Tranche E Loan") on the
Closing Date and on each other Funding Date requested by a Borrowing in a Notice
of Borrowing given in accordance with Section 2.2 in an amount not to exceed, in
the aggregate for all Tranche E Loans made by such Lender on all Funding Dates,
the Tranche E Commitment of such Lender. There may be multiple Borrowings of
Tranche E Loans. Tranche E Loans repaid or prepaid may not be reborrowed
hereunder.

                  (f) Final Funding Date. No Funding Date shall occur after
December 31, 2007.

            SECTION 2.2 BORROWING PROCEDURES.

                  (a) Each Borrowing shall be made on notice given by a Borrower
to the Loan Agent not later than 11:00 a.m. (New York City time) at least two
Business Days prior to the applicable Funding Date. Each such notice shall be in
substantially the form of Exhibit C (a "Notice of Borrowing") or be given by
telephone and confirmed in writing within one Business Day following such
notice, in each case, specifying (A) the proposed Funding Date, (B) the
aggregate amount of the proposed Borrowing (which must be in a minimum amount of
$1,000,000 or a whole multiple of $100,000 above that amount), or if less, the
remaining undrawn amount of the Loan, (C) the Tranche designations of the
various Loans to be made on the proposed Funding Date, and (D) the corporate
credit rating of the Guarantor and its consolidated Subsidiaries then most
recently published by S&P. The Notice of Borrowing shall be irrevocable. A
Notice of Borrowing with respect to a Tranche C Loan shall be accompanied by
copies of Permitted Invoices. Each Notice of Borrowing shall be accompanied by a
copy of any Notice of Borrowing (as defined therein) given under the Other Loan
Agreement for Borrowings on the same date.

                  (b) The Loan Agent shall give to the Lenders prompt notice of
the Loan Agent's receipt of a Notice of Borrowing and the Applicable Interest
Rate with respect thereto. Each Lender shall, subject to the terms of any
mutually agreed funding agreement, severally, before 11:00 a.m. (New York City
time) on the date of the proposed Borrowing, make available to the Loan Agent at
the account referenced in Section 2.9(a), in immediately available funds, an
amount equal to its ratable portion of each Tranche of the proposed Borrowing.
After the Loan Agent's receipt of such funds, the Loan Agent will make such
funds available to the particular Borrower which is actually to apply such funds
in accordance with Section 2.4(f).

<PAGE>

The failure of any Lender to make its ratable portion of any Loan as required
hereunder shall not relieve any other Lender of its obligations to make its
ratable portion of such Loan or any other Loan as required hereunder.

            SECTION 2.3 SCHEDULED REPAYMENT OF THE LOANS.

                  (a) Accrued Interest due on the Loans on each Interest Payment
shall be capitalized and added to the outstanding principal amount of the Loans.

                  (b) The outstanding principal amount of the Loans shall be due
and payable on the Loan Maturity Date.

                  (c) Notwithstanding any other provision of the Loan Documents,
the outstanding principal amount of the Loans will be forgiven in writing by the
Loan Agent on the Loan Maturity Date (as defined in the Other Loan Agreement) or
an earlier date, if on that date the outstanding principal amount of, accrued
interest on, and all other amounts due under the Other Loan Agreement Loans and
the Other Loan Agreement Notes have been paid in full and the Other Obligations,
if any, then due have been indefeasibly paid in full.

            SECTION 2.4 EVIDENCE OF DEBT; USE OF PROCEEDS.

                  (a) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing such Lender's portion of the Loans
outstanding from time to time, including, by Tranche, the amounts of principal
and interest payable and paid to such Lender from time to time under this
Agreement.

                  (b) The Loan Agent shall establish and maintain a Register on
behalf of the Borrowers pursuant to Section 2.4(e), and a subaccount for each
Lender therein, in which shall be recorded (i) the amount of each Loan hereunder
and each Interest Period applicable thereto; (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrowers to each
Lender hereunder; (iii) the date and amount of each payment on the Loans, by
Tranche, made by or on behalf of, or collected from, the Borrowers and (iv) the
amount of each such payment applied in accordance with each clause of Section
2.9(d) and (e) or other applicable terms hereof to scheduled principal of or
interest on the Loans.

                  (c) The entries made in the accounts maintained pursuant to
clauses (a) and (b) of this Section 2.4 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided, however, that the failure of any Lender
or the Loan Agent to maintain such accounts or any error therein shall not in
any manner affect the obligations of the Borrowers to repay the Loans in
accordance with the terms hereof.

<PAGE>

                  (d) The Borrowers shall execute and deliver to the Loan Agent
on the Closing Date a single promissory note for each Tranche, each
substantially in the forms of Exhibit B, in the principal amount of the
aggregate Commitments for such Tranche dated the Closing Date and otherwise
appropriately completed (each such note, including any replacement note therefor
issued in accordance with the provisions of this Section 2.4(d) but excluding
any note so replaced, a "Note"). Promptly following each Loan on each Funding
Date, each Lender shall update the grid attached to its Note and deliver a
certified copy thereof to the Borrowers. If a Note is mutilated, lost, stolen or
destroyed, the Borrowers shall, at the cost and expense of the Lender, issue a
new Note in the same principal amount and having the same interest rate, date,
maturity and Tranche as the Note so mutilated, lost, stolen or destroyed,
endorsed to indicate all payments thereon, together with an Officer's
Certificate of the Borrowers certifying and warranting as to the due
authorization, execution and delivery of the new Note. In the case of any lost,
stolen or destroyed Note, there shall first be furnished (i) to the Borrowers,
at Borrowers' option, either adequate security to hold Borrowers harmless with
respect to such lost, mutilated, stolen or destroyed Note or an instrument of
indemnity from the relevant Lender and (ii) to the Borrowers and the Loan Agent
evidence of such loss, theft or destruction reasonably satisfactory to each of
them.

                  (e) The Notes are registered instruments. The original of each
Note shall be evidence of the rights of each Lender under this Agreement and
such Note. Neither this Agreement nor any Note is a bearer instrument. The Loan
Agent will establish and maintain on behalf of the Borrowers a record of
ownership (the "Register") in which the Loan Agent agrees to register by book
entry the Loan Agent's and each Lender's interest in the Loans, the Notes and
this Agreement, and in the right to receive any payments hereunder or thereunder
and any assignment of any such interest or rights. In connection with any
assignment pursuant to Section 9.2, the Loan Agent shall maintain a copy of each
Assignment and Assumption delivered to and accepted by it and shall record the
names and addresses of the Lenders and principal amount of the Loans, by
Tranche, owing to each Lender from time to time. The Borrowers, upon request and
at the expense of the relevant Lender and the return of the Note to be replaced
to the Borrowers marked "cancelled" (or, if the Note to be replaced has been
mutilated, lost, stolen or destroyed, adequate security or an instrument of
indemnity as described in the last sentence of Section 2.4(d)), agree to issue
replacement Notes upon any assignment or participation made pursuant to Section
9.2. The identities of the Note holders entered in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Obligors, the Loan Agent and the Lenders shall treat each Person whose name is
recorded in the Register as the owner of the Obligations as indicated in the
Register for all purposes of this Agreement. The Register shall be available for
inspection by the Borrowers, the Loan Agent, or any Lender at any reasonable
time and from time to time upon reasonable prior notice.

                  (f) Use of Proceeds.

<PAGE>

                        (i) The Borrowers shall use the proceeds of the Loans as
      follows:

                              (1) The proceeds of Tranche A Loans, Tranche D
            Loans, and Tranche E Loans shall be used by the Borrowers for
            working capital and general corporate purposes of either of them,
            including, without limitation, capital expenditures and
            acquisitions.

                              (2) The proceeds of Tranche B Loans shall be used
            by the Borrowers solely to make debt service payments due through
            June, 2006 under the A321 Airbus Financings or to reimburse US
            Airways for any such payments made on or after the date of the MOU
            (May 18, 2005) but prior to the date of such Loan.

                              (3) The proceeds of Tranche C Loans shall be used
            by the Borrowers solely to pay, or to reimburse either of them for
            the payment on or after the date of the MOU (May 18, 2005) of,
            Permitted Invoices.

                        (ii) No portion of the proceeds of any Loans shall be
      used by the Borrowers or any of their Subsidiaries in any manner that
      would cause the borrowing or the application of such proceeds to violate
      Regulation U, Regulation T or Regulation X of the Board of Governors of
      the Federal Reserve System or any other regulation of such Board of
      Governors or to violate Section 7(c) of the Exchange Act, in each case as
      in effect on the date or dates of such borrowing and such use of proceeds.

            SECTION 2.5 OPTIONAL PREPAYMENTS.

                  (a) The Borrowers may on any Business Day, upon revocable
notice to the Loan Agent not less than ten (10) Business Days prior thereto,
prepay all or any portion of the outstanding principal amount of such Loans held
directly or indirectly by Airbus or its Affiliates, in whole or in part (but,
with respect to any partial prepayment, not less than a minimum amount of
$1,000,000, plus any whole multiple of $100,000, or such lesser amount as
results in a prepayment of such Loans in full), together with accrued interest
to the date of such prepayment on the principal amount prepaid; provided,
however, that if any prepayment of all or a portion of such Loans is made by the
Borrowers other than on an Interest Payment Date, the Borrowers shall also pay
any amounts owing pursuant to Section 2.10(e). Except for any such amounts owing
pursuant to Section 2.10(e), prepayments pursuant to this Section 2.5(a) shall
be without premium or penalty.

                  (b) Upon the giving of any notice of prepayment under clause
(a) of this Section 2.5, the principal amount of the Loans specified to be
prepaid together with accrued and unpaid interest thereon and other amounts, if
any, due with respect thereto as provided in Section 2.5(a), shall become due
and payable on the date specified for such prepayment; provided, however, that
any failure to

<PAGE>

make any such prepayment in full on such date shall be deemed to be an automatic
revocation of the notice of prepayment given under Section 2.5(a) and such
failure shall not constitute a Default or an Event of Default hereunder;
provided, further, however, that the Borrowers shall be obligated to pay on such
date any amounts owing under Section 2.10(e) due to such failure to prepay.

                  (c) Any partial prepayment of the Loans under Section 2.5(a)
shall be applied pro rata as among the outstanding Tranches of the Loans held
directly or indirectly by Airbus or its Affiliates and pro rata among the Loans
in each such Tranche, and to the then remaining installments of the outstanding
principal amount of the Loans held, directly or indirectly, by Airbus or its
Affiliates on a pro rata basis. Any such prepayment shall be paid to the Loan
Agent for application as provided in Section 2.9. The Borrowers shall have no
right to optionally prepay the principal amount of the Loans held, directly or
indirectly, by Airbus or its Affiliates other than as provided in this Section
2.5 and Section 2.10, 2.12 or 9.1.

                  (d) The Borrowers shall have the same prepayment rights with
respect to Loans not held, directly or indirectly, by Airbus or its Affiliates
as set forth above in this Section 2.5; provided, however, that if requested by
the Initial Lender in connection with a transfer or sell down transaction into
the capital markets as envisioned in Section 9.2(e), the Borrowers shall have
such prepayment rights as are determined as provided in Section 9.2(c).

            SECTION 2.6 MANDATORY PREPAYMENTS.

                  (a) Collateral Sales. Upon receipt by any Borrower or any
Subsidiary of Net Cash Proceeds of an Asset Sale of any Collateral (including
without limitation, any Airbus A321 model aircraft then subject to an A321
Airbus Financing). The Borrowers shall prepay the Loans in an aggregate amount
equal to the Net Cash Proceeds of such sale, which have not been applied to
payment of the Other Loan Agreement Loans under Section 2.6(a) of the Other Loan
Agreement, provided that no such prepayment shall be required for Asset Sales of
Spare Parts until the aggregate amount thereof (not applied to prior
prepayments) exceeds $100,000. In the event that any such Asset Sale results in
a note payable to any Borrower or any Subsidiary, such note shall be pledged by
such Borrower or Subsidiary, as the case may be, as collateral security for the
obligations and the Cross-Default Obligations in a manner reasonably
satisfactory to the Loan Agent. Any partial prepayments of the Loans made by the
Borrowers in accordance with this Section 2.6(a) shall be applied pro rata as
among the outstanding Tranches of the Loans and pro rata among the Loans in each
such Tranche and to the then remaining installments of the outstanding principal
balance of the Loan on a pro rata basis. If any such prepayment is made by the
Borrowers other than on an Interest Payment Date, subject to clause (c) below,
the Borrowers shall also pay any amounts owing pursuant to Section 2.10(e). Any
such prepayment of the Loan shall be paid to the Loan Agent for application as
provided in Section 2.9.

<PAGE>

                  (b) Insurance/Condemnation Proceeds. No later than three
Business Days following the date of receipt by the Borrowers or any of their
Subsidiaries of any Net Insurance Proceeds of any Collateral, except as provided
in Section 3.04(a) of the Engine Mortgage and Security Agreement if an Engine
(as defined therein) is being replaced, and except as provided in Section
6.01(a) of any Aircraft Mortgage, if an Aircraft or Airframe is being replaced,
the Borrower shall prepay the Loans in an amount equal to the amount of such Net
Insurance Proceeds; provided that no such prepayment shall be required until the
aggregate amount thereof (not applied to prior prepayments) exceeds $100,000;
and provided, further that in the case of a prepayment required by Section
3.04(a) of the Engine Mortgage and Security Agreement or Section 6.01(a) of any
Aircraft Mortgage on a date before the date on which Net Insurance Proceeds has
been received upon an Event of Loss, such prepayment of the Loans in the amount
specified therein shall be made in lieu of the prepayment out of the Net
Insurance Proceeds required by this sentence. Any partial prepayments of the
Loans made by the Borrowers in accordance with this Section 2.6(b) shall be
applied pro rata as among the outstanding Tranches of the Loans and pro rata
among the Loans in each such Tranche and to the then remaining installments of
the outstanding principal balance of the Loan on a pro rata basis. If any such
prepayment is made by the Borrowers other than on an Interest Payment Date,
subject to clause (c) below the Borrowers shall also pay any amounts owing
pursuant to Sections 2.5(d) and 2.10(e). Any such prepayment of the Loans shall
be paid to the Loan Agent for application as provided in Section 2.9; and
provided further, however that such prepayment hereunder shall be made only to
the extent that Net Insurance Proceeds (or prepayment amounts) have not been
applied under the Other Loan Agreement.

                  (c) Notwithstanding the foregoing, if no Default or Event of
Default has occurred and is continuing, the Borrower shall be entitled to
postpone the date of prepayment under Section 2.6(a) or (b) as follows. At least
one (1) Business Day prior to the required date of such prepayment, Borrower
shall notify the Loan Agent and each Lender of its election to postpone the date
of such prepayment to the next succeeding Interest Payment Date and on the date
required for such prepayment the Borrower shall pay to the Loan Agent, for
deposit in a collateral account established with the Loan Agent and under its
name and sole dominion and control, as security for the Obligations and the
Cross-Default Obligations, an amount equal to the amounts the Borrower would
have paid under Section 2.6(a) or (b), as the case may be, as a prepayment of
the Loans on such date. The Loan shall remain outstanding and on the next
succeeding Interest Payment Date the Borrower shall pay the installment of
interest and principal and any other amounts then due, plus the amount required
to prepay the Loan in whole or in part on such Interest Payment Date (calculated
as provided in Section 2.6(a) or (b), as the case may be, less the amount
available to the Loan Agent (out of the funds held by it as aforesaid as
collateral security) which shall be applied in reduction of the Borrower's
obligations on such Interest Payment Date. Notwithstanding the foregoing, if an
Event of Default shall occur and be continuing, funds on deposit in the
aforesaid collateral account shall be subject to distribution under Section
2.9(d) and the provisions of Section 6.2 shall not be prejudiced by the
foregoing prepayment arrangement.

<PAGE>

            SECTION 2.7 INTEREST.

                  (a) Rate of Interest. Except as otherwise provided in Section
      2.7(c) and Section 2.10, each Loan shall bear interest on the unpaid
      principal amount thereof for each day such Loan is outstanding during any
      Interest Period at the Applicable Interest Rate for such Interest Period.
      Notwithstanding any other provision hereof, interest on the Loans shall
      not exceed the maximum allowable under applicable law.

                  (b) Interest Payments. Interest accrued on each Loan and each
      Note shall be payable in arrears on the last day of each applicable
      Interest Period (an "Interest Payment Date"), upon the payment or
      prepayment thereof in whole or in part (solely to the extent of the
      portion paid or prepaid), and, if not previously paid in full, at maturity
      (whether by acceleration or otherwise), subject to the provisions of
      Section 2.3(c). Interest on each Loan shall be calculated on the basis of
      a year of 360 days and actual number of days elapsed.

                  (c) Default Interest. Notwithstanding the rate of interest
      specified in Section 2.7(a) or elsewhere herein, if any principal of or
      interest on a Loan or any fee or other amount payable by the Borrowers
      hereunder is not paid when due, whether at stated maturity, upon
      acceleration, by mandatory prepayment or otherwise (but other than any
      voluntary prepayment), such overdue amount shall bear interest at a rate
      which is two percent per annum in excess of the Applicable Interest Rate
      as in effect from time to time.

            SECTION 2.8 FEES. No up-front, commitment or other fees are payable
on or with respect to the Commitments or the Loans.

            SECTION 2.9 PAYMENTS AND COMPUTATIONS.

                  (a) The Borrowers shall make each payment hereunder (including
      fees and expenses) not later than 12 noon (New York City time) on the day
      when due, in Dollars, to the Loan Agent in immediately available funds
      without set-off, counterclaim, claim of recoupment or other defense
      (except for any required withholding taxes not subject to indemnification
      hereunder) to the following account (unless otherwise advised):

            ACCOUNT OF         :     AIRBUS FINANCIAL SERVICES
            ACCOUNT AT         :     CALYON, NEW YORK
            SWIFT CODE         :     CRLYUS33
            CHIPS ID           :     807
            ABA REF            :     026 008 073
            ACCOUNT NO         :     01 22456 0001 00

All payments in respect of any Obligations shall at all times be made to the
Loan Agent. The Loan Agent will promptly cause all such payments received by it
to be distributed to the Person entitled thereto in accordance with the
priorities of payment set forth below in clause (d) or (e) of this Section 2.9
or both, as applicable. Payments received by the Loan

<PAGE>

Agent after 2:00 p.m. (New York City time) shall, solely for the calculation and
accrual of interest pursuant to the provisions hereof, be deemed to be received
on the next Business Day.

                  (b) Each determination by the Loan Agent of an interest rate
      hereunder shall be presumed correct, absent manifest error.

                  (c) Whenever any payment hereunder shall be stated to be due
      on a day other than a Business Day, such payment shall be due on the next
      succeeding Business Day, unless the result of such extension would be to
      extend such payment date into another calendar month, in which event such
      payment date shall end on the immediately preceding Business Day and for
      the avoidance of doubt, interest computation shall be adjusted
      accordingly.

                  (d) So long as no Event of Default under any of Sections
      6.1(a) (including any failure to pay all amounts hereunder upon
      acceleration as a result of any other Event of Default), (f) and (g) has
      occurred and is continuing or would result therefrom, the Loan Agent shall
      promptly apply all payments received by it in respect of any Obligations
      in the following order:

                        (i) first, to pay interest then due and payable in
            respect of the Loans to the Lenders, on a pro rata basis;

                        (ii) second, to pay principal then due and payable on
            the Loans to the Lenders, on a pro rata basis;

                        (iii) third, to pay any other Obligations then due and
            payable to the Loan Agent, the Collateral Agent and the Lenders, on
            a pro rata basis; and

                        (iv) fourth, to the Borrowers or their respective
            designees.

                  (e) After the occurrence and during the continuance of an
      Event of Default under any of Sections 6.1(a) (including any failure to
      pay all amounts hereunder upon acceleration as a result of any other Event
      of Default), (f) or (g), the Loan Agent shall promptly apply all payments
      in respect of any Obligations or Cross-Default Obligations (including
      amounts received by the Collateral Agent upon the exercise of remedies
      with respect to the Collateral or the Cross-Collateral) in the following
      order:

                        (i) first, to pay Obligations in respect of any
            expenses, indemnities or other amounts owing hereunder not referred
            to in clauses (ii) through (v) below then due and payable to the
            Lenders, the Loan Agent or the Collateral Agent, on a pro rata
            basis;

                        (ii) second, to pay interest then due and payable in
            respect of the Loans to the Lenders, on a pro rata basis;

<PAGE>
                        (iii) third, to pay or prepay principal payments on the
            Loans to the Lenders or other Obligations to the respective parties
            entitled thereto, on a pro rata basis, or to be held by, the Loan
            Agent as additional collateral for any Obligations which are not at
            the time due and payable;

                        (iv) fourth, to pay any Cross-Default Obligations then
            due and payable to the respective parties entitled thereto, on a pro
            rata basis, or to be held by the Loan Agent as Collateral for any
            Cross-Default Obligations which are not at the time due and payable;
            and

                        (v) fifth, after payment in full of the Cross-Default
            Obligations, to the Borrowers or their respective designees.

            SECTION 2.10 CERTAIN PROVISIONS GOVERNING THE LOANS.

                  (a) Certain Determinations. LIBOR for each Interest Period for
each Loan shall be determined by the Loan Agent pursuant to the procedures set
forth in the definition of "LIBOR", and shall promptly thereafter be notified to
the Borrowers and each Lender together with the Applicable Margin and the
Applicable Interest Rate for such Interest Period (in writing or by email or by
telephone confirmed in writing or by email). The Tranche A, Tranche B, Tranche
C, Tranche D and Tranche E Commitment Increase Amount for the Lenders (and for
each Lender) shall be determined by the Loan Agent as provided in the respective
definitions of those terms, and promptly upon receipt of notice thereof from the
Other Loan Agreement Loan Agent shall be notified by the Loan Agent to each
Lender, the Borrower and the Collateral Agent. The Tranche A, Tranche B, Tranche
C, Tranche D and Tranche E Commitment Increase Amounts for the Lenders shall not
exceed $89,000,000. A certificate of the Loan Agent setting forth the applicable
LIBOR, the Applicable Margin and the adjusted Applicable Interest Rate, or the
Tranche A, Tranche B, Tranche C, Tranche D or Tranche E Commitment Increase
Amounts, shall be presumed correct absent manifest error. The Loan Agent shall,
at the request of either Borrower, deliver to the Borrowers a statement showing
the quotations used by the Loan Agent to determine LIBOR, the Applicable Margin
and the Applicable Interest Rate, such statement to be in sufficient detail for
the Borrowers to reasonably determine whether any such manifest error has
occurred.

                  (b) Interest Rate Unascertainable. In the event that the Loan
Agent determines that, at the time the Loan Agent is to determine the Applicable
Interest Rate for an Interest Period, by reason of circumstances affecting the
London interbank market for U.S. Dollar deposits, adequate and fair means do not
exist for ascertaining the applicable interest rates by reference to which the
LIBOR then being determined is to be fixed, the Loan Agent shall forthwith so
notify the Borrowers and the Lenders, whereupon during the 30 days following the
date of any such notice given to the Borrowers, the Loan Agent and the Borrowers
shall negotiate in good faith in order to arrive at a mutually acceptable
alternative basis for determining the interest rate from time to time applicable
to the Loans (the "Substitute Basis"). If

<PAGE>

within the 30 days following the date of any such notice to the Borrowers, the
Loan Agent and the Borrowers shall agree upon a Substitute Basis, such
Substitute Basis shall be retroactive to and effective from the first day of the
then current Interest Period until and including the last day of such Interest
Period. If after 30 days from the date of such notice, the Loan Agent and the
Borrowers shall have failed to agree upon a Substitute Basis, then the Loan
Agent (upon instructions from the Requisite Lenders) shall certify in writing to
the Borrowers the interest rate at which such Lenders are prepared to maintain
their portion of the Loans for such Interest Period, it being understood that
such Lenders' interest rate shall be not more than a rate per annum equal to a
rate which adequately and fairly reflects the cost to such Lenders of obtaining
the funds necessary to maintain their portion of the Loans for such Interest
Period. If no Substitute Basis is established, upon receipt of notice of the
interest rates at which the Requisite Lenders are prepared to maintain their
respective portion of the Loans, and on the last day of each Interest Period
thereafter, the Borrowers shall have the right exercisable upon ten Business
Days' prior notice to the Loan Agent (i) to continue to borrow the Loans at the
interest rate so advised by the Loan Agent (as such rate may be modified, from
time to time, at the outset of each subsequent Interest Period) or (ii) to
prepay in full the Loans together with accrued but unpaid interest thereon at
the Applicable Interest Rate most recently in effect, whereupon the Loans shall
become due and payable on the date specified by the Borrowers in such notice.

                  (c) Increased Costs. If at any time (i) the introduction after
the date hereof of or any change after the date hereof in or in the
interpretation of any law, treaty or governmental rule, regulation or order
binding on any Lender or (ii) the compliance by any Lender with any guideline,
request or directive enacted or imposed or made after the date hereof from any
central bank or other Governmental Authority (whether or not having the force of
law) shall (A) impose, modify, or deem applicable any reserve, special deposit
or similar requirement against assets of, deposits with or for the account of,
or credit extended by, any Lender, or (ii) impose on any Lender any other
condition, and the result of any of the foregoing shall be to materially
increase the cost to such Lender of agreeing to make or making, funding, or
maintaining any portion of the Loans (except with respect to Excluded Taxes),
then the Borrowers shall from time to time, within ten Business Days of written
demand (which demand shall be accompanied by a certificate setting forth the
basis for such demand and a calculation of the amount thereof in reasonable
detail) by such Lender (with a copy of such demand and certificate to the Loan
Agent), pay to the Loan Agent for the account of such Lender, additional amounts
sufficient to compensate such Lender for such increased cost. Such a certificate
submitted to the Borrowers and the Loan Agent by such Lender shall be
presumptively correct absent manifest error. Notwithstanding the provisions of
this paragraph, (x) the Borrowers shall not be obligated to pay any amounts
pursuant to this paragraph for periods occurring prior to the 60th day before
the giving of such certificate, provided that if the circumstances giving rise
to such claim have a retroactive effect then such 60 day period shall be
extended to then include such period of retroactive effect, and (y) the
Borrowers shall not be required to make any payment otherwise required hereby to
any Lender unless such Lender states in its written demand that such claim is
not

<PAGE>

being made on a basis that discriminates against the Borrower as compared to
comparable extensions of credit with similarly situated borrowers.

                  (d) Illegality. Notwithstanding any other provision of this
      Agreement, if the introduction of or any change in or in the
      interpretation of any law, treaty or governmental rule, regulation or
      order, in each case after the date of this Agreement, shall make it
      unlawful for any Lender to continue to fund or maintain its portion of the
      Loans as contemplated hereby, then, on notice thereof by such Lender to
      the Borrowers through the Loan Agent, the obligation of such Lender to
      continue to fund or maintain its portion of the Loan shall be terminated
      and the Borrowers shall prepay such affected portion of the Loan to such
      Lender together with accrued but unpaid interest thereon and all other
      sums payable hereunder with respect thereto on the last day of the then
      current Interest Period or earlier if necessary to avoid such illegality.
      Any such partial prepayment of the Loan shall be applied ratably to the
      then unpaid installments thereof in accordance with the amount of each
      such unpaid installment.

                  (e) Breakage Costs. In addition to all amounts required to be
      paid by the Borrowers pursuant to Section 2.7, the Borrowers shall
      compensate each Lender, at the time specified herein, or if no such time
      is specified, within ten Business Days of written demand (with a copy of
      such demand to the Loan Agent), for all net losses, expenses and
      liabilities (including any loss or expense incurred by reason of the
      liquidation or reemployment of deposits or other funds acquired by such
      Lender or the termination of any other financial arrangement it may have
      entered into to fund or maintain or support such Lender's portion of the
      Loan, including any net loss of interest but excluding any other lost
      profit or any Taxes based on the overall net income of such Lender) which
      such Lender actually sustains as a consequence of (i) any proposed
      Borrowing not occurring on a date specified therefor in any Notice of
      Borrowing given by any Borrower, (ii) any portion of the Loans being
      prepaid (including, subject to Section 2.6(c), mandatorily pursuant to
      Section 2.6 or this Section 2.10) on a date which is not the last day of
      the applicable Interest Period, or (iii) any failure by any Borrower to
      repay any portion of the Loans when required by the terms hereof (after
      giving effect to any grace periods). Any written demand by a Lender under
      this Section 2.10(e) shall be accompanied by a certificate setting forth
      the basis for such demand and a calculation of the amount thereof in
      reasonable detail by such Lender. Such a certificate submitted to the
      Borrowers and the Loan Agent by a Lender shall be presumptively correct
      absent manifest error. Amounts paid under this Section 2.10(e) shall be
      paid to the Loan Agent for the account of the applicable Lender.
      Notwithstanding the provisions of this paragraph, the Borrowers shall not
      be obligated to pay any amounts pursuant to this paragraph for periods
      occurring prior to the 60th day before the giving of such certificate,
      provided that if the circumstances giving rise to such claim have a
      retroactive effect then such 60 day period shall be extended to then
      include such period of retroactive effect.

            SECTION 2.11 CAPITAL ADEQUACY. If at any time (a) the adoption of or
any change in or in the interpretation of any law, treaty or governmental rule,
regulation or order after the date of this Agreement regarding capital adequacy,
(b)

<PAGE>

compliance with any such law, treaty, rule, regulation, or order, or (c)
compliance with any guideline or request or directive made after the date hereof
from any central bank or other Governmental Authority (whether or not having the
force of law) shall have the effect of reducing the rate of return on such
Lender's (or any corporation controlling such Lender's) capital as a consequence
of its obligations hereunder (other than for changes in the rate of tax on the
overall net income of such Lender) to a level below that which such Lender or
such corporation could have achieved but for such adoption, change, compliance
or interpretation by an amount deemed by such Lender to be material, then,
within ten Business Days following written demand from time to time by such
Lender (with a copy of such demand to the Loan Agent), the Borrowers shall pay
to the Loan Agent for the account of such Lender from time to time as specified
by such Lender additional amounts sufficient to compensate such Lender for such
reduction. Any written demand by a Lender under this Section 2.11 shall be
accompanied by a certificate setting forth the basis for such demand and a
calculation of the amount thereof in reasonable detail by such Lender. Such a
certificate submitted to the Borrowers and the Loan Agent by a Lender shall be
presumptively correct absent manifest error. Notwithstanding the provisions of
this paragraph, (x) the Borrowers shall not be obligated to pay any amounts
pursuant to this paragraph for periods occurring prior to the 60th day before
the giving of such certificate, provided that if the circumstances giving rise
to such claim have a retroactive effect then such 60 day period shall be
extended to then include such period of retroactive effect, and (y) the
Borrowers shall not be required to make any payment otherwise required hereby to
any Lender unless such Lender is generally demanding payment under comparable
provisions of its agreements with similarly situated borrowers.

            SECTION 2.12 SUBSTITUTION OF LENDERS.

                  (a) In the event that no Event of Default has occurred and is
      continuing and (i) any Lender makes a claim under Section 2.10(c) or (e)
      or Section 2.11, (ii) it becomes unlawful for any Lender to continue to
      fund or maintain its portion of the Loans as contemplated hereby and such
      Lender notifies the Borrowers pursuant to Section 2.10(d), (iii) any
      Obligor is required to make any payment pursuant to Section 2.13 that is
      attributable to a particular Lender, (iv) any Lender fails to fund any
      Loans as required hereby or (v) there shall exist a Non-Consenting Lender
      in respect of a Proposed Change to which the Loan Agent consents (any such
      Lender, an "Affected Lender"), the Borrowers may substitute any other
      Lender or any other financial institution which will eliminate the
      continued need to make such payments and which is reasonably acceptable to
      the Loan Agent (a "Substitute Institution") for such Affected Lender
      hereunder, after delivery of a written notice (a "Substitution Notice") by
      the Borrowers to the Loan Agent and the Affected Lender following the
      occurrence of any of the events described in clauses (i) through (v) above
      that the Borrowers intend to make such substitution.

                  (b) If the Substitution Notice was properly issued under this
      Section 2.12, the Affected Lender shall sell, and the Substitute
      Institution shall purchase, in accordance with Section 9.2, all rights and
      obligations (except with respect to prior periods) of such Affected Lender
      under the Loan Documents. Such purchase and sale (and the corresponding
      assignment of all rights and obligations
<PAGE>

   (except with respect to prior periods) of such Affected Lender under the Loan
   Documents. Such purchase and sale (and the corresponding assignment of all
   rights and obligations (except with respect to prior periods) hereunder)
   shall be effective on the later of (i) the receipt by the Affected Lender of
   an amount equal to the unpaid principal amount, accrued interest on, and
   other amounts due in respect of, its outstanding Loans, together with any
   other Obligations owing to it, (ii) the receipt by the Loan Agent of an
   Assignment and Assumption whereby the Substitute Institution shall agree to
   be bound by the terms hereof and (iii) without duplication, the payment in
   full to the Affected Lender in cash of all unreimbursed costs and expenses
   and indemnities accrued and unpaid through such effective date.

                  (c) If any Lender requests compensation under Section 2.10(c)
   or (e), 2.11 or 2.13, or if any Borrower is required to pay any additional
   amount to any Lender or any Governmental Authority for the account of any
   Lender pursuant to Section 2.13, then such Lender shall use reasonable
   efforts to designate a different lending office for funding or booking its
   Loans hereunder or to assign its rights and obligations hereunder to another
   of its offices, branches or Affiliates, if, in the judgment of such Lender,
   such designation or assignment (i) would eliminate or reduce amounts payable
   pursuant to Section 2.10(c) or (e), 2.11 or 2.13, as the case may be, in the
   future and (ii) would not subject such Lender to any material unreimbursed
   cost or expense and would not otherwise be disadvantageous to such Lender.

            SECTION 2.13 TAXES.

                  (a) Except as otherwise provided in Section 9.2 or as required
   by applicable law, any and all payments by the Borrowers under each Loan
   Document shall be made free and clear of and without deduction for any and
   all Taxes, excluding (i) in the case of each Lender, each Participant and the
   Loan Agent taxes measured by its net income, and franchise taxes (imposed in
   lieu of net income taxes) imposed on it, by the jurisdiction under the laws
   of which such Lender, such Participant or the Loan Agent (as the case may be)
   is organized or is otherwise treated as doing business (other than a
   jurisdiction in which such Person is treated as doing business as a result of
   its execution and delivery of any Loan Document or its exercise of its rights
   or performance of its obligations or the receipt of income thereunder), (ii)
   in the case of each Lender and each Participant, taxes measured by its net
   income, and franchise taxes (imposed in lieu of net income taxes) imposed on
   it, by the jurisdiction in which such Lender's Lending Office is located or
   in which such Participant booked its participation for tax accounting
   purposes, (iii) in the case of each Lender, each Participant, and the Loan
   Agent, Taxes imposed as a result of such Person or the Loan Agent failing to
   comply with its obligations under Section 2.13(g), (iv) in the case of each
   Lender, each Participant, and the Loan Agent, as the case may be, United
   States federal withholding taxes except to the extent imposed as a result of
   a change in applicable law, including income tax conventions, after the
   Closing Date or, with respect to an assignment, acquisition, participation,
   designation of a different office or jurisdiction for purposes of receiving
   or paying amounts hereunder, or the appointment of a Loan Agent, the
   effective date thereof, except (x) to the extent that such Person's
   predecessor was entitled to such amounts (or in the case of a designation of
   a new jurisdiction, to the extent such Person was entitled to such

<PAGE>

   amounts with respect to its prior jurisdiction) or (y) in the case of an
   assignment or change of lending office pursuant to Section 2.13(g), and (v)
   Taxes to the extent imposed as a result of the gross negligence or willful
   misconduct of the Loan Agent, such Lender or any of their Affiliates (all
   such non-excluded Taxes being referred to as "Indemnified Taxes" and all
   Taxes listed in clauses (i) through (v) of this clause (a) being referred to
   as "Excluded Taxes"). If any Indemnified Taxes shall be required by law to be
   deducted from or in respect of any sum payable under any Loan Document to any
   Lender or the Loan Agent (i) the sum payable shall be increased as may be
   necessary so that after making all required deductions (including deductions
   applicable to additional sums payable under this Section 2.13) such Lender,
   or the Loan Agent (as the case may be) receives an amount equal to the sum it
   would have received had no such deductions been made, (ii) the Borrowers
   shall make such deductions, and (iii) the Borrowers shall pay the full amount
   deducted to the relevant taxing authority or other authority in accordance
   with applicable law.

                  (b) In addition, the Borrowers agree to pay any present or
   future stamp or documentary taxes or any other excise or property taxes,
   charges or similar levies of the United States or any political subdivision
   thereof or any applicable foreign jurisdiction, and all liabilities with
   respect thereto, which arise from any payment made under any Loan Document or
   from the execution, delivery or registration of, or otherwise with respect
   to, any Loan Document excluding, in each case, such amounts that result from
   an assignment, grant of a participation, transfer or designation of a new
   Lending Office or other office for receiving payments under any Loan Document
   unless (x) the same takes place in connection with an Event of Default (so
   long as such Event of Default is continuing) or at Borrower's written request
   (collectively, "Other Taxes") to the Loan Agent for the account of the
   affected party or (y) in the case of an assignment or change of lending
   office pursuant to Section 2.13(g).

                  (c) The Borrowers will indemnify each Lender and the Loan
   Agent for the full amount of Indemnified Taxes or Other Taxes, without
   duplication, (including any Taxes imposed by any jurisdiction on amounts
   payable under this Section 2.13) paid by such Lender or the Loan Agent (as
   the case may be) and any liability (including for penalties, interest and
   expenses) arising therefrom or with respect thereto. This indemnification
   shall be made to the Loan Agent for account of the relevant Lender or the
   Loan Agent, as the case may be, within 30 days from the date such Lender or
   the Loan Agent (as the case may be) makes written demand therefor (with a
   copy to the Loan Agent if made by a Lender, and accompanied by a statement
   setting forth the basis for such taxation and the calculation of the amount
   thereof in reasonable detail).

                  (d) Within 30 days after the date of any payment of
   Indemnified Taxes or Other Taxes, the Borrowers will furnish to the Loan
   Agent the original or a certified copy of a receipt evidencing payment
   thereof or other documentation reasonably satisfactory to the Loan Agent.

<PAGE>

                  (e) Without prejudice to the survival of any other agreement
   of the Borrowers hereunder, the agreements and obligations of the parties
   contained in this Section 2.13 shall survive the payment in full of the
   Obligations.

                  (f) Each Lender, each Participant and the Loan Agent shall, on
   or prior to the Closing Date or on or prior to the date of the Assignment and
   Assumption pursuant to which it becomes a Lender or on or prior to the date
   such Person becomes a Participant or the Loan Agent, as applicable, and from
   time to time thereafter if reasonably requested by the Loan Agent or the
   Borrowers, provide the Loan Agent and the Borrowers, with two completed
   copies of IRS Form W-8BEN, W-8ECI, W-8IMY, W-9 and/or other applicable forms,
   certificates and documents prescribed by the IRS with respect to United
   States withholding and/or backup withholding tax with respect to all payments
   to be made to such Person under the Loan Documents. In addition, each Lender,
   each Participant and the Loan Agent, as the case may be, shall deliver to the
   Borrowers and the Loan Agent, notice of any event (other than a change in
   applicable law, including income tax conventions) requiring a change in the
   most recent form certificates and/or documents previously delivered by such
   Person to the Borrowers and the Loan Agent and any additional, updated or
   changed forms, certificates or documents. Unless the Loan Agent and the
   Borrowers have received forms, certificates, and/or other documents
   reasonably satisfactory to them indicating that payments under the Loan
   Documents to or for a Non-U.S. Person are not subject to United States
   withholding tax or are subject to such tax at a rate reduced by an applicable
   tax treaty, the Loan Agent or the Borrowers shall, notwithstanding the
   provisions of Section 2.13(a), (b) and (d) and without impairing any
   obligation of the Borrowers under this Section 2.13 with respect to such tax,
   withhold such United States withholding taxes from such payments at the
   appropriate rate.

                  (g) Any Lender claiming any additional amounts payable
   pursuant to this Section 2.13 shall use its reasonable efforts (consistent
   with its internal policy and legal and regulatory restrictions) to change the
   jurisdiction of its Lending Office if the making of such a change would avoid
   the need for, or reduce the amount of, any such additional amounts which
   would be payable or may thereafter accrue and would not, in the sole
   determination of such Lender, be otherwise disadvantageous to such Lender.

                  (h) If the Borrower or Guarantor pays any amount under this
   Section 2.13 to a Lender, Participant or the Loan Agent (each, a "Tax
   Indemnitee") and such Tax Indemnitee determines in its sole discretion that
   it has actually realized in connection therewith a net cash benefit
   (including a net cash benefit which the relevant taxing authority applies to
   satisfy any liability of such Tax Indemnitee for Taxes) due to any refund or
   any reduction of, or credit against, its liabilities for Taxes in any taxable
   year, provided that no Event of Default shall have occurred and be
   continuing, such Tax Indemnitee shall, to the extent it can do so without
   prejudice to the retention of such benefit, pay to the Borrower or Guarantor
   (as the case may be) an amount that the Tax Indemnitee shall, in its sole
   discretion, determine (subject to confirmation as provided below) is equal to
   such net cash benefit which was obtained

<PAGE>

   by Tax Indemnitee in such year as a consequence of such refund, reduction or
   credit realized in connection with the payment of such amount. A Tax
   Indemnitee shall, upon written request from the Borrower, provide to the
   Borrower a letter from independent accountants selected by the Tax Indemnitee
   and reasonably acceptable to the Borrower confirming the accuracy of the
   Lender's calculations of the amount of any net benefit determined by the Tax
   Indemnitee pursuant to the preceding sentence, provided that the
   interpretation of this Agreement or any other Loan Document shall not be
   within the scope of the accountants' confirmation. Nothing contained in this
   Section 2.13(h) shall be construed as requiring any Tax Indemnitee to conduct
   its business or arrange or alter in any respect its Tax or financial affairs
   so that it is entitled to receive a refund, reduction or credit or shall
   require any Tax Indemnitee to provide to the Borrower or its agents copies of
   any Tax returns or other information with respect to the income, assets or
   operations attesting to such Tax Indemnitee's determination. The Borrower
   shall reimburse such Tax Indemnitee for all costs and expenses incurred by
   such Tax Indemnitee in obtaining such accountants' letter, provided that the
   accountants' letter confirms, in all material respects, such Tax Indemnitee's
   determination.

                  (i) Borrower shall have no obligation to pay, or indemnify any
   Tax Indemnitee for, any amount under this Section 2.13 or for any United
   States federal income tax or withholding tax which was required by law to be
   deducted or withheld by the Borrower or the Loan Agent from any payment to or
   for the benefit of such Tax Indemnitee but which was not deducted or withheld
   due to the Borrower's or the Loan Agent's reasonable reliance the withholding
   forms, certificates and/or documents theretofore delivered by such Tax
   Indemnitee or the Loan Agent pursuant to Section 2.13(f) if such form,
   certificate and/or document was inaccurate in any material respect when
   delivered by such Tax Indemnitee and/or the Loan Agent and such Tax
   Indemnitee or the Loan Agent had Actual Knowledge of such inaccuracy at the
   time such Tax Indemnitee or the Loan Agent delivered such form.

                  (j) If a Tax Indemnitee receives a written claim from any
   taxing authority for any Tax for which the Borrower is liable pursuant to
   Section 2.13 (a "Tax Claim"), such Tax Indemnitee shall promptly notify the
   Borrower in writing. If requested by the Borrower in writing within 30 days
   after receipt of such Tax Indemnitee's written notice (provided that if a
   response to such Tax Claim is due less than 40 days after the Borrower's
   receipt of such Tax Indemnitee's notice, the Borrower's request must be made
   within 15 days or, if longer, the period ending not later than the 10th day
   before the day on which the response to such Tax Claim is due), such Tax
   Indemnitee shall in good faith contest or, at such Tax Indemnitee's election,
   permit the Borrower to contest (unless such contest involves Taxes not
   indemnified or paid by the Borrower or Guarantor or, in such Tax Indemnitee's
   reasonable, good faith judgment, permitting the Borrower to contest may have
   a material adverse effect on such Tax Indemnitee), in each case in accordance
   with and to the extent permitted by applicable law and at the Borrower's
   expense, such Tax Claim, provided that no Tax Indemnitee shall have any
   obligation to commence or continue the contest of any

<PAGE>

   such Tax Claim unless the following conditions are satisfied at the time the
   contest is to be commenced and at all times during the contest:

                        (i) no Event of Default shall have occurred and be
      continuing,

                        (ii) contesting such Tax Claim would not result in (A)
      any risk of sale, forfeiture, confiscation, seizure or loss of, or the
      imposition of a Lien (other than a Lien for the Tax that is the subject of
      such contest provided that enforcement of such Lien is stayed until the
      final determination of such contest and the Borrower maintains adequate
      reserves with respect to such Lien) or (B) any risk of imposition of
      criminal liability,

                        (iii) the aggregate amount of the Taxes that are to be
      contested exceeds Twenty-Five Thousand Dollars ($25,000),

                        (iv) such Tax Indemnitee shall have received a written
      confirmation of the Borrower that the Taxes that are the subject of such
      Tax Claim are Tax for which the Borrower is liable pursuant to Section
      2.13, provided that the Borrower shall not be bound by such confirmation
      to the extent that the final determination of the contest articulates
      conclusions of law and fact that clearly demonstrate that the Taxes that
      are the subject of such Tax Claim are not Taxes for which the Borrower is
      liable pursuant to Section 2.13,

                        (v) the Borrower, upon the written request of such Tax
      Indemnitee, shall have provided such Tax Indemnitee, at the expense of the
      Borrower, with an opinion of counsel selected by such Tax Indemnitee and
      reasonably acceptable to the Borrower to the effect that there is a
      substantial basis in law and fact to contest such Tax Claim and a
      realistic expectation that a contest of such Tax Claim would be
      successful,

                        (vi) if such Tax Indemnitee decides to contest such Tax
      Claim by paying the Taxes that are the subject of such Tax Claim and
      taking action to obtain a refund thereof, the Borrower shall have made an
      interest-free advance to such Tax Indemnitee in an amount equal to the
      amount of those Taxes and shall have delivered to such Tax Indemnitee a
      written undertaking to indemnify such Tax Indemnitee and its Affiliates on
      an after-tax basis for any adverse Tax consequences (taking into account
      all relevant Tax benefits and Tax detriments) to such Tax Indemnitee or
      any of its Affiliates resulting from such interest-free advance, and

                        (vii) the Borrower shall be paying, on demand and on an
      after-tax basis, all reasonable costs and expenses incurred by such Tax
      Indemnitee or the Loan Agent with the conduct of such contest
<PAGE>

      (including, without limitation, reasonable attorneys' and accountants'
      fees and disbursements).

                  (k) Subject to Section 9.2(c)(2), a Participant will be
   entitled to the benefits and subject to the requirements of this Section
   2.13 to the same extent as if such Person were a Lender.

            SECTION 2.14 PRO RATA TREATMENT AND PAYMENTS. Each Borrowing by
either Borrower from the Lenders hereunder, and each payment by either Borrower
on account of any reduction of the Commitments of the Lenders shall be made pro
rata according to the respective Commitments of the relevant Lenders. Each
payment (including each prepayment) by either Borrower on account of principal
of and interest on or other amounts in respect of the Loans shall be made pro
rata according to the respective outstanding principal amounts of the Loans then
held by the Lenders (except as otherwise provided in Section 2.10, 2.11, 2.13 or
9.4).

                                  ARTICLE III

                    CONDITIONS TO CLOSING AND FUTURE FUNDINGS

            SECTION 3.1 CONDITIONS PRECEDENT. The effectiveness of this
Agreement and the several obligations of the Lenders to make the Loans requested
to be made on each Funding Date are subject to the satisfaction or waiver of all
of the following conditions precedent on or before such Funding Date:

                  (a) Certain Documents. On or before the first Funding Date,
   the Loan Agent and the Initial Lender shall have received each of the
   following, each dated appropriately:

                        (i) this Agreement, duly executed and delivered by the
      parties hereto;

                        (ii) the Notes duly executed by the Borrowers and
      conforming to the requirements set forth in Section 2.4(d) hereof;

                        (iii) the documents described in clauses (i), (ii), and
      (iii) of the definition of "Collateral Documents", duly executed and
      delivered by the parties thereto;

                        (iv) the favorable opinions of (A) Skadden, Arps, Slate,
      Meagher & Flom LLP, counsel to America West, (B) Arnold & Porter, counsel
      to US Airways and the Guarantor, (C) General Counsel of America West in
      form and substance satisfactory to the Loan Agent and each Lender and (D)
      General Counsel of US Airways and the Guarantor;

                        (v) a copy of the articles or certificate of
      incorporation of each of the Borrowers and the Guarantor, certified as of
      a recent date by the Secretary of State of the state of organization of
      such

<PAGE>

      Person, together with a "long-form" certificate of such official attesting
      to the good standing of such Person;

                        (vi) a certificate of each of the Borrowers and the
      Guarantor signed on behalf of such Person by its Secretary or an Assistant
      Secretary certifying (A) the names and true signatures of each officer of
      such Person who has been authorized to execute and deliver each Loan
      Document required to be executed and delivered by or on behalf of such
      Person hereunder or thereunder, (B) the by-laws of such Person as in
      effect on the date of such certification, (C) the resolutions of such
      Person's board of directors approving and authorizing the execution,
      delivery and performance of each Loan Document to which it is a party and
      (D) that there have been no changes in the certificate of incorporation of
      such Person from the certificate of incorporation delivered pursuant to
      the immediately preceding clause;

                        (vii) a certificate of each of the Borrowers and the
      Guarantor, signed by its duly authorized officer, certifying (i) that all
      representations and warranties of such Person contained in Article IV
      hereof are true and correct in all material respects on and as of the
      Closing Date, before and after giving effect to any Borrowing to be made
      on such date and to the application of the proceeds therefrom, and (ii)
      that no Default or Event of Default has occurred and is continuing, or
      would result from any Borrowing to be made on such date and the
      application of the proceeds therefrom; and

                        (viii) a copy of the ATSB Loan Agreements and of each
      counter-guarantee or guarantee delivered thereunder, all in form and
      substance satisfactory to the Loan Agent and each Lender.

                  (b) No Material Adverse Change. On each Funding Date, since
   the Effective Date, there shall have been no Material Adverse Change.

                  (c) Amendments; New Aircraft Transaction. Before the first
   Funding Date:

                        (i) the relevant security agreements for the
      Cross-Default Obligations shall have been amended in a manner reasonably
      satisfactory to the Loan Agent to provide for cross-collateralization to
      the Obligations;

                        (ii) the America West ATSB loan documents shall have
      been amended in a manner reasonably satisfactory to the Loan Agent to
      provide for the release of any prepayment obligation thereunder to the
      extent conflicting with any mandatory prepayment obligation of the
      Borrowers under Section 2.6;

<PAGE>

                        (iii) an intercreditor agreement (and any necessary
      amendments to the GECC loan and security agreements) consistent with the
      MOU and otherwise reasonably satisfactory to the Loan Agent shall have
      been entered into with GECC with respect to spare parts and any other
      Collateral held in common with GECC (and any necessary amendments to the
      GECC loan and security agreements);

                        (iv) each of the A319/A320/A321 Purchase Agreement and
      the A330/A340 Purchase Agreement shall have been amended as contemplated
      in the MOU and the other transactions provided for therein shall have been
      consummated as set forth therein and Guarantor shall have obtained
      Bankruptcy Court approval to assume by Final Order, and shall have
      assumed, the A319/A330/A321 Purchase Agreement and the A330/A340 Purchase
      Agreement, each, as so amended; all of the foregoing to the reasonable
      satisfaction of the Loan Agent;

                        (v) definitive documentation with respect to the new
      aircraft transaction for twenty (20) A350 aircraft shall have been entered
      into by all relevant parties, as contemplated in paragraph 4 of the MOU;

                        (vi) with respect to the Pass-Through Trust
      Certificates, Series 2001-1 transactions, all aircraft leases and other
      assumable agreements included therein or comprising such transactions
      shall have been assumed following Bankruptcy Court approval by Final
      Order, all to the satisfaction of the Loan Agent;

                        (vii) the Co-Branded Card and Merchant Services
      Agreement, dated May 20, 2003, as amended, between US Airways and Bank of
      America, shall have been assumed following Bankruptcy Court approval by
      Final Order;

                        (viii) all other assumable contracts of US Airways or
      its Affiliates which are Debtors with Airbus or its Affiliates shall have
      been assumed with Bankruptcy Court Approval by Final Order; and

                        (ix) the Loan Agent and the Initial Lender shall have
      received a certificate of each Borrower and the Guarantor signed by its
      duly authorized officer as to the assumptions of contracts referred to in
      the preceding clauses (iv), (vi), (vii) and (viii).

                  (d) Expenses Paid. On each Funding Date, the Obligors shall
   have paid all legal fees and expenses of the Loan Agent, the Initial Lender
   and the Collateral Agent due and payable on or before such Funding Date if
   the Borrowers are responsible therefor under Section 9.3 and have received
   reasonably detailed invoices therefor promptly following the relevant Notice
   of Borrowing.

<PAGE>

                  (e) Consents, Etc. On each Funding Date, the Borrowers and the
   Guarantor shall have received all consents and authorizations required to be
   received by them to be able to execute, deliver and perform, in all material
   respects, their obligations under the Loan Documents to which any of them is,
   or shall be, a party.

                  (f) No Illegality. On each Funding Date, no law or regulation
   shall be applicable that restrains, prevents or imposes materially adverse
   conditions upon the transactions contemplated hereby.

                  (g) Representations and Warranties of Obligors. On each
   Funding Date, all representations and warranties of each Borrower and of the
   Guarantor set forth in Article IV hereof shall be true and correct in all
   material respects on and as of such Funding Date, both before and after
   giving effect to any Borrowing to be made on such date and to the application
   of the proceeds therefrom as though made on and as of such date (except to
   the extent such representations and warranties by their terms expressly
   relate to an earlier date, in which case such representations and warranties
   shall have been true and correct in all material respects on and as of such
   earlier date).

                  (h) No Event of Default. On each Funding Date, no Event of
   Default or Default shall have occurred and be continuing, or would result
   from the Borrowing to be made on such date and the application of the
   proceeds therefrom.

                  (i) Corporate and Other Proceedings. On the first Funding
   Date, all corporate and other proceedings, and all documents, instruments and
   other legal matters in connection with the transactions contemplated hereby
   shall be satisfactory in form and substance to the Loan Agent.

                  (j) Chief Executive Officer. On the first Funding Date, W.
   Douglas Parker shall be the Chief Executive Officer of the Guarantor.

                  (k) Additional Investments. On the first Funding Date,
   Guarantor shall have received one or more unrestricted equity investments in
   an aggregate amount equal to not less than $375 million and a cash payment of
   not less than $125 million from one or more sources in addition to the
   liquidity amounts described in the Business Plan.

                  (l) Effective Date. On or before the first Funding Date, the
   Effective Date shall have occurred.

                  (m) Pro Forma Balance Sheet; Financial Statements. On the
   first Funding Date, the Lenders shall have received (i) the Pro Forma Balance
   Sheet and (ii) the financial statements referred to in Section 4.3(b).

                  (n) Lien Searches. On each Funding Date, the Loan Agent shall
   have received, if it desires, the results of a recent UCC lien search in each
   appropriate jurisdiction and FAA liens search, and in each case, such search
   shall

<PAGE>

   reveal no Liens on any material portion of the Collateral except in respect
   of Liens listed on Schedule 5.13 or otherwise permitted by Section 5.13.

                  (o) Filings, Registrations and Recordings. On each Funding
   Date, each document (including any Uniform Commercial Code financing
   statement) required by the Collateral Documents or under law or reasonably
   requested by the Loan Agent to be filed, registered or recorded in order to
   create in favor of the Loan Agent, for the benefit of the Lenders, a
   perfected Lien on the Collateral described therein, prior and superior in
   right to any other Person (other than with respect to Liens expressly
   permitted by Section 5.13), shall have been delivered to the Loan Agent in
   proper form for filing, registration or recordation.

                  (p) Plan of Reorganization; Confirmation Order; Effective Date
   of Merger. On the first Funding Date, the Confirmation Order confirming the
   Plan of Reorganization (i) shall have been provided to the Loan Agent and
   (ii) shall be in full force and effect and shall not have been reversed or
   modified and shall not be stayed or subject to a motion to stay, and the
   Confirmation Order shall have become a Final Order. The Plan Effective Date
   and the Effective Time (as defined in the Merger Agreement) shall have
   occurred. On the First Funding Date, the Loan Agent and the Initial Lender
   shall have received a certificate of each of the Borrowers and the Guarantor,
   signed by its duly authorized officer, certifying to the effect of the
   preceding sentence and clause (ii) of the second preceding sentence. All
   claims arising under or with respect to the A321 Airbus Financings and all
   claims arising under or with respect to the Pass-Through Trust Certificates,
   Series 2001-1 transactions shall have been allowed under the Plan and shall
   be unimpaired and reinstated thereunder, in form and substance reasonably
   acceptable to the Loan Agent.

                  (q) Concerning the Collateral.

                        (i) On each Funding Date, Collateral Agent shall have
      received (or shall hold from prior closings) a broker's report and current
      insurance certificate confirming the insurance coverages on the Collateral
      which are required by the terms of the Collateral Documents.

                        (ii) On the first Funding Date, Borrower shall have
      obtained from each Person with any interest in the real property and/or
      the improvements thereon at each Designated Location (whether as fee
      owner, landlord, tenant, ground lessor, mortgagee, leasehold mortgagee,
      beneficiary of deed of trust, beneficiary of leasehold deed of trust or
      otherwise), a waiver of any and all right or interest that such Person may
      otherwise have in the Pledged Spare Parts and such Person's consent, if
      applicable, to access by the Collateral Agent, and/or any Lender or any
      representative of any of them to the premises in connection with the
      exercise of any rights or remedies under or pursuant to the Spare Parts
      Mortgage and Security Agreement (in each case, in form and substance
      satisfactory to the Collateral Agent).

<PAGE>

                  (r) Concerning the ATSB Loan Agreements. On or before the
   First Funding Date, the warrant for the purchase of 386,925 shares of common
   stock of the Guarantor shall have been delivered to AFS Cayman Limited.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

            To induce the Loan Agent and the Lenders to enter into this
Agreement, each of the Obligors jointly and severally represents and warrants to
the Loan Agent and the Lenders, on and as of the Closing Date and on and as of
each date as required by Section 3.1, as provided below in Sections 4.1 through
4.13, that:

            SECTION 4.1 ORGANIZATION, POWERS, QUALIFICATION; AIR CARRIER
LICENSES, FRANCHISES AND PERMITS.

                  (a) Each Obligor is a corporation duly organized, validly
   existing and in good standing under the laws of the State of Delaware. As of
   the Closing Date, each Borrower is Wholly-Owned by the Guarantor. Each
   Obligor has all requisite corporate power and authority (i) to carry on its
   business as now conducted, and (ii) to enter into the Loan Documents to which
   it is a party and to carry out the transactions contemplated hereby and
   thereby.

                  (b) Each Obligor is qualified to do business and in good
   standing in every jurisdiction where its assets are located and wherever
   necessary to carry out its business and operations, except in jurisdictions
   where the failure to be so qualified or in good standing could reasonably be
   expected to result in a Material Adverse Effect.

                  (c) Each Borrower is an "air carrier" within the meaning of
   Title 49 and holds a certificate under Sections 41102 of Title 49.

                  (d) Each of the Borrower and any other Obligor engaged in
   operations as an "air carrier" is a "citizen of the United States" within the
   meaning of Section 40102(a)(15) of Title 49, as interpreted by the United
   States Department of Transportation (a "United States Citizen") and holds an
   air carrier operating certificate issued pursuant to Chapter 447 of Title 49
   for aircraft capable of carrying 10 or more individuals or 6,000 pounds or
   more of cargo. Each Obligor possesses all necessary certificates, franchises,
   licenses, permits, rights and concessions and consents which are material to
   the conduct of its business and operations as currently conducted (including
   in the case of each Obligor engaged in operations as an "air carrier", the
   operation of the routes flown by it), a true and complete list of which are
   set forth on Schedule 4.1(b) to the ATSB Loan Agreements.

                  (e) The Borrowers possess all necessary franchises, licenses,
   and permits necessary to authorize the Borrowers to lawfully engage in air
   transportation and to carry on scheduled commercial passenger service as
   currently

<PAGE>

   conducted, except where the failure to so hold any such franchise, license,
   or permit could not reasonably be expected to have a Material Adverse Effect.

            SECTION 4.2 AUTHORIZATION OF BORROWING, ETC.

                  (a) Each Obligor has duly authorized by all necessary
   corporate action the execution, delivery and performance of the Loan
   Documents to which it is a party. The execution, delivery and performance by
   each Obligor of the Loan Documents to which it is a party and the
   consummation of the transactions contemplated by the Loan Documents to which
   it is a party do not and will not (i) (A) violate any provision of any law or
   any governmental rule or regulation or order applicable to or binding on such
   Obligor, (B) violate any provision of the Certificate or Articles of
   Incorporation or Bylaws of such Obligor, (C) conflict with, result in a
   breach of or constitute (with due notice or lapse of time or both) a default
   under any Contractual Obligation of such Obligor or any of its Subsidiaries
   except to the extent of any such violation, conflict, breach, default, or
   imposition of Lien (of which no Obligor has Actual Knowledge) which could not
   reasonably be expected to have a Material Adverse Effect, or (D) result in or
   require the creation or imposition of any Lien on any of the Collateral
   (except as permitted in the applicable Collateral Document) or on any other
   property (except as permitted under Section 5.13 hereof), or (ii) require any
   approval of stockholders or any approval or consent of any Person under any
   Contractual Obligation of such Obligor or any of its Subsidiaries, except for
   such approvals or consents which will have been obtained on or before the
   Closing Date, except for any such approval or consent under a Contractual
   Obligation and the failure to obtain which could not reasonably be expected
   to result in a Material Adverse Effect.

                  (b) The execution, delivery and performance by each Obligor of
   the Loan Documents to which it is a party and the consummation of the
   transactions contemplated by the Loan Documents to which it is a party and
   the use of the proceeds of the Loans do not and will not require any
   registration with, consent or approval of, or notice to, or other action to,
   with or by, any federal, state or other Governmental Authority or regulatory
   body or any other Person which is required to be obtained or made on or prior
   to the Closing Date and which has not previously been obtained or made.

                  (c) Each Obligor has duly executed and delivered each of the
   Loan Documents to which it is party and each such Loan Document is the
   legally valid and binding obligation of such Obligor, enforceable against
   such Obligor in accordance with its respective terms, except as may be
   limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
   transfer or other similar laws relating to or affecting the enforcement of
   creditors' rights generally, including materiality, reasonableness, good
   faith and fair dealing, and by general principles of equity (regardless of
   whether considered in a proceeding in equity or at law).

<PAGE>

                  (d) No part of the proceeds of the Loans will be used,
   directly or indirectly, for any purpose that entails a violation of
   Regulations U or X of the Federal Reserve Board.

            SECTION 4.3 FINANCIAL CONDITION. Each Obligor has heretofore
delivered to the Lenders the following financial statements and information:

                  (a) The unaudited pro forma consolidated balance sheet of the
   Guarantor and its consolidated Subsidiaries for the Fiscal Years 2005 through
   2008 (including the notes thereto) (the "Pro Forma Balance Sheet"), which has
   been prepared giving effect (as if such events had occurred on such date) to
   (i) the occurrence of the Effective Time (as defined in the Merger
   Agreement), (ii) the Loans to be made on the Closing Date and the use of
   proceeds thereof and (iii) the payment of fees and expenses in connection
   with the foregoing. The Pro Forma Balance Sheet was prepared in good faith
   based upon assumptions believed to be reasonable at the time made, assuming
   that the events specified in the preceding sentence had actually occurred at
   such date.

                  (b) (i) The audited consolidated balance sheets of US Airways
   and Guarantor as at December 31, 2004 and the related consolidated statements
   of income, stockholders' equity and cash flows of US Airways and Guarantor
   for the Fiscal Year then ended, (ii) the unaudited consolidated balance
   sheets of US Airways and Guarantor as at June 30, 2005 and the related
   unaudited consolidated statements of income, stockholders' equity and cash
   flows of US Airways and Guarantor for the six months then ended, and (iii)
   audited consolidated balance sheets of AWA Holdings and America West as at
   December 31, 2004, and the related consolidated statements of income,
   stockholders' equity and cash flows of AWA Holdings and America West for the
   Fiscal Year then ended, and (iv) the unaudited consolidated balance sheets of
   AWA Holdings and America West as at June 30, 2005 and the related unaudited
   consolidated statements of income, stockholders' equity and cash flows of AWA
   Holdings and America West for the six months then ended. All such
   consolidated statements were prepared in conformity with GAAP and fairly
   present the consolidated financial position of the applicable Obligor as at
   the respective dates thereof and the consolidated results of operations and
   cash flows of such Obligor for each of the periods then ended subject, in the
   case of the unaudited consolidated statements, to year-end audit and
   adjustments. Except as disclosed in writing to the Loan Agent prior to the
   date of this Agreement, neither Obligor has any contingent liability or
   liability for taxes, long-term lease or unusual forward or long-term
   commitment (A) that is not reflected in the foregoing consolidated financial
   statements (or, in the case of the Borrowers, in the most recently delivered
   consolidated financial statements delivered pursuant to Section 5.1) or the
   notes thereto and (B) which in any such case would result in a Material
   Adverse Effect.

                  (c) After giving effect to the Consummation of the Plan, (i)
   the Obligors taken as a whole are or were Solvent on the First Funding Date
   after giving effect to the Borrowings on such date, and (ii) no Obligor has
   any material liability,

<PAGE>

   including reasonably likely contingent liability or liability for taxes,
   long-term lease or any unusual forward or long-term commitment of a type
   required to be reflected in financial statements prepared in conformity with
   GAAP, that is not taken into account in the preparation of the annual report
   on Form 10-K for the fiscal year ended December 31, 2004 of such Reporting
   Obligor.

            SECTION 4.4 NO MATERIAL ADVERSE EFFECT. Since the Effective Date
there has not been a Material Adverse Change.

            SECTION 4.5 TITLE TO PROPERTIES; LIENS. Each Obligor and its
Subsidiaries have (i) good, sufficient and legal title to (in the case of fee
interests in real property), (ii) valid leasehold interests in (in the case of
leasehold interests in real or personal property), or (iii) good title to (in
the case of all other personal property), all of the properties and assets
reflected in the financial statements referred to in Section 4.3 or, in the most
recent financial statements delivered pursuant to Section 5.1, in each case
except for assets disposed of since the date of such financial statements in the
ordinary course of business or as otherwise permitted under Section 6.5. Except
as otherwise permitted by this Agreement, all such properties and assets are
free and clear of Liens.

            SECTION 4.6 LITIGATION; ADVERSE FACTS. Except as set forth in either
Borrowers' or Guarantors Annual Reports on Form 10-K for 2004, as amended
through the Closing Date, or in any Quarterly Report on Form 10-Q or Current
Report on Form 8-K filed by such Borrower or Guarantor with the SEC subsequent
to such Form 10-K (in each case, as amended through the Closing Date) and except
as disclosed in other publicly available filings of either of the Borrowers or
the Guarantor with the SEC or as disclosed in any publicly available filing with
the Bankruptcy Court in the Cases, there are no actions, suits, proceedings,
arbitrations or governmental investigations (whether or not purportedly on
behalf of any Obligor or any of its Subsidiaries) at law or in equity or before
or by any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign,
pending or, to the knowledge of the Obligors, threatened against any Obligor or
any of its Subsidiaries or any property of any Obligor or any of its
Subsidiaries that, if adversely determined, would have a Material Adverse Effect
or seeks to restrain or enjoin any Obligor from entering into or performing
under any Loan Document.

            SECTION 4.7 TAX RETURNS. Each Obligor and each of their respective
Subsidiaries have timely filed all Federal income tax returns and all other
material tax returns that are required to be filed by them (or extensions have
been obtained with respect thereto) and have paid all material Taxes shown to be
due pursuant to such returns or pursuant to any assessment received by such
Person, other than (i) any such assessment being contested in good faith through
appropriate proceedings and with respect to which an adequate reserve has been
established by the Obligors or their Subsidiaries to the extent required by GAAP
and (ii) that the Debtors' obligations to pay taxes that relate to a tax period
(or portion thereof) ending on or before the commencement of the Cases and which
first became due and payable after the time of the commencement of the Cases,
have been stayed or enjoined pursuant to the Plan of Reorganization, the
Confirmation Order or the Bankruptcy Code, it being understood that

<PAGE>

the exception in clause (ii) above does not affect the Debtors' representation
that they have made adequate provision for such Taxes.

            SECTION 4.8 NO DEFAULT OR EVENT OF DEFAULT. No Default or Event of
Default has occurred and is continuing.

            SECTION 4.9 GOVERNMENTAL REGULATION. None of the Obligors is (i) an
"investment company" as defined in, or subject to regulation under, the
Investment Company Act of 1940, or (ii) a "holding company" as defined in, or
subject to regulation under, the Public Utility Holding Company Act of 1935.

            SECTION 4.10 EMPLOYEE BENEFIT PLANS. Within the last 6 years, each
Plan maintained, contributed to, or required to be contributed to by the
Borrowers or an ERISA Affiliate is in compliance in all material respects with
all applicable laws. Neither the Borrowers nor any ERISA Affiliate have incurred
any liability under Title IV of ERISA within the last 6 years which remains
unsatisfied nor, to the best of their knowledge, do the Borrowers reasonably
expect to incur any liability which under Title IV of ERISA, in either event,
could reasonably be expected to have a Material Adverse Effect.

            SECTION 4.11 COMPLIANCE WITH LAWS. Each Obligor and each of its
Subsidiaries is in compliance with all laws, statutes, rules, regulations and
orders binding on or applicable to such Obligor, its Subsidiaries and all of
their respective properties, except to the extent failure to so comply could not
reasonably be expected to have a Material Adverse Effect.

            SECTION 4.12 SECURITY DOCUMENTS. Each of the Borrowers has good
title to the Collateral free and clear of Liens other than Liens permitted by
the applicable Collateral Document. No Person holds any right or interest in any
of the Pledged Spare Parts under the Spare Parts Security Agreement by virtue of
any interest that such person may have in real property or improvements at any
of the Designated Locations (as defined therein). The Collateral Documents are
effective to create in favor of the Collateral Agent, for the benefit of the
Lenders, a legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof. When appropriate financing statements,
filings and recordings with the FAA, and other filings and recordings specified
on Schedule 4.11, in appropriate form are filed in the offices specified on
Schedule 4.11, the Collateral Documents shall constitute a fully perfected Lien
on, and security interest in, all right, title and interest of the Borrowers in
such Collateral and the proceeds thereof, as security for the Obligations and
the Cross-Default Obligations, in each case prior and superior in right to any
other Person (except Liens permitted by the applicable Collateral Document, none
of which are of record except for the Liens of the Senior Mortgages).

            SECTION 4.13 CONCERNING THE COLLATERAL.

                  (a) Section 1110. The Collateral Agent is entitled to the
   benefits of Section 1110 of the Bankruptcy Code with respect to the Specified

<PAGE>

   Engines as provided in the Engine Mortgage and Security Agreement and to not
   less than the Minimum 1110 Percentage (determined on the basis of Appraisal
   Value as of the Closing Date) of the Rotables included within the Pledged
   Spare Parts as provided in the Spare Parts Security Agreement in the event of
   a case under Chapter 11 of the Bankruptcy Code in which a Borrower is a
   debtor. Defined terms in this paragraph not otherwise defined herein shall
   have the respective meanings specified in the Spare Parts Security Agreement.

                  (b) Condition. All Pledged Spare Parts are in the condition
   and state of repair required under the FAA-approved maintenance program of
   the applicable Borrower relating to such Pledged Spare Parts, and no
   appliances, parts, interests, appurtenances, accessories or other equipment
   of whatever nature which are incorporated or installed in or attached to such
   Pledged Spare Parts are leased by the Borrower. Each Pledged Engine is in the
   condition and state of repair required under the FAA-approved maintenance
   program of Borrower relating to such Engine, and no appliances, parts,
   interests, appurtenances, accessories or other equipment of whatever nature
   which are incorporated or installed in or attached to any Pledged Engine are
   leased by the Borrower.

                  (c) Location, Identification and Release of Pledged Spare
   Parts. All of the Pledged Spare Parts are or will (upon becoming subject to
   the Lien of the Mortgage) be maintained by or on behalf of the Borrower at
   the Designated Locations, subject to Section 3.02 of the Spare Parts Mortgage
   and Security Agreement.

                  (d) Software. (i) Each Borrower owns the Software currently
   used by such Borrower to track the location, use and maintenance status of
   its spare parts, including the source code and user interfaces associated
   therewith, free and clear of any Liens other than Liens permitted under the
   Spare Parts Security Agreement, (ii) such Borrower pays no license fees in
   respect of such Software to any Person, (iii) no approval or consent by any
   Person is required in respect of such Borrower's right to use such Software
   or in order to recognize or give effect to the rights granted in the Spare
   Parts Mortgage and Security Agreement by the Borrower to the Collateral Agent
   in respect of such Software in the Spare Parts Mortgage and Security
   Agreement, and (iv) no Person has any contractual right, whether contingent
   or otherwise, to terminate such Borrower's right to use such Software.

                  (e) Records. America West shall maintain its records with
   respect to Pledged Spare Parts at Sky Harbor Airport in Phoenix, Arizona, or
   at an applicable Designated Location.

                  (f) Spare Parts. It is the intention of the parties to this
   Agreement that all Pledged Spare Parts be "spare parts" as defined in Section
   40102(a)(38) of Title 49 of the United States Code. Each Borrower represents
   that it maintains the Pledged Spare Parts for the purpose of installing the
   Spare Parts on aircraft, aircraft engines or appliances as defined in
   Sections 40102(a)(6), (7) and (11) of the United States Code.

<PAGE>

                  (g) No Event of Loss. To the Borrowers' knowledge, on the
   First Funding Date, no Event of Loss has occurred with respect to any Pledged
   Engine, or A321 Aircraft subject to an A321 Airbus Financing, and no
   circumstance, condition, act or event has then occurred that, with the giving
   of notice or lapse of time or both gives rise to or constitutes an Event of
   Loss with respect to any Pledged Engine, unless arrangements satisfactory to
   the Loan Agent have been made for the Loan Agent to receive, out of Net
   Insurance Proceeds or otherwise, the prepayment envisioned under Section
   3.04(a) of the Engine Mortgage and Security Agreement for Pledged Engines
   which have suffered an Event of Loss. On each subsequent Funding Date, No
   Event of Loss has occurred with respect to any Pledged Engine, or A321
   Aircraft subject to an A321 Airbus Financing, with respect to which any
   Obligor or any of its Subsidiaries has not complied in all material respects
   with its applicable obligations under the Collateral Documents and the
   documents related to the A321 Airbus Financings; and no circumstance,
   condition, act or event has occurred that, with the giving of notice or lapse
   of time or both gives rise to or constitutes an Event of Loss with respect to
   any Pledged Engine, of which the Loan Agent has not been notified by the
   Borrowers.

            SECTION 4.14 REPRESENTATIONS AND WARRANTIES OF THE COLLATERAL AGENT.
The Collateral Agent represents and warrants to the other parties hereto, in its
individual capacity, on and as of the Closing Date and on each date as required
by Section 3.1, that:

                  (a) Powers and Authorizations. It is a national banking
   association duly organized and validly existing in good standing under the
   laws of the United States and has full power and authority, in its individual
   capacity, to execute and deliver this Agreement and the Collateral Documents
   to which it is a party and (assuming the due authorization, execution and
   delivery of this Agreement by the other parties hereto) perform its
   obligations thereunder. The execution, delivery and performance by the
   Collateral Agent of the Loan Documents to which it is or will be a party have
   been duly authorized by all necessary action on its part and do not
   contravene the Charter or By-laws of the Collateral Agent; and the Loan
   Documents to which the Collateral Agent is or will be a party have been duly
   authorized, executed and delivered by the Collateral Agent and constitute the
   legal, valid and binding obligations, enforceable against it in accordance
   with its terms. This Agreement and the other Loan Documents to which the
   Collateral Agent is or will be a party, upon the due execution and delivery
   hereof, will constitute the legal, valid and binding obligations of the
   Collateral Agent in its individual capacity, and the performance by the
   Collateral Agent (in its individual or trust capacity, as the case may be) of
   any of its obligations hereunder and thereunder does not contravene any
   federal law or regulation or contractual restriction binding on or governing
   the banking or trust powers of the Collateral Agent (in its individual or
   trust capacity, as the case may be);

                  (b) Litigation. There are no pending (or, to the Collateral
   Agent's knowledge, threatened) actions, suits, investigations or proceedings
   against or affecting it before any court, arbitrator, or administrative or
   governmental body

<PAGE>

   which, individually or in the aggregate, if decided adversely to the
   interests of the Collateral Agent would materially and adversely affect the
   ability of the Collateral Agent, either in its individual capacity or as
   Collateral Agent, as the case may be, to perform its obligations under this
   Agreement or any other Loan Document or which questions or would affect the
   legality or validity of this Agreement or such Loan Document;

                  (c) No Legal Bar. Neither the execution and delivery by the
   Collateral Agent of this Agreement or any other Loan Document nor the
   consummation by the Collateral Agent of any of the transactions contemplated
   hereby or thereby requires or will require the consent or approval of or the
   giving of notice to, the registration with, or the taking of any other action
   in respect of, any federal governmental authority or agency governing its
   banking or trust powers.

                                   ARTICLE V

                                    COVENANTS

            To induce the other parties to enter into this Agreement, each of
the Obligors jointly and severally agrees with the Loan Agent and each Lender
that, as long as any of the Obligations remain outstanding:

            SECTION 5.1 FINANCIAL STATEMENTS AND OTHER INFORMATION. The Obligors
will maintain, and cause each of their respective Subsidiaries to maintain, a
system of accounting established and administered in accordance with sound
business practices to permit preparation of financial statements in conformity
with GAAP. The Obligors will deliver to the Loan Agent:

                  (a) Financial Statements.

                        (i) Quarterly Financials: within 60 days after the end
      of each fiscal quarter of each Fiscal Year (other than the last quarter of
      each Fiscal Year), (a) the unaudited consolidated balance sheets of each
      of the Obligors as at the end of such fiscal quarter and the related
      consolidated statements of income and stockholders' equity of each such
      company for such fiscal quarter and consolidated cash flows of each such
      company for the period from the beginning of then current Fiscal Year to
      the end of such fiscal quarter, all such financial statements to be in the
      form prepared for the management of the Borrowers and certified by the
      chief financial officer, controller or treasurer of such company being
      fairly stated in all material respects (subject to normal year-end audit
      adjustments); provided that delivery of such company's Form 10-Q for such
      fiscal quarter shall be deemed to satisfy all of the requirements of this
      Section 5.1(a)(i) and in lieu of actual delivery of such Form 10-Q, the
      Borrowers may notify the Loan Agent that such report has been filed with
      the SEC and that such report is publicly available; and

<PAGE>

                        (ii) Year-End Financials: within 105 days after the end
      of each Fiscal Year, (a) the consolidated balance sheets of each of the
      Obligors at the end of such Fiscal Year and the related consolidated
      statements of income, stockholders' equity and cash flows of such company
      for such Fiscal Year, setting forth in each case in comparative form the
      corresponding figures for the previous Fiscal Year, all in reasonable
      detail, and (b) an accountant's report thereon of KPMG LLP or other
      independent certified public accountants of recognized national standing
      selected by such company, which report shall state that such consolidated
      financial statements fairly present the consolidated financial position of
      such company as at the dates indicated and the results of their operations
      and their cash flows for the periods indicated in conformity with GAAP
      applied on a basis consistent with prior years and that the examination by
      such accountants in connection with such consolidated financial statements
      has been made in accordance with generally accepted auditing standards;
      provided that delivery of such company's Form 10-K for such Fiscal Year
      shall be deemed to satisfy all of the requirements of this Section
      5.1(a)(ii) and in lieu of actual delivery of such Form 10-K, the Borrowers
      may notify the Loan Agent that such report has been filed with the SEC and
      that such report is publicly available.

                  (b) Officer's Certificate: together with each delivery of
   financial statements of the Obligors pursuant to Section 5.1(a) (or SEC
   reports in lieu thereof), an Officer's Certificate of each of the Obligors
   stating whether the signer has Actual Knowledge of the existence as at the
   date of such Officer's Certificate of any Event of Default or Default, and,
   if so, specifying the nature and period of existence thereof and what action
   the Obligors have taken, are taking and proposes to take with respect
   thereto; and

                  (c) Certain Notices. The Obligors will:

                        (i) promptly notify the Loan Agent, the Collateral Agent
      and each Lender, upon a Responsible Officer of any Obligor obtaining
      Actual Knowledge of the occurrence of an event of loss or damage to any
      equipment owned or operated by either Borrower that is reasonably expected
      to result in receipt of insurance proceeds to be received by a Borrower
      which are expected to result in a prepayment under Section 2.6;

                        (ii) prior to either Borrower consummating any Asset
      Sale expected to result in a prepayment under Section 2.6; and

                        (iii) promptly notify the Loan Agent of any proposed
      amendment, waiver or consent with respect to an ATSB Loan Agreement or the
      GECC spare parts financing facility of either Borrower, with details of
      any such amendment, waiver or consent.

<PAGE>

                  (d) Plan Audits and Liabilities: promptly after (A) an Obligor
   or any ERISA Affiliate contacts the IRS or the PBGC for the purpose of
   participating in a closing agreement or any voluntary resolution program with
   respect to a Plan or Multiemployer Plan which could reasonably be expected to
   have a Material Adverse Effect, or (B) a Responsible Officer knows or has
   reason to know that any event with respect to any Plan or Multiemployer Plan
   occurred that could reasonably be expected to have a Material Adverse Effect,
   notice of such contact or the occurrence of such event;

                  (e) Funding Changes and New Plan Benefits: promptly after the
   change, a notification of any increases in the benefits, or change in funding
   method, with respect to which an Obligor may have any liability, under any
   Plan or Multiemployer Plan or the establishment of any material new Plan or
   Multiemployer Plan with respect to which an Obligor may have any liability or
   the commencement of contributions to any Plan or Multiemployer Plan to which
   an Obligor or any ERISA Affiliate was not previously contributing, except to
   the extent that such an event could not reasonably be expected to have a
   Material Adverse Effect;

                  (f) Claims and Proceedings: promptly after receipt of written
   notice of commencement thereof, notification of all (A) claims made by
   participants or beneficiaries with respect to any Plan and (B) actions, suits
   and proceedings before any court or governmental department, commission,
   board, bureau, agency or instrumentality, domestic or foreign, affecting an
   Obligor or any ERISA Affiliate with respect to any Plan, except those which,
   in the aggregate, if adversely determined, could not reasonably be expected
   to have a Material Adverse Effect;

                  (g) ERISA Event: promptly after the occurrence of any ERISA
   Event (A) that could reasonably be expected to have a Material Adverse Effect
   or (B) that relates to the occurrence or existence of an event or condition
   that could reasonably be expected to have a Material Adverse Effect, notice
   of such ERISA Event; and

                  (h) Other Information: promptly following request therefor,
   such other nonconfidential information regarding the Collateral or the
   operations, business affairs, and financial condition of any Obligor, or
   compliance with the terms of the Loan Documents, as the Loan Agent or any
   Lender shall reasonably request.

            SECTION 5.2 CORPORATE EXISTENCE. Except as permitted under Section
5.8, each of the Obligors will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each Subsidiary of each Obligor and
the material rights (charter and statutory) and franchises of any of them;
provided, that, subject to Section 5.14, neither the Guarantor nor either
Borrower shall be required to preserve any such corporate, partnership or other
existence of any Subsidiary or any such right or franchise, if the chief
executive officer or the board of directors of the Guarantor shall determine in
the exercise of its business judgment that the preservation thereof is no longer
desirable in the conduct of the business of the Obligors and their respective
Subsidiaries taken as a whole.
<PAGE>

            SECTION 5.3 PAYMENT OF TAXES. The Guarantor and the Borrowers will,
and will cause its Subsidiaries to, pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, all taxes, assessments and
governmental charges levied or imposed upon the Guarantor, either Borrower or
any Subsidiary or upon the income profits or property of the Guarantor, either
Borrower or any Subsidiary; provided, however, that the Guarantor and each
Borrower shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment or governmental charge the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and with respect to which an adequate reserve has been
established by the Guarantor or the Borrowers to the extent required by GAAP.

            SECTION 5.4 MAINTENANCE OF PROPERTIES; INSURANCE. The Guarantor and
the Borrowers will, and will cause each of its Subsidiaries to, maintain all
properties used or useful in the conduct of its business in good condition,
repair and working order and supply such properties with all necessary equipment
and make all necessary repairs, renewals, replacements, betterments and
improvements thereto, all as in the judgment of the Guarantor and the Borrowers
may be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Guarantor, either Borrower or any
Subsidiary from discontinuing the operation and maintenance of any such
properties if such discontinuance is, in the good faith judgment of the
Guarantor, the Borrowers or such Subsidiary, as the case may be, desirable in
the conduct of its respective business and shall not impair the ability of the
Guarantor or either Borrower to perform their payment or other material
obligations under the Loan Documents. The Guarantor and each Borrower will
insure and keep insured, and will cause each of its Subsidiaries to insure and
keep insured, with reputable insurance companies, such of their respective
properties, to such an extent and against such risks, and will maintain
liability insurance, to the extent (i) that property of a similar character is
usually so insured by companies engaged in a similar business and owning similar
properties in accordance with good business practice and (ii) with respect to
the Collateral or Cross Collateral, required by any of the Collateral Documents
or those relevant to a Cross-Default Obligation, respectively.

            SECTION 5.5 INSPECTION. The Guarantor and each Borrower will, and
will cause its Subsidiaries to, permit any authorized representatives designated
by the Loan Agent to discuss its and their affairs, finances and accounts with
its and their officers upon reasonable notice and at such reasonable times
during normal business hours and as often as may be reasonably requested;
provided that such access to officers shall not be disruptive to the Guarantor
or either Borrower's business, as reasonably determined by the Guarantor and the
Borrowers.

            SECTION 5.6 COMPLIANCE WITH LAWS, ETC. Each Obligor will, and will
cause each of its Subsidiaries to, comply with all applicable statutes, rules,
regulations, orders and restrictions of the United States of America, all states
and municipalities thereof, and of any governmental department, commission,
board, regulatory authority, bureau, agency and instrumentality of the
foregoing, in respect of the conduct of their respective businesses and the
ownership of their respective properties,

<PAGE>

except such as are being contested in good faith by appropriate proceedings and
except for such noncompliance as could not reasonably be expected to result in a
Material Adverse Effect.

            SECTION 5.7 FURTHER ASSURANCES. At any time or from time to time
following the request of the Loan Agent, the Obligors will, at their expense,
promptly execute, acknowledge and deliver such further documents and do such
other acts and things as the Loan Agent may reasonably request in order to
effect fully the purposes of the Loan Documents. From the date on which the Cape
Town Convention becomes effective, each of the Obligors, at no cost to the
Lenders, shall enter into such documentation, as reasonably requested by the
Loan Agent and is necessary (i) to establish "international interest(s)" under
the Cape Town Convention, (ii) to enhance the enforceability of the agreements
of the parties established under the Loan Documents under the Cape Town
Convention and shall take, any and all steps as reasonably requested by the Loan
Agent and necessary to register such interest(s) in the International Registry
relating thereto.

            SECTION 5.8 EMPLOYEE BENEFIT PLANS. Each Obligor will ensure that
the Plans and Multiemployer Plans with respect to which the Obligors may have
any liability are operated in compliance with all applicable laws, except to the
extent that the failure to do so could not reasonably be expected to have a
Material Adverse Effect.

            SECTION 5.9 FAA MATTERS; CITIZENSHIP. Each Borrower will at all
times hereunder be an "air carrier" within the meaning of Title 49 and hold a
certificate under 49 U.S.C. Section 41102(a)(1) as currently in effect or as
amended or recodified from time to time. Each Borrower will at all times
hereunder hold an air carrier operating certificate issued pursuant to Chapter
447 of Title 49 for aircraft capable of carrying 10 or more individuals or 6,000
pounds or more of cargo.

            SECTION 5.10 DELIVERY OF POST-RECORDING FAA OPINION. Promptly upon
the recording of the Spare Parts Mortgage and Security Agreement and the Engine
Security Agreement with the FAA, the Borrowers will cause Daugherty, Fowler,
Peregrin & Haught, FAA counsel in Oklahoma City, Oklahoma, to deliver to the
Loan Agent and the Borrowers a favorable opinion addressed to each of them as to
such recordation and the lack of filing of any intervening documents creating a
Lien with respect to the Collateral.

            SECTION 5.11 SOFTWARE. Each Borrower will maintain a spare parts
inventory tracking system at all times prior to payment in full of the
Obligations.

            SECTION 5.12 COMPLIANCE WITH MORTGAGE. The Borrowers will comply
with the terms and provisions of the Collateral Documents.

            SECTION 5.13 PROHIBITION ON LIENS. Neither Borrower shall, nor shall
it permit any of its Subsidiaries (other than Airways Assurance Limited LLC or
FTCHP LLC) to, directly or indirectly create, incur, assume or permit to exist
any Lien on or with respect to any property or asset of any kind (including any
document or

<PAGE>

instrument in respect of goods or accounts receivable) of any Borrower or any of
its Subsidiaries (other than Airways Assurance Limited LLC or FTCHP LLC),
whether now owned or hereafter acquired, or any income or profits therefrom, or
file or consent to the filing of any financing statement or other similar notice
of any Lien with respect to any such property, asset, income or profits under
the UCC of any state or under any similar recording or notice statute, except:

               (a) Permitted Encumbrances;

               (b) (A) Liens existing on the Closing Date on Aircraft Related
     Equipment securing Indebtedness used to acquire such Aircraft Related
     Equipment, (B) Liens on Aircraft Related Equipment acquired after the
     Effective Date created or incurred in connection with the financing of such
     Aircraft Related Equipment, (C) Liens on Aircraft Related Equipment and
     related property created or incurred in connection with debt financings of
     such Aircraft Related Equipment, as contemplated under the A350/A330
     Financing Letter Agreement (or any financing pursuant thereto), the Senior
     Mortgages, the GE 2001 Credit Agreement (as defined in the ATSB Loan
     Agreements), and the GECC RJ Agreement (as defined in the ATSB Loan
     Agreements), (D) leases and/or subleases of Aircraft Related Equipment to
     any Obligor or any Subsidiary of an Obligor or any US Airways Express
     affiliate that is not an Obligor (or a Subsidiary of an Obligor) and
     operates such Aircraft Related Equipment for an Obligor or a Subsidiary of
     an Obligor pursuant to a services agreement with such Obligor or
     Subsidiary, which lease or sublease is entered into in connection with the
     debt financing or leasing of such Aircraft Related Equipment, as
     applicable, and the assignment of any such lease or sublease and the
     proceeds thereof, in the case of a lease, to any Person owed Indebtedness
     used to acquire such Aircraft Related Equipment or, in the case of a
     sublease, to any Person leasing such Aircraft Related Equipment to such
     Obligor or Subsidiary, (E) Liens on Aircraft Related Equipment securing
     Permitted Refinancing Indebtedness in respect of Indebtedness previously
     secured by such Aircraft Related Equipment in accordance with subclause (A)
     or (B) above, including in each case, Liens securing special facility
     revenue bonds that finance Aircraft Related Facilities, (F) Liens incurred
     or deposits made in the ordinary course of business to secure the
     performance of contracts for the purchase of aircraft, (G) Liens in
     existence on the Closing Date (1) on aircraft and engines (other than
     Pledged Engines) and (2) securing special facility revenue bonds, and (H)
     Liens on an Obligor's interest as lessee or sublessor in respect of any
     Aircraft Related Equipment or interests related thereto (including without
     limitation subleases, refunds or rebates, security deposits, supplemental
     rent, reserves, or return condition adjustment payments);

               (c) other Liens on assets acquired after the Closing Date
     securing or relating to Indebtedness and other liabilities and obligations
     in each case not otherwise prohibited under this Agreement in an aggregate
     amount not to exceed $5,000,000 at any time outstanding;

               (d) Liens described in Schedule 5.13, provided that no such Liens
     cover any of the Collateral;

<PAGE>

                  (e) judgment and attachment Liens not giving rise to an Event
of Default;

                  (f) Liens on the assets of any entity or on any asset existing
at the time such entity or asset is acquired by an Obligor or a Subsidiary of an
Obligor, whether by merger, consolidation, purchase of assets or otherwise;
provided that such Liens (A) are not created, incurred or assumed by such entity
in contemplation of or in connection with the financing of such entity's being
acquired by an Obligor or a Subsidiary of an Obligor, (B) were created to secure
the financing of Aircraft Related Equipment or other specific assets, (C) do not
extend to any other assets of any Obligor or Subsidiary of an Obligor other than
the assets acquired with such financing and (D) the Indebtedness secured by such
Lien is permitted pursuant to this Agreement;

                  (g) leases or subleases of real or personal property granted
by any Obligor or Subsidiary of an Obligor to other Persons not interfering in
any material respect with the ordinary conduct of the business of the Obligors
or their Subsidiaries, taken as a whole;

                  (h) Liens on cash and Cash Equivalents securing (A)
reimbursement obligations in respect of letters of credit issued for the account
of any Obligor or Subsidiary of an Obligor in the ordinary course of business
and consistent with past practice, so long as the aggregate amount of such cash
and Cash Equivalents does not exceed 115% of the maximum available amount under
the secured letters of credit, and (B) reimbursement or other margin
requirements in connection with, in the case of Liens contemplated in this
clause (B), (1) transactions designed to hedge against fluctuations in fuel
costs, entered into in the ordinary course of business, consistent with past
business practice or then current industry practice, and not entered into for
speculative purposes, (2) transactions designed to hedge interest rates entered
into with respect to notional amounts not to exceed actual or anticipated
Indebtedness and not entered into for speculative purposes and (3) transactions
designed to hedge against risks associated with fluctuations in currencies
entered into in the ordinary course of business, and (C) prepaid fuel and
healthcare expenses in the ordinary course of business and consistent with past
practice;

                  (i) Liens securing the obligations of the Obligors with
respect to or relating to the Indebtedness as provided for in the ATSB Loan
Agreements;

                  (j) Liens on assets pledged in connection with a Replacement
Secured Financing permitted under the ATSB Loan Agreements;

                  (k) Liens on assets pledged to secure a Permitted Acquisition
Financing; provided that the Liens attach only to assets acquired in connection
with the acquisition financed by such Permitted Acquisition Financing;

<PAGE>
               (l) any renewal or substitution of any Lien for any of the
     preceding clauses (b), (d) or (f); provided that any such Liens are not
     extended to additional assets; and

               (m) any renewal or substitution of any Lien for any of the
     preceding clauses (b), (d), (f), (h), (i), (j) or (k), provided that (i)
     the Indebtedness secured is not increased beyond the outstanding amount of
     such Indebtedness on the Closing Date, if such Indebtedness was outstanding
     on the Closing Date and (ii) any such Lien securing any such Indebtedness
     outstanding on the Closing Date are not extended to assets in addition to
     those subject to such Lien on the Closing Date, or required under the
     security agreement for such Lien to be subject thereto thereafter, to such
     Lien;

[provided that the Obligors will not create, incur, assume or permit to exist
any Lien permitted under any of clauses (b) through (e) above on any property of
an Obligor already constituting Collateral.][OPEN]

            SECTION 5.14 MERGER OR CONSOLIDATION. No Obligor shall consolidate
with or into or merge with or into, or enter into another form of corporate
combination with or into, any Person, or, in one or a series of transactions,
convey, lease or transfer all or substantially all its properties and assets to
any Person, unless: (i) either (A) such Obligor, or, if the transaction involves
more than one Obligor, an Obligor, is the surviving entity, or (B) an Obligor is
not the surviving entity and such surviving entity or the Person that acquires
by conveyance, lease or transfer all or substantially all the properties and
assets of an Obligor, shall be a corporation organized and existing under the
laws of the United States of America or any State or the District of Columbia,
and shall expressly assume, by an agreement executed and delivered to the Loan
Agent, in form and substance reasonably satisfactory to the Loan Agent, all of
such Obligor's obligations under the Loan Documents; (ii) immediately before and
after giving effect to such transaction, no Event of Default or Default shall
have occurred and be continuing; and (iii) the Obligors have delivered to the
Loan Agent an Officer's Certificate and an opinion of counsel from counsel
satisfactory to the Loan Agent, in form and substance satisfactory to the Loan
Agent, stating that such transaction and such agreement comply with this Section
and that all conditions precedent herein provided for relating to such
transaction have been complied with and addressing such other matters as may be
reasonably requested by the Loan Agent; provided, however, that no such
transaction or merger, consolidation, corporate combination, conveyance, lease
or transfer shall involve a manufacturer of aircraft or airframes, or an
Affiliate thereof, other than Airbus.

            SECTION 5.15 CERTAIN APPROVALS UNDER THE ATSB LOAN AGREEMENT.
Neither Borrower will give its approval or consent to a sale of any right,
obligation or interest under an ATSB Loan Agreement, or any note or loan
document referred to therein (i) pursuant to clause (c) of the last sentence of
Section 9.2(a) thereof, or (ii) involving Tranche B-1.

<PAGE>

                                   ARTICLE VI

                                EVENTS OF DEFAULT

            SECTION 6.1 EVENTS OF DEFAULT. Each of the following events shall be
an Event of Default:

                  (a) Failure by the Borrowers to pay any installment of
      principal of the Loans when due, or in the case of interest, within five
      Business Days after the date due, whether at stated maturity, by
      acceleration, by mandatory prepayment or otherwise; or (ii) failure by the
      Borrowers to pay any other amount due under this Agreement or any other
      Loan Document within ten Business Days after the receipt by the Borrowers
      of written notice from the Loan Agent that such payment is due or overdue;
      or

                  (b) Any representation or warranty by any Obligor in any Loan
      Document or in any statement or certificate at any time given by either
      Obligor in writing pursuant hereto or thereto or in connection herewith or
      therewith shall be false in any material respect on the date as of which
      made, such false representation or warranty is material at the time in
      question, and, if curable, the same shall remain uncured for a period in
      excess of 30 days (or in the case of any representation or warranty as to
      the existence of a Default, 60 days) after the date of written notice
      thereof from the Loan Agent to the Borrowers; or

                  (c) Failure by any Obligor to perform or comply in any
      material respect with any term or condition contained in Sections 2.4(f),
      5.2 and 5.9 of this Agreement; or

                  (d) Failure by any Obligor to perform or comply in any
      material respect with any term contained in this Agreement or any of the
      other Loan Documents (other than any such term referred to in any other
      subsection of this Section 6.1), such failure to comply is material at the
      time in question, and such failure to comply shall not have been remedied
      or waived within 30 days after receipt by the Borrowers of notice from the
      Loan Agent of such failure to comply; provided that if such failure to
      comply is capable of being corrected and the Borrowers are diligently
      proceeding to correct such failure, then there shall be no Event of
      Default under this clause (c) unless such failure to comply shall not have
      been remedied or waived within 90 days after receipt by the Borrowers of
      such notice; or

                  (e) (i) With respect to any Cross-Default Obligation
      identified in clause (i) of the definition therein, any of the Obligors
      shall default (after the expiration of any applicable grace period) under
      or in the performance of any material term, provision or condition
      contained in any agreement under which any such Cross-Default Obligation
      was created or is governed; or (ii) with respect to any Cross-Default
      Obligation identified in clause (ii) of the definition thereof, any
      material "event of default" (however described) shall occur and be
      continuing (after the expiration of any applicable grace period), and
      shall not thereafter have been

<PAGE>

waived, remedied or cured, under any agreement (as amended or modified from time
to time) under which any such Cross-Default Obligation was created or is
governed; provided, however, that this Section 6.1(e) shall cease to be of any
further force and effect if at any time prior to payment in full of the
Obligations, Airbus or its Affiliates cease to hold at least 51% of the
outstanding principal amount of the Loans.

                  (f) (i) A court shall enter a decree or order for relief in
respect of any Obligor or any of its Subsidiaries in an involuntary case under
the Bankruptcy Code or under any other applicable bankruptcy, insolvency or
similar law now or hereafter in effect; or any other similar relief shall be
granted under any applicable federal or state law; or (ii) an involuntary case
shall be commenced against any Obligor or any of its Subsidiaries under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect; or a decree or order of a court for the
appointment of a receiver, liquidator, sequestrator, trustee, custodian or other
officer having similar powers over any Obligor or any of its Subsidiaries, or
over all or a substantial part of its property, shall have been entered; or
there shall have occurred the involuntary appointment of an interim receiver,
trustee or other custodian of any Obligor or any of its Subsidiaries for all or
a substantial part of its property; or a warrant of attachment, execution or
similar process shall have been issued against any substantial part of the
property of any Obligor or any of its Subsidiaries, and any such event described
in clause (i) above or this clause (ii) shall continue for 90 days unless
dismissed, bonded or discharged; or

                  (g) (i) Any Obligor or any of its Subsidiaries shall have an
order for relief entered with respect to it or commence a voluntary case under
the Bankruptcy Code or under any other applicable bankruptcy, insolvency or
similar law now or hereafter in effect, or shall consent to the entry of an
order for relief in an involuntary case, or to the conversion of an involuntary
case to a voluntary case, under any such law, or shall consent to the
appointment of or taking possession by a receiver, trustee or other custodian of
all or a substantial part of its property; or any Obligor or any of its
Subsidiaries shall make any assignment for the benefit of creditors; or (ii) any
Obligor or any of its Subsidiaries shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become due;
or the board of directors of any Obligor or any of its Subsidiaries (or any
committee thereof) shall adopt any resolution or otherwise authorize any action
to approve any of the actions referred to in clause (i) above or this clause
(ii); or

                  (h) Any order, judgment or decree shall be entered against any
Obligor decreeing the dissolution or split up of such Obligor and such order
shall remain undischarged or unstayed for a period in excess of 60 days; or

                  (i) Any of the Collateral Documents shall cease, for any
reason, other than discharge of the Lien thereof in accordance with its terms,
to be in full force and effect, or any Borrower or any Affiliate of any Borrower
shall so assert, or any Lien created by any of the Collateral Documents shall
cease, for any reason other than discharge of the Lien thereof in accordance
with its terms, to be in full

<PAGE>
      force and effect, to be enforceable and of the same effect and priority
      purported to be created thereby; or

                  (j) Any Borrower shall cease to carry and maintain, or cause
      to be carried and maintained, insurance on and in respect of the
      Collateral in accordance with the requirements of any applicable
      Collateral Document.

            SECTION 6.2 REMEDIES. During the continuance of any Event of
Default, the Loan Agent shall, solely at the request of the Requisite Lenders,
by notice to the Borrowers declare that the Loans, all interest accrued thereon
and all other amounts and Obligations payable under this Agreement and the Loan
Documents to be immediately due and payable, whereupon the Loans, all such
interest and all such amounts and Obligations shall become and be immediately
due and payable, and/or declare the Commitments to be terminated, whereupon the
Commitment of each Lender shall be terminated, all without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived
by the Borrowers; provided, however, that upon the occurrence of the Event of
Default specified in Section 6.1(f) or 6.1(g), the Loans, all such interest and
all such amounts and Obligations shall automatically become and be immediately
due and payable, and the Commitments shall terminate, all without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Obligors.

                                  ARTICLE VII

                     THE LOAN AGENT AND THE COLLATERAL AGENT

            The parties hereto agree as follows:

            SECTION 7.1 AUTHORIZATION AND ACTION. Each Lender hereby appoints
and authorizes each of the Loan Agent and the Collateral Agent to take such
action as administrative agent and collateral agent, respectively, on its behalf
and to exercise such powers under this Agreement and the other Loan Documents as
are delegated by such Lender to it as Loan Agent or Collateral Agent by the
terms hereof and thereof, together with such powers as are reasonably incidental
thereto, and each of the Loan Agent and the Collateral Agent hereby accepts such
authorization and appointment. As to any matters not expressly provided for by
this Agreement and the other Loan Documents or provided for with specific
reference to this Section 7.1 (including, without limitation, enforcement or
collection of any Note), neither the Loan Agent nor the Collateral Agent shall
be required to exercise any discretion or take any action, but shall be required
to act or to refrain from acting (and shall be fully protected in so acting or
refraining from action) upon the instructions of the Requisite Lenders and such
instructions shall be binding upon all Lenders; provided, however, that neither
the Loan Agent nor the Collateral Agent shall be required to take any action
which exposes either the Loan Agent or the Collateral Agent to liability or
which is contrary to this Agreement, any other Loan Document or applicable law.
As to any provisions of this Agreement under which action may be taken or
approval given by the Requisite Lenders, the action taken or approval given by
the Requisite Lenders, shall be binding upon all Lenders to

<PAGE>

the same extent and with the same effect as if each Lender had joined therein.
Each of the Loan Agent and the Collateral Agent shall be entitled to rely upon
any note, notice, consent, certificate, affidavit, letter, telegram, teletype
message, facsimile transmission, statement, order or other document believed by
it to be genuine and correct and to have been signed or sent by the proper
person or persons and, in respect of legal matters, upon the opinion of counsel
selected by the Loan Agent or the Collateral Agent. Each of the Loan Agent and
the Collateral Agent may deem and treat the payee of the Notes as the owner
thereof for all purposes hereof unless and until a written notice of the
assignment or transfer thereof shall have been filed with the Loan Agent. Any
request, authority or consent of any Person who at the time of making such
request or giving such authority or consent is the holder of any Note shall be
conclusive and binding on any subsequent holder, transferee or assignee of such
Note.

            SECTION 7.2 AGENT'S RELIANCE, ETC. Neither the Loan Agent nor the
Collateral Agent nor any of their respective Affiliates, directors, officers,
agents or employees shall be liable to any Lender for any action taken or
omitted to be taken by it or by such directors, officers, agents or employees
under or in connection with this Agreement, the Notes or any other Loan
Document, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, each of the Loan Agent
and the Collateral Agent: (i) may consult with legal counsel, independent public
accountants and other experts selected by it and shall not be liable to any
Lender for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such experts; (ii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether oral or written) made in or
in connection with this Agreement, the Notes or any other Loan Document; (iii)
shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement, the
Notes or any other Loan Document on the part of Guarantor or the Borrowers or to
inspect the property (including the books and records) of Guarantor, the
Borrowers or any of their respective Subsidiaries; (iv) shall not be responsible
to any Lender for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, the Notes or any other Loan
Document, or any other instrument or document furnished pursuant thereto; (v)
shall incur no liability under or in respect to this Agreement, the Notes or any
other Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telegram, facsimile transmission, cable
or telex) believed by it to be genuine and signed or sent by the proper party or
parties; and (vi) may deem and treat each Lender which makes a loan hereunder as
the holder of the indebtedness resulting therefrom for all purposes hereof until
the Loan Agent receives and accepts an Assignment and Assumption entered into by
such Lender, as assignor, and an eligible assignee as provided in Section 9.2
hereof.

            SECTION 7.3 AGENT AND AFFILIATES. If and so long as the Loan Agent
or the Collateral Agent shall remain a Lender, the Loan Agent or the Collateral
Agent, as applicable, shall have the same rights and powers under this Agreement
as any other Lender and may exercise the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not
the Loan Agent or the Collateral Agent; and the term "Lender" or "Lenders"
shall, unless otherwise expressly indicated,

<PAGE>

include the Loan Agent and the Collateral Agent, each in its individual
capacity. Unrelated to its role as Loan Agent or Collateral Agent as set forth
herein, the Loan Agent and the Collateral Agent and their respective Affiliates
may accept deposits from, lend money to, act as trustee under indentures of, and
generally engage in any kind of business with, the Borrowers, Guarantor, any of
their respective Subsidiaries and any Person who may do business with or own
securities of the Borrowers, Guarantor, or any of their respective Subsidiaries,
all as if it were not the Loan Agent or the Collateral Agent, as applicable,
hereunder and without any duty to account therefor to the Lenders.

            SECTION 7.4 REPRESENTATIONS OF THE LENDERS. Each Lender has actively
engaged in the negotiation of all of the terms of this Agreement. Each of the
Loan Agent and the Collateral Agent has no duty or responsibility, either
initially or on a continuing basis, to provide any Lender with any credit or
other information with respect to the Borrowers whether coming into its
possession as of the date of this Agreement or at any time thereafter, or to
notify any Lender of any Event of Default except as provided in Section 7.5
hereof. This Agreement and all instruments or documents delivered in connection
with this Agreement have been reviewed and approved by each Lender and none of
the Lenders have relied on the Loan Agent or the Collateral Agent as to any
legal or factual matter in connection therewith or in connection with the
transactions contemplated thereunder.

            SECTION 7.5 EVENTS OF DEFAULT. In the event of the occurrence of any
Default or Event of Default, any Lender knowing of such event may (but shall
have no duty to) give the Loan Agent and the Collateral Agent written notice
specifying such Event of Default or other event and expressly stating that such
notice is a "notice of default". Neither the Loan Agent nor the Collateral Agent
shall be deemed to have knowledge of such events unless the Loan Agent or the
Collateral Agent, as applicable, has received such notice, or unless the Event
of Default consists of a failure of payment of principal or interest on the
Note. In the event that the Loan Agent or the Collateral Agent receives such a
notice of the occurrence of an Event of Default, the Loan Agent or the
Collateral Agent, as applicable, shall give written notice thereof to the
Lenders. The Loan Agent and the Collateral Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed in
writing by the Requisite Lenders, provided, however, that, unless and until the
Loan Agent or the Collateral Agent shall have received such direction, the Loan
Agent and the Collateral Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Event of
Default as it shall deem advisable and in the best interest of the Lenders.

            SECTION 7.6 LOAN AGENT'S AND COLLATERAL AGENT'S RIGHT TO INDEMNITY.
Except for action expressly required of the Loan Agent or the Collateral Agent
hereunder without instructions from any Person, the Loan Agent and the
Collateral Agent shall be fully justified in failing or refusing to take any
action hereunder on behalf of any Lender unless it shall first be indemnified to
its satisfaction by such Lender against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action.

<PAGE>

            SECTION 7.7 INDEMNIFICATION OF LOAN AGENT AND COLLATERAL AGENT. The
Lenders hereby agree to indemnify the Loan Agent and the Collateral Agent and
all of their respective affiliates, directors, officers, employees, advisors and
representatives thereof (to the extent not reimbursed by the Borrowers), ratably
as most recently in effect prior to the date indemnification is sought, from and
against any and all costs, losses, liabilities, claims, damages or expenses
which may be incurred by or asserted or awarded against the Loan Agent or the
Collateral Agent in any way relating to or arising out of this Agreement and/or
the other Loan Documents or any action taken or omitted by the Loan Agent or the
Collateral Agent under this Agreement and/or the other Loan Documents; provided,
however, that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Loan Agent's or the Collateral
Agent's gross negligence or willful misconduct. Without limiting the foregoing,
each Lender agrees to reimburse the Loan Agent and the Collateral Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
counsel fees) incurred by the Loan Agent or the Collateral Agent in connection
with the administration, or enforcement of, or the preservation of any rights
under, this Agreement and/or the other Loan Documents, to the extent that the
Loan Agent or the Collateral Agent is not reimbursed for such expenses by the
Borrowers.

            SECTION 7.8 SUCCESSOR LOAN AGENT AND COLLATERAL AGENT. Each of the
Loan Agent and the Collateral Agent may with the consent (not to be unreasonably
withheld) of the Lenders and, if no Event of Default has occurred and is
continuing, the Borrowers (or, if an Event of Default has occurred and is
continuing and if legally permissible, upon notice to the Borrowers), resign at
any time by giving written notice thereof to the Lenders and may, at any time,
with or without cause, be removed by the Requisite Lenders acting through the
Loan Agent with, if no Event of Default has occurred and is continuing and if
the Collateral Agent is not in default of any Obligation under the Loan
Documents and if no representation or warranty of the Collateral Agent under the
Loan Documents has proven to be incorrect in any material respect, the consent
(not to be unreasonably withheld) of the Borrowers (or, if an Event of Default
has occurred and is continuing, upon notice to the Borrowers). Upon any such
resignation or removal, the Borrowers shall have the right to appoint a
successor agent, subject to consent of the Lenders. If no successor agent shall
have accepted such appointment within 30 days after (i) the retiring Loan
Agent's or Collateral Agent's, as applicable, giving of notice of resignation or
(ii) the Loan Agent giving notice, if legally permissible, of such removal, the
Loan Agent or the Collateral Agent, as applicable, may, with the consent (not to
be unreasonably withheld) of the Requisite Lenders and, if no Event of Default
has occurred and is continuing, the Borrowers, appoint a successor Loan Agent or
Collateral Agent, as applicable, who shall be willing to accept such
appointment. Upon the acceptance of any appointment as Loan Agent or Collateral
Agent hereunder by a successor Loan Agent or Collateral Agent, such successor
Loan Agent or Collateral Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring or removed Loan
Agent or Collateral Agent, and the retiring or removed Loan Agent or Collateral
Agent shall be discharged from its duties and obligations as agent under this
Agreement. After any Loan Agent's or Collateral Agent's resignation or removal
hereunder as Loan Agent or Collateral Agent, as

<PAGE>

applicable, the provisions of this Article 9 shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was Loan Agent or
Collateral Agent under this Agreement.

            SECTION 7.9 COLLATERAL AND GUARANTEE MATTERS. The Lenders
irrevocably authorize and direct the Collateral Agent to release any Lien on the
Collateral as provided for in the Collateral Documents.

                                  ARTICLE VIII

                                    GUARANTEE

            SECTION 8.1 GUARANTEE.

                  (a) The Guarantor hereby unconditionally and irrevocably
      guarantees to the Loan Agent, for the ratable benefit of the Lenders and
      their respective successors, indorsees, transferees and assigns, the
      prompt and complete payment and performance by the Borrowers when due
      (whether at the stated maturity, by acceleration or otherwise) of the
      Obligations.

                  (b) Anything herein or in any other Loan Document to the
      contrary notwithstanding, the maximum liability of the Guarantor hereunder
      and under the other Loan Documents shall in no event exceed the amount
      which can be guaranteed by the Guarantor under applicable federal and
      state laws relating to the insolvency of debtors.

                  (c) The Guarantor agrees that the Obligations may at any time
      and from time to time exceed the amount of the liability of the Guarantor
      hereunder without impairing the guarantee contained in this Article VIII
      or affecting the rights and remedies of the Loan Agent or any Lender
      hereunder.

                  (d) The guarantee contained in this Article VIII shall remain
      in full force and effect until all the Obligations (including contingent
      Obligations contained in any Loan Document that survive the termination
      thereof) shall have been satisfied by payment in full and the Commitments
      shall be terminated.

                  (e) No payment made by either Borrower or the Guarantor, any
      other guarantor or any other Person or received or collected by the Loan
      Agent or any Lender from either Borrower, the Guarantor, any other
      guarantor or any other Person by virtue of any action or proceeding or any
      set-off or appropriation or application at any time or from time to time
      in reduction of or in payment of the Obligations shall be deemed to
      modify, reduce, release or otherwise affect the liability of the Guarantor
      hereunder which shall, notwithstanding any such payment (other than any
      payment made by the Guarantor in respect of the Obligations or any payment
      received or collected from such Guarantor in respect of the Obligations),
      remain liable for the Obligations up to the maximum liability of the
      Guarantor hereunder until the Obligations are paid in full and the
      Commitments are terminated.

<PAGE>

            SECTION 8.2 NO SUBROGATION. Notwithstanding any payment made by the
Guarantor hereunder or any set-off or application of funds of the Guarantor by
the Loan Agent or any Lender, the Guarantor shall not be entitled to be
subrogated to any of the rights of the Loan Agent or any Lender against either
Borrower or any other guarantor or any collateral security or guarantee or right
of offset held by the Loan Agent, the Collateral Agent or any Lender for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek
any contribution or reimbursement from either Borrower or any other guarantor in
respect of payments made by such guarantor hereunder, until all amounts owing to
the Loan Agent and the Lenders by the Borrower on account of the Obligations
(other than contingent obligations contained in any Loan Document that survive
the termination thereof) are paid in full and the Commitments are terminated. If
any amount shall be paid to the Guarantor on account of such subrogation rights
at any time when all of the Obligations (other than contingent obligations
contained in any Loan Document that survive the termination thereof) shall not
have been paid in full, such amount shall be held by the Guarantor in trust for
the Loan Agent and the Lenders, segregated from other funds of the Guarantor,
and shall, forthwith upon receipt by the Guarantor, be turned over to the Loan
Agent in the exact form received by the Guarantor (duly indorsed by the
Guarantor to the Loan Agent, if required), to be applied against the
Obligations, whether matured or unmatured, in such order as the Loan Agent may
determine.

            SECTION 8.3 AMENDMENTS, ETC. WITH RESPECT TO THE OBLIGATIONS. The
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against the Guarantor and without notice to or further
assent by the Guarantor, any demand for payment of any of the Obligations made
by the Loan Agent or any Lender may be rescinded by the Loan Agent or such
Lender and any of the Obligations continued, and the Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Loan Agent or
any Lender, and the Loan Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Loan Agent (or the Requisite Lenders or
all Lenders, as the case may be) may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the Loan
Agent or any Lender for the payment of the Obligations may be sold, exchanged,
waived, surrendered or released. Neither the Loan Agent nor any Lender shall
have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Obligations or for the guarantee contained in
this Section 8.3 or any property subject thereto.

            SECTION 8.4 GUARANTEE ABSOLUTE AND UNCONDITIONAL. The Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Obligations and notice of or proof of reliance by the Loan Agent or any
Lender upon the guarantee contained in this Article VIII or acceptance of the
guarantee contained in this Article VIII; the Obligations, and any of them,
shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon the guarantee contained
in this Article VIII; and all dealings

<PAGE>

between the Borrower and the Guarantor, on the one hand, and the Loan Agent, the
Collateral Agent and the Lenders, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Article VIII. The Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Borrower or the Guarantor with respect to the Obligations. The
Guarantor understands and agrees that the guarantee contained in this Article
VIII shall be construed as a continuing, absolute and unconditional guarantee of
payment without regard to (a) the validity or enforceability of any other
provisions of this Agreement or any other Loan Document, any of the Obligations
or any other collateral security therefor or guarantee or right of offset with
respect thereto at any time or from time to time held by the Loan Agent, the
Collateral Agent or any Lender, (b) any defense, set-off or counterclaim (other
than a defense of payment or performance) which may at any time be available to
or be asserted by the Borrower or any other Person against the Loan Agent, the
Collateral Agent or any Lender, or (c) any other circumstance whatsoever (with
or without notice to or knowledge of a Borrower or the Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Obligations, or of the Guarantor under the
guarantee contained in this Article VIII, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and
remedies hereunder against the Guarantor, the Loan Agent, the Collateral Agent
or any Lender may, but shall be under no obligation to, make a similar demand on
or otherwise pursue such rights and remedies as it may have against either
Borrower, any other guarantor or any other Person or against any collateral
security or guarantee for the Obligations or any right of offset with respect
thereto, and any failure by the Loan Agent, the Collateral Agent or any Lender
to make any such demand, to pursue such other rights or remedies or to collect
any payments from the Borrower, any other guarantor or any other Person or to
realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of the Borrower, any other guarantor or any
other Person or any such collateral security, guarantee or right of offset,
shall not relieve the Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Loan Agent, the Collateral Agent or any
Lender against the Guarantor. For the purposes hereof "demand" shall include the
commencement and continuance of any legal proceedings.

            SECTION 8.5 REINSTATEMENT. The guarantee contained in this Article
VIII shall continue to be effective, or be reinstated, as the case may be, if at
any time payment, or any part thereof, of any of the Obligations is rescinded or
must otherwise be restored or returned by the Loan Agent, the Collateral Agent
or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of either Borrower or the Guarantor, or upon or as a result of
the appointment of a receiver, intervenor or conservator of, or trustee or
similar officer for, either Borrower or the Guarantor or any substantial part of
its property, or otherwise, all as though such payments had not been made.

            SECTION 8.6 PAYMENTS. The Guarantor hereby guarantees that payments
hereunder will be paid to the Loan Agent without set-off, counterclaim, claim of
recoupment or other defense in Dollars at the office specified in Section
2.9(a).

<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

            SECTION 9.1 AMENDMENTS, WAIVERS, ETC.

                  (a) No amendment, modification or waiver of any provision of
      this Agreement or any other Loan Document nor consent to any departure by
      any Obligor therefrom shall in any event be effective unless the same
      shall be in writing and signed by the Requisite Lenders, and then any such
      waiver or consent shall be effective only in the specific instance and for
      the specific purpose for which given; provided, however, that no
      amendment, modification, waiver or consent shall, unless in writing and
      signed by each Lender, do any of the following:

                        (i) subject the Lenders to any additional obligations;

                        (ii) change the scheduled final maturity of the Loans,
         or change the amount or date for payment of any date fixed for the
         payment or reduction of principal;

                        (iii) change the principal amount of any Loan (other
         than by the payment or prepayment thereof);

                        (iv) change the rate of interest on any Loan or any fee,
         indemnity or other amount payable to any Lender;

                        (v) change any date fixed for payment of such interest,
         indemnity or other amount or fees;

                        (vi) amend the definition of "Requisite Lenders" or this
         Section 9.1(a);

                        (vii) modify the application of payments to the Loan
         under Section 2.9; or

                        (viii) release all or substantially all of the
         Collateral or release the Guarantor from the guarantee contained in
         Article VIII;

and provided, further, that no amendment, modification, waiver or consent shall,
unless in writing and signed by the Loan Agent in addition to the Persons
required above to take such action, affect the rights or duties of the Loan
Agent under this Agreement or the other Loan Documents.

                  (b) The Loan Agent may, but shall have no obligation to, with
      the written concurrence of any Lender, execute amendments, modifications,
      waivers or consents on behalf of that Lender. Any waiver or consent shall
      be effective only in the specific instance and for the specific purpose
      for which it was

<PAGE>

      given. No notice to or demand on the Borrowers in any case shall entitle
      the Borrowers to any other or further notice or demand in similar or other
      circumstances.

                  (c) In connection with any proposed amendment, modification,
      waiver or termination (a "Proposed Change") requiring the consent of all
      affected Lenders, if the consent of the Loan Agent and of the Requisite
      Lenders is obtained, but the consent of other Lenders whose consent is
      required is not obtained (any such Lender whose consent is not obtained as
      described in this Section 9.1 being referred to as a "Non-Consenting
      Lender"), then (i) at the Borrowers' request, the Loan Agent shall have
      the right in the Loan Agent's sole discretion (but shall have no
      obligation) to purchase from such Non-Consenting Lender, and such
      Non-Consenting Lender agrees that it shall, upon the Loan Agent's request,
      sell and assign to the Lender that is acting as the Loan Agent, all of the
      portion of the Loan of such Non-Consenting Lender for an amount equal to
      the principal balance of such portion of the Loan held by the
      Non-Consenting Lender and all accrued interest and fees with respect
      thereto through the date of sale, such purchase and sale to be consummated
      pursuant to an executed Assignment and Assumption, and (ii) the Borrowers
      may effect a substitution of the Non-Consenting Lender pursuant to Section
      2.12.

            SECTION 9.2 SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS.

                  (a) The provisions of this Agreement shall be binding upon and
      inure to the benefit of the parties hereto and their respective successors
      and assigns permitted hereby, except that (i) the Borrowers may not assign
      or otherwise transfer any of their rights or obligations hereunder without
      the prior written consent of each Lender (and any attempted assignment or
      transfer by the Borrowers without such consent shall be null and void) and
      (ii) no Lender may assign or otherwise transfer its rights or obligations
      hereunder except in accordance with this Section.

                  (b) (i) Subject to the conditions set forth in paragraph
      (b)(ii) below, any Lender may assign to one or more entities (each, an
      "Assignee"), including by means of a capital markets, private placement or
      securitization transaction, all or a portion of its rights and obligations
      under this Agreement (including all or a portion of its Commitments and
      the Loans at the time owing to it) and subject to the following additional
      conditions:

                              (A) such Assignee shall not be an airline, a
            commercial aircraft operator, an air freight forwarder, an entity
            engaged in the business of parcel transport by air, other similar
            Person, or a holding company Affiliate of any of the foregoing; and

                              (B) prior written notice of any such assignment
            shall be provided to the Borrowers unless an Event of Default has
            occurred and is continuing;

<PAGE>

                              (C) in the event of an assignment involving a
            widespread syndication or offering, if the Guarantor or any Borrower
            indicates that the proposed transaction would interfere with its own
            debt financing efforts, such Lender agrees to cooperate in good
            faith with the Guarantor or such Borrower in order not to hinder the
            Guarantor's or such Borrower's attempt to finalize its financing;
            and

                              (D) an assignee or participant that acquires its
            interest in the Obligations pursuant to or in connection with a
            capital markets, private placement, or securitization transaction
            pursuant to which ten or more persons acquire interests in the
            Obligations shall not be entitled to the benefits of Section 2.13.

                        (ii) Assignments shall be subject to the additional
         condition that the parties to each assignment shall execute and deliver
         to the Loan Agent an Assignment and Assumption.

                        (iii) Subject to acceptance and recording thereof
         pursuant to paragraph (b)(iv) below, from and after the effective date
         specified in each Assignment and Assumption the Assignee thereunder
         shall be a party hereto and, to the extent of the interest assigned by
         such Assignment and Assumption, have the rights and obligations of a
         Lender under this Agreement, and the assigning Lender thereunder shall,
         to the extent of the interest assigned by such Assignment and
         Assumption, be released from its obligations under this Agreement (and,
         in the case of an Assignment and Assumption covering all of the
         assigning Lender's rights and obligations under this Agreement, such
         Lender shall cease to be a party hereto but shall continue to be
         entitled to the benefits of Sections 2.10, 2.11, 2.13, 9.3 and 9.4).
         Any assignment or transfer by a Lender of rights or obligations under
         this Agreement that does not comply with this Section 10.2 shall be
         treated for purposes of this Agreement as a sale by such Lender of a
         participation in such rights and obligations in accordance with
         paragraph (c) of this Section.

                        (iv) Upon its receipt of a duly completed Assignment and
         Assumption executed by an assigning Lender and an Assignee, the Loan
         Agent shall accept such Assignment and Assumption and record the
         information contained therein in the Register. No assignment shall be
         effective for purposes of this Agreement unless it has been recorded in
         the Register as provided in this paragraph.

                        (v) The Initial Lender agrees to notify the Borrowers
         promptly following the date on which it or its Affiliate has fully

<PAGE>

         or partially assigned or sold all or a portion of its rights and
         obligations under this Agreement.

                  (c) (i) Any Lender may, without the consent of the Borrowers
      or the Loan Agent, sell participations to one or more banks or other
      entities (a "Participant") in all or a portion of such Lender's rights and
      obligations under this Agreement (including all or a portion of its
      Commitments and the Loans owing to it); provided that (A) such Participant
      shall not be an airline, a commercial aircraft operator, an air freight
      forwarder, an entity engaged in the business of parcel transport by air,
      other similar Person, or a holding company Affiliate of any of the
      foregoing, (B) such Lender's obligations under this Agreement shall remain
      unchanged, (C) such Lender shall remain solely responsible to the other
      parties hereto for the performance of such obligations and (D) the
      Obligors, the Loan Agent, and the Lenders shall continue to deal solely
      and directly with such Lender in connection with such Lender's rights and
      obligations under this Agreement. Any agreement pursuant to which a Lender
      sells such a participation shall provide that such Lender shall retain the
      sole right to enforce this Agreement. Subject to paragraph (c)(ii) of this
      Section, the Borrowers agree that, if its interest is entered in the
      Register, each Participant shall be entitled to the benefits of Sections
      2.10, 2.11, 2.13, 9.3 and 9.4 to the same extent as if it were a Lender
      and had acquired its interest by assignment pursuant to paragraph (b) of
      this Section. To the extent permitted by law, each Participant also shall
      be entitled to the benefits of Section 9.5 as though it were a Lender,
      provided such Participant shall be subject to Section 9.7 as though it
      were a Lender.

                        (ii) Borrowers shall not be required to provide, and a
         Participant shall not be entitled to receive any greater payment under
         Section 2.10, 2.11 or 2.13 than the Borrowers would have been required
         to pay and the applicable Lender would have been entitled to receive
         with respect to the participation sold to such Participant, unless the
         sale of the participation to such Participant is made with the
         Borrowers' prior written consent. Any Participant shall not be entitled
         to the benefits of Section 2.13 unless such Participant complies with
         Section 2.13(f).

                  (d) Any Lender may at any time pledge or assign a security
      interest in all or any portion of its rights under this Agreement to
      secure obligations of such Lender, including any pledge or assignment to
      secure obligations to a Federal Reserve Bank, and this Section shall not
      apply to any such pledge or assignment of a security interest; provided
      that no such pledge or assignment of a security interest shall release a
      Lender from any of its obligations hereunder or substitute any such
      pledgee or Assignee for such Lender as a party hereto.

                  (e) The Obligors agree to cooperate with the efforts of the
      Initial Lender to engage in a transfer or sell-down transaction as
      envisioned in this Section 9.2, including by means of restructuring the
      Loan Documents into tranches (not all of which need to be secured by the
      Collateral), restructuring the Loan Documents into a capital markets style
      indenture, cooperating in reasonable due

<PAGE>

      diligence meetings and investor phone calls, providing accountant comfort
      letters and legal opinion reliance letters, and assisting with the
      reasonable requests of rating agencies and investors, all at the cost of
      the Initial Lender for the reasonable out-of-pocket expenses of Borrower
      in cooperating as provided in this subparagraph. Without limiting the
      generality of the foregoing, as part of the cooperation of the Obligors,
      if requested by the Initial Lender in connection with a transfer or sell
      down transaction as envisioned in this Section 9.2, the Loan Documents
      shall be "marked-to-market" and amended accordingly, solely to reflect any
      prepayment premiums or make-whole amounts or other prepayment terms and
      conditions which are at the time customary for comparable financings in
      the relevant markets, as determined in the opinion of two investment
      banks, one selected by the Borrowers and the other by the Loan Agent, and
      if such banks fail to agree on such prepayment premiums or make-whole
      amounts or other prepayment terms and conditions, then a third investment
      bank mutually selected by the Borrowers and the Loan Agent shall make such
      determination.

            SECTION 9.3 COSTS AND EXPENSES. Whether or not the first Funding
Date occurs, the Obligors agree to pay within ten Business Days (or as provided
in Section 3.1(d)) following receipt of a reasonably detailed invoice therefor
(i) all reasonable out-of-pocket costs and expenses (including reasonable legal
fees and expenses of one primary outside counsel and one special FAA counsel)
incurred by the Initial Lender, the Loan Agent and the Collateral Agent in
connection with the negotiation, preparation, execution and delivery of the Loan
Documents, and all documents relating thereto, (ii) all reasonable out-of-pocket
costs and expenses (including reasonable legal fees and expenses of one primary
outside counsel and one special FAA counsel) incurred by the Loan Agent in
connection with any consents, amendments, waivers or other modifications hereto
or thereto, (iii) all reasonable out-of-pocket costs and expenses incurred by
the Loan Agent in connection with the syndication of the Loans (if any), and
(iv) all reasonable out-of-pocket costs and expenses (including reasonable legal
fees and expenses) incurred by the Loan Agent and the Lenders in enforcing any
Obligations of, or in collecting any payments due from, the Borrowers hereunder
or under the other Loan Documents.

            SECTION 9.4 INDEMNITIES. Whether or not the transactions
contemplated hereby shall be consummated, the Obligors agree to defend,
indemnify, pay and hold harmless the Loan Agent, the Lenders, and their
respective Affiliates, officers, directors, employees, agents and controlling
Persons (collectively called the "Indemnitees") from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of any kind or nature whatsoever
(including without limitation the reasonable fees and disbursements of outside
counsel for such Indemnitees, but excluding Taxes) that may be imposed on,
incurred by, or asserted against any such Indemnitee, in any manner arising out
of this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby (including, without limitation, the use or intended use of the
proceeds of the Loan) or any breach or default by the Borrowers of any provision
of the Loan Documents (collectively called the "Indemnified Liabilities");
provided that the Obligors shall not have any obligation to any Indemnitee
hereunder with respect to any

<PAGE>

Indemnified Liabilities to the extent such Indemnified Liabilities (i) arise
from the gross negligence or willful misconduct of an Indemnitee, (ii) are
specifically addressed elsewhere in this Agreement (including, without
limitation, Section 2.10, (iii) arise from breaches by an Indemnitee of any Loan
Document to which it is a party, or (iv) constitute ordinary and usual operating
or overhead expenses of an Indemnitee (excluding, without limitation, costs and
expenses of any outside counsel, consultant or agent). To the extent that the
undertaking to defend, indemnify, pay and hold harmless set forth in the
preceding sentence may be unenforceable because it is violative of any law or
public policy, the Obligors shall contribute the maximum portion that it is
permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any
of them.

            SECTION 9.5 RIGHT OF SET-OFF. In addition to any rights now or
hereafter granted under applicable law and not by way of limitation of any such
rights, upon the occurrence and during the continuance of any Event of Default,
to the fullest extent permitted by law, each Lender is hereby authorized by the
Obligors at any time or from time to time, without notice to the Obligors or to
any other Person, any such notice being hereby expressly waived, to set off and
to appropriate and to apply any and all deposits (general or special, including,
but not limited to, Indebtedness evidenced by certificates of deposit, whether
matured or unmatured) and any other Indebtedness at any time held or owing by
that Lender to or for the credit or the account of any Obligor against and on
account of the Obligations then due.

            SECTION 9.6 JOINT AND SEVERAL LIABILITY; MAXIMUM LIABILITY; WAIVER
OF SUBROGATION.

                  (a) Each Borrower shall be liable for all amounts due to the
      Lenders under this Agreement, regardless of which Borrowers actually
      receives the Loans or other extensions of credit hereunder, or the amount
      of such Loans received or the manner in which any Lender accounts for such
      Loans or other extensions of credit on its books and records. Each
      Borrower's liabilities with respect to Loans and extensions of credit made
      to it, and each Borrower's liabilities arising as a result of the joint
      and several liability of the Borrowers hereunder and under the other Loan
      Documents with respect to Loans or other extensions of credit made to any
      other Borrowers hereunder, shall be separate and distinct obligations, but
      all such liabilities shall be primary obligations of each Borrower. The
      joint and several liability of each Borrower shall in all respects be
      continuing, absolute, unconditional and irrevocable, in all events and
      circumstances, and shall continue in full force and effect until all
      Obligations have been paid in full and all Commitments shall have
      terminated, and will be paid strictly in accordance with the terms of this
      Agreement and each other Loan Document under which they arise, regardless
      of any law, regulation or order now or hereafter in effect in any
      jurisdiction affecting any of such terms or the rights of Lender or any
      holder of any Loan or Note with respect thereto.

                  (b) Notwithstanding any payment made by either Borrower or the
      Guarantor hereunder or any set-off or application of funds of either
      Borrower or the Guarantor by the Loan Agent or any Lender, neither
      Borrower shall be entitled

<PAGE>

      to be subrogated to any of the rights of the Loan Agent, the Collateral
      Agent or any Lender against either Borrower or the Guarantor or any
      collateral security or guarantee or right of offset held by the Loan
      Agent, the Collateral Agent or any Lender for the payment of the
      Obligations, nor shall either Borrower seek or be entitled to seek any
      contribution or reimbursement from the other Borrower or the Guarantor in
      respect of payments made by the Guarantor hereunder, until all amounts
      owing to the Loan Agent, the Collateral Agent and the Lenders by the
      Borrowers on account of the Obligations are paid in full and the
      Commitments are terminated. If any amount shall be paid to either Borrower
      on account of such subrogation rights at any time when all of the
      Obligations shall not have been paid in full, such amount shall be held by
      such Borrower in trust for the Loan Agent, the Collateral Agent and the
      Lenders, segregated from other funds of such Borrower, and shall,
      forthwith upon receipt by such Borrower, be turned over to the Loan Agent
      in the exact form received by such Borrower (duly indorsed by such
      Borrower to the Loan Agent, if required), to be applied against the
      Obligations, whether matured or unmatured, in such order as the Loan Agent
      may determine.

                  (c) Each Borrower shall remain obligated hereunder
      notwithstanding that, without any reservation of rights against the other
      Borrower or the Guarantor and without notice to or further assent by the
      other Borrower or the Guarantor, any demand for payment of any of the
      Obligations made by the Loan Agent, the Collateral Agent or any Lender may
      be rescinded by the Loan Agent, the Collateral Agent or such Lender and
      any of the Obligations continued, and the Obligations, or the liability of
      any other Person upon or for any part thereof, or any collateral security
      or guarantee therefor or right of offset with respect thereto, may, from
      time to time, in whole or in part, be renewed, extended, amended,
      modified, accelerated, compromised, waived, surrendered or released by the
      Loan Agent, the Collateral Agent or any Lender, and this Agreement and the
      other Loan Documents and any other documents executed and delivered in
      connection therewith may be amended, modified, supplemented or terminated,
      in whole or in part, as the Loan Agent (or the Requisite Lenders or all
      Lenders, as the case may be) may deem advisable from time to time, and any
      collateral security, guarantee or right of offset at any time held by the
      Loan Agent, the Collateral Agent or any Lender for the payment of the
      Obligations may be sold, exchanged, waived, surrendered or released.
      Neither the Loan Agent, the Collateral Agent nor any Lender shall have any
      obligation to protect, secure, perfect or insure any Lien at any time held
      by it as security for the Obligations or for the guarantee contained in
      Article VIII or any property subject thereto.

                  (d) Each Borrower waives any and all notice of the creation,
      renewal, extension or accrual of any of the Obligations and notice of or
      proof of reliance by the Loan Agent, the Collateral Agent or any Lender
      upon the joint and several liability of the Borrowers and the guarantee
      contained in Article VIII or acceptance thereof; the Obligations, and any
      of them, shall conclusively be deemed to have been created, contracted or
      incurred, or renewed, extended, amended or waived, in reliance upon the
      joint and several liability of the Borrowers and the guarantee contained
      in Article VIII; and all dealings between the Borrowers and the Guarantor,

<PAGE>

      on the one hand, and the Loan Agent, the Collateral Agent and the Lenders,
      on the other hand, likewise shall be conclusively presumed to have been
      had or consummated in reliance thereupon. Each Borrower waives diligence,
      presentment, protest, demand for payment and notice of default or
      nonpayment to or upon the other Borrower or the Guarantor with respect to
      the Obligations. Each Borrower understands and agrees that its joint and
      several liability hereunder for and with respect to the Obligations of the
      other Borrower is continuing, absolute and unconditional without regard to
      any circumstance whatsoever which constitutes, or might be construed to
      constitute, an equitable or legal discharge of such Borrower for and with
      respect to the Obligations of the other Borrower (or of the Guarantor), in
      bankruptcy or in any other instance. When making any demand hereunder or
      otherwise pursuing its rights and remedies hereunder against either
      Borrower, the Loan Agent, the Collateral Agent or any Lender may, but
      shall be under no obligation to, make a similar demand on or otherwise
      pursue such rights and remedies as it may have against the other Borrower,
      the Guarantor or any other Person or against any collateral security or
      guarantee for the Obligations or any right of offset with respect thereto,
      and any failure by the Loan Agent, the Collateral Agent or any Lender to
      make any such demand, to pursue such other rights or remedies or to
      collect any payments from the other Borrower, the Guarantor or any other
      Person or to realize upon any such collateral security or guarantee or to
      exercise any such right of offset, or any release of the other Borrower,
      the Guarantor or any other Person or any such collateral security,
      guarantee or right of offset, shall not relieve a Borrower of any
      obligation or liability hereunder, and shall not impair or affect the
      rights and remedies, whether express, implied or available as a matter of
      law, of the Loan Agent, the Collateral Agent or any Lender against either
      Borrower. For the purposes hereof "demand" shall include the commencement
      and continuance of any legal proceedings.

                  (e) The joint liability of the Borrowers shall continue to be
      effective, or be reinstated, as the case may be, if at any time payment,
      or any part thereof, of any of the Obligations is rescinded or must
      otherwise be restored or returned by the Loan Agent, the Collateral Agent
      or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
      reorganization of a Borrower or the Guarantor, or upon or as a result of
      the appointment of a receiver, intervenor or conservator of, or trustee or
      similar officer for, a Borrower or the Guarantor or any substantial part
      of its property, or otherwise, all as though such payments had not been
      made.

            SECTION 9.7 SHARING OF PAYMENTS, ETC. The Lenders hereby agree among
themselves that if any of them shall, whether by voluntary payment, by
realization upon security, through the exercise of any right of set-off or
banker's lien, by counterclaim or cross action or by the enforcement of any
right under the Loan Documents or otherwise, or as adequate protection of a
deposit treated as cash collateral under the Bankruptcy Code, receive payment or
reduction of a proportion of the aggregate amount of principal, interest, fees
and other amounts then due and owing to that Lender hereunder or under the other
Loan Documents (collectively, except as provided in the immediately following
exception clause, the "Aggregate Amounts Due" to each Lender) which is greater
than the proportion received by any other Lender in respect of the Aggregate
Amounts Due to such other Lender, except by reason of

<PAGE>

payments that are individual to a particular Lender under Sections 2.10(c),
2.10(e), 2.11, 2.13, 9.3 and 9.4, then the Lender receiving such proportionately
greater payment shall (i) notify the Loan Agent and each other Lender of the
receipt of such payment and (ii) apply a portion of such payment to purchase
participations (which it shall be deemed to have purchased from each seller of a
participation simultaneously upon the receipt by such seller of its portion of
such payment) in the Aggregate Amounts Due to the other Lenders so that all such
recoveries of Aggregate Amounts Due shall be shared by all Lenders in proportion
to the Aggregate Amounts Due to them, provided that if all or part of such
proportionately greater payment received by such purchasing Lender is thereafter
recovered from such Lender upon the bankruptcy or reorganization of the
Borrowers or otherwise, those purchases shall be rescinded and the purchase
prices paid for such participations shall be returned to such purchasing Lender
ratably to the extent of such recovery, but without interest. The Obligors
expressly consent to the foregoing arrangement and agrees that any holder of a
participation so purchased may exercise any and all rights of banker's lien,
set-off or counterclaim with respect to any and all monies owing by the Obligors
to that holder with respect thereto as fully as if that holder were owed the
amount of the participation held by that holder.

            SECTION 9.8 NOTICES, ETC. Unless otherwise specifically provided
herein, any notice, request or other communication herein required or permitted
to be given shall be in writing and may be personally served or sent by
telefacsimile or United States mail or courier service and shall be deemed to
have been given when delivered in person or by courier service, or upon receipt
of telefacsimile, or five Business Days after depositing it in the United States
mail with postage prepaid and properly addressed; provided that notices shall
not be effective until received. For the purposes hereof, the address of each
party hereto shall be as set forth under such party's name on Annex A, or (i) as
to the Borrowers and the Loan Agent and the Collateral Agent, such other address
as shall be designated by such Person in a written notice delivered to the other
parties hereto and (ii) as to each other party hereto, such other address as
shall be designated by such party in a written notice delivered to the Loan
Agent and the Collateral Agent.

            SECTION 9.9 NO WAIVER; REMEDIES. No failure on the part of any
Lender or the Loan Agent or the Collateral Agent to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

            SECTION 9.10 GOVERNING LAW. This Agreement and the rights and
obligations of the parties hereto shall be governed by, and construed in
accordance with, the law of the State of New York.

            SECTION 9.11 SUBMISSION TO JURISDICTION; SERVICE OF PROCESS.

                  (a) Any legal action or proceeding with respect to this
      Agreement or any other Loan Document may be brought in the courts of the
      State of New York or of the United States of America for the Southern
      District of New York,

<PAGE>

      and, by execution and delivery of this Agreement, each of the parties
      hereto hereby accept for itself and in respect of its property, generally
      and unconditionally, the jurisdiction of the aforesaid courts. The parties
      hereto hereby irrevocably waive any objection, including any objection to
      the laying of venue or based on the grounds of forum non conveniens, which
      any of them may now or hereafter have to the bringing of any such action
      or proceeding in such respective jurisdictions.

                  (b) Each of the parties hereto hereby irrevocably consent to
      the service of any and all legal process, summons, notices and documents
      in any suit, action or proceeding brought in the United States of America
      arising out of or in connection with this Agreement or any of the other
      Loan Documents by the mailing (by registered or certified mail, postage
      prepaid) or delivering of a copy of such process to such Person in
      accordance with the provisions of Section 9.8. Each Obligor agrees that a
      final judgment in any such action or proceeding shall be conclusive and
      may be enforced in other jurisdictions by suit on the judgment or in any
      other manner provided by law.

                  (c) Nothing contained in this Section 9.12 shall affect the
      right of any party hereto to serve process in any other manner permitted
      by law or commence legal proceedings or otherwise proceed against any
      other party hereto in any other jurisdiction.

            SECTION 9.12 WAIVER OF JURY TRIAL. Each of the parties hereto
irrevocably waives trial by jury in any action or proceeding with respect to
this Agreement or any other Loan Document.

            SECTION 9.13 MARSHALING; PAYMENTS SET ASIDE. Neither the Loan Agent,
the Collateral Agent nor any Lender shall be under any obligation to marshal any
assets in favor of the Obligors or any other party or against or in payment of
any or all of the Obligations. To the extent that an Obligor makes a payment or
payments to the Loan Agent for the account of any Lender (each, a "Payee") or
any Payee receives payment from exercise of their rights of setoff, and such
payment or payments or the proceeds of such setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party, then (i) to
the extent of such recovery, the obligation or part thereof originally intended
to be satisfied, and all rights and remedies therefor, shall be revived and
continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred, and (ii) each Payee shall pay and return
such amount to the Loan Agent as the Loan Agent may be required to disgorge or
otherwise pay to a trustee, receiver or any other party in respect of the
portion of the payment from the Borrowers distributed by the Loan Agent to such
Payee hereunder.

            SECTION 9.14 SECTION TITLES. The Section titles contained in this
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

<PAGE>

            SECTION 9.15 EXECUTION IN COUNTERPARTS. This Agreement may be
executed in any number of counterparts and by different parties in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are attached to the same
document. Delivery of an executed signature page of this Agreement by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof. A set of the copies of this Agreement signed by all parties
shall be lodged with the Borrowers, the Loan Agent and the Collateral Agent.

            SECTION 9.16 SEVERABILITY. In case any provision in or obligation
under this Agreement or any Note shall be invalid, illegal or unenforceable in
any jurisdiction the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

            SECTION 9.17 CONFIDENTIALITY. Each party hereto shall, and shall
procure that its respective officers, employees and agents shall, keep
confidential and shall not, without the prior written consent of the other
parties, disclose to any third party this Agreement, any other Loan Document or
any of the information, reports or documents supplied by or on behalf of such
other party not otherwise publicly available, except that a party shall be
entitled to disclose this Agreement, any other Loan Document, and any such
information, reports or documents:

                        (i) in connection with any proceeding arising out of or
         in connection with this Agreement or any of the other Loan Documents,
         to the extent that such party may reasonable consider necessary to
         protect its interest; or

                        (ii) to any potential assignee or transferee of any
         party's rights under this Agreement or any of the Loan Documents (and
         to rating agencies, underwriters, investors, lenders, placement agents,
         and other parties, and their respective counsel, auditors, agents and
         advisers) participating in an assignment or participation transaction
         under Section 10.2 or any other person proposing to enter into
         contractual arrangements with any party in relation to this Agreement,
         any of the other Loan Documents subject to the relevant party
         obtaining, in each case to the extent reasonable and customary, an
         undertaking from such potential assignee or transferee or other person
         in corresponding terms to this Section 10.18; or

                        (iii) pursuant to any applicable laws, ordinances,
         judgments, decrees, injunctions, writs, rules, regulations, orders,
         interpretations, licenses, permits and orders of any competent court,
         arbitrator or governmental agency or authority in any relevant
         jurisdiction; or

<PAGE>

                        (iv) to bank examiners or any other regulatory authority
         or rating agencies or similar entities, if requested to do so; or

                        (v) to its auditors, legal, tax or to other professional
         advisers; or

                        (vi) to its Affiliates and their respective directors,
         officers, employees and agents.

            SECTION 9.18 APPOINTMENT OF INDENTURE TRUSTEE. The Loan Agent and
the Initial Lender hereby appoint U.S. Bank National Association as Indenture
Trustee under the Aircraft Mortgages. Such appointment to be effected by
delivery of an authorization and direction to the Indenture Trustee.

<PAGE>

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

                                   AMERICA WEST AIRLINES, INC.
                                   US AIRWAYS, INC
                                   US AIRWAYS GROUP, INC.

                                   By: _____________________________________
                                       Name:  Derek J. Kerr
                                       Title: Chief Financial Officer of
                                              each Person listed above

                                   AIRBUS FINANCIAL SERVICES,
                                    as Initial Lender and Loan Agent

                                   By: _____________________________________
                                       Name:
                                       Title:

                                   WELLS FARGO BANK NORTHWEST,
                                    NATIONAL ASSOCIATION,
                                    as Collateral Agent

                                   By: _____________________________________
                                       Name:
                                       Title:<PAGE>
                                                                  Exhibit 10.165

                                    FORM OF

                         AIRBUS A350 PURCHASE AGREEMENT

                         Dated as of September 27, 2005

                                     between

                                 AVSA, S.A.R.L.,

                                                                          Seller

                                       and

                US AIRWAYS, INC., AMERICA WEST AIRLINES, INC. and
                             US AIRWAYS GROUP, INC.

                                                                          Buyers

                            [Subject to Completion]

                          PRIVILEGED AND CONFIDENTIAL

                                                                               i
<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSES                   TITLE
-------      ----------------------------------
<S>          <C>
 0           DEFINITIONS

 1           SALE AND PURCHASE

 2           SPECIFICATION

 3           PRICE

 4           PRICE REVISION

 5           PAYMENT TERMS

 6           INSPECTION

 7           CERTIFICATION

 8           TECHNICAL ACCEPTANCE

 9           DELIVERY

10           EXCUSABLE DELAY AND TOTAL LOSS

11           INEXCUSABLE DELAY

12           WARRANTIES AND SERVICE LIFE POLICY

13           PATENT AND COPYRIGHT INDEMNITY

14           TECHNICAL DATA

15           SELLER REPRESENTATIVES

16           TRAINING AND TRAINING AIDS

17           SUPPLIER PRODUCT SUPPORT

18           BUYER FURNISHED EQUIPMENT
</TABLE>

                           PRIVILEGED AND CONFIDENTIAL

                                                                               1
<PAGE>

<TABLE>
<CAPTION>
CLAUSES                       TITLE
-------      --------------------------------------
<S>          <C>
19           INDEMNITIES AND INSURANCE

20           ASSIGNMENTS AND TRANSFERS

21           TERMINATION EVENTS

22           MISCELLANEOUS PROVISIONS

23           CERTAIN REPRESENTATIONS OF THE PARTIES
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS
-----------
<S>               <C>
EXHIBIT A-1       A350-800 STANDARD SPECIFICATION

EXHIBIT A-2       A350-900 STANDARD SPECIFICATION

EXHIBIT B-1       SCN FORM

EXHIBIT B-2       MSCN FORM

EXHIBIT C         SELLER SERVICE LIFE POLICY

EXHIBIT D         CERTIFICATE OF ACCEPTANCE

EXHIBIT E         BILL OF SALE

EXHIBIT F         TECHNICAL DATA AND SOFTWARE SERVICES

EXHIBIT G         SELLER PRICE REVISION FORMULA

EXHIBIT H         TERMS AND CONDITIONS FOR LICENSE FOR USE OF SOFTWARE
</TABLE>

                           PRIVILEGED AND CONFIDENTIAL

                                                                               2
<PAGE>

                               PURCHASE AGREEMENT

This Agreement is made this 27th day of September 2005

between
            AVSA, S.A.R.L, a societe a responsabilite limitee organized and
            existing under the laws of the Republic of France, having its
            registered office located at

            2, rond-point Maurice Bellonte
            31700 Blagnac, France

            (hereinafter referred to as the "SELLER")

and
            US Airways, Inc., America West Airlines, Inc. and US Airways Group,
            Inc., each a corporation organized and existing under the laws of
            the State of Delaware, United States of America, and each having its
            principal corporate offices located at 4000 East Sky Harbor
            Boulevard, Phoenix, AZ 85034 (each hereinafter referred to as a
            "BUYER" and, collectively, the "BUYERS").

WHEREAS, the Buyers wish to purchase and the Seller is willing to sell twenty
(20) Airbus A350 model aircraft, on the terms and conditions herein provided;
and

WHEREAS, the Seller is a sales subsidiary of Airbus S.A.S. and will purchase
such aircraft from Airbus S.A.S. for resale to the Buyers,

NOW THEREFORE IT IS AGREED AS FOLLOWS:

                           PRIVILEGED AND CONFIDENTIAL

                                                                               3
<PAGE>

0     DEFINITIONS

      For all purposes of this Agreement, except as otherwise expressly provided
      or unless the context otherwise requires, the following terms will have
      the following meanings:

      A350 Aircraft - any or all of the Airbus A350-800 Aircraft or A350-900
      Aircraft.

      A350-800 Aircraft - any or all of the Airbus A350-800 model aircraft to be
      purchased by the Seller and sold to the Buyers pursuant to this Agreement,
      together with all components, equipment, parts and accessories installed
      in or on such aircraft and the Propulsion Systems installed thereon.

      A350-900 Aircraft - any or all of the Airbus A350-900 model aircraft to be
      purchased by the Seller and sold to the Buyers pursuant to this Agreement,
      together with all components, equipment, parts and accessories installed
      in or on such aircraft and the Propulsion Systems installed thereon.

      A350-800 Specification - the A350-800 Standard Specification, as amended
      from time to time in accordance with this Agreement.

      A350-800 Standard Specification - the A350-800 standard specification
      document number G.000.08000, Issue B, dated June 30, 2005, published by
      the Manufacturer, which includes a maximum take-off weight ("MTOW") of 245
      metric tons, a copy of which is annexed as Exhibit A-1.

      A350-900 Specification - the A350-900 Standard Specification, as amended
      from time to time in accordance with this Agreement.

      A350-900 Standard Specification - the A350-900 standard specification
      document number G.000.09000, Issue B, dated June 30, 2005, published by
      the Manufacturer, which includes an MTOW of 245 metric tons, a copy of
      which is annexed as Exhibit A-2.

      Affiliate - with respect to any person or entity, any other person or
      entity directly or indirectly controlling, controlled by or under common
      control with such person or entity, but not, in the case of AVSA or the
      Manufacturer, any of the Associated Contractors.

      Agreement - this Airbus A350 purchase agreement dated as of the date
      hereof, including exhibits and appendices attached hereto as the same may
      be amended or modified and in effect from time to time.

      Aircraft - any or all of the A350 Aircraft for which the delivery schedule
      is set forth in Clause 9.1.1 hereof and any or all of any other aircraft
      to be firmly sold by the Seller and firmly purchased by the Buyers
      pursuant to this Agreement, together with all components, equipment, parts
      and accessories installed in or on such aircraft and the Propulsion
      Systems installed thereon upon Delivery.

                           PRIVILEGED AND CONFIDENTIAL

                                                                               4
<PAGE>

      Airframe- any Aircraft, excluding the Propulsion Systems therefor.

      ANACS - Airbus North America Customer Services, Inc., a corporation
      organized and existing under the laws of Delaware, having an office
      located at 198 Van Buren Street, Suite 300, Herndon, VA 20170, or any
      successor thereto.

      Associated Contractors - collectively, the following:

      (1)   Airbus France S.A.S., whose principal office is at
            316, route de Bayonne
            31060 Toulouse, France

      (2)   Airbus UK Ltd, whose principal office is at
            New Filton House, Filton
            Bristol, BS 997AR, Great Britain

      (3)   Airbus Espana S.L., whose principal office is at
            Plaza de John Lennon N(degrees) 2,
            s/n Getafe
            28096 Madrid, Spain

      (4)   Airbus Deutschland GmbH, whose principal office is at
            Kreetslag 10
            21129 Hamburg, Germany

      ATA Specification 100 - the specification issued by the Air Transport
      Association of America relating to manufacturers' technical data.

      ATA Specification 101 - the specification issued by the Air Transport
      Association of America relating to ground equipment technical data.

      ATA Specification 102 - the specification issued by the Air Transport
      Association of America relating to software programs.

      ATA Specification 200 - the specification issued by the Air Transport
      Association of America relating to integrated data processing.

      ATA Specification 300 - the specification issued by the Air Transport
      Association of America relating to the packaging of spare parts shipments.

      ATA Specification 2000 - the specification issued by the Air Transport
      Association of America relating to an industry-wide communication system
      linking suppliers and users for the purposes of spares provisioning,
      purchasing, order administration, invoicing and information or data
      exchange.

                           PRIVILEGED AND CONFIDENTIAL

                                                                               5
<PAGE>

      ATA Specification 2100 - the specification issued by the Air Transport
      Association of America relating to the standards for the presentation of
      technical information prepared as digital media (magnetic tape or CD ROM).

      ATA Specification 2200 - the specification issued by the Air Transport
      Association of America relating to the preparation of technical
      documentation in support of aircraft maintenance.

      ATSB - The Air Transportation Stabilization Board.

      Aviation Authority - when used with respect to any jurisdiction, the
      government entity that, under the laws of such jurisdiction, has control
      over civil aviation or the registration, airworthiness or operation of
      civil aircraft in such jurisdiction.

      Balance of the Final Contract Price - means the amount payable by the
      Buyers to the Seller on the Delivery Date for an Aircraft after deducting
      from the Final Contract Price for such Aircraft the amount of all
      Predelivery Payments received by the Seller from the Buyers, or any of
      them, in respect of such Aircraft on or before the Delivery Date for such
      Aircraft.

      Base Price - as defined in Clause 3.1.

      Buyer Furnished Equipment or BFE - for any Aircraft, all the items of
      equipment that will be furnished by the Buyers and installed in the
      Aircraft by the Seller pursuant to Clause 18, as listed in the
      Specification.

      Certificate of Acceptance - as defined in Clause 8.3.

      Change in Law - as defined in Clause 7.3.1.

      Customer Originated Changes or COC - data originating from the Buyers, or
      any of them, that are introduced into Seller's Technical Data and
      Documentation, as more completely set forth in Clause 14.9.

      Delivery - the transfer of title to the Aircraft from the Seller to the
      Designated Buyers.

      Delivery Date - the date on which Delivery occurs.

      Delivery Location - the facilities of the Manufacturer at the location of
      final assembly of the Aircraft, which is currently at the works of Airbus
      France S.A.S. works in Toulouse, France.

      Designated Buyer - as defined in Clause 9.

      Development Changes - as defined in Clause 2.1.4.

                           PRIVILEGED AND CONFIDENTIAL

                                                                               6
<PAGE>

      DGAC - the Direction Generale de l'Aviation Civile of France, or any
      successor agency thereto.

      EASA-European Aviation Safety Agency or any successor agency thereto.

      Excusable Delay - as defined in Clause 10.1.

      Export Certificate of Airworthiness - an export certificate of
      airworthiness issued by the Aviation Authority of the Delivery Location.

      FAA - the U.S. Federal Aviation Administration, or any successor agency
      thereto.

      Final Contract Price - as defined in Clause 3.2.

      Free Carrier or FCA - as defined in Incoterms 2000: ICC Official Rules for
      the Interpretation of Trade Terms, published by the International Chamber
      of Commerce.

      In-house Warranty Labor Rate - as defined in Clause 12.1.8(v).

      In-house Warranty Repair - as referred to in Clause 12.1.8.

      Initial Payment- each of the initial payment amounts described in Clause
      5.3.

      Interface Problem - as defined in Clause 12.4.1.

      LIBOR - the London Interbank Offered Rate determined on the basis of the
      offered rates for deposits in US dollars for each stated interest period
      (or for six-month deposits in US dollars if no interest period is stated),
      which appears on the Reuters Screen LIBO Page as of 11:00 a.m., London
      time, on the second Working Day prior to the start of the relevant
      interest period. If at least two (2) such offered rates appear on the
      Reuters Screen LIBO Page, the rate for that interest period will be the
      arithmetic mean of such offered rates rounded to the nearest one-hundred
      thousandth of a basis point. If fewer than two (2) offered rates appear,
      the rate for that interest period will be "LIBOR" as quoted by National
      Westminster Bank, plc or any successor thereto. "Reuters Screen LIBO Page"
      means the display designated as page "LIBO" on the Reuters Monitor Money
      Rates Service (or any successor to such page or service).

      Manufacturer - Airbus S.A.S., societe par actions simplifiee, of the
      Republic of France.

      Manufacturer Specification Change Notice or MSCN -as defined in Clause
      2.1.3.

      Predelivery Payment - any of the payments made in accordance with Clause
      5.2.

      Predelivery Payment Reference Price - as defined in Clause 5.2.2.

                           PRIVILEGED AND CONFIDENTIAL

                                                                               7
<PAGE>

      Propulsion Systems - the two (2) General Electric GEnx-1A72 powerplants
      installed on an Aircraft or to be installed on an Aircraft at Delivery,
      each composed of the powerplant (as such term is defined in Chapters 70-80
      of ATA Specification 100 (Revision 21), but limited to the equipment,
      components, parts and accessories included in the powerplant, as so
      defined) that have been sold to the Manufacturer by General Electric.

      Ready for Delivery - with respect to any Aircraft, the term applicable to
      such Aircraft when (i) the Technical Acceptance Process has been
      successfully completed for such Aircraft and (ii) the Export Certificate
      of Airworthiness has been issued therefor.

      Resident Customer Support Representative - as set forth in Clause 15.2.1.

      Scheduled Delivery Month - as defined in Clause 9.1.1.

      SCN - as set forth in Clause 2.1.2

      Seller Price Revision Formula - as set forth in Exhibit G.

      Service Life Policy - as set forth to in Clause 12.2.

      Software Products - software, whether bundled with data or not,
      specifically designed to provide the Buyers with certain maintenance and
      operation capabilities further detailed in the ANACS Customer Support
      Catalog.

      Specification - collectively or individually, as applicable, the A350-800
      Specification or A350-900 Specification.

      Specification Change Notice or SCN - as defined in Clause 2.1.2.

      Supplier - any supplier of Supplier Parts.

      Supplier Part - any component, equipment, accessory or part installed in
      an Aircraft at the time of Delivery thereof, not including the Propulsion
      Systems or Buyer Furnished Equipment, for which there exists a Supplier
      Product Support Agreement.

      Supplier Product Support Agreement - an agreement between the Manufacturer
      and a Supplier containing enforceable and transferable warranties (and in
      the case of landing gear suppliers, service life policies for selected
      structural landing gear elements).

      Technical Data - as set forth in Exhibit F.

      Technical Acceptance Process - as defined in Clause 8.1.1.

      Termination Event - as defined in Clause 21.1.

      Training Conference - as defined in Clause 16.4.1.

                           PRIVILEGED AND CONFIDENTIAL

                                                                               8
<PAGE>

      Type Certificate - as defined in Clause 7.1.

      Warranted Part - as defined in Clause 12.1.1.

      Warranty Claim - as defined in Clause 12.1.7(v).

      Working Day - with respect to any action to be taken hereunder, a day
      other than a Saturday, Sunday or other day designated as a holiday in the
      jurisdiction in which such action is required to be taken.

      The terms "herein," "hereof" and "hereunder" and other words of similar
      import refer to this Agreement, and not a particular Clause thereof. The
      definition of a singular in this Clause will apply to plurals of the same
      words.

      Except for the purposes of and as provided in Clause 22.10, references in
      this Agreement to an exhibit, schedule, article, section, subsection or
      clause refer to the appropriate exhibit or schedule to, or article,
      section, subsection or clause in this Agreement.

      Except for the preceding sentence, each agreement defined in this Clause 0
      will include all appendices, exhibits and schedules to such agreement. If
      the prior written consent of any person is required hereunder for an
      amendment, restatement, supplement or other modification to any such
      agreement and the consent of each such person is obtained, references in
      this Agreement to such agreement will be to such agreement as so amended,
      restated, supplemented or modified.

      References in this Agreement to any statute will be to such statute as
      amended or modified and in effect at the time any such reference is
      operative.

      Technical and trade terms used but not defined herein will be defined as
      generally accepted in the airline and/or aircraft manufacturing industries
      or as otherwise described.

                           PRIVILEGED AND CONFIDENTIAL

                                                                               9
<PAGE>

1     SALE AND PURCHASE

      The Seller will cause to be manufactured and will sell and deliver, and
      the Buyer will purchase (from the Seller) and take delivery of the
      Aircraft, subject to the terms and conditions in this Agreement.

                           PRIVILEGED AND CONFIDENTIAL

                                                                              10
<PAGE>
2      SPECIFICATION

2.1    Specification Documents

2.1.1  The Aircraft will be manufactured in accordance with the applicable
       Specification.

2.1.2  Specification Change Notice

       The Specification may be amended in writing by the Buyers and the Seller
       by a Specification Change Notice in substantially the form set out in
       Exhibit B-1 (each, an "SCN"). An SCN will set out the SCN's effectivity
       and the particular change to be made to the Specification and the effect,
       if any, of such change on design, performance, weight, Scheduled Delivery
       Month of the Aircraft affected thereby, interchangeability or
       replaceability requirements of the Specification and text of the
       Specification. An SCN may result in an adjustment of the Base Price of
       the Aircraft, which adjustment, if any, will be specified in the SCN.
       SCNs will not be binding on either party until signed by persons duly
       authorized by each of the Buyers and the Seller, but upon being so
       signed, will constitute amendments to this Agreement.

2.1.3  [AS AGREED BY THE PARTIES]

2.1.4  Development Changes

       As stated in Clause 2.1.3, changes may be made by the Seller without the
       Buyers' consent when changes to the Aircraft that do not adversely affect
       price, Scheduled Delivery Month, weight of the Aircraft affected thereby,
       performance, interchangeability requirements or replaceability
       requirements of the Specifications of the Aircraft affected thereby are
       deemed by the Seller to be necessary to improve the Aircraft affected
       thereby, prevent delay or ensure compliance with this Agreement
       ("DEVELOPMENT CHANGES"). Development Changes will be made by either an
       MSCN or a manufacturer's information document prior to Delivery of the
       relevant Aircraft.

2.2    Customization Milestones Chart

       Within a reasonable period after signature of this Agreement, the Seller
       will provide the Buyers with a chart called the "Customization Milestones
       Chart," defining the lead times before Delivery needed for agreeing on
       items requested by the Buyers from the Standard Specifications and
       Configuration Guides CD-ROM.

2.3    Propulsion Systems

       Each Airframe will be equipped with a set of Propulsion Systems. Each
       Airframe will be equipped with nacelles and thrust reversers.

                          PRIVILEGED AND CONFIDENTIAL
                                                                              11

<PAGE>

3      PRICE

3.1    Base Price of the Aircraft

3.1.1  Aircraft

3.1.1. The Base Price of each A350-800 Aircraft is the sum of

       (i)    [AS AGREED BY THE PARTIES]

       (ii)   [AS AGREED BY THE PARTIES]

3.1.2  The Base Price of each A350-900 Aircraft is the sum of

       (i)    [AS AGREED BY THE PARTIES]

       (ii)   [AS AGREED BY THE PARTIES]

3.2    The Final Contract Price of an Aircraft will be the sum of:

       (i)    the Base Price of the applicable Aircraft, adjusted to the
              Delivery Date of such Aircraft in accordance with the Seller Price
              Revision Formula, [AS AGREED BY THE PARTIES]

       (ii)   the price of any SCNs for the Aircraft entered into after the date
              of signature of this Agreement, as adjusted to the Delivery Date
              in accordance with the Seller Price Revision Formula; and

       (iii)  any other amount resulting from any other provisions of this
              Agreement and/or any other written agreement between the Buyers
              and the Seller relating to the Aircraft.

3.3    Taxes, Duties and Imposts

       [AS AGREED BY THE PARTIES]

3.3.1  [AS AGREED BY THE PARTIES]

3.3.2  [AS AGREED BY THE PARTIES]

3.3.3  [AS AGREED BY THE PARTIES]

3.3.4  [AS AGREED BY THE PARTIES]

                          PRIVILEGED AND CONFIDENTIAL

                                                                              12

<PAGE>

4      PRICE REVISION

       [AS AGREED BY THE PARTIES] the Base Price of the Aircraft is subject to
       revision up to and including the Delivery Date, in accordance with the
       Seller Price Revision Formula.

                          PRIVILEGED AND CONFIDENTIAL

                                                                              13

<PAGE>

5      PAYMENT TERMS

5.1    The Buyers will, jointly and severally, pay the Predelivery Payments, the
       Balance of the Final Contract Price and any other amount due hereunder in
       immediately available funds in United States dollars to the Seller's
       account with CALYON New York, 1301 Avenue of the Americas, New York, or
       to such other account within the United States as may be designated by
       the Seller.

5.2    Predelivery Payments

5.2.1  Predelivery Payments are nonrefundable and will be paid by the Buyers,
       jointly and severally, to the Seller for each Aircraft. [AS AGREED BY THE
       PARTIES]. The aggregate Predelivery Payment amount is thirty percent
       (30%) of the Predelivery Payment Reference Price.

5.2.2  The Predelivery Payment Reference Price is:

          A =     Pb (1 + 0.04N)

          where

          A =     the Predelivery Payment Reference Price for an Aircraft to be
                  delivered in calendar year T.

          Pb =    the Base Price of the Aircraft.

          N  =    (T - 2005).

          T  =    the year of delivery of the relevant Aircraft.

5.2.3  Predelivery Payments will be paid according to the following schedule.

<TABLE>
<CAPTION>
                                                                          Percentage of Predelivery
                                                                                   Payment
Payment Date                                                                   Reference Price
------------                                                                   ---------------
<S>                  <C>                                                 <C>
1st Payment          On signature of this Agreement                      [AS AGREED BY THE PARTIES]

                     No later than the first Working Day of the
                     following months:

2d Payment           The thirty-sixth (36th) month before the            [AS AGREED BY THE PARTIES]
                     Scheduled Delivery Month of each
                     Aircraft as set forth in this Agreement
</TABLE>

                          PRIVILEGED AND CONFIDENTIAL

                                                                              14

<PAGE>

<TABLE>
<CAPTION>
                                                                          Percentage of Predelivery
                                                                                   Payment
Payment Date                                                                   Reference Price
------------                                                                   ---------------
<S>                  <C>                                                 <C>
3d Payment           The twenty-fourth (24th) month before
                     the Scheduled Delivery Month of each                                     5%
                     Aircraft as set forth in this Agreement

4th Payment          The eighteenth (18th) month before the                                   5%
                     Scheduled Delivery Month of each
                     Aircraft as set forth in this Agreement

5th Payment          The twelfth (12th) month before the                                      5%
                     Scheduled Delivery Month of each
                     Aircraft as set forth in this Agreement

6th Payment          The sixth (6th) month before the                                         5%
                     Scheduled Delivery Month of each
                     Aircraft as set forth in this Agreement

TOTAL PAYMENT PRIOR TO DELIVERY                                                              30%
</TABLE>

       All Predelivery Payments that are past due on signature of this Agreement
       will be paid at signature of this Agreement.

5.2.4  The Seller will be entitled to hold and use any Predelivery Payment as
       absolute owner thereof, subject only to the obligation to deduct
       Predelivery Payments from the Final Contract Price when calculating the
       Balance of the Final Contract Price. The Seller will be under no
       obligation to segregate any Predelivery Payment, or any amount equal
       thereto, from the Seller's funds.

5.2.5  SCN Predelivery Payment

       [AS AGREED BY THE PARTIES]

       (i)    For each such SCN executed before the first day of the eighteenth
              (18th) month before the Scheduled Delivery Month, the Buyers will,
              jointly and severally, make a Predelivery Payment equal to fifteen
              percent (15%) of the SCN price. This Predelivery Payment will be
              paid on the first day of the twelfth (12th) month before the
              Scheduled Delivery Month.

       (ii)   For each such SCN executed after the first day of the eighteenth
              month (18th) and before the first day of the twelfth (12th) month
              before the Scheduled Delivery Month, this Predelivery Payment will
              amount to thirty percent (30%) of the SCN price, and for each SCN
              executed after the first day of the twelfth (12th) month and
              before the first day of the ninth (9th) month before the Scheduled
              Delivery Month this payment will amount to fifty percent (50%) of
              the SCN price. These payments will be paid on the first day of the
              sixth (6th) month before the Scheduled Delivery Month.

                          PRIVILEGED AND CONFIDENTIAL

                                                                              15

<PAGE>

5.3    Initial Payment

       [AS AGREED BY THE PARTIES]

5.4    Payment of Balance of the Final Contract Price

       Concurrent with each Delivery, the Buyers will, jointly and severally,
       pay to the Seller the Balance of the Final Contract Price for the
       applicable Aircraft. The Seller's receipt of the full amount of all
       Predelivery Payments and of the Balance of the Final Contract Price,
       including any amounts due under Clause 5.6, will be a condition precedent
       to the Seller's obligation to deliver such Aircraft to the Designated
       Buyer.

5.5    Payment Setoff

       Notwithstanding any other rights the Seller may have at contract or at
       law, the Buyers and the Seller hereby agree that should any amount
       (whether under this Agreement or under any other agreement between any
       Buyer or any of their respective Affiliates and the Seller or any of its
       Affiliates and whether at the stated maturity of such amount, by
       acceleration or otherwise) become due and payable by such Buyer or its
       Affiliates, and not be paid in full in immediately available funds on the
       date due, then the Seller will have the right to debit and apply, in
       whole or in part, the Predelivery Payments paid to the Seller by the
       Buyers hereunder against such unpaid amount. The Seller will promptly
       notify the Buyers in writing after such debiting and application.

5.6    Overdue Payments

       If any payment due the Seller is not received by the Seller on the date
       or dates agreed on between the Buyers and the Seller, the Seller will
       have the right to claim from the Buyers and the Buyers will promptly pay
       to the Seller on receipt of such claim [AS AGREED BY THE PARTIES] the
       amount of such overdue payment, to be calculated from and including the
       due date of such payment to (but excluding) the date such payment is
       received by the Seller, on the basis of a 360-day year and the actual
       number of days elapsed. The Seller's right to receive such interest will
       be in addition to any other rights of the Seller hereunder or at law.

5.7    Proprietary Interest

       Notwithstanding any provision of law to the contrary, none of the Buyers
       will, by virtue of anything contained in this Agreement (including,
       without limitation, the making of any Predelivery Payments hereunder, or
       any designation or identification by the Seller of a particular Aircraft
       as an Aircraft to which any of the provisions of this Agreement refer)
       acquire any proprietary, insurable or other interest whatsoever in any
       Aircraft before Delivery of and payment for such Aircraft, as provided in
       this Agreement.

5.8    Payment in Full

                          PRIVILEGED AND CONFIDENTIAL

                                                                              16

<PAGE>

       The Buyers' obligation to make payments to the Seller hereunder will not
       be affected by and will be determined without regard to any setoff,
       counterclaim, recoupment, defense or other right that any Buyer may have
       against the Seller or any other person and all such payments will be made
       without deduction or withholding of any kind. Each Buyer will ensure that
       the sums received by the Seller under this Agreement will be equal to the
       full amounts expressed to be due the Seller hereunder, without deduction
       or withholding on account of and free from any and all taxes, levies,
       imposts, duties or charges of whatever nature, except that if any Buyer
       is compelled by law to make any such deduction or withholding, the Buyers
       will, jointly and severally, pay such additional amounts to the Seller as
       may be necessary so that the net amount received by the Seller after such
       deduction or withholding will equal the amounts that would have been
       received in the absence of such deduction or withholding.

                          PRIVILEGED AND CONFIDENTIAL

                                                                              17

<PAGE>

6      INSPECTION

6.1    Inspection Procedures

6.1.1  All work to be carried out on the Aircraft and all materials and parts
       thereof will be open to inspection during business hours by duly
       authorized representatives of the Buyers or their designee at the
       respective works of the Associated Contractors and, if possible, at the
       works of their respective subcontractors. These representatives will have
       access to such relevant technical data as are reasonably necessary for
       this purpose (except that, if access to any part of the respective works
       where construction is in progress or materials or parts are stored is
       restricted for security reasons, the Associated Contractors will be
       allowed a reasonable time to make the items available for inspection
       elsewhere). The actual detailed inspection of the Aircraft, materials and
       parts thereof will take place only in the presence of the respective
       inspection department personnel of the Associated Contractors or their
       subcontractors. The procedures for such inspections will be agreed on
       with the Buyers before any inspection. The Seller will ensure that such
       personnel will be available at all reasonable times during business hours
       as described above.

6.1.2  All inspections, examinations and discussions with the Seller's, the
       Associated Contractors' or their respective subcontractors' engineering
       or other personnel by the Buyers and their representatives will be
       performed in such a manner as not to delay or hinder either the work to
       be carried out on the Aircraft or the proper performance of this
       Agreement. In no event will any of the Buyers or the representatives of
       any of them be permitted to inspect any aircraft other than the Aircraft.
       The Seller will not permit and will cause the Manufacturer not to permit,
       any representatives, employees, agents or personnel of any airline or
       customer of the Seller other than the Buyers to inspect, or to have
       access to the Aircraft or any designs or specifications relating thereto,
       without the prior written consent of the Buyers.

6.2    Representatives

       For the purposes of Clause 6.1, starting at a mutually agreed date until
       Delivery of the last Aircraft, the Seller will furnish free-of-charge
       secretarial assistance and suitable space, office equipment and
       facilities in or conveniently located with respect to the Delivery
       Location for the use of not more than four (4) representatives of the
       Buyers during the aforementioned period. The Seller will provide internet
       access, electronic mail, facsimile and a telephone at the Buyers' cost to
       be invoiced on a monthly basis.

6.3    The Seller will or will cause the Manufacturer to correct or otherwise
       resolve any deviations from the Specification discovered during any
       inspection or examination conducted under this Clause 6.

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7      CERTIFICATION

       Except as set forth in this Clause 7, the Seller will not be required to
       obtain any certificate or approval with respect to the Aircraft.

7.1    Type Certification

       A type certificate will have been issued by each of EASA and the FAA in
       the transport category (each, a "TYPE CERTIFICATE") prior to Delivery of
       the first Aircraft.

7.2    Export Certificate of Airworthiness

       Subject to the provisions of Clause 7.3, each Aircraft will be delivered
       to the Buyers with an Export Certificate of Airworthiness issued by the
       DGAC or EASA, as applicable, and in a condition enabling the Buyers (or
       an eligible person under then applicable law) to obtain at the time of
       Delivery a Standard Airworthiness Certificate issued pursuant to Part 21
       of the US Federal Aviation Regulations and a Certificate of Sanitary
       Construction issued by the U.S. Public Health Service Food and Drug
       Administration. However, the Seller will have no obligation to make and
       will not be responsible for any costs of alterations or modifications to
       any Aircraft to enable such Aircraft to meet FAA or U.S. Department of
       Transportation requirements for specific operation on the Buyers' routes,
       except as may be provided pursuant to Clause 7.3, whether before, at or
       after Delivery of any Aircraft.

7.3    Additional FAA Requirements

       [AS AGREED BY THE PARTIES]

7.4    Additional EASA Requirements

       [AS AGREED BY THE PARTIES]

7.4.4  Notwithstanding the provisions of Clauses 7.4.3, if a Change in Law
       relates to an item of BFE or to the Propulsion Systems (including to
       engine accessories, quick engine change units or thrust reversers) the
       costs relating thereto will be borne in accordance with such arrangements
       as may be made separately between the Buyers and the manufacturer of the
       BFE or the Propulsion Systems, as applicable, and the Seller will have no
       obligation with respect thereto.

7.5    Specification Changes After Delivery

       Nothing in Clause 7.4 will require the Seller to make any changes or
       modifications to, or to make any payments or take any other action with
       respect to, any Aircraft that is Ready for Delivery before the compliance
       date of any law or regulation referred to in Clause

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       7.4. Any such changes or modifications made to an Aircraft after it is
       Ready for Delivery will be at the Buyers' expense.

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8      BUYER'S TECHNICAL ACCEPTANCE

8.1    Technical Acceptance Process

8.1.1  Prior to Delivery, the Aircraft will undergo a technical acceptance
       process developed by the Seller, [AS AGREED BY THE PARTIES] (the
       "TECHNICAL ACCEPTANCE PROCESS"). Completion of the Technical Acceptance
       Process will demonstrate the satisfactory functioning of the Aircraft and
       will be deemed to demonstrate compliance with the applicable
       Specification. Should it be established that the Aircraft fails to
       complete the Technical Acceptance Process satisfactorily, the Seller will
       without hindrance from the Buyers be entitled to and will carry out any
       necessary changes to correct the reason for such failure and, as soon as
       practicable thereafter, resubmit the Aircraft in order to complete the
       Technical Acceptance Process.

8.1.2  The Technical Acceptance Process will

       (i)    start on a date notified by the Seller to the Buyers at least ten
              (10) days in advance,

       (ii)   take place at the Delivery Location,

       (iii)  be carried out by the personnel of the Seller,

       (iv)   include a technical acceptance flight that will not exceed three
              (3) hours, and

       (v)    conclude in nine (9) Working Days.

8.2    Buyers' Attendance

8.2.1  The Buyers are entitled to attend and observe the Technical Acceptance
       Process.

8.2.2  If any of the Buyers attend the Technical Acceptance Process, each of
       them

       (i)    will comply with the reasonable requirements of the Seller, with
              the intention of completing the Technical Acceptance Process
              within nine (9) Working Days, and

       (ii)   may, collectively, have a maximum of four (4) representatives (no
              more than three (3) of whom will have access to the cockpit at any
              one time) accompany the Seller's representatives on the technical
              acceptance flight, during which such Buyers' representatives will
              comply with the instructions of the Seller's representatives.

8.2.3  If none of the Buyers attends or any of them fails to cooperate in the
       Technical Acceptance Process, the Seller will be entitled to complete the
       Technical Acceptance Process in compliance with Clause 8.1.1, without
       such Buyer's attendance, and each of

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       the Buyers will be deemed to have accepted that the Aircraft is
       functioning satisfactorily and is in compliance with the Specification,
       in all respects.

8.3    Certificate of Acceptance

       Upon successful completion of the Technical Acceptance Process, each of
       the Buyers will, on or before the Delivery Date, sign and deliver to the
       Seller a certificate of acceptance in respect of the Aircraft in the form
       of Exhibit D (the "CERTIFICATE OF ACCEPTANCE"). [AS AGREED BY THE
       PARTIES]

8.4    Finality of Acceptance

       The Buyers' signature of the Certificate of Acceptance for the Aircraft
       will constitute waiver by each of the Buyers of any right any of them may
       have under the Uniform Commercial Code as adopted by the State of New
       York or otherwise to revoke acceptance of the Aircraft for any reason,
       whether known or unknown to any of the Buyers at the time of acceptance.

8.5    Aircraft Utilization

       The Seller will, without payment or other liability, be entitled to use
       the Aircraft [AS AGREED BY THE PARTIES] before Delivery to obtain the
       certificates required under Clause 7. Such use will not limit the Buyers'
       obligation to accept Delivery.

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9      DELIVERY

9.1    Delivery Schedule

9.1.1  Subject to any delay contemplated by Clauses 2, 7, 8, 10 and 18, the
       Seller will have the Aircraft Ready for Delivery at the Delivery Location
       within the following months (each a "SCHEDULED DELIVERY MONTH").

       Scheduled Delivery Month                  Year                 Quantity
                                    [AS AGREED BY THE PARTIES]

9.1.2  [AS AGREED BY THE PARTIES]

9.2.   The Buyers will send their representatives to the Delivery Location to
       take Delivery within seven (7) days after the date on which the Aircraft
       is Ready for Delivery.

9.2.1  The Seller will transfer title to the Aircraft to [AS AGREED BY THE
       PARTIES] free and clear of all encumbrances, provided that the Balance of
       the Final Contract Price has been paid by the Buyers, or any of them,
       pursuant to Clause 5.4 and that the Certificate of Acceptance has been
       signed and delivered to the Seller pursuant to Clause 8.3. [AS AGREED BY
       THE PARTIES]

9.2.2  If (i) any Buyer fails to deliver the signed Certificate of Acceptance to
       the Seller on or before the Delivery Date, or (ii) the Buyers fail pay
       the Balance of the Final Contract Price for the Aircraft to the Seller on
       the Delivery Date, then each of the Buyers will be deemed to have
       rejected Delivery wrongfully when the Aircraft was duly tendered pursuant
       to this Agreement. If such a deemed rejection arises, the Seller will
       retain title to the applicable Aircraft and the Buyers will, jointly and
       severally, indemnify and hold the Seller harmless against any and all
       costs (including but not limited to any parking, storage, and insurance
       costs) and consequences resulting from the Buyers' rejection, it being
       understood that the Seller will be under no duty to store, park, or
       otherwise protect the Aircraft. These rights of the Seller will be in
       addition to the Seller's other rights and remedies in this Agreement.

9.3    Flyaway

9.3.1  The Buyers and the Seller will cooperate to obtain any licenses that may
       be required by the relevant Aviation Authority for the purpose of
       exporting the Aircraft.

9.3.2  All expenses of, or connected with, flying the Aircraft from the Delivery
       Location after Delivery will be borne by the Buyers. The Buyers will make
       direct arrangements with the supplying companies for the fuel and oil
       required for all delivery flights.

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10     EXCUSABLE DELAY AND TOTAL LOSS

10.1   Scope of Excusable Delay

       Neither the Seller, the Manufacturer, the Associated Contractors, nor any
       Affiliate of any of the foregoing, will be responsible for or be deemed
       to be in default on account of delays in delivery or failure to deliver
       or otherwise in the performance of this Agreement or any part hereof due
       to causes reasonably beyond the Seller's, the Manufacturer's or any
       Associated Contractor's control or not occasioned by the Seller's, the
       Manufacturer's or any Associated Contractor's fault or negligence
       ("EXCUSABLE DELAY"), including, but not limited to: (i) acts of God or
       the public enemy, natural disasters, fires, floods, storms beyond
       ordinary strength, explosions or earthquakes; epidemics or quarantine
       restrictions; serious accidents; total or constructive total loss; any
       law, decision, regulation, directive or other act (whether or not having
       the force of law) of any government or of the Council of the European
       Union or the Commission of the European Union or of any national,
       Federal, State, municipal or other governmental department, commission,
       board, bureau, agency, court or instrumentality, domestic or foreign;
       governmental priorities, regulations or orders affecting allocation of
       materials, facilities or a completed Aircraft; war, civil war or warlike
       operations, terrorism, insurrection or riots; failure of transportation;
       strikes or labor troubles causing cessation, slow down or interruption of
       work; inability after due and timely diligence to procure materials,
       accessories, equipment or parts or to cause a subcontractor or Supplier
       to furnish materials, components, accessories, equipment or parts;
       general hindrance in transportation; [AS AGREED BY THE PARTIES]; and
       (iii) any delay caused directly or indirectly by the action or inaction
       of any Buyer.

10.2   Consequences of Excusable Delay

10.2.1 If an Excusable Delay occurs,

       (a) the Seller will

              (i)    notify the Buyers of such Excusable Delay as soon as
                     practicable after becoming aware of the same;

              (ii)   not be deemed to be in default in the performance of its
                     obligations hereunder as a result of such Excusable Delay;

              (iii)  not be responsible for any damages arising from or in
                     connection with such Excusable Delay suffered or incurred
                     by any of the Buyers; and

              (iv)   subject to the provisions of Subclause 10.3 below, as soon
                     as practicable after the removal of the cause of such
                     Excusable Delay, resume performance of its obligations
                     under this Agreement and notify the Buyers of the revised
                     Scheduled Delivery Month; and

       (b) [AS AGREED BY THE PARTIES]

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10.3   Termination on Excusable Delay

10.3.1 If any Delivery is delayed as a result of an Excusable Delay for a period
       of [AS AGREED BY THE PARTIES] after the last day of the Scheduled
       Delivery Month, then either party may terminate this Agreement with
       respect to the affected Aircraft, by giving written notice the other
       party [AS AGREED BY THE PARTIES] after [AS AGREED BY THE PARTIES]

10.3.2 If the Seller has not exercised its right to terminate pursuant to
       Subclause 10.3.1 herein and if the Seller notifies the Buyers of a
       revised Scheduled Delivery Month pursuant to Clause 10.2.1(iv), in
       respect of a delay in Delivery of an Aircraft of [AS AGREED BY THE
       PARTIES], then the Buyers may terminate this Agreement with respect to
       the affected Aircraft. Termination will be made by giving written notice
       to the other party [AS AGREED BY THE PARTIES] after the Buyers' receipt
       of the notice of a revised Scheduled Delivery Month. Any termination
       pursuant to this Clause 10.3.2 as to an Aircraft will discharge the
       obligations and liabilities of the parties hereunder with respect to such
       Aircraft, except that the Seller will [AS AGREED BY THE PARTIES] of such
       termination pay to an account designated by each of the Buyers in writing
       an amount equal to all Predelivery Payments made by the Buyers, or any of
       them, in respect of such Aircraft, provided that none of the Buyers is in
       default under this Agreement or any other agreement with the Seller
       and/or its Affiliates.

10.3.3 If this Agreement is not terminated under the terms of Clause 10.3.1 or
       10.3.2, then the Seller and the Buyers will mutually agree upon a new
       Scheduled Delivery Month after the [AS AGREED BY THE PARTIES] period
       referred to in Clause 10.3.1 or 10.3.2, and this new Scheduled Delivery
       Month will be deemed to be an amendment to the applicable Scheduled
       Delivery Month in Clause 9.1.1.

10.4   Total Loss, Destruction or Damage

       If prior to Delivery, any Aircraft is lost, destroyed or in the
       reasonable opinion of the Seller is damaged beyond economic repair
       ("TOTAL LOSS"), the Seller will notify the Buyers to this effect within
       [AS AGREED BY THE PARTIES]of such occurrence. The Seller will include in
       said notification (or as soon after the issue of the notice as such
       information becomes available to the Seller) the earliest date consistent
       with the Seller's other commitments and production capabilities that an
       aircraft to replace the Aircraft may be delivered to the Buyers and the
       Scheduled Delivery Month will be extended as specified in the Seller's
       notice to accommodate the delivery of the replacement aircraft. However,
       if the Scheduled Delivery Month is extended to a month [AS AGREED BY THE
       PARTIES], then this Agreement will terminate with respect to said
       Aircraft unless:

       (i)    each of the Buyers notifies the Seller within [AS AGREED BY THE
              PARTIES] of the date of receipt of the Seller's notice that it
              desires the Seller to provide a replacement aircraft during the
              month quoted in the Seller's notice; and

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       (ii)   the parties execute an amendment to this Agreement recording the
              variation in the Scheduled Delivery Month.

         Nothing herein will require the Seller to manufacture and deliver a
         replacement aircraft if such manufacture would require the reactivation
         of its production line for the model or series of aircraft that
         includes the Aircraft. Any termination pursuant to this Clause 10.4 as
         to a particular Aircraft will discharge the obligations and liabilities
         of the parties hereunder with respect to such Aircraft, except that the
         Seller will [AS AGREED BY THE PARTIES]of such termination pay to an
         account designated by each of the Buyers in writing an amount equal to
         all Predelivery Payments made by the Buyers, or any of them, in respect
         of such Aircraft, provided that none of the Buyers is in default under
         this Agreement or any other agreement with the Seller and/or its
         Affiliates.

10.5   REMEDIES

       THIS CLAUSE 10 SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE BUYERS FOR
       DELAYS IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS ARE
       COVERED BY CLAUSE 11, AND THE BUYER HEREBY WAIVES ALL RIGHTS TO WHICH IT
       WOULD OTHERWISE BE ENTITLED IN RESPECT THEREOF, INCLUDING, WITHOUT
       LIMITATION, ANY RIGHTS TO INCIDENTAL AND CONSEQUENTIAL DAMAGES OR
       SPECIFIC PERFORMANCE. NONE OF THE BUYERS WILL BE ENTITLED TO CLAIM THE
       REMEDIES AND RECEIVE THE BENEFITS PROVIDED IN THIS CLAUSE 10 WHERE THE
       DELAY REFERRED TO IN THIS CLAUSE 10 IS CAUSED DIRECTLY OR INDIRECTLY BY
       THE NEGLIGENCE OR FAULT OF ANY BUYER OR ITS REPRESENTATIVES.

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11       INEXCUSABLE DELAY

11.1     Liquidated Damages

11.1.1   If

                  [AS AGREED BY THE PARTIES]

         then such delay will be termed an "INEXCUSABLE DELAY." In the event of
         an Inexcusable Delay, [AS AGREED BY THE PARTIES]

11.1.2   If

                  (y) an Aircraft is not Ready for Delivery [AS AGREED BY THE
                  PARTIES]

11.2     Renegotiation

         If, as a result of an Inexcusable Delay, Delivery does not occur [AS
         AGREED BY THE PARTIES] after the last day of the Scheduled Delivery
         Month, the Buyers will have the right, exercisable by written notice
         given by each of them to the Seller [AS AGREED BY THE PARTIES]to
         require from the Seller a renegotiation of the Scheduled Delivery Month
         for the affected Aircraft. Unless otherwise agreed between the Seller
         and the Buyers during such renegotiation, the said renegotiation will
         not prejudice the Buyers' right to receive liquidated damages in
         accordance with Clause 11.1.

11.3     Termination

         If, as a result of an Inexcusable Delay, Delivery does not or cannot
         occur [AS AGREED BY THE PARTIES]and the parties have not renegotiated
         the Delivery Date pursuant to Clause 11.2, then the Buyers
         collectively, on the one hand, and the Seller, on the other, will have
         the right, exercisable by written notice to the other party, given [AS
         AGREED BY THE PARTIES] to terminate this Agreement in respect of the
         affected Aircraft. In the event of termination, neither party will have
         any claim against the other, except that the Seller will pay to an
         account designated in a writing signed by each of the Buyers any
         amounts due pursuant to Clause 11.1 and will pay such account [AS
         AGREED BY THE PARTIES]

11.4     Setoff Payments

         Notwithstanding anything to the contrary contained herein, before being
         required to make any payments under Clauses 11.1 or 11.3 above, the
         Seller will have the right to apply any and all sums previously paid by
         the Buyers, or any of them, to the Seller with respect to an Aircraft
         as to which this Agreement has been terminated to the payment of any

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         other amounts that any Buyer or any Affiliate of a Buyer owes to the
         Seller or any Affiliate thereof under any agreement between them.

11.5     REMEDIES

         THIS CLAUSE 11 SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE BUYERS
         FOR DELAYS IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS
         ARE COVERED BY CLAUSE 10, AND EACH OF THE BUYERS HEREBY WAIVES ALL
         RIGHTS TO WHICH IT WOULD OTHERWISE BE ENTITLED IN RESPECT THEREOF,
         INCLUDING WITHOUT LIMITATION ANY RIGHTS TO INCIDENTAL AND CONSEQUENTIAL
         DAMAGES OR SPECIFIC PERFORMANCE. NONE OF THE BUYERS WILL BE ENTITLED TO
         CLAIM THE REMEDIES AND RECEIVE THE BENEFITS PROVIDED IN THIS CLAUSE 11
         WHERE THE DELAY REFERRED TO IN THIS CLAUSE 11 IS CAUSED BY, DIRECTLY OR
         INDIRECTLY, THE NEGLIGENCE OR FAULT OF ANY BUYER OR ITS
         REPRESENTATIVES.

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12       WARRANTIES AND SERVICE LIFE POLICY

         The Seller represents and warrants that the Manufacturer has provided
         to the Seller the Warranty, Service Life Policy, Supplier Warranties
         and Interface Commitment with respect to the Aircraft that are
         reproduced below between the words QUOTE and UNQUOTE, subject to the
         terms, conditions, limitations and restrictions (including, but not
         limited to, the Exclusivity of Warranties and General Limitations of
         Liability and Duplicate Remedies provisions) set forth below. The
         Seller hereby assigns to the Buyers, and each of the Buyers hereby
         accepts, all of the Seller's rights and obligations as the "Buyer"
         under the said Warranty, Service Life Policy, Supplier Warranties and
         Interface Commitment, and the Seller subrogates the Buyers to all such
         rights and obligations in respect of the Aircraft. The Seller hereby
         warrants to the Buyers that (i) it has all requisite authority to make
         the foregoing assignment to and to effect the foregoing subrogation in
         favor of the Buyers, (ii) such assignment and subrogation are effective
         to confer on the Buyers all of the foregoing rights and obligations of
         the Seller, (iii) the provisions so assigned are in full force and
         effect and have not been amended prior to the date hereof, and (iv) the
         Seller will not enter into any amendment of the provisions so assigned
         without the prior written consent of each of the Buyers.

QUOTE

12.1     WARRANTY

12.1.1   Nature of Warranty

         Subject to the limitations and conditions hereinafter provided, and
         except as provided in Clause 12.1.2, the Seller warrants to the Buyers
         that each Aircraft and each Warranted Part will at the time of Delivery
         hereunder be free from defects:

         (i)      in material,

         (ii)     in workmanship, including, without limitation, processes of
                  manufacture,

         (iii)    in design (including, without limitation, selection of
                  materials parts and components) having regard to the state of
                  the art at the date of such design, and

         (iv)     arising from failure to conform to the Specification, except
                  as to immaterial deviations from those portions of the
                  Specification that are expressly stated in the Specification
                  to be estimates or approximations or design aims.

         For the purposes of this Agreement, the term "WARRANTED PART" will mean
         any Seller proprietary component, equipment, accessory or part that (a)
         is installed on or incorporated into an Aircraft at Delivery, (b) is
         manufactured to the detail

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         design of the Seller or a subcontractor of the Seller and (c) bears a
         part number of the Seller at the time of Delivery.

12.1.2   Exceptions

         The warranties set forth in Clause 12.1.1 will not apply to Buyer
         Furnished Equipment, Propulsion Systems, or to any component,
         accessory, equipment or part purchased by any Buyer or the Seller [AS
         AGREED BY THE PARTIES] that is not a Warranted Part, provided, however,
         that:

         (i)      any defect in the Seller's workmanship in respect of the
                  installation of such items in or on the Aircraft, including
                  any failure by the Seller to conform to the installation
                  instructions of the manufacturers of such items that
                  invalidates any applicable warranty from such manufacturers,
                  will constitute a defect in workmanship for the purpose of
                  this Clause 12.1 and be covered by the warranty set forth in
                  Clause 12.1.1(ii), and

         (ii)     any defect inherent in the Seller's design of the
                  installation, considering the state of the art at the date of
                  such design, that impairs the use or function of such items
                  will constitute a defect in design for the purposes of this
                  Clause 12.1 and be covered by the warranty set forth in Clause
                  12.1.1(iii).

12.1.3   Warranty Periods

         The warranties described in Clauses 12.1.1 and 12.1.2 hereinabove will
         be limited to those defects that become apparent within [AS AGREED BY
         THE PARTIES] after Delivery of the affected Aircraft, (the "WARRANTY
         PERIOD").

12.1.4.1 Limitations of Warranty

         (i)      The Buyers' remedy and the Seller's obligation and liability
                  under Clauses 12.1.1 and 12.1.2 are limited to, at the
                  Seller's expense and option, the repair, replacement or
                  correction of, or the supply of modification kits rectifying
                  the defect to any defective Warranted Part, [AS AGREED BY THE
                  PARTIES] However, the Seller may furnish a credit to the
                  Buyers, jointly, for the future purchase of goods and services
                  (not including Aircraft) equal to the price at which the
                  Buyers are then entitled to acquire a replacement for the
                  defective Warranted Part.

         (ii)     If the Seller corrects a defect covered by Clause 12.1.1(iii)
                  that becomes apparent within the Warranty Period, on the
                  written request of the Buyers the Seller will correct any such
                  defect in any Aircraft that has not already been delivered to
                  the Buyers. The Seller will not be responsible for, nor deemed
                  to be in default on account of, any delay in Delivery of any
                  Aircraft or otherwise, in respect of performance of this
                  Agreement, due to the Seller's undertaking to make such
                  correction. In the alternative, the

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                  Buyers and the Seller may agree to deliver such Aircraft with
                  subsequent correction of the defect by a Buyer at the Seller's
                  expense, or the Buyers may elect to accept Delivery and
                  thereafter file a Warranty Claim as though the defect had
                  become apparent immediately after Delivery of such Aircraft.

         (ii)     [AS AGREED BY THE PARTIES]

12.1.5   Cost of Inspection

         (i)      In addition to the remedies set forth in Clauses 12.1.4(i) and
                  12.1.4(ii), the Seller will reimburse the direct labor costs
                  spent by the Buyers in performing inspections of the Aircraft
                  that are conducted:

                  (a)      to determine whether a defect exists in any Warranted
                           Part within the Warranty Period; or

                  (b)      pending the Seller's provision of a corrective
                           technical solution.

         (ii)     The Seller's liability under Clause 12.1.5(i) is subject to
                  the following conditions:

                  (a)      such inspections are recommended by a Seller Service
                           Bulletin to be performed within the Warranty Period;

                  (b)      the inspections are not performed during a scheduled
                           maintenance check recommended by the Seller's
                           Maintenance Planning Document; the labor rate for the
                           reimbursements will be the In-House Warranty Labor
                           Rate, and

[AS AGREED BY THE PARTIES]

12.1.5   Warranty Claim Requirements

         The Buyers' remedy and the Seller's obligation and liability under this
         Clause 12.1, with respect to each claimed defect, are subject to the
         following conditions precedent:

         (i)      the existence of a defect covered by the provisions of this
                  Clause 12.1,

         (ii)     the defect becomes apparent within the Warranty Period, except
                  as provided in Clause 12.1.4(iii),

         (iii)    a Buyer submits to the Seller evidence reasonably satisfactory
                  to the Seller that the claimed defect is due to a matter
                  covered under the provisions of this Clause 12, and that such
                  defect did not result from any act or omission

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                  of any of the Buyers, including but not limited to, any
                  failure to operate and maintain the affected Aircraft or part
                  thereof in accordance with the standards set forth in Clause
                  12.1.11 or from any act or omission of any third party,

         (iv)     a Buyer returns as soon as practicable the Warranted Part
                  claimed to be defective to the repair facilities designated by
                  the Seller, unless the Buyers elect to repair a defective
                  Warranted Part in accordance with the provisions of Clause
                  12.1.8,

         (v)      the Seller receives a "WARRANTY CLAIM" complying with the
                  provisions of Clause 12.1.7(v).

12.1.7   Warranty Administration

         The warranties set forth in Clause 12.1 will be administered as
         hereinafter provided:

         (i)      Claim Determination. Determination as to whether any claimed
                  defect in any Warranted Part entitles the Buyers to a remedy
                  under this Clause 12.1 will be made by the Seller, in
                  consultation with the Buyers, and will be based on claim
                  details, reports from the Seller's regional representative,
                  historical data logs, inspections, tests, findings during
                  repair, defect analysis and other relevant documents and
                  information.

         (ii)     Transportation Costs. [AS AGREED BY THE PARTIES]

         (iii)    On-Aircraft Work by the Seller. [AS AGREED BY THE PARTIES]

                  [AS AGREED BY THE PARTIES]

         (iv)     Return of an Aircraft. [AS AGREED BY THE PARTIES]

         (v)      Warranty Claim Substantiation. [AS AGREED BY THE PARTIES]

                  (a)      Description of the defect and any action taken

                  (b)      Date of incident and/or removal

                  (c)      Description of the Warranted Part claimed to be
                           defective

                  (d)      Part number

                  (e)      Serial number (if applicable)

                  (f)      Position on Aircraft, according to Catalog Sequence
                           Number of the Illustrated Parts Catalog, Aircraft
                           Maintenance Manual, Component Maintenance Manual or
                           Structural Repair Manual, as applicable

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                  (g)      Total flying hours or calendar times, as applicable,
                           at the date of appearance of a defect

                  (h)      Time since last shop visit at the date of appearance
                           of defect

                  (i)      Manufacturer's serial number (MSN) of the Aircraft
                           and/or its registration number

                  (j)      Aircraft total flying hours and/or number of landings
                           at the date of appearance of defect

                  (k)      Claim number

                  (l)      Date of claim

                  (m)      Date of delivery of an Aircraft or Warranted Part to
                           the Buyer

                  Warranty Claims are to be addressed as follows:

                  Airbus
                  Customer Services Directorate
                  Warranty Administration
                  Rond-Point Maurice Bellonte
                  B.P. 33
                  F-31707 Blagnac Cedex, France

         (vi)     Replacements. Replacements made pursuant to this Clause 12.1
                  will be made within the lead time defined in the Seller's
                  Spare Parts Price Catalog. [AS AGREED BY THE PARTIES] Replaced
                  components, equipment, accessories or parts will become the
                  Seller's property.

                  Title to and risk of loss of any Aircraft, component,
                  accessory, equipment or part returned by any of the Buyers to
                  the Seller will at all times remain with such Buyer, except
                  that (i) when the Seller has possession of a returned
                  Aircraft, component, accessory, equipment or part to which any
                  of the Buyers has title, the Seller will have such
                  responsibility therefor as is chargeable by law to a bailee
                  for hire, but the Seller will not be liable for loss of use,
                  and (ii) title to and risk of loss of a returned component,
                  accessory, equipment or part will pass to the Seller on
                  shipment by the Seller to a Buyer of any item furnished by the
                  Seller to such Buyer as a replacement therefor or on the
                  Seller's issuance of a credit with respect thereto. Upon the
                  Seller's shipment to a Buyer of any replacement component,
                  accessory, equipment or part provided by the Seller pursuant
                  to this Clause 12.1, title to and risk of loss of such
                  component, accessory, equipment or part will pass to such
                  Buyer.

         (vii)    Seller's Acceptance and Rejection. [AS AGREED BY THE PARTIES]
                  The Seller will provide reasonable written substantiation in
                  case of rejection of a Warranty Claim. The Buyers will pay the
                  Seller (a) reasonable inspection and test charges incurred by
                  the Seller in connection with the investigation and processing
                  of a rejected Warranty Claim, [AS

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                  AGREED BY THE PARTIES] and (b) all costs incurred by the
                  Seller including transportation to the ANACS Spares Center in
                  Ashburn, VA, insurance, and any other associated costs. [AS
                  AGREED BY THE PARTIES]

         (viii)   Inspection. The Seller will have the right to inspect the
                  affected Aircraft and documents and other records relating
                  thereto in the event of any claim under this Clause 12.1 on
                  reasonable prior written notice to the Buyers and such
                  inspection will not unreasonably interfere with the Buyers'
                  operation and personnel.

12.1.8   In-house Warranty

         (i)      Authorization. Each of the Buyers is hereby authorized to
                  repair Warranted Parts, subject to the terms of this Clause
                  12.1.8 ("IN-HOUSE WARRANTY REPAIR"). [AS AGREED BY THE
                  PARTIES] such Buyer will notify the Resident Customer Support
                  Representative of its decision to perform any In-house
                  Warranty Repairs before such repairs are commenced. Such
                  Buyer's notice will include sufficient detail regarding the
                  defect, estimated or actual labor hours and material, as
                  applicable, to allow the Seller to ascertain the
                  reasonableness of the estimate. [AS AGREED BY THE PARTIES] The
                  Seller will use reasonable efforts to ensure a prompt response
                  and will not unreasonably withhold authorization.

         (ii)     Conditions of Authorization. The Buyers will be entitled to
                  the benefits under this Clause 12.1.8 for repair of Warranted
                  Parts:

                  [AS AGREED BY THE PARTIES]

         (iii)    Seller's Rights. The Seller will have the right to require the
                  delivery to it of any Warranted Part, or any part removed
                  therefrom that is claimed to be defective, if, in the Seller's
                  judgment, the nature of the claimed defect requires technical
                  investigation. Such delivery will be subject to the provisions
                  of Clause 12.1.7(ii).

         Subject to applicable safety rules, the Seller will have the right to
         have a representative present as an observer during the disassembly,
         inspection and testing of any Warranted Part claimed to be defective.
         Such representatives will not unreasonably interfere with the Buyers'
         operation and personnel.

         (iv)     In-house Warranty Claim Substantiation. Claims for In-house
                  Warranty Repair credit will comply with the requirements in
                  Warranty Claims under Clause 12.1.6(v) and in addition, to the
                  extent ascertainable, will include:

                  (a)      A report of technical findings with respect to the
                           defect

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                  (b)      For parts required to remedy the defect

                           -        part numbers,

                           -        serial numbers (if applicable),

                           -        description of the parts,

                           -        quantity of parts,

                           -        unit price of parts,

                           -        related Seller's or third party's invoices
                                    (if applicable),

                           -        total price of parts

                  (c)      Detailed number of labor hours

                  (d)      In-house Warranty Labor Rate

                  (e)      Total claim amount

         (v)      Credit. The Buyers' sole remedy, and the Seller's sole
                  obligation and liability, in respect of In-house Warranty
                  Repair claims, will be a credit to the Buyers' account. Such
                  credit will be equal to the sum of the direct labor cost
                  expended in performing such repair and the direct cost of
                  materials incorporated in the repair. Such costs will be
                  determined as set forth below.

                  (a)      To determine direct labor costs, only the labor hours
                           spent on access, disassembly, inspection, repair,
                           reassembly, and final inspection and test (including
                           flight tests necessary to complete such repair) of
                           the Warranted Part alone will be counted. The hours
                           required for maintenance work concurrently being
                           carried out on the Aircraft or Warranted Part will
                           not be included.

                  (b)      [AS AGREED BY THE PARTIES]

                  (c)      Direct material costs are determined by the prices at
                           which the Buyers, or any of them, acquired such
                           replacement material, excluding any parts and
                           materials used for overhaul furnished free of charge
                           by the Seller.

         (vi)     Limitation on Credit. The Buyers will in no event be credited
                  for repair costs (including labor and material) for any
                  Warranted Part if such repair costs exceed, in the aggregate,
                  (x) [AS AGREED BY THE PARTIES]of the Seller's then current
                  catalog price for a replacement of such Warranted Part or (y)
                  those costs that would have resulted if repairs had been
                  carried out at the Seller's facilities.

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         The Seller will substantiate the costs referred to in Clause
         12.1.8(vi)(y) in writing on reasonable request by the Buyers.

         (vii)    Scrapped Material. Each of the Buyers may, with the agreement
                  of the Resident Customer Support Representative, scrap any
                  defective Warranted Parts that are beyond economic repair and
                  not required for technical evaluation. If such Buyer does not
                  obtain the written agreement of the Resident Customer Support
                  Representative to scrap a Warranted Part, then such Buyer will
                  retain such Warranted Part and any defective part removed from
                  a Warranted Part during repair for a period of either one
                  hundred and[AS AGREED BY THE PARTIES] after the date of
                  completion of repair or [AS AGREED BY THE PARTIES] after
                  submission of a claim for In-house Warranty Repair credit
                  relating thereto, whichever is longer. Such parts will be
                  returned to the Seller within[AS AGREED BY THE PARTIES] of
                  receipt of the Seller's request therefor, at the Seller's
                  expense (including costs relating to the fabrication of a
                  shipping container specifically required for this shipment
                  only.)

         (viii)   DISCLAIMER OF SELLER LIABILITY FOR BUYER'S REPAIR

                  THE SELLER WILL NOT BE LIABLE FOR, AND EACH OF THE BUYERS
                  WILL, JOINTLY AND SEVERALLY, INDEMNIFY THE SELLER AGAINST,
                  CLAIMS OF ANY THIRD PARTIES FOR LOSSES DUE TO ANY DEFECT,
                  NONCONFORMANCE OR PROBLEM OF ANY KIND, ARISING OUT OF OR IN
                  CONNECTION WITH ANY REPAIR OF WARRANTED PARTS UNDERTAKEN BY
                  ANY OF THE BUYERS UNDER THIS CLAUSE 12.1.8 OR ANY OTHER
                  ACTIONS UNDERTAKEN BY ANY OF THE BUYERS UNDER THIS CLAUSE
                  12.1.8, WHETHER SUCH CLAIM IS ASSERTED IN CONTRACT OR IN TORT,
                  OR IS PREMISED ON ALLEGED, ACTUAL, IMPUTED, ORDINARY OR
                  INTENTIONAL ACTS OR OMISSIONS OF ANY BUYER OR THE SELLER.

12.1.9   Warranty Transferability

         The warranties provided for in this Clause 12.1 for any Warranted Part
         will accrue to the benefit of any operator other than a Buyer if the
         Warranted Part enters into the possession of such operator as a result
         of a pooling agreement between such operator and a Buyer, in accordance
         with the terms and subject to the limitations and exclusions of the
         foregoing warranties and to applicable laws or regulations.

12.1.10  Warranty for Corrected, Replacement or Repaired Warranted Parts

         Whenever any Warranted Part that contains a defect for which the Seller
         is liable under this Clause 12.1 has been corrected, repaired or
         replaced pursuant to the

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                                                                              36
<PAGE>

         terms of this Clause 12, the period of the Seller's warranty with
         respect to such corrected, repaired or replacement Warranted Part, will
         be the remaining portion of the original Warranty Period in respect of
         such corrected, repaired or replaced Warranted Part. If a defect is
         attributable to a defective repair or replacement by any of the Buyers,
         a Warranty Claim with respect to such defect will be rejected,
         notwithstanding any subsequent correction or repair, and will
         immediately terminate the remaining warranties under this Clause 12.1
         in respect of the affected Warranted Part.

12.1.11  Standard Airline Operation - Normal Wear and Tear

         The Buyers' rights under this Clause 12.1 are subject to the Aircraft
         and each component, equipment, accessory and part thereof being
         maintained, overhauled, repaired and operated in accordance with FAA
         regulations and the Buyers' FAA-approved maintenance program and
         operating procedures.

         The Seller's liability under this Clause 12.1 will not extend to normal
         wear and tear nor, to the extent caused by any of the following, to:

         (i)      any Aircraft or component, equipment, accessory or part
                  thereof that has been repaired, altered or modified after
                  Delivery in a manner inconsistent with the requirements of the
                  applicable Aviation Authority or the aircraft repair manuals,
                  as applicable;

         (ii)     any Aircraft or component, equipment, accessory or part
                  thereof that has been operated in a damaged state; or

         (iii)    any component, equipment, accessory or part from which the
                  trademark, trade name, part or serial number or other
                  identification marks have been removed.

         The limitations of the Seller's liability under this Clause 12.1.11
         resulting from causes described in Clauses 12.1.11(i) and 12.1.11(ii)
         will apply only to the extent the Seller submits reasonable evidence
         that the defect arose from or was contributed to by such causes.

12.2     SELLER SERVICE LIFE POLICY

12.2.1   Scope and Definitions

         In addition to the warranties set forth in Clause 12.1, the Seller
         agrees that, should a Failure occur in any Item (as such terms are
         defined below), then, subject to the general conditions and limitations
         set forth in Clause 12.2.4, the provisions of this Clause 12.2 will
         apply.

         For the purposes of this Clause 12.2,

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<PAGE>

         (i)      "ITEM" means any of the Seller components, equipment,
                  accessories or parts listed in Exhibit C that are installed on
                  an Aircraft at any time during the period of effectiveness of
                  the Service Life Policy as defined below in Clause 12.2.2;

         (ii)     "FAILURE" means any breakage of, or defect in, an Item that

                  (x)      materially impairs the utility or safety of the Item,

                  (y)      did not result from any breakage or defect in any
                           other Aircraft part or component or from any other
                           extrinsic force, and

                  (z)      has occurred or can reasonably be expected to occur,
                           but does not necessarily occur, on a repetitive or
                           fleetwide basis.

         The Seller's obligations under this Clause 12.2 are referred to as the
         ("SERVICE LIFE POLICY").

12.2.2   Periods and Seller's Undertaking

         Subject to the general conditions and limitations set forth in Clause
         12.2.4, the Seller agrees that if a Failure occurs in an Item within
         [AS AGREED BY THE PARTIES] on which such Item is installed, the Seller
         will, at its discretion, as promptly as practicable and for a price
         that reflects the Seller's financial participation as hereinafter
         provided:

         (i)      design and furnish to the Buyers a terminating correction for
                  such Item and provide any parts required for such correction
                  (including Seller designed standard parts but excluding
                  industry standard parts), or

         (ii)     replace such Item.

12.2.3   Seller's Participation in the Cost

         Any part or Item that the Seller is required to furnish to the Buyers
         under this Service Life Policy will be furnished at the Seller's
         current sales price therefor, less the Seller's financial
         participation, which will be determined in accordance with the
         following formula:

         P = C ( N - T ) / N

         where

         P:       financial participation of the Seller,

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<PAGE>

         C:       the Seller's then current sales price for the required Item or
                  required Seller designed parts,

         T:       total time in months since Delivery of the Aircraft in which
                  the Item subject to a Failure was originally installed, and

         N:       [AS AGREED BY THE PARTIES]

12.2.4   General Conditions and Limitations

12.2.4.1 Notwithstanding any provision of this Clause 12.2, during the Warranty
         Period, all Items will be covered by the provisions of Clause 12.1 and
         not by the provisions of this Clause 12.2.

12.2.4.2 The Buyers' remedies and the Seller's obligations and liabilities under
         this Service Life Policy are subject to compliance by the Buyers with
         the following conditions:

         (i)      The Buyers will generate maintain log books and other
                  historical records as required by the FAA, and will retain the
                  same for the duration of this Service Life Policy, with
                  respect to each Item adequate to enable the determination as
                  to whether the alleged Failure is covered by this Service Life
                  Policy and, if so, to allocate the portion of the cost to be
                  borne by the Seller in accordance with Clause 12.2.3.

         (ii)     The Buyers will keep the Seller informed, by making available
                  any relevant records upon request, of any significant
                  incidents relating to an Aircraft, howsoever occurring or
                  recorded.

         (iii)    The conditions of Clause 12.1.11 will have been complied with.

         (iv)     The Buyers will implement specific structural inspection
                  programs for monitoring purposes as may be established from
                  time to time by the Seller and the Buyers. Such programs will
                  be, to the extent possible, compatible with the Buyers'
                  operational requirements and will be carried out at the
                  Buyers' expense. Reports relating thereto will be regularly
                  furnished to the Seller on a reasonable request.

         (v)      The Buyers will report in writing any breakage or defect that
                  may be covered by the Service Life Policy to the Seller within
                  [AS AGREED BY THE PARTIES] after such breakage or defect
                  becomes apparent, whether or not the same can reasonably be
                  expected to occur in any other Aircraft, and the Buyers will
                  inform the Seller in sufficient detail about such breakage or
                  defect to enable the Seller to determine whether the same is
                  subject to this Service Life Policy.

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<PAGE>

12.2.4.3 Except as otherwise provided in this Clause 12.2, any claim under this
         Service Life Policy will be administered as provided in, and will be
         subject to the terms and conditions of, Clause 12.1.6.

12.2.4.4 If the Seller has issued a service bulletin modification applicable to
         an Aircraft, the purpose of which is to avoid a Failure, the Seller
         will offer the necessary modification kit free of charge or under a pro
         rata formula established by the Seller. If such a kit is so offered to
         the Buyers, then, in respect of such Failure and any Failures that
         could ensue therefrom, the Seller's commitment under this Clause 12.2
         will be subject to the Buyers' incorporating such modification in the
         relevant Aircraft, within a reasonable time, as promulgated by the
         Seller and in accordance with the Seller's instructions.

12.2.4.5 THIS SERVICE LIFE POLICY IS NEITHER A WARRANTY, PERFORMANCE GUARANTEE,
         NOR AN AGREEMENT TO MODIFY ANY AIRCRAFT OR AIRFRAME COMPONENTS TO
         CONFORM TO NEW DEVELOPMENTS OCCURRING IN THE STATE OF AIRFRAME DESIGN
         AND MANUFACTURING ART. THE SELLER'S OBLIGATION UNDER THIS CLAUSE 12.2
         IS TO MAKE ONLY THOSE CORRECTIONS TO THE ITEMS OR FURNISH REPLACEMENTS
         THEREFOR AS PROVIDED IN THIS CLAUSE 12.2. THE BUYERS' SOLE REMEDY AND
         RELIEF FOR THE NONPERFORMANCE OF ANY OBLIGATION OR LIABILITY OF THE
         SELLER ARISING UNDER OR BY VIRTUE OF THIS SERVICE LIFE POLICY WILL BE
         IN MONETARY DAMAGES, LIMITED TO THE AMOUNT THE BUYERS REASONABLY EXPEND
         IN PROCURING A CORRECTION OR REPLACEMENT FOR ANY ITEM THAT IS THE
         SUBJECT OF A FAILURE COVERED BY THIS SERVICE LIFE POLICY AND TO WHICH
         SUCH NONPERFORMANCE IS RELATED, LESS THE AMOUNT THAT THE BUYERS
         OTHERWISE WOULD HAVE BEEN REQUIRED TO PAY UNDER THIS CLAUSE 12.2 IN
         RESPECT OF SUCH CORRECTED OR REPLACEMENT ITEM. WITHOUT LIMITING THE
         EXCLUSIVITY OF WARRANTIES AND GENERAL LIMITATIONS OF LIABILITY
         PROVISIONS SET FORTH IN CLAUSE 12.5, EACH OF THE BUYERS HEREBY WAIVES,
         RELEASES AND RENOUNCES ALL CLAIMS TO ANY FURTHER DIRECT, INCIDENTAL OR
         CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS AND ALL OTHER RIGHTS,
         CLAIMS AND REMEDIES, ARISING UNDER OR BY VIRTUE OF THIS SERVICE LIFE
         POLICY.

12.2.5   Transferability

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<PAGE>

            The Buyers' rights under this Clause 12.2 will not be assigned,
            sold, transferred or otherwise alienated by operation of law or
            otherwise, without the Seller's prior written consent.

            Any unauthorized assignment, sale, transfer or other alienation of
            any Buyer's rights under this Service Life Policy will, as to the
            Aircraft involved, immediately void this Service Life Policy in its
            entirety.

12.3        SUPPLIER WARRANTIES AND SERVICE LIFE POLICIES

12.3.1      Seller's Support

            Before Delivery of the first Aircraft, the Seller will provide the
            Buyers with the warranties and service life policies that the Seller
            has obtained pursuant to the Supplier Product Support Agreements.

12.3.2.1    Supplier's Default

12.3.2.1    If any Supplier under any warranty referred to in Clause 12.3.1
            defaults in the performance of any material obligation under such
            warranty with respect to a Supplier Part, each Buyer has used its
            best efforts to enforce its rights under such warranty, and the
            Buyers submit reasonable evidence, within a reasonable time, that
            such default has occurred, then Clause 12.1 of this Agreement will
            apply to the extent it would have applied had such Supplier Part
            been a Warranted Part, to the extent the Seller can reasonably
            perform said Supplier's obligations, except that the Supplier's
            warranty period indicated in the applicable Supplier Product Support
            Agreement will apply.

12.3.2.2    If any Supplier under any service life policy referred to in Clause
            12.3.1 defaults in the performance of any material obligation under
            such service life policy with respect to a Supplier Part, each Buyer
            has used best efforts to enforce its rights under such service life
            policy, and such Buyer submits within reasonable time to the Seller
            reasonable evidence that such default has occurred, then Clause 12.2
            will apply to the extent the same would have applied had such
            Supplier Part been listed in Exhibit C, to the extent that the
            Seller can reasonably perform said Supplier's service life policy.

12.3.2.3    At the Seller's request, each Buyer will assign to the Seller, and
            the Seller will be subrogated to, all of the Buyers' rights against
            the relevant Supplier with respect to, and arising by reason of,
            such default and the Buyers will provide reasonable assistance to
            enable the Seller to enforce the rights so assigned.

12.4        INTERFACE COMMITMENT

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<PAGE>

12.4.1      Interface Problem

            If any Buyer experiences any technical problem in the operation of
            an Aircraft or its systems, the cause of which, after due and
            reasonable investigation, is not readily identifiable by such Buyer,
            but which such Buyer reasonably believes to be attributable to the
            design characteristics of one or more components of the Aircraft
            and/or its systems (an "INTERFACE PROBLEM"), the Seller will, if
            requested by such Buyer, and without additional charge to any Buyer,
            promptly conduct or have conducted an investigation and analysis of
            such problem to determine, if possible, the cause or causes of the
            problem and to recommend such corrective action as may be feasible,
            provided, however, that if the Seller determines, after such
            investigation, that the Interface Problem was due to or caused by
            any act or omission of any Buyer in its performance of its
            obligations hereunder, the Buyers will, jointly and severally, pay
            to the Seller all reasonable costs and expenses incurred by the
            Seller during such investigation. The Buyers will furnish to the
            Seller all data and information in the possession of any of them
            relevant to the Interface Problem and will reasonably cooperate with
            the Seller in the conduct of the Seller's investigations and such
            tests as may be required. At the conclusion of such investigation
            the Seller will promptly advise the Buyers in writing of the
            Seller's opinion as to the cause or causes of the Interface Problem
            and the Seller's recommendations as to corrective action.

12.4.2      Seller's Responsibility

            If the Seller determines that the Interface Problem is primarily
            attributable to the design of a Warranted Part, the Seller will, if
            requested by a Buyer, take prompt action to correct the design of
            such Warranted Part, pursuant to the terms and conditions of Clause
            12.1.

12.4.3      Supplier's Responsibility

            If the Seller determines that the Interface Problem is primarily
            attributable to the design of any Supplier Part, the Seller will at
            any Buyer's request, assist such Buyer in processing any warranty
            claim such Buyer may have against the manufacturer of such Supplier
            Part. [AS AGREED BY THE PARTIES]

12.4.4      Joint Responsibility

            If the Seller determines that the Interface Problem is attributable
            partially to the design of a Warranted Part and partially to the
            design of any Supplier Part, the Seller will, if requested by a
            Buyer, seek a solution to the Interface Problem through cooperative
            efforts of the Seller and any Supplier(s) involved. The Seller will
            promptly advise the Buyers of any corrective action proposed by the
            Seller and any such Supplier(s). Such proposal will be consistent
            with any then existing

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                                                                              42

<PAGE>

            obligations of the Seller hereunder and of any such Supplier to the
            Buyers. Such corrective action, unless reasonably rejected by the
            Buyers, will constitute full satisfaction of any claim any of the
            Buyers may have against either the Seller or any such Supplier(s)
            with respect to such Interface Problem, unless such corrective
            action does not resolve the Interface Problem.

12.4.5      General

12.4.5.1    All requests under this Clause 12.4 will be directed both to the
            Seller and the affected Suppliers.

12.4.5.2    Except as specifically set forth in this Clause 12.4, this Clause
            12.4 will not be deemed to impose on the Seller any obligations not
            expressly set forth elsewhere in this Agreement.

12.4.5.3    All reports, recommendations, data and other documents furnished by
            the Seller to a Buyer pursuant to this Clause 12.4 will be deemed to
            be delivered under this Agreement and will be subject to the terms,
            covenants and conditions set forth in this Clause 12 and in Clause
            22.7.

12.5        EXCLUSIVITY OF WARRANTIES

            THIS CLAUSE 12 (INCLUDING ITS SUBPROVISIONS) SETS FORTH THE
            EXCLUSIVE WARRANTIES, EXCLUSIVE LIABILITIES AND EXCLUSIVE
            OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE REMEDIES AVAILABLE TO
            ANY BUYER, WHETHER UNDER THIS AGREEMENT OR OTHERWISE, ARISING FROM
            ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT,
            COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICE
            DELIVERED BY THE SELLER UNDER THIS AGREEMENT.

            EACH OF THE BUYERS RECOGNIZES THAT THE RIGHTS, WARRANTIES AND
            REMEDIES IN THIS CLAUSE 12 ARE ADEQUATE AND SUFFICIENT TO PROTECT
            THE BUYERS FROM ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND
            IN THE GOODS AND SERVICES SUPPLIED UNDER THIS AGREEMENT. EACH OF THE
            BUYERS HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES,
            OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER AND ALL OTHER
            RIGHTS, CLAIMS AND REMEDIES OF ANY BUYER AGAINST THE SELLER, WHETHER
            EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE,
            WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR PROBLEM OF ANY KIND
            IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE,
            DATA OR SERVICE DELIVERED BY THE SELLER UNDER THIS AGREEMENT,
            INCLUDING BUT NOT LIMITED TO:

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<PAGE>

            (1)   ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY
                  GENERAL OR PARTICULAR PURPOSE;

            (2)   ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF
                  PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE;

            (3)   ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

            (4)   ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF
                  LIABILITY, HOWEVER ALLEGED, INCLUDING, BUT NOT LIMITED TO,
                  ACTIONS AND/OR CLAIMS FOR NEGLIGENCE, GROSS NEGLIGENCE,
                  INTENTIONAL ACTS, WILLFUL DISREGARD, IMPLIED WARRANTY, PRODUCT
                  LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

            (5)   ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM
                  COMMERCIAL CODE OR ANY OTHER STATE OR FEDERAL STATUTE;

            (6)   ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR
                  STANDARDS IMPOSED BY ANY INTERNATIONAL, NATIONAL, STATE OR
                  LOCAL STATUTE OR AGENCY;

            (7)   ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

                        (a)   LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT,
                              COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED
                              UNDER THIS AGREEMENT;

                        (b)   LOSS OF, OR DAMAGE OF ANY KIND TO, ANY AIRCRAFT,
                              COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED
                              UNDER THIS AGREEMENT;

                        (c)   LOSS OF PROFITS AND/OR REVENUES;

                        (d)   ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE.

            THE WARRANTIES AND SERVICE LIFE POLICY PROVIDED BY THIS AGREEMENT
            WILL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN
            INSTRUMENT SIGNED BY THE SELLER AND THE BUYERS. IF ANY PROVISION OF
            THIS CLAUSE 12 SHOULD FOR ANY REASON BE HELD UNLAWFUL, OR OTHERWISE

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            UNENFORCEABLE, THE REMAINDER OF THIS CLAUSE 12 WILL REMAIN IN FULL
            FORCE AND EFFECT.

            FOR THE PURPOSE OF THIS CLAUSE 12.5, "SELLER" WILL BE UNDERSTOOD TO
            INCLUDE THE SELLER, ITS AFFILIATES, SUPPLIERS AND ASSOCIATED
            CONTRACTORS.

            [AS AGREED BY THE PARTIES]

12.6        DUPLICATE REMEDIES

            The remedies provided to the Buyers under this Clause 12 as to any
            defect in respect of the Aircraft or any part thereof are mutually
            exclusive and not cumulative. The Buyers will be entitled to the
            remedy that provides the maximum benefit to them, as the Buyers may
            elect, pursuant to the terms and conditions of this Clause 12 for
            any defect for which remedies are provided under this Clause 12
            provided, however, that none of the Buyers will be entitled to elect
            a remedy under more than one part of this Clause 12 for the same
            defect. The Buyers' rights and remedies herein for the
            nonperformance of any obligations or liabilities of the Seller
            arising under these warranties will be in monetary damages limited
            to the amount the Buyers expend in procuring a correction or
            replacement for any covered part subject to a defect or
            nonperformance covered by this Clause 12, and none of the Buyers
            will have any right to require specific performance by the Seller.

UNQUOTE

            In consideration of the assignment and subrogation by the Seller
            under this Clause 12 in favor of the Buyers in respect of the
            Seller's rights against and obligations to the Manufacturer under
            the provisions quoted above, each of the Buyers hereby accepts such
            assignment and subrogation and agrees to be bound by all of the
            terms, conditions and limitations therein contained, specifically
            including, without limitation, the Exclusivity of Warranties and
            General Limitations of Liability provisions and Duplicate Remedies
            provisions.

            THIS CLAUSE 12 (INCLUDING ITS SUBPROVISIONS) SETS FORTH THE
            EXCLUSIVE WARRANTIES, EXCLUSIVE LIABILITIES AND EXCLUSIVE
            OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE REMEDIES AVAILABLE TO
            THE BUYERS, WHETHER UNDER THIS AGREEMENT OR OTHERWISE, ARISING FROM
            ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT,
            COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICE
            DELIVERED BY THE SELLER UNDER THIS AGREEMENT.

            EACH OF THE BUYERS RECOGNIZES THAT THE RIGHTS, WARRANTIES AND
            REMEDIES IN THIS CLAUSE 12 ARE ADEQUATE

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            AND SUFFICIENT TO PROTECT THE BUYERS FROM ANY DEFECT OR
            NONCONFORMITY OR PROBLEM OF ANY KIND IN THE GOODS AND SERVICES
            SUPPLIED UNDER THIS AGREEMENT. EACH OF THE BUYERS HEREBY WAIVES,
            RELEASES AND RENOUNCES ALL OTHER WARRANTIES, OBLIGATIONS, GUARANTEES
            AND LIABILITIES OF THE SELLER AND ALL OTHER RIGHTS, CLAIMS AND
            REMEDIES OF ANY BUYER AGAINST THE SELLER, WHETHER EXPRESS OR IMPLIED
            BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE, WITH RESPECT TO
            ANY NONCONFORMITY OR DEFECT OR PROBLEM OF ANY KIND IN ANY AIRCRAFT,
            COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICE
            DELIVERED BY THE SELLER UNDER THIS AGREEMENT, INCLUDING BUT NOT
            LIMITED TO:

            (1)   ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY
                  GENERAL OR PARTICULAR PURPOSE;

            (2)   ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF
                  PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE;

            (3)   ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

            (4)   ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF
                  LIABILITY, HOWEVER ALLEGED, INCLUDING, BUT NOT LIMITED TO,
                  ACTIONS AND/OR CLAIMS FOR NEGLIGENCE, GROSS NEGLIGENCE,
                  INTENTIONAL ACTS, WILLFUL DISREGARD, IMPLIED WARRANTY, PRODUCT
                  LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

            (5)   ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM
                  COMMERCIAL CODE OR ANY OTHER STATE OR FEDERAL STATUTE;

            (6)   ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR
                  STANDARDS IMPOSED BY ANY INTERNATIONAL, NATIONAL, STATE OR
                  LOCAL STATUTE OR AGENCY;

            (7)   ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

                        (a)   LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT,
                              COMPONENT, EQUIPMENT, ACCESSORY PART, SOFTWARE OR
                              DATA PROVIDED UNDER THIS AGREEMENT;

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                        (b)   LOSS OF, OR DAMAGE OF ANY KIND TO, ANY AIRCRAFT,
                              COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE OR
                              DATA PROVIDED UNDER THIS AGREEMENT;

                        (c)   LOSS OF PROFITS AND/OR REVENUES;

                        (d)   ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE.

            THE WARRANTIES AND SERVICE LIFE POLICY PROVIDED BY THIS AGREEMENT
            WILL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN
            INSTRUMENT SIGNED BY THE SELLER AND THE BUYERS. IN THE EVENT THAT
            ANY PROVISION OF THIS CLAUSE 12 SHOULD FOR ANY REASON BE HELD
            UNLAWFUL, OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS CLAUSE
            12 WILL REMAIN IN FULL FORCE AND EFFECT.

            The remedies provided to the Buyers under this Clause 12 as to any
            defect in respect of the Aircraft or any part thereof are mutually
            exclusive and not cumulative. The Buyers will be entitled to the
            remedy that provides the maximum benefit to them, as the Buyers may
            elect, pursuant to the terms and conditions of this Clause 12 for
            any defect for which remedies are provided under this Clause 12,
            provided, however, that the none of the Buyers will be entitled to
            elect a remedy under more than one part of this Clause 12 for the
            same defect. The Buyers' rights and remedies herein for the
            nonperformance of any obligations or liabilities of the Seller
            arising under these warranties will be in monetary damages limited
            to the amount the Buyers expend in procuring a correction or
            replacement for any covered part subject to a defect or
            nonperformance covered by this Clause 12, and none of the Buyers
            will have any right to require specific performance by the Seller.

12.7        NEGOTIATED AGREEMENT

            Each of the Buyers specifically recognizes that:

            (i)   the Specification has been agreed upon after careful
                  consideration by the Buyers using their judgment as
                  professional operators of, and maintenance providers with
                  respect to, aircraft used in public transportation and as such
                  is are professionals within the same industry as the Seller;

            (ii)  this Agreement, and in particular this Clause 12, has been the
                  subject of discussion and negotiation and is fully understood
                  by the Buyers;

            (iii) the price of the Aircraft and the other mutual agreements of
                  the Buyers set forth in this Agreement were arrived at in
                  consideration of, inter alia, the

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                  provisions of this Clause 12, specifically including the
                  Exclusivity of Warranties set forth in Clause 12.5.

12.8        SURVIVABILITY

            [AS AGREED BY THE PARTIES]

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13.         PATENT AND COPYRIGHT INDEMNITY

            The Seller represents and warrants that the Manufacturer has
            provided to the Seller the following indemnity against patent and
            copyright infringements with respect to the Aircraft that are
            reproduced below between the words QUOTE and UNQUOTE, subject to the
            terms, conditions, limitations and restrictions (including, but not
            limited to, the Exclusivity of Warranties and General Limitations of
            Liability and Duplicate Remedies provisions) set forth below. The
            Seller hereby assigns to the Buyers, and each of the Buyers hereby
            accepts, all of the Seller's rights and obligations as the "Buyer"
            under the said indemnity against patent and copyright infringements,
            and the Seller subrogates the Buyers to all such rights and
            obligations in respect of the Aircraft. The Seller hereby warrants
            to the Buyers that (i) it has all requisite authority to make the
            foregoing assignment to and to effect the foregoing subrogation in
            favor of the Buyers, (ii) such assignment and subrogation are
            effective to confer on the Buyers all of the foregoing rights and
            obligations of the Seller, (iii) the provisions so assigned are in
            full force and effect and have not been amended prior to the date
            hereof, and (iv) the Seller will not enter into any amendment of the
            provisions so assigned without the prior written consent of each of
            the Buyers.

QUOTE

13.1        Indemnity

13.1.1      Subject to the provisions of Clause 13.2.3, the Seller will
            indemnify the Buyers from and against any damages, costs and
            expenses including legal costs (excluding damages, costs, expenses,
            loss of profits and other liabilities in respect of or resulting
            from loss of use of the Aircraft) resulting from any infringement or
            claim of infringement by the Airframe or any part or software
            installed therein at Delivery of

            (i)   any British, French, German, Spanish or U.S. patent;

            (ii)  any patent issued under the laws of any other country in which
                  any of the Buyers may lawfully operate the Aircraft, provided
                  that from the time of design of such Airframe or any part or
                  software installed therein at Delivery and until infringement
                  claims are resolved, the country of the patent and the flag
                  country of the Aircraft are both parties to:

                  (1)   the Chicago Convention on International Civil Aviation
                        of December 7, 1944, and are each fully entitled to all
                        benefits of Article 27 thereof, or,

                  (2)   the International Convention for the Protection of
                        Industrial Property of March 20, 1883; and

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            (iii) in respect of computer software installed on the Aircraft, any
                  copyright, provided that the Seller's obligation to indemnify
                  will be limited to infringements in countries which, at the
                  time of infringement, are members of The Berne Union and
                  recognize computer software as a "work" under the Berne
                  Convention.

13.1.2      Clause 13.1.1 will not apply to

            (i)   Buyer Furnished Equipment;

            (ii)  the Propulsion Systems;

            (iii) Supplier Parts; or

            (iv)  software not developed by the Seller.

13.1.3      If any of the Buyers is, due to circumstances contemplated in Clause
            13.1.1, prevented from using the Aircraft (whether by a valid
            judgment of a court of competent jurisdiction or by a settlement
            arrived at among the claimant, the Seller and any Buyer), the Seller
            will at its expense either

            (i) procure for the Buyers the right to use the affected Airframe,
            part or software free of charge; or

            (ii) replace the infringing part or software as soon as possible
            with a non-infringing substitute.

13.2        Administration of Patent and Copyright Indemnity Claims

13.2.1      If any Buyer receives a written claim or a suit is threatened or
            begun against such Buyer for infringement of a patent or copyright
            referred to in Clause 13.1, such Buyer will

            (i)   forthwith notify the Seller, giving particulars thereof;

            (ii)  furnish to the Seller all data, papers and records within the
                  Buyers' control or possession relating to such patent or
                  claim;

            (iii) refrain from admitting any liability or making any payment, or
                  assuming any expenses, damages, costs or royalties, or
                  otherwise acting in a manner prejudicial to the defense or
                  denial of the suit or claim, it being agreed that nothing in
                  this Clause 13.2.1(iii) will prevent a Buyer from paying the
                  sums that may be required to obtain the release of the
                  Aircraft, provided that payment is accompanied by a denial of
                  liability and is made without prejudice;

            (iv)  fully cooperate with, and render all assistance to, the Seller
                  as may be pertinent to the defense or denial of the suit or
                  claim; and

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            (v)   act to mitigate damages and/or to reduce the amount of
                  royalties that may be payable, and act to minimize costs and
                  expenses.

13.2.2.1    The Seller will be entitled either in its own name or on behalf of
            each of the Buyers to conduct negotiations with the party or parties
            alleging infringement and may assume and conduct the defense or
            settlement of any suit or claim in the manner that, in the Seller's
            opinion, it deems proper.

13.2.3      The Seller's liability hereunder will be conditional on the strict
            and timely compliance by each of the Buyers with the terms of this
            Clause and is in lieu of any other liability to any Buyer, whether
            express or implied, that the Seller might incur at law as a result
            of any infringement or claim of infringement of any patent or
            copyright.

UNQUOTE

      In consideration of the assignment and subrogation by the Seller under
      this Clause 13 in favor of the Buyers in respect of the Seller's rights
      against and obligations to the Manufacturer under the provisions quoted
      above, each of the Buyers hereby accepts such assignment and subrogation
      and agrees to be bound by all of the terms, conditions and limitations
      therein contained (specifically including, without limitation, the waiver,
      release and renunciation provision).

      THE INDEMNITY PROVIDED IN THIS CLAUSE 13 AND THE OBLIGATIONS AND
      LIABILITIES OF THE SELLER UNDER THIS CLAUSE 13 ARE EXCLUSIVE AND IN
      SUBSTITUTION FOR, AND EACH OF THE BUYERS HEREBY WAIVES, RELEASES AND
      RENOUNCES ALL OTHER INDEMNITIES, WARRANTIES, OBLIGATIONS, GUARANTEES AND
      LIABILITIES ON THE PART OF THE SELLER AND RIGHTS, CLAIMS AND REMEDIES OF
      ANY BUYER AGAINST THE SELLER, EXPRESS OR IMPLIED, ARISING BY LAW OR
      OTHERWISE (INCLUDING WITHOUT LIMITATION ANY OBLIGATION, LIABILITY, RIGHT,
      CLAIM OR REMEDY ARISING FROM OR WITH RESPECT TO LOSS OF USE OR REVENUE OR
      CONSEQUENTIAL DAMAGES), WITH RESPECT TO ANY ACTUAL OR ALLEGED PATENT
      INFRINGEMENT OR THE LIKE BY ANY AIRFRAME, PART OR SOFTWARE INSTALLED
      THEREIN AT DELIVERY, OR THE USE OR SALE THEREOF, PROVIDED THAT, IN THE
      EVENT THAT ANY OF THE AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD
      UNLAWFUL OR OTHERWISE INEFFECTIVE, THE REMAINDER OF THIS CLAUSE WILL
      REMAIN IN FULL FORCE AND EFFECT. THIS INDEMNITY AGAINST PATENT AND
      COPYRIGHT INFRINGEMENTS WILL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY
      A WRITTEN INSTRUMENT SIGNED BY THE SELLER AND THE BUYERS.

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14          TECHNICAL DATA AND SOFTWARE SERVICES

            The Seller will make available or will cause the Seller's designee
            ANACS to make available to the Buyers the Technical Data and certain
            additional services under the terms and conditions set forth in this
            Clause 14.

14.1        Supply

            The Technical Data will be supplied in the English language using
            the aeronautical terminology in common use.

            Range, form, type, format, Air Transport Association ("ATA")
            compliance or non-compliance, quantity and delivery schedule of the
            Technical Data to be provided under this Agreement are covered in
            Exhibit F. [AS AGREED BY THE PARTIES]

            The Buyers will not receive compensation or credits of any kind for
            return of unused or partially used Technical Data.

14.2        Aircraft Identification for Technical Data

14.2.1      For Technical Data customized to the Aircraft, the Buyers agree to
            the allocation of fleet serial numbers ("FSN(S)") in the form of
            block of numbers selected in the range from 001 to 999.

14.2.2      The sequence will not be interrupted except if two (2) different
            Propulsion Systems or two (2) different Aircraft models are
            selected.

14.2.3      The Buyers will indicate to the Seller the FSNs allocated to each
            Aircraft corresponding to the Aircraft rank in the delivery schedule
            set forth in Clause 9.1.1 not later than twenty-four (24) months
            prior to the Scheduled Delivery Month for the first Aircraft to be
            delivered hereunder. The allocation of such FSNs to such Aircraft
            will not constitute any proprietary, insurable or other interest of
            any Buyer in any Aircraft prior to its Delivery.

14.3        Integration of Equipment Data

14.3.1      Supplier Equipment

            If necessary for the understanding of the affected systems,
            information relating to Supplier Equipment that is installed on the
            Aircraft by the Seller, will be introduced free of charge into the
            first issue, subsequent to the installation of the Supplier
            equipment of the customized Technical Data supplied to the Buyers,
            provided Clause 14.3.2.2 is complied with (the "FIRST ISSUE").

14.3.2      Buyer Furnished Equipment

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14.3.2.1    The Seller will introduce BFE data, for equipment installed on the
            Aircraft by the Seller, into the customized Technical Data at no
            additional charge to the Buyers for the First Issue, provided such
            data are provided in accordance with the conditions set forth in
            Clauses 14.3.2.2 through 14.3.2.5.

14.3.2.2    [AS AGREED BY THE PARTIES]

14.3.2.3    The BFE data will comply with applicable revision of the ATA 2200
            Specification applicable to the corresponding aircraft type.
            Subsequent revisions of the ATA specification will be considered as
            applicable.

14.3.2.4    The Buyers and the Seller will agree on the requirements for the
            provision to the Seller of BFE data for "on-aircraft maintenance."
            These requirements include but are not limited to timeframe, media
            and format, to facilitate the efficient, expedited and economic
            integration of BFE data into Technical Data.

14.3.2.5    The BFE data will be delivered in digital format and/or in Portable
            Document Format, as agreed between the Buyers and the Seller.

14.3.2.6    All costs related to the delivery to the Seller of BFE data will be
            borne by the Buyers.

14.3.2.7    Clause 14.3.2 will apply to the BFE data provided by the Seller
            under the terms of Clause 18.1.3.

14.4        Delivery

14.4.1      The Technical Data are delivered on-line and/or off-line, as set
            forth in Exhibit F.

14.4.2      For Technical Data delivered off-line, the Technical Data and
            corresponding revisions will be sent to one address only. The Buyers
            will specify such address.

14.4.3      Packing and shipment of the Technical Data and their revisions will
            be carried out by the quickest transportation methods. Shipment will
            be FCA Toulouse, France, FCA Hamburg, Germany, and/or FCA Ashburn,
            VA, USA.

14.4.4      The delivery schedule of the First Issue will be phased as mutually
            agreed to correspond with Aircraft deliveries. The Buyers agree to
            provide forty (40) days' notice when requesting a change to the
            delivery schedule.

14.4.5      The Buyers will be responsible for coordinating with and satisfying
            the requirements of the FAA for Technical Data. Reasonable
            quantities of Technical Data will be supplied by the Seller for
            delivery to the FAA at no charge to the Buyer, FCA Toulouse, France,
            FCA Hamburg, Germany, and/or FCA Ashburn, VA, USA.

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14.4.6      [AS AGREED BY THE PARTIES]

14.5        Revision Service

            Unless otherwise specifically stated, revision service will be
            provided on a free-of-charge basis for a period of one (1) year
            after Delivery of the last Aircraft. Thereafter revision service
            will be provided at the standard conditions set forth in the then
            current ANACS Customer Services Catalog.

14.6        Service Bulletins Incorporation

            During the period of revision service and upon the Buyers' request
            for incorporation, which will be made [AS AGREED BY THE PARTIES]
            after issuance of a Service Bulletin, Seller's Service Bulletin
            information will be incorporated into the Technical Data for the
            Aircraft after formal notification by any Buyer of its intention to
            accomplish a Service Bulletin. The split effectivity for a Service
            Bulletin will remain in the Technical Data until notification from
            the Buyers that accomplishment has been completed on all the
            applicable Aircraft, except that for the Flight Manual,
            Configuration Deviation List, Weight and Balance Manual and the MMEL
            only the pre- or post-Service Bulletin status will be shown.

14.7        Future Developments

            The Seller will continuously monitor technological developments and
            apply them to data and document production and methods of
            transmission where beneficial and economical. The Buyers agree to
            give reasonable consideration to any new development proposed by the
            Seller for implementation.

14.8        Technical Data Familiarization

            Upon request by the Buyers, the Seller will provide a one (1) week
            Technical Data familiarization training at the Seller's or at the
            facilities of one of the Buyers. If such familiarization is
            conducted at a Buyer's facilities, the Buyers will reimburse the
            Seller for all air travel or will provide free of charge air travel
            (business class for international travel and coach for domestic) to
            and from the nearest point on any Buyer's network and living
            expenses of the representatives of the Seller conducting such
            familiarization training.

14.9        Customer Originated Changes

14.9.1      Data on Customer Originated Changes may be incorporated into the
            following Technical Data when customized to the Buyers:

            -     Aircraft Maintenance Manual

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            -     Illustrated Parts Catalog
            -     Trouble Shooting Manual
            -     Aircraft Wiring Manual
            -     Aircraft Schematics Manual
            -     Aircraft Wiring Lists
            -     Flight Crew Operating Manual
            -     Quick Reference Handbook

14.9.2      COC data will be developed by the Buyers according to the "Customer
            Guide for Customer Originated Changes" issued by the Manufacturer.
            The Buyers will ensure that any such COC data is in compliance with
            the requirements of the FAA.

            COC data will be incorporated by the Seller into all affected
            customized Technical Data unless the Buyers specify in writing the
            documents into which the Buyers desire the COC to be incorporated.
            Following incorporation of the COC into the customized Technical
            Data, the relevant Technical Data will show only the aircraft
            configuration that reflects the COC data and not the configuration
            before such COC data are incorporated.

 14.9.3.

            (a)   Each of the Buyers hereby acknowledges and accepts that the
                  incorporation of any COC data into the Technical Data issued
                  by the Seller will be at the Buyers' sole risk, that the
                  Seller will have no obligation to check the COC data for
                  accuracy or validity, and that the Seller will have no
                  liability whatsoever with respect to (a) the contents of any
                  COC data (including omissions or inaccuracies therein) (b) any
                  effect that the incorporation of such COC data may have on the
                  Technical Data or (c) any costs of any nature that the COC
                  data may add to subsequent Service Bulletins or modifications.

            (b)   THE SELLER HEREBY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES
                  OR LIABILITIES, EXPRESSED OR IMPLIED, ORAL OR WRITTEN, ARISING
                  BY LAW, COURSE OF DEALING OR OTHERWISE, AND WITHOUT LIMITATION
                  ALL WARRANTIES AS TO QUALITY, OPERATION, MERCHANTABILITY,
                  FITNESS FOR ANY INTENDED PURPOSE, AND ALL OTHER
                  CHARACTERISTICS WHATSOEVER, INCLUDING ANY OMISSIONS OR
                  INACCURACIES THEREIN, OF ANY COC DATA INCORPORATED INTO THE
                  TECHNICAL DATA ISSUED BY THE SELLER.

            (c)   Each of the Buyers will indemnify and hold the Seller harmless
                  from and against any losses (including reasonable attorneys'
                  fees) arising from claims by any third party for injury, loss
                  or damage incurred directly or indirectly as a result of the
                  incorporation of any COC data into the Technical Data issued
                  by the Seller.

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            (d)   If any Buyer sells, leases or otherwise transfers any Aircraft
                  to which the COC data apply:

            (i)   the Buyers will remain fully liable for the COC data and any
                  and all effects of their incorporation, as set forth in this
                  Clause 14.9;

                  (ii)  the Seller may disclose the COC data to the subsequent
                        owner(s) or operator(s) of the transferred Aircraft;

                  (iii) it will be the sole responsibility of the Buyers to
                        notify, or cause notification to be made to, the
                        subsequent owner(s) or operator(s) of the existence of
                        the such COC data in the Technical Data applicable to
                        the corresponding Aircraft.

            The Seller hereby disclaims any and all liabilities whatsoever for
            the COC data in the event of transfer, sale or lease of any Aircraft
            to which COC data apply.

14.9.4      The incorporation of any COC will be performed under the conditions
            specified in the Seller's then current Customer Services Catalog.

14.10       Software Products

            Software Products are available to the Buyers exclusively from ANACS
            and may be licensed under the General Terms and Conditions of
            Licensing set forth in Exhibit H.

14.10.1     Performance Engineer's Programs

            (i)   In addition to the standard operational manuals, the Seller
                  will provide to the Buyers software components and databases
                  composing the Performance Engineer's Programs ("PEP") for the
                  Aircraft.

            (ii)  The license to use the PEP will be granted free of charge for
                  as long as the revisions of the PEP are free of charge in
                  accordance with Clause 14.5. At the end of such period,
                  license fees may be charged and yearly revision service for
                  the PEP will be provided to the Buyers at the standard
                  commercial conditions set forth in the then current ANACS
                  Customer Services Catalog.

14.10.2     [AS AGREED BY THE PARTIES]

14.10.3     Airbus|World Customer Portal

14.10.3.1   The Buyers will be entitled to obtain access to a wide range of
            information and services, including Technical Data, available in the
            secure zone of Airbus's

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            Customer Portal Airbus|World ("AIRBUS|WORLD"). Access will be free
            of charge for as long as any Buyer operates the Aircraft.

            Access to the secure zone of Airbus|World (the "SECURE ZONE") is
            reserved to Airbus owners and operators and is subject to the prior
            signature by each of the Buyers of the "General Terms and Conditions
            of Access to and Use of Airbus Secure Area of Customer Portal."

            A description of the basic services available to the Buyers in the
            Secure Zone is set forth in the ANACS Customer Services Catalog.

14.10.3.2   On-Line Technical Data

            (i)   The Technical Data specified in Exhibit F as being provided
                  on-line will be made available to the Buyers through the
                  Secure Zone at no cost as long as revision service for such
                  Technical Data is free of charge in accordance with Clause
                  14.5.

            (ii)  The list of the Technical Data available on-line may be
                  amended from time to time.

                  For any Technical Data that are or become available on-line,
                  the Seller will notify the Buyers thereof and the Seller
                  reserves the right to discontinue other formats for such
                  Technical Data. [AS AGREED BY THE PARTIES].

14.10.3.3   [AS AGREED BY THE PARTIES]

14.11       Warranties

            The Seller represents and warrants that the Manufacturer has
            provided to the Seller a warranty with respect to the Technical Data
            that is reproduced below between the words QUOTE and UNQUOTE,
            subject to the terms, conditions, limitations and restrictions
            (including, but not limited to, the Exclusivity of Warranties and
            General Limitations of Liability and Duplicate Remedies provisions)
            set forth below. The Seller hereby assigns to the Buyers, and the
            Buyers hereby accept, all of the Seller's rights and obligations as
            the "Buyer" under the said warranty, and the Seller subrogates the
            Buyers to all such rights and obligations in respect of the
            Aircraft. The Seller hereby warrants to the Buyers that (i) it has
            all requisite authority to make the foregoing assignment to and to
            effect the foregoing subrogation in favor of the Buyers, (ii) such
            assignment and subrogation are effective to confer on the Buyers all
            of the foregoing rights and obligations of the Seller, (iii) the
            provisions so assigned are in full force and effect and have not
            been amended prior to the date hereof and (iv) the Seller will not
            enter into any amendment of the provisions so assigned without the
            prior written consent of each of the Buyers.

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QUOTE

14.11.1     The Seller warrants that the Technical Data (exclusive of COC) are
            prepared in accordance with the state of art at the date of their
            conception. SHOULD ANY TECHNICAL DATA PREPARED BY THE SELLER CONTAIN
            ANY NONCONFORMITY OR DEFECT, THE SOLE AND EXCLUSIVE LIABILITY OF THE
            SELLER WILL BE TO TAKE ALL REASONABLE AND PROPER STEPS, AT ITS
            OPTION, TO CORRECT OR REPLACE SUCH TECHNICAL DATA.

14.11.2     THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE SELLER AND/OR ITS
            SUPPLIERS AND REMEDIES OF THE BUYERS SET FORTH IN THIS CLAUSE 14 ARE
            EXCLUSIVE AND IN SUBSTITUTION FOR, AND EACH OF THE BUYERS HEREBY
            WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES, OBLIGATIONS AND
            LIABILITIES OF THE SELLER AND/OR ITS SUPPLIERS AND RIGHTS, CLAIMS
            AND REMEDIES OF ANY OF THE BUYERS AGAINST THE SELLER, ITS SUPPLIERS
            AND/OR THEIR INSURERS, EXPRESS OR IMPLIED, ARISING BY LAW OR
            OTHERWISE, WITH RESPECT TO ANY NONCONFORMITY OR DEFECT IN ANY
            TECHNICAL DATA DELIVERED UNDER THIS AGREEMENT, INCLUDING BUT NOT
            LIMITED TO:

            (A)   ANY WARRANTY AGAINST HIDDEN DEFECTS

            (B)   ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

            (C)   ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE,
                  COURSE OF DEALING OR USAGE OF TRADE;

            (D)   ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER
                  CONTRACTUAL OR DELICTUAL AND WHETHER OR NOT ARISING FROM THE
                  SELLER'S AND/OR ITS SUPPLIERS' NEGLIGENCE, ACTUAL OR IMPUTED;
                  AND

            (E)   ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR
                  DAMAGE TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR
                  PART THEREOF OR ANY TECHNICAL DATA DELIVERED HEREUNDER.

            THE SELLER AND/OR ITS SUPPLIERS WILL HAVE NO OBLIGATION OR
            LIABILITY, HOWSOEVER ARISING, FOR LOSS OF USE, REVENUE OR PROFIT OR
            FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WITH
            RESPECT TO ANY NON-CONFORMITY OR DEFECT IN ANY TECHNICAL DATA
            DELIVERED UNDER THIS AGREEMENT.

            FOR THE PURPOSES OF THIS CLAUSE 14.11.2, "THE SELLER" WILL INCLUDE
            THE SELLER, ITS AFFILIATES AND ANY OF THEIR RESPECTIVE INSURERS.

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UNQUOTE

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14.12       Proprietary Rights

            All proprietary rights, including but not limited to patent, design
            and copyrights, relating to Technical Data will remain with the
            Seller and/or its Affiliates as the case may be. All Technical Data
            are supplied for the sole use by the Buyers in maintaining and
            operating the Aircraft and each of the Buyers undertakes not to
            modify, copy the contents of, or use the Technical Data to
            manufacture any parts or components of the Aircraft, save as
            explicitly permitted herein, in the Technical Data itself, or as
            otherwise expressly authorized by the Seller. These proprietary
            rights will also apply to any translation of Technical Data into a
            language or languages or medium or media that may have been
            performed or caused to be performed by any of the Buyers.

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15          SELLER REPRESENTATIVES

15.1        The Seller will provide or cause to be provided at no charge to the
            Buyers the services described in this Clause 15, at the main base of
            any of the Buyers or at other locations to be mutually agreed.

15.2        Resident Customer Support Representatives

15.2.1      The Seller will provide representatives to act in an advisory
            capacity ("RESIDENT CUSTOMER SUPPORT REPRESENTATIVE") as follows:

            [AS AGREED BY THE PARTIES]

15.2.2      The Seller will provide to the Buyers an annual written account of
            the consumed months and any remaining balance of months.

15.2.3      Should any Buyer request additional services that exceed the amounts
            set forth in Clause 15.2.1(ii), the Seller may provide additional
            service subject to the terms and conditions agreed by such Buyer and
            the Seller at the time of such request.

15.2.4      The Seller will cause similar services to be provided by the
            representatives of the Propulsion System manufacturer and by
            representatives of the Suppliers when necessary and applicable.

15.3        Customer Support Director

The         Seller will assign the services of one (1) Customer Support Director
            based in Herndon, Virginia, to liaise between the Manufacturer and
            the Buyers on product support matters after signature of this
            Agreement for as long as any Buyer operates at least one (1)
            Aircraft.

15.4        [AS AGREED BY THE PARTIES]

15.5        Buyers' Service

15.5.1      From the date of arrival of the first Resident Customer Support
            Representative and Spare Parts Field Representative and until the
            duration of the assignment, the Buyers will provide free of charge,
            suitable office space, office equipment and facilities for the sole
            use of the Resident Customer Support Representative(s) in or
            conveniently near the maintenance facilities of one of the Buyers.
            The Buyers will also provide internet access, telephone, and
            facsimile connections at the Seller's cost to be invoiced on a
            monthly basis.

15.5.2      In accordance with the Buyers' regulations, the Buyers will provide
            at no charge to the Seller

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            (i)   airline tickets in economy class, confirmed and guaranteed
                  between the locations mentioned above in Clause 15.1 and the
                  international airport nearest Toulouse, France, that is on any
                  Buyer's network for the Resident Customer Support
                  Representative(s) and the Spare Parts Field Representative
                  mentioned in Clause 15.2.1 and 15.4, for travel at the
                  beginning and end of the applicable assignment; and

            (ii)  when said Resident Customer Support Representative(s) are
                  assigned away from the locations mentioned above in Clause
                  15.2.1 at the Buyers' request, transportation on similar basis
                  between the said locations and the place of assignment.

15.5.3      The parties will give each other all necessary reasonable assistance
            with general administrative functions specific to their respective
            countries and procurement of the documents necessary to live and
            work there.

15.6        Temporary Assignment and Withdrawal of Resident Customer Support
            Representative

            The Seller will have the right, upon written notice to and
            communication with the Buyers, to transfer or recall any Resident
            Customer Support Representative(s) on a temporary or permanent basis
            if, in the Seller's opinion, conditions are dangerous to the
            Resident Customer Support Representative's safety or health or
            prevent the fulfillment of such Resident Customer Support
            Representative's contractual tasks. The Buyers will receive credit
            for the man-days during which any Resident Customer Support
            Representative is absent from the Buyers' facility pursuant to this
            Clause 15.

15.7        Representatives' Status

            In providing the above technical service, the Seller's employees,
            including Resident Customer Support Representative(s), the Spare
            Parts Field Representative and the Customer Support Director, are
            deemed to be acting in an advisory capacity only and at no time will
            they be deemed to be acting, either directly or indirectly, as the
            employees or agents of any of the Buyers.

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16          TRAINING AND TRAINING AIDS

16.1.       General

            This Clause 16 covers the terms and conditions for the supply of
            training and training aids for the Buyers' personnel to support the
            Aircraft operation.

16.2.       Scope

16.2.1      The range and quantity of training and training aids to be provided
            free of charge under this Agreement are covered in Appendix A to
            this Clause 16. The Seller will arrange availability of such
            training and training aids in relation to the delivery schedule for
            the Aircraft set forth in Clause 9.1.1.

16.2.2      The Maintenance Training and Flight Training courses described in
            Appendix A to this Clause 16 will be provided up to two (2) years
            after Delivery of the last Aircraft.

16.2.3      Except as set forth in Appendix A to this Clause 16, no compensation
            or credit of any sort will be provided for unused or partially used
            training or training aids offered pursuant to this Clause 16.

16.3.       Training Organization / Location

16.3.1      The Seller will provide the training at the Airbus Training Center
            in Miami, Florida (the "SELLER'S TRAINING CENTER"), and/or at its
            affiliated training center in Blagnac, France (the "AFFILIATED
            TRAINING CENTER").

16.3.2      If unavailability of facilities or scheduling difficulties make
            training by the Seller impractical at the training centers listed in
            Clause 16.3.1, the Seller will ensure that the Buyers are provided
            such training at locations other than those named in Clause 16.3.1.

16.3.3      Upon the Buyers' request, the Seller may also provide certain
            training at one of the Buyers' bases, if and when practicable for
            the Seller, under terms and conditions to be mutually agreed upon.
            In this event, all additional charges listed in Clause 16.6.2 will
            be borne by the Buyers.

16.4        Training Courses

16.4.1      Training courses, as well as the minimum and maximum numbers of
            trainees per course provided for the Buyer's personnel, are defined
            in the applicable training course catalog (the "TRAINING COURSE
            CATALOG") and will be scheduled as mutually agreed upon during a
            training conference (the "TRAINING CONFERENCE") that will be held as
            soon as practicable after signature of this Agreement and no later
            than six (6) months prior to delivery of the first Aircraft.

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16.4.2  The following terms will apply when training is performed by the Seller:

        (i)     Training  courses  will  be the  Seller's  standard  courses  as
                described in the Seller's  applicable  Training  Course  Catalog
                valid at the time of execution of the course. The Seller will be
                responsible for all training  course syllabi,  training aids and
                training  equipment   necessary  for  the  organization  of  the
                training courses.

        (ii)    The training  curricula  and the training  equipment  may not be
                fully customized.  However,  they may be modified to include the
                most significant  aspects of the  Specification as known, at the
                latest,  six (6) months prior to the date of the first  training
                course planned for the Buyers and will be configured in order to
                obtain the relevant Aviation Authority's approval and to support
                the Seller's training programs.

        (iii)   Training data and documentation  necessary for training detailed
                in Appendix A to this Clause 16 will be free-of-charge  and will
                not be revised.  Training data and documentation  will be marked
                "FOR  TRAINING  ONLY" and as such will be supplied  for the sole
                and express purpose of training.

        (iv)    Upon the  request of the Buyers and at no charge to the  Buyers,
                the Seller will  collect and pack for  consolidated  shipment to
                the  facility  of one of  the  Buyers,  all  training  data  and
                documentation of the Buyers' trainees  attending training at the
                Airbus Training Center in Miami, Florida or Blagnac,  France, as
                applicable.   This  training  data  and  documentation  will  be
                delivered  FCA Miami  International  Airport.  The  Buyers  will
                designate in writing one Buyer to receive title to such training
                data  and  documentation  and  title  to and risk of loss of the
                training  data and  documentation  will pass to such  Buyer upon
                delivery.

16.4.3  If the  Buyers  decide to cancel or  reschedule  a  training  course,  a
        minimum advance notice of sixty (60) calendar days will be required. Any
        later  cancellation  or change from the Buyers,  when courses  cannot be
        allocated  to  other  customers,  will be  deducted  from  the  training
        allowances  defined  herein  or  will  be  charged  to  the  Buyers,  as
        applicable.

16.4.4  The Seller will deliver, or will cause any third party training provider
        to deliver,  to the trainees a  certificate  of completion at the end of
        any such training course.  No such certificate will represent  authority
        or qualification by any Aviation  Authority but may be presented to such
        officials in order to obtain relevant formal qualification.

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16.5    Prerequisites

16.5.1  Training  will be conducted in English and all training aids are written
        in English using common aeronautical terminology. Trainees must have the
        prerequisite experience set forth in Appendix B to this Clause 16.

        The Seller's training courses are "Transition  Training Courses" and not
        "Ab Initio Training Courses."

        The Buyers will be responsible for the selection of the trainees and for
        any liability with respect to the entry knowledge level of the trainees.

16.5.2  The Buyers  will  provide  the  Seller  with an  attendance  list of the
        trainees  for each  course  with  the  validated  qualification  of each
        trainee.   The  Seller  reserves  the  right  to  verify  the  trainees'
        proficiency and previous professional experience.  The Seller will in no
        case warrant or otherwise be held liable for any  trainee's  performance
        as a result of any training services provided.

16.5.3  The Seller will provide to the Buyers an "Airbus  Pre-Training  Survey",
        and/or the "Maintenance  Training Survey", as applicable,  to obtain the
        trainee's associated background. The Buyers will complete such survey(s)
        and return them to the Seller at least two (2) months prior to the start
        of the training course.

16.5.4  If the Buyers  make a change to any trainee  attendance  list within the
        two  (2)  month  period  stated  in  Clause  16.5.3,   the  Buyers  will
        immediately  inform  the Seller  thereof  and send the Seller on updated
        Airbus Pre-Training Survey and/or Maintenance Training Survey reflecting
        requested information for the replacement trainee(s).

16.6.   Logistics

16.6.1  Trainees

        (a)     When  training is done at the Airbus  Training  Center in Miami,
                Florida, the Seller will provide a free-of-charge rental car for
                all of the Buyers'  trainees  for the  duration of the  training
                course  on  the  basis  of one  (1)  rental  car  per  four  (4)
                maintenance, operations and cabin attendant trainees and one (1)
                rental car per each flight crew.

                The Seller will provide rental cars with unlimited mileage,  and
                the Buyers will pay for gas,  and fines,  if any.  However,  the
                Buyers  will  indemnify  and hold the Seller  harmless  from and
                against all liabilities, claims, damages, costs and expenses for
                any injury to or death of any of the Buyer's trainees occasioned
                during the course of such transportation.

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        (b)     When training is done at the Airbus  Training Center in Blagnac,
                France, the Seller will provide free local transportation by bus
                for the Buyer's  trainees to and from  designated pick up points
                and the training center

        (c)     Living expenses for the Buyer's  trainees are to be borne by the
                Buyers.

16.6.2  Training at External Location

        (a)     Seller's Instructors

                If at any Buyer's request,  training is provided by the Seller's
                instructors  at any location  other than the  Seller's  training
                centers,  the Buyers will  reimburse the Seller for all expenses
                set  forth  in  Clauses  16.6.2(b)   16.6.2(c),   16.6.2(d)  and
                16.6.2(e)  related to the  assignment  of such  instructors  and
                their performance of the duties as aforesaid.

        (b)     Living Expenses for the Seller's Instructors

                Such expenses, covering the entire period from day of secondment
                to day of return to the Seller's base, will include but will not
                be limited to lodging, food and local transportation to and from
                the place of  lodging  and the  training  course  location.  The
                Buyers will  reimburse the Seller for such expenses on the basis
                of a per diem rate  corresponding  to the  current per diem rate
                used by the Seller for its personnel.

        (c)     Air Travel

                The Buyers  will  reimburse  the  Seller for the  transportation
                costs of the Seller's instructors in confirmed business class or
                in confirmed coach class, where business class is not available,
                to and  from  the  Buyers'  designated  training  site  and  the
                Seller's training center.

        (d)     Training Material

                The Buyers  will  reimburse  the Seller for the cost of shipping
                the training material needed to conduct such courses.

        (e)     Buyers' Indemnity

                The Buyers will be solely liable for any and all cancellation or
                delay in the performance of the training outside of the Seller's
                training  centers  that is  associated  with the  transportation
                provided under Clause 16.6.2(c) and will, jointly and severally,
                indemnify  and hold the Seller  harmless from such delay and any
                consequences arising there from.

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        (f)     Training Equipment Availability

                Training  equipment  necessary  for  course  performance  at any
                course location other than the Seller's  training centers or the
                facilities of the training  provider selected by the Seller will
                be  provided  by the  Buyers  in  accordance  with the  Seller's
                specifications.

16.7    Flight Operations Training

16.7.1  Flight Crew Training Course

        (a)     The Seller will perform a flight crew  training  course  program
                for the Buyers'  flight  crews.  [AS AGREED BY THE  PARTIES] The
                training  manual used will be the Seller's Flight Crew Operating
                Manual ("FCOM"),  except for the base flight training, for which
                the Buyer's Customized FCOM will be used.

        (b)     The  Buyers  will  use  delivered   Aircraft  for  any  required
                in-flight  training.  This  training  will  not  exceed  one (1)
                session of  forty-five  (45) minutes per pilot.  When  in-flight
                crew training is performed in Blagnac,  France,  the Seller will
                provide  free-of-charge line maintenance,  including  servicing,
                preflight  checks and changing of minor  components,  subject to
                conditions agreed in this Agreement.

        (c)     The Buyers will provide  mutually agreed spare parts as required
                to support said in-flight  training and will provide evidence of
                insurance coverage required under Clause 19.

        (d)     In all cases, the Buyers will bear the expenses of fuel, oil and
                landing fees.

16.7.2  Flight Crew Line Initial Operating Experience

        (a)     In order to assist the Buyers with initial operating  experience
                after Delivery of the first Aircraft, the Seller will provide to
                the Buyers pilot instructor(s) as described in Exhibit A to this
                Clause 16.

        (b)     Additional  pilot  instructors  can be  provided  at the Buyers'
                expense upon conditions to be mutually agreed.

        (c)     Prior to any flight  training to be  performed  by the Seller on
                the  Buyers'  Aircraft,  the Buyers  will  provide to the Seller
                evidence of insurance coverage as required under Clause 19.

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16.7.3  Instructor Cabin Attendants' Familiarization Course

        The Seller will provide  instructor cabin  attendant's  course(s) to the
        Buyers' cabin  attendants,  as described in Exhibit A to this Clause 16,
        at the Seller's Training Center.

        The   instructor   cabin   attendants   familiarization   course,   when
        incorporating  the  features of the  Aircraft,  will be given no earlier
        than six (6)  months  and no later  than  ninety  (90) days  before  the
        Delivery  of  the  first  Aircraft.  The  instructor  cabin  attendants'
        familiarization  course  material will be provided no later than six (6)
        months before the Delivery of the first Aircraft.

16.7.4  Performance / Operations Course

        The Seller will provide performance/operations  training for the Buyers'
        personnel as described in Exhibit A to this Clause 16.

        The  available  courses are listed in the Seller's  applicable  Training
        Courses Catalog.

16.7.5  Transition Type Rating Instructor Course

        The Seller will provide  transition type rating instructor  training for
        the Buyer's  flight crew  instructors  as described in Exhibit A to this
        Clause  16.  This  course  provides  the  Buyers'  instructors  with the
        training in flight  instruction  and synthetic  instruction  required to
        instruct on Airbus aircraft.

16.7.6  During any and all  flights  performed  in  accordance  with this Clause
        16.7,  the Buyers will bear full  responsibility  for the aircraft  upon
        which the flight is performed, including but not limited to any required
        maintenance,  all  expenses  such as fuel,  oil or landing  fees and the
        provision of insurance required under Clause 19.

16.8    Maintenance Training

16.8.1  The Seller will  provide  maintenance  training  for the Buyers'  ground
        personnel  as  described  in Exhibit A to this Clause 16. The  available
        courses are listed in the Seller's  applicable  Training Course Catalog.
        The practical training provided in the frame of maintenance  training is
        performed  exclusively  on the  training  devices in use in the Seller's
        Training  Center  or  the  Affiliated  Training  Center.  If  additional
        practical training is required,  such additional  practical training can
        be organized  with the  assistance  of the Seller,  in  accordance  with
        Clause 16.8.2.

16.8.2  Practical Training

        If the Buyers  require  practical  training to be  organized  at another
        airline's  facilities,  then  the  Seller  will  assist  the  Buyers  in
        organizing this training  without  guaranteeing  the availability of any
        other airline's facilities. The provision of an

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        instructor  by the Seller for such  practical  training will be deducted
        from the  trainee-day  allowance set forth in Paragraph 2.1 of Exhibit A
        to this Clause 16 in the manner described in Paragraph 3 of such Exhibit
        A. The Buyers will reimburse the Seller the expenses for said instructor
        in accordance with Clause 16.6.2.

16.8.3  Line Maintenance Initial Operating Experience Training

        In order to assist  the  Buyers  during  the entry  into  service of the
        Aircraft,   the  Seller   will   provide   to  the  Buyers   maintenance
        instructor(s)  at the Buyers'  main A350 base as set forth in Appendix A
        to this Clause 16.

        (a)     Line  maintenance  initial  operating  experience  training will
                cover  training in handling and  servicing  of Aircraft,  flight
                crew and maintenance coordination,  use of Technical Data and/or
                any  other  activities  which  may  be  deemed  necessary  after
                Delivery of the first Aircraft.

        (b)     The Buyers will reimburse the expenses for said instructor(s) in
                accordance   with   Clause   16.6.2.    Additional   maintenance
                instructors can be provided at the Buyers' expense.

16.9    Supplier and Engine Manufacturer Training

        The Seller will ensure that major  Suppliers and the  Propulsion  System
        manufacturer provide maintenance training and overhaul training on their
        products at appropriate  times. A copy of the Supplier Training Catalog,
        listing the  suppliers  that provide  training,  will be supplied to the
        Buyers on request.

16.10   Training Aids for the Buyers' Training Organization

16.10.1 The Seller will provide to the Buyers  Airbus  computer  based  training
        ("Airbus CBT"),  training aids, as used in the Seller's Training Centers
        and the Virtual Aircraft (Walk Around and Component  Location),  free of
        charge as set forth in Exhibit A to this Clause 16.

        The Airbus CBT and training  aids supplied to the Buyers will be similar
        to those used at the Airbus  Training  Centers for training.  The Seller
        has no  obligation to cause the  Manufacturer  to revise the Airbus CBT.
        The Airbus CBT in use at the Seller's  Training Center may be revised on
        a regular  basis,  and such  revisions,  if any, will be provided to the
        Buyers until the expiration of the period when training courses provided
        under this Clause 16 are performed for the Buyers, or up to one (1) year
        after  delivery  of the Airbus CBT or Virtual  Aircraft  to the  Buyers,
        whichever occurs first.

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16.10.2 Delivery

        (a)     The  Seller  will  deliver  to the  Buyers  the  Airbus  CBT and
                training  aids,  at a date  to be  mutually  agreed  during  the
                Training Conference, but no later than six (6) months before the
                Delivery Date of the first Aircraft.

        (b)     Those items  supplied to the Buyers  pursuant to Clause  16.10.1
                will be  delivered  FCA  Toulouse,  France,  and/or FCA Hamburg,
                Germany.  Title to and risk of loss of said  items  will pass to
                the Buyer selected pursuant to Clause 16.4.2(iv) upon delivery.

16.10.3 Installation of Airbus CBT System

        (a)     Before the initial  delivery of the Airbus CBT,  the Seller will
                provide an "Airbus  CBT  Administrator  Course" to up to six (6)
                trainees of the Buyers,  at the facilities of one of the Buyers.
                To conduct the  course,  the  workstations  and/or  servers,  as
                applicable,  will be  ready  for use and  will  comply  with the
                latest  "Airbus  CBT  Workstation  Technical  Specification"  or
                "Airbus CBT Server Technical Specification", as applicable.

        (b)     The Buyers will  provide any and all the  necessary  hardware on
                which the Airbus CBT will be  installed  and Seller  will not be
                responsible  for any  incompatibility  of such hardware with the
                Airbus CBT.

        (c)     The Airbus CBT will be  installed by the Buyers'  personnel  who
                have  completed the Airbus CBT training,  and the Seller will be
                held  harmless  from any  damage  to person  and/or to  property
                caused  by or in any way  connected  with  the  handling  and/or
                installation of the Airbus CBT by the Buyers' personnel.

        (d)     In accordance with Clause 16.6.2,  the Buyers will reimburse the
                expenses  for the  Seller's  personnel  required  at any Buyer's
                facility  to  conduct   Airbus  CBT  Training   and/or   provide
                installation assistance.

16.10.4 License

        (a)     The Seller will grant the Buyers a license to use the Airbus CBT
                and the Virtual  Aircraft  that will  incorporate  the Terms and
                Conditions  for License for Use of Software set forth in Exhibit
                H.

        (b)     Supply of  additional  sets of  Virtual  Aircraft  Software  and
                courseware supports, as well as any extension to the license for
                such  courseware,  will be subject to terms and conditions to be
                mutually agreed.

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16.10.5 The Seller will not be responsible for, and hereby disclaims any and all
        liabilities  resulting from or in connection  with the use by the Buyers
        of the Airbus CBT, the Virtual  Aircraft and any other  training aids at
        the Buyers' facilities.

16.11   Proprietary Rights

        The Seller's  training data and  documentation,  Airbus CBT and training
        aids are  proprietary to the  Manufacturer  and its suppliers.  All such
        training  materials  are  supplied  for the  sole use by the  Buyers  in
        training  its  personnel  to  maintainand  operate the  Aircraft.  These
        proprietary  rights will also apply to any  translation of such Material
        into a  language  or  languages  or medium  or media  that may have been
        performed or caused to be performed by the Buyer.

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                                                         APPENDIX A TO CLAUSE 16

                               TRAINING ALLOWANCES

                           [AS AGREED BY THE PARTIES]

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                                                         APPENDIX B TO CLAUSE 16

                        MINIMUM RECOMMENDED QUALIFICATION
                      IN RELATION TO TRAINING REQUIREMENTS

                          (Standard Transition Courses)

The prerequisites listed below are the minimum recommended requirements
specified for Airbus training. If the appropriate Aviation Authority or the
specific airline policy of the trainee demands greater or additional
requirements, such requirements will be prerequisites.

-     CAPTAIN prerequisites

            -     Previously qualified on JAR/FAR/CS 25 aircraft and commercial
                  operations

            -     Valid and current Airlines Transport License (ATPLY)

            -     Previous command experience

            -     Fluency in English

            -     Jet experience

            -     1500 hours minimum flying experience as pilot

            -     1000 hours experience on FAR/JAR 25/CS 25 aircraft

            -     200 hours experience as airline, corporate pilot or military
                  transport pilot

            -     Must have flown transport type aircraft, as flying pilot,
                  within the last 12 months.

-     FIRST OFFICER prerequisites

            -     Previously qualified on JAR/FAR/CS 25 aircraft and commercial
                  operations

            -     Aircraft and commercial operations valid and current
                  commercial pilot license with instrument rating

            -     Fluency in English

            -     Jet experience

            -     500 hours minimum flying experience as pilot of fixed wing
                  aircraft

            -     300 hours experience on FAR/JAR/CS 25 aircraft

            -     200 hours flying experience as airline pilot or a corporate
                  pilot or military transport pilot

      For both CAPTAIN and FIRST OFFICER, if one or several of the above
      criteria are not met, the trainee must follow

            (i)   an adapted course or

            (ii)  an entry level training program before entering the regular or
                  the adapted course.

      Such course(s), if required, will be at the Buyers' expense.

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                                                         APPENDIX B TO CLAUSE 16

-     FIRST TYPE RATING COURSE

This course is designed for ab initio pilots who do not hold an aircraft type
rating on their pilot license

      PILOT PREREQUISITES

            -     Valid and current commercial pilot license

            -     Valid and current instrument rating on multi engine aircraft

            -     Airlines Transport License (ATPLY) written examination

            -     Fluency in English . Flight experience:

                  -     220 hours as pilot

                  -     100 hours as pilot in command

                  -     25 hours on multi engine aircraft (up to 10 hours can be
                        completed in a simulator)

In addition to the above conditions and in accordance to the JAR Flight Crew
Licensing and the Airbus Training Policy, a pilot applying for a first type
rating must have followed either an approved JAR Multi Crew Cooperation ("MCC")
program or regulatory equivalent or the "Airbus Entry Level Training program"
(combined MCC and jet familiarization course). Such course, if required, will be
at the Buyers' expense.

-     CQ ADDITIONAL prerequisites

In addition to the prerequisites set forth for the Flight Crew Standard
Transition Course, both CAPTAIN and FIRST OFFICER must:

            -     be qualified and current on the base aircraft type

            -     have 150 hours minimum and 3 months minimum of operations on
                  the base aircraft type.

-     TRI COURSE ADDITIONAL prerequisites

In addition to the prerequisites set forth for the Flight Crew Standard
Transition Course, it is the responsibility of the Buyers to:

            -     select instructor candidate(s) with airmanship and behavior
                  corresponding to the role and responsibility of an airline
                  instructor, and

            -     designate instructor candidate(s) with the Airbus
                  prerequisite, which corresponds to the JAR requirements (ref
                  JAR - FCL 1 - Requirements/ Subparts H - Instructor rating
                  (Aeroplane) C.

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                                                         APPENDIX B TO CLAUSE 16

MAINTENANCE PERSONNEL prerequisites

(i)   For all maintenance courses:

            Fluency in English
            Experience on first or second generation jet transport category
            aircraft

(ii)  Additional prerequisites for Aircraft Rigging Engine Run-Up and
      Maintenance Initial Operating Course:

            - Qualified as line or line and base mechanic on the concerned
            Airbus aircraft type (for Maintenance Initial Operating Experience
            Course).

(iii) Additional prerequisites - Maintenance Initial Operating Experience

      Be currently qualified as line or base mechanic on the base Aircraft

(iv)  Additional prerequisites - MAINTENANCE TRAINING DIFFERENCE COURSE

      Be current and operating on the base Aircraft.

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17 -  SUPPLIER PRODUCT SUPPORT

17.1  Equipment Supplier Product Support Agreements

17.1.1 The Seller will, at no charge to the Buyers, transfer to the Buyers the
      Supplier Product Support Agreements transferable to the Buyers from
      Suppliers of Seller Furnished Equipment listed in the Specification on
      Delivery. These agreements are based on the "World Airlines and Suppliers
      Guide" and include Supplier commitments contained in the Supplier Product
      Support Agreements, which include the following:

      (i)   Technical data and manuals required to operate, maintain, service
            and overhaul the Supplier items will (a) be prepared in accordance
            with the applicable provisions of ATA Specification 100 and 101 in
            accordance with Clause 14, (b) include revision service, and (c) be
            published in the English language. The Seller will make reasonable
            efforts to ensure that software data, supplied in the form of an
            appendix to the Component Maintenance Manual, be provided in
            compliance with ATA Specification 102 up to level 3 to protect
            Suppliers' proprietary interests,

      (ii)  Warranties and guarantees, including Suppliers' standard warranties,
            and in the case of Suppliers of landing gear, service life policies
            for selected landing gear structures,

      (iii) Training to ensure efficient operation, maintenance and overhaul of
            the Suppliers' items for the Buyers' instructors, shop and line
            service personnel.

      (iv)  Spares data in compliance with ATA Specification 200 or 2000,
            initial provisioning recommendations, spares and logistics service,
            including routine and emergency deliveries, and

      (v)   Technical service to assist the Buyers with maintenance, overhaul,
            repair, operation and inspection of Supplier items as well as
            required tooling and spares provisioning.

17.2  Supplier Compliance

      The Seller will monitor Supplier compliance with support commitments
      defined in the Supplier Product Support Agreements and will take action
      together with the Buyers, if necessary.

17.3  Supplier Part Repair Stations

      The Seller has developed with the Suppliers a comprehensive network of
      repair stations in the United States of America and Canada for those
      Supplier Parts originating from outside these countries. [AS AGREED BY THE
      PARTIES]

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18    BUYER FURNISHED EQUIPMENT

18.1  Administration

18.1.1 Without additional charge and in accordance with the Specification, the
      Seller will cause the Manufacturer to provide for the installation of the
      Buyer Furnished Equipment, provided that the BFE is referred to in the
      Airbus BFE Catalog of Approved Suppliers by Products valid at the time the
      BFE is ordered.

      The Seller will cause the Manufacturer to advise the Buyers of the dates
      by and location to which, in the planned release of engineering for the
      Aircraft, the Seller requires a written detailed engineering definition.
      This description will include the definition of the dimensions and weight
      of BFE, the information related to its certification and information
      necessary for the installation and operation thereof. The Buyers will
      furnish such detailed description and information by the dates specified.
      Thereafter, no information, dimensions or weights will be revised unless
      authorized by an SCN.

      The Seller will also provide the Buyers in due time with a schedule of
      dates and shipping addresses for delivery of BFE and (when requested by
      the Seller) additional spare BFE in order permit installation of the BFE
      in the Aircraft and delivery of the Aircraft in accordance with the
      delivery schedule. The Buyers will provide the BFE by such dates in a
      serviceable condition, to allow performance of any assembly, test, or
      acceptance process in accordance with the Seller's industrial schedule.

      The Buyers will also provide, when requested by the Manufacturer, at
      Airbus France S.A.S. works and/or at Airbus Deutschland GmbH works, as
      applicable and needed, adequate field service, including support from BFE
      suppliers to act in a technical advisory capacity to the Seller in the
      installation, calibration and possible repair of any BFE.

18.1.2 The BFE will be imported into France or into Germany by the Buyers under
      a suspensive customs system ("Regime de l'entrepot industriel pour
      fabrication coordonnee" or "Zollverschluss") without application of any
      French or German tax or customs duty, and will be Delivered Duty Unpaid
      (DDU) (as defined in Incoterms 2000:ICC Official Rules for the
      Interpretation of Trade Terms, published by the International Chamber of
      Commerce), to

              Airbus France S.A.S.
              316 Route de Bayonne
              31300 Toulouse, France
              or
              Airbus Deutchland GmbH
              Division Hamburger Flugzeugbau
              Kreetslag 10
              21129 Hamburg
              Federal Republic of Germany
              as provided in Clause 18.1.1.

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18.1.3 If any of the Buyers requests the Seller to supply directly certain items
      that are considered BFE according to the Specification, and if such
      request is notified to the Seller in due time in order not to affect the
      Delivery Date of the Aircraft, the Seller may agree to order such items
      subject to the execution of an SCN reflecting the effect on price,
      escalation adjustment, and any other conditions of the Agreement. In such
      a case the Seller will be entitled to the payment of a reasonable handling
      charge and will bear no liability in respect of delay and product support
      commitments for such items.

18.2  Requirements

      Each of the Buyers is responsible for assuring and warranting, at its
      expense, that BFE will (i) be manufactured by a qualified supplier in
      accordance with the provisions of Clause 18.1.1, (ii) meet the
      requirements of the applicable Specification, (iii) comply with applicable
      requirements incorporated by reference to the Type Certificate and listed
      in the Type Certificate Data Sheet, and (iv) be approved by the applicable
      Aviation Authority delivering the Export Certificate of Airworthiness and
      by the FAA for installation and use on the Aircraft at the time of
      Delivery of such Aircraft. The Seller will be entitled to refuse any item
      of BFE that it considers incompatible with the Specification, the
      engineering definition mentioned above in Clause 18.1.1 or the
      certification requirements.

18.3  Buyers' Obligation and Seller's Remedies

18.3.1 Any delay or failure in

      (i)   furnishing the BFE in serviceable condition at the requested
            delivery date,

      (ii)  complying with the warranty in Clause 18.2 or in providing the
            descriptive information or service representatives mentioned in
            Clause 18.1.1, or

      (iii) in obtaining any required approval for such equipment under the
            above mentioned Aviation Authorities regulations

      may delay the performance of any act to be performed by the Seller, and
      cause the Final Contract Price of the Aircraft to be adjusted in
      accordance with the updated delivery schedule, including, in particular,
      the costs the Seller incurs that are attributable to the delay or failure
      described above, such as storage, taxes, insurance and costs of out-of
      sequence installation.

18.3.2 In addition to the consequences outlined in Clause 18.3.1, in the event
      of a delay or failure described in Clause 18.3.1,

      (i)   the Seller may select, purchase and install equipment similar to the
            BFE at issue, in which event the Final Contract Price of the
            affected Aircraft will also be increased by the purchase price of
            such equipment, plus reasonable costs and expenses incurred by the
            Seller for handling charges, transportation, insurance, packaging
            and, if required and not already provided for in the price of the
            Aircraft, for adjustment and calibration; or

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      (ii)  if the BFE is delayed more than thirty (30) days beyond, or
            unapproved within thirty (30) days of the date specified in Clause
            18.1.1, then the Seller may deliver or the Buyers may elect to have
            the Aircraft delivered without the installation of such equipment,
            notwithstanding the terms of Clause 7.2 insofar as it may otherwise
            have applied, whereon the Seller will be relieved of all obligations
            to install such equipment.

18.4  Title and Risk of Loss

      Title to (subject to Clause 18.5.5) and risk of loss of BFE will at all
      times remain with the Buyer that is the owner thereof, except that risk of
      loss (limited to cost of replacement of said BFE and excluding in
      particular loss of use) will be with the Seller for as long as the BFE is
      in the care, custody and control of the Seller.

18.5  Disposition of BFE Following Termination

18.5.1 If a termination of this Agreement pursuant to the provisions of Clause
      21 occurs with respect to an Aircraft in which all or any part of the BFE
      has been installed prior to the date of such termination, the Seller will
      be entitled, but not required, to remove all items of BFE that can be
      removed without damage to the Aircraft and to undertake commercially
      reasonable efforts to facilitate the sale of such items of BFE to other
      customers, retaining and applying the proceeds of such sales to reduce
      Seller's damages resulting from the termination.

18.5.2 The Buyers will cooperate with the Seller in facilitating the sale of BFE
      pursuant to Clause 18.5.1 and will, jointly and severally, be responsible
      for all costs incurred by the Seller in removing and facilitating the sale
      of such BFE. The Buyers will, jointly and severally, reimburse the Seller
      for all such costs within five (5) Working Days of receiving documentation
      of such costs from the Seller.

18.5.3 The Seller will notify the Buyers as to those items of BFE not sold by
      the Seller pursuant to Clause 18.5.1 and, at the Seller's request, the
      Buyers will remove such items from the Seller' facility within thirty (30)
      days of the date of such notice. The Buyers will have no claim against the
      Seller for damage or destruction of any item of BFE removed from the
      Aircraft and not removed from Seller's facility within such period.

18.5.4 The Buyers will have no claim against the Seller for damage to or
      destruction of any item of BFE damaged or destroyed in the process of
      being deinstalled from the Aircraft, provided that the Seller will use
      reasonable care in such deinstallation.

18.5.5 The Buyers will grant title to the Seller for any BFE items that cannot
      be removed from the Aircraft without causing damage to the Aircraft or
      rendering any system in the Aircraft unusable.

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19    Indemnities and Insurance

19.1  Seller's Indemnities

      The Seller will, except in the case of gross negligence or willful
      misconduct of any Buyer, it's directors, officers, agents, or employees,
      be solely liable for and will indemnify and will hold the Buyers and their
      respective directors, officers, agents or employees, Affiliates and
      Suppliers harmless against all losses, liabilities, claims, damages, costs
      and expenses, including court costs and reasonable attorneys' fees
      ("Losses"), arising from claims for

      (a)   injuries to, or deaths of, the Seller's, Manufacturer's or any
            Associated Contractor's respective directors, officers, agents or
            employees, or loss or damage to property of the Seller, Manufacturer
            or any Associated Contractor or their respective employees or agents
            when such losses occur during or are incidental to (i) the exercise
            by any of the Buyers of its inspection rights under Clause 6, (ii)
            the Technical Acceptance Process described in Clause 8, (iii) the
            provision of Resident Customer Support pursuant to Clause 15 or (iv)
            the provision of training pursuant to Clause 16; and

      (b)   injuries to or deaths of third parties, or loss of property of third
            parties, occurring during, or incidental to (i) the exercise by any
            Buyer of its inspection rights pursuant to Clause 6 or (ii) the
            Technical Acceptance Process described in Clause 8.

19.2  Buyers' Indemnities

      The Buyers will, jointly and severally, except in the case of gross
      negligence or willful misconduct of the Seller, its directors, officers,
      agents and employees, be solely liable for and will indemnify and will
      hold the Seller, the Manufacturer, each of the Associated Contractors and
      their respective subcontractors, Affiliates and Suppliers of the Seller,
      the Seller's representatives, and the respective assignees, directors,
      officers, agents and employees of each of the foregoing, harmless against
      all Losses arising from:

      (a)   injuries to or deaths of the directors, officers, agents or
            employees of any Buyer, or loss or damage to property of any Buyer
            or the employees or agents of any of them, when such losses occur
            during or are incidental to (i) the exercise by any Buyer of its
            inspection rights under Clause 6; (ii) the Technical Acceptance
            Process described in Clause 8, (iii) the provision of Field
            Assistance pursuant to Clause 15, or (iv) the provision of training
            pursuant to Clause 16; and

      (b)   claims for injuries to or deaths of third parties, or loss of
            property of third parties, where such losses occur during or
            incidental to (i) the provision of Field Services under Clause 15 or
            (ii) arise out of the provision of training pursuant to Clause 16
            and are not caused by a defect of the type specified in Clause
            12.1.1 that is not excluded under Clause 12.1.2.

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19.3  Notice and Defense of Claims

      (a)   If any claim is made or suit is brought against a party or entity
            entitled to indemnification under this Clause 19 (the "INDEMNITEE")
            for damages for which liability has been assumed by the other party
            under this Clause 19, (the "INDEMNITOR"), the Indemnitee will
            promptly give notice to the Indemnitor and the Indemnitor (unless
            otherwise requested by the Indemnitee) will assume and conduct the
            defense, or settlement, of such suit, as the Indemnitor will deem
            prudent. Notice of the claim or suit will be accompanied by all
            information pertinent to the matter as is reasonably available to
            the Indemnitee and will be followed by such cooperation by the
            Indemnitee as the Indemnitor or its counsel may reasonably request
            at the expense of the Indemnitor.

      (b)   If the Indemnitor fails or refuses to assume the defense of any
            claim or lawsuit notified to it under this Clause 19, the Indemnitee
            will have the right to proceed with the defense or settlement of the
            claim or lawsuit as it deems prudent and will have a claim over
            against the Indemnitor for any judgments, settlements, costs or
            expenses, including reasonable attorneys' fees. Further, in such
            event, the Indemnitor will be deemed to have waived any objection or
            defense to the Indemnitee's claim based on the reasonableness of any
            settlement.

19.4  Insurance

      [AS AGREED BY THE PARTIES]

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20    ASSIGNMENTS AND TRANSFERS

20.1  Assignments by Buyers

      Except as hereinafter provided, none of the Buyers may sell, assign or
      transfer its rights or obligations under this Agreement to any person
      without the prior written consent of the Seller.

20.2  Assignments on Sale, Merger or Consolidation

      The Buyers will be entitled to assign their rights under this Agreement at
      any time due to a merger or consolidation, provided the Buyers first
      obtains the written consent of the Seller. The Seller will provide its
      consent if:

      (i)   the surviving or acquiring entity is organized and existing under
            the laws of the United States;

      (ii)  the surviving or acquiring entity has executed an assumption
            agreement, in form and substance reasonably acceptable to the
            Seller, agreeing to assume all of the Buyers' obligations under this
            Agreement;

      (iii) at the time, and immediately following the consummation, of the
            merger, consolidation or sale, no event of default exists or will
            have occurred and be continuing;

      (iv)  there exists with respect to the surviving or acquiring entity no
            basis for a Termination Event within the meaning of Clause 21;

      (v)   the surviving or acquiring entity holds an air carrier operating
            certificate issued by the FAA at the time, and immediately following
            the consummation, of such sale, merger or consolidation; and

      (vi)  following the sale, merger or consolidation, the surviving or
            acquiring entity in a financial condition at least equal to that of
            the Buyers, collectively, at time of execution of this Agreement.

20.3  Designations by Seller

      The Seller may at any time by notice to the Buyers designate facilities or
      personnel of the Manufacturer, ANACS, any of the Associated Contractors or
      any Affiliate of the Manufacturer or any Affiliate of an Associated
      Contractor at which or by whom the services to be performed under this
      Agreement will be performed. The Seller may also designate the
      Manufacturer or any Affiliate of an Associated Contractor as the party
      responsible on behalf of the Seller for providing to the Buyers all or any
      of the Agreement. Notwithstanding such designation, the Seller will remain
      ultimately responsible for fulfillment of all obligations undertaken by
      the Seller in this Agreement.

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20.4  Transfer of Rights and Obligations upon Reorganization

      If at any time until the date upon which all the obligations and
      liabilities of the Seller under this Agreement have been discharged, the
      legal structure, the membership or the business of the Seller is
      reorganized or the legal form of the Seller is changed and as a
      consequence thereof the Seller wishes the Buyers to accept the
      substitution of the Seller by another entity within the restructured
      Airbus group (or the Seller in its new legal form) ("NEWCO") as
      contemplated below, the Seller will promptly notify the Buyers of its
      wish.

      In such event, the Seller may request the Buyers to enter into a novation
      agreement and/or other agreement having the same effect whereby the
      Seller's rights and obligations under this Agreement are novated or
      transferred in favor of Newco. Upon receipt of such request, the Buyers
      will enter into a novation agreement and/or other appropriate agreement,
      provided that the Buyers' rights and obligations under this Agreement are
      not materially adversely affected by such novation and/or other agreement.

      Until any such novation agreement/other appropriate documentation has come
      into effect, this Agreement will remain in full force and effect, and each
      party will act diligently and in good faith to implement the novation
      agreement and/or other appropriate documentation as soon as practicable
      after Newco has come into existence.

      20.5 [AS AGREED BY THE PARTIES]

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21.   TERMINATION

21.1  Termination Events

      Each of the following will constitute a "TERMINATION EVENT

      [AS AGREED BY THE PARTIES]

21.2  If a Termination Event occurs, each of the Buyers will be in material
      breach of this Agreement, and the Seller will have the right to resort to
      any remedy under applicable law, and may, without limitation, by written
      notice to the Buyers, immediately:

      [AS AGREED BY THE PARTIES]

      (3)   Liquidated damages will be payable by the Buyers promptly, and in
            any event within ten (10) days of the date of written notice and
            demand therefor from Seller, such demand to set forth in reasonable
            detail the calculation of such liquidated damages and will identify
            the Termination Event upon which the Seller is relying. The parties
            agree that the remedy of liquidated damages is not to be denied to
            the Seller due to the inability of Seller to deliver a notice and
            demand for payment thereof due to the operation of law following a
            bankruptcy or other Termination Event under Clauses 21.1.1(1) - (4).
            The parties further agree that in circumstances where a Termination
            Event has occurred and the Seller does not cancel this Agreement as
            to any or all Aircraft, but instead seeks to recover its actual
            damages resulting therefrom, the amount of actual damages payable by
            the Buyers will not exceed the amount of liquidated damages that
            could have been claimed by Seller pursuant to Clause 21.1.2(2) had
            the Seller elected to claim, as a result of such Termination Event,
            liquidated damages pursuant to Clause 21.2(2).

      (4)   The parties to this Agreement are commercially sophisticated parties
            represented by competent counsel. The parties expressly agree and
            declare that damages for material breach of this Agreement by the
            Buyers resulting in a termination of this Agreement pursuant to
            Clause 21.1.2(1)(iv) as to any or all Aircraft have been liquidated
            at amounts which are reasonable in light of the anticipated or
            actual harm caused by any Buyer's breach, the difficulties of proof
            of loss and the nonfeasibility of otherwise obtaining an adequate
            remedy. It is understood and agreed by the parties that the amount
            of liquidated damages set forth herein is the total amount of
            monetary damages, no more and no less, to which the Seller will be
            entitled for and with respect to any Aircraft as recovery for
            material breach of this Agreement by any Buyer resulting in a
            Termination by the Seller of this Agreement as to such Aircraft.

21.3  For purposes of this Clause 21

(i)   "Affected Aircraft" - means any or all Aircraft with respect to which the
      Seller has cancelled or terminated this Agreement pursuant to Clause
      21.1.2(1)(iv),

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      (ii)  "Applicable Date" - for any Affected Aircraft means the date of the
            Termination Event that the Seller specifies in its notice and demand
            for payment of liquidated damages delivered under Clause 21.1(3),
            and

      (iii) "Escalated Price" - means the sum of (i) the Base Price of the
            Aircraft and (ii) the Base Price of SCNs and MSCNs entered into
            after the date of this Agreement, both as escalated to the
            Applicable Date in accordance with the provisions of Clause 4.

21.4. Promptly upon obtaining knowledge of the occurrence of a Termination Event
      by any Buyer, such Buyer will notify the Seller of such occurrence in
      writing, provided, that any failure by any Buyer to notify the Seller will
      not prejudice the Seller's rights or remedies hereunder.

21.5  If at any time prior to Scheduled Delivery Date of an Aircraft, the Seller
      has reasonable grounds for insecurity as to the ability of any Buyer to
      perform its obligation to take Delivery of such Aircraft, then the Seller
      will send the Buyers a written demand for adequate assurance of
      performance. If adequate assurance acceptable to the Seller is not
      received within thirty (30) days following the date of such written
      demand, then the Seller will have the right to either (a) exercise the
      remedies provided under Section 2-609 of the Uniform Commercial Code or
      (b) exercise any of its remedies under Clause 21.2.

21.6  Information Covenants

      Each of the Buyers hereby covenants and agrees that, from the date of this
      Agreement until no further Aircraft are to be delivered hereunder, the
      Buyers will furnish or cause to be furnished to the Seller the following:

      (a)   Annual Financial Statements. As soon as available and in any event
            no later than the date that the Buyers furnish such annual
            statements to the Securities and Exchange Commission or successor
            thereto (the "SEC") (i) a copy of the SEC Form 10-K filed by the
            Buyers, as a group, with the SEC for such fiscal year, or, if no
            such Form 10-K was filed by the Buyers for such fiscal year, no
            later than the 90th day following the close of such fiscal year of
            the Buyers, the consolidated balance sheet of the Buyers and their
            Subsidiaries, as at the end of such fiscal year and the related
            consolidated statements of operations, of common stockholders'
            equity (deficit) (in the case of the Buyers and their Subsidiaries)
            and of cash flows for such fiscal year, setting forth comparative
            consolidated figures as of the end of and for the preceding fiscal
            year, and examined by any firm of independent public accountants of
            recognized standing selected by the Buyers and reasonably acceptable
            to the Seller, whose opinion will not be qualified as to the scope
            of audit or as to the status of the Buyers as a going concern, and
            (ii) a certificate of such accounting firm stating that its audit of
            the business of the Buyers was conducted in accordance with
            generally accepted auditing standards. In lieu of actual delivery of
            such Form 10-K, the Buyers may notify the Seller that such report
            has been filed with the SEC and is publicly available on EDGAR (or
            any successor online resource).

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      (b)   Quarterly Financial Statements. As soon as available and in any
            event no later than the date that the Buyers furnish such quarterly
            statements to the SEC, a copy of the SEC Form 10-Q filed by the
            Buyers, as a group, with the SEC for such quarterly period, or, if
            no such Form 10-Q was filed by the Buyers with respect to any such
            quarterly period, no later than the forty-fifth (45th) day following
            the close of such quarterly period, the consolidated balance sheet
            of the Buyers and their Subsidiaries, as at the end of such
            quarterly period and the related consolidated statements of
            operations for such quarterly period and for the elapsed portion of
            the fiscal year ended with the last day of such quarterly period and
            in each case setting forth comparative consolidated figures as of
            the end of and for the related periods in the prior fiscal year, all
            of which will be certified by an Authorized Officer of each of the
            Buyers, subject to changes resulting from audit and normal year-end
            audit adjustments. In lieu of actual delivery of such Form 10-Q, the
            Buyers may notify the Seller that such report has been filed with
            the SEC and is publicly available on EDGAR (or any successor online
            resource).

      (c)   Debt Rescheduling. (i) Promptly upon the commencement by any of the
            Buyers of negotiations with one or more of its significant creditors
            with a view to general readjustment or rescheduling of all or any
            material part of its indebtedness under circumstances in which a
            reasonable business person, in the exercise of prudent business
            judgment, would conclude that such Buyer would otherwise not be able
            to pay such indebtedness as it falls due, notice of commencement of
            such negotiations, and (ii) thereafter timely advice of the progress
            of such negotiations until such negotiations are terminated or
            completed.

      (d)   Acceleration of other indebtedness. Immediately upon knowledge by
            any Buyer that the holder of any bond, debenture, promissory note or
            any similar evidence of indebtedness of such Buyer or Affiliate
            thereof ("OTHER INDEBTEDNESS") has demanded payment, given notice or
            exercised its right to a remedy having the effect of acceleration
            with respect to a claimed event of default under any Other
            Indebtedness, where the impact of the acceleration is likely to have
            a material adverse effect on such Buyer's ability to perform its
            obligations under or in connection with the transactions
            contemplated by this Agreement, notice of the demand made, notice
            given or action taken by such holder and the nature and status of
            the claimed event of default and what the action such Buyer is
            taking with respect thereto.

      (e)   Other Information. Promptly upon transmission thereof, copies of any
            filings and registrations with, and reports to, the SEC by any Buyer
            or any of its Affiliates, and, with reasonable promptness, such
            other information or documents (financial or otherwise) as the
            Seller may reasonably request from time to time. In lieu of actual
            delivery of any such filing or registration, the Buyers may notify
            the Seller that the same has been filed with the SEC and is publicly
            available on EDGAR (or any successor online resource).

      For the purposes of this Subclause 21.2, (x) an "AUTHORIZED OFFICER" of
      any Buyer will mean the Chief Executive Officer, the Chief Financial
      Officer or any Vice President and above thereof who reports directly or
      indirectly to the Chief Financial Officer and (y) "SUBSIDIARIES"
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will mean, as of any date of determination, those companies owned by any Buyer
whose financial results the Buyers are required to include in their statements
of consolidated operations and consolidated balance sheets.

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22    MISCELLANEOUS PROVISIONS

22.1  Data Retrieval

      On the Seller's reasonable request, each Buyer will provide the Seller
      with all the necessary data, as customarily compiled by it and pertaining
      to the operation of the Aircraft, to assist the Seller in making an
      efficient and coordinated survey of all reliability, maintenance,
      operational and cost data with a view to improving the safety,
      availability and operational costs of the Aircraft.

22.2  Notices

      All notices and requests required or authorized hereunder will be given in
      writing either by personal delivery to a responsible officer of the party
      to whom the same is given or by commercial courier, certified air mail
      (return receipt requested) or facsimile at the addresses and numbers set
      forth below. The date on which any such notice or request is so personally
      delivered, or if such notice or request is given by commercial courier,
      certified air mail or facsimile the date on which it is given, will be
      deemed to be the effective date of such notice or request.

      The Seller will be addressed at:

            2, rond-point Maurice Bellonte
            31700 Blagnac France
            Attention:  Director - Contracts

            Telephone: 33 05 61 30 40 12
            Telecopy:   33 05 61 30 40 11

      Each of the Buyers will be addressed, in the case of any item to be
      delivered other than via courier or personal service or delivery, at:

            4000 East Sky Harbor Blvd.
            Phoenix, AZ  85034

            Attention: Senior Vice President and Chief Financial Officer

            Telephone: (480) 693-5710
            Fax:  (480) 693-2899

      And, in the case of any item to be delivered via courier or personal
      service or delivery,

            111 Rio Salado
            Tempe, AZ 85281
            Attention: Senior Vice President and Chief Financial Officer

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      From time to time, the party receiving the notice or request may designate
      another address or another person.

22.3  Waiver

      The failure of either party to enforce at any time any of the provisions
      of this Agreement, to exercise any right herein provided or to require at
      any time performance by the other party of any of the provisions hereof
      will in no way be construed to be a present or future waiver of such
      provisions nor in any way to affect the validity of this Agreement or any
      part hereof or the right of the other party thereafter to enforce each and
      every such provision. The express waiver by either party of any provision,
      condition or requirement of this Agreement will not constitute a waiver of
      any future obligation to comply with such provision, condition or
      requirement.

22.4  INTERPRETATION AND LAW

      THIS AGREEMENT WILL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION
      5-1401, BE GOVERNED BY AND CONSTRUED AND THE PERFORMANCE THEREOF WILL BE
      DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
      GIVING EFFECT TO ITS CONFLICTS OF LAWS PROVISIONS THAT WOULD RESULT IN THE
      APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

      [AS AGREED BY THE PARTIES]

      Each party (i) hereby irrevocably submits itself to the nonexclusive
      jurisdiction of the courts of the state of New York in New York County
      and, to the extent permitted by applicable law, of the United States
      District Court for the Southern District of New York, for the purposes of
      any suit, action or other proceeding arising out of this Agreement or any
      of the transactions contemplated hereby brought by any party or parties
      hereto, and (ii) hereby waives, and agrees not to assert, by way of
      motion, as a defense, counterclaim or otherwise, in any such suit, action
      or proceeding, to the extent permitted by applicable law, the defense of
      sovereign immunity, any claim that it is not personally subject to the
      jurisdiction of the above-named courts by reason of sovereign immunity or
      otherwise or that it or its property is exempt or immune from jurisdiction
      of such court or from legal process (whether through service of notice,
      attachment prior to judgment, attachment in aid of execution or judgment,
      execution of judgment or otherwise) and to the extent permitted by
      applicable law, that the suit, action or proceeding which is referred to
      in clause (i) above is brought in an inconvenient forum, that the venue of
      such suit, action or proceeding is improper, or that this Agreement or the
      subject matter hereof or any of the transactions contemplated hereby may
      not be enforced in or by these courts.

22.4.1 Service of process in any suit, action or proceeding in respect of any
      matter as to which a Buyer has submitted to jurisdiction under Clause 22.4
      may be made on such Buyer by delivery of the same personally or by
      dispatching the same via Federal Express, UPS, or similar

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      international air courier, service prepaid to, CT Corporation, 111 Hudson
      St., New York, NY (or such other office in the City of New York as such
      agent will then be occupying), as agent for each of the Buyers, it being
      agreed that service upon CT Corporation will constitute valid service upon
      such Buyer or by any other method authorized by the laws of the State of
      New York.

22.5  Waiver of Jury Trial

      EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY
      LITIGATION ARISING OUT OF OR RELATING TO THIS AGREEMENT AND FOR ANY
      COUNTERCLAIM OR CROSS-CLAIM THEREIN.

22.6  No Representations outside of this Agreement.

      The parties declare that, prior to the execution of this Agreement, they,
      with the advice of their respective counsel, apprised themselves of
      sufficient relevant data in order that they might intelligently exercise
      their own judgments in deciding whether to execute this Agreement and in
      deciding on the contents of this Agreement. Each party further declares
      that its decision to execute this Agreement is not predicated on or
      influenced by any declarations or representations by any other person,
      party, or any predecessors in interest, successors, assigns, officers,
      directors, employees, agents or attorneys of any said person or party,
      except as set forth in this Agreement. This Agreement resulted from
      negotiation involving counsel for all of the parties hereto and no term
      herein will be construed or interpreted against any party under the contra
      proferentum or any related doctrine.

22.7  Confidentiality

      [AS AGREED BY THE PARTIES]

22.8  Severability

      If any provision of this Agreement should for any reason be held to be
      without effect, the remainder of this Agreement will remain in full force
      and effect. To the extent permitted by applicable law, each party hereto
      hereby waives any provision of law, which renders any provision of this
      Agreement prohibited or unenforceable in any respect.

22.9  Alterations to Contract

      This Agreement, including its Exhibits and Appendices, contains the entire
      agreement between the parties with respect to the subject matter hereof
      and thereof and supersedes any previous understanding, commitments or
      representations whatsoever, whether oral or written [AS AGREED BY THE
      PARTIES] This Agreement will not be amended or modified except by an
      instrument in writing of even date herewith or subsequent hereto executed
      by both parties or by their fully authorized representatives.

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22.10 Inconsistencies

      [AS AGREED BY THE PARTIES]

22.11 Language

      All correspondence, documents and any other written matters in connection
      with this Agreement will be in English.

22.12 Headings

      All headings in this Agreement are for convenience of reference only and
      do not constitute a part of this Agreement.

22.13 Counterparts

         This Agreement may be executed by the parties hereto in separate
         counterparts, each of which when so executed and delivered will be an
         original, but all such counterparts will together constitute but one
         and the same instrument.

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23.   CERTAIN REPRESENTATIONS OF THE PARTIES

23.1. Buyers' Representations

      Each of the Buyers represents and warrants to the Seller:

      (i)   it is a corporation organized and existing in good standing under
            the laws of the State of Delaware and has the corporate power and
            authority to enter into and perform its obligations under this
            Agreement;

      (ii)  neither the execution and delivery by it of this Agreement, nor the
            consummation of any of the transactions by it contemplated hereby,
            nor the performance by it of the obligations hereunder, constitutes
            a breach of any agreement to which it is a party or by which its
            assets are bound;

      (iii) this Agreement has been duly authorized, executed and delivered by
            it and constitutes its legal, valid and binding obligation,
            enforceable against it in accordance with its terms.

23.2  Seller's Representations

      The Seller represents and warrants to each of the Buyers:

      (i)   the Seller is a societe a responsabilite limitee organized and
            existing in good standing under the laws of the Republic of France
            and has the corporate power and authority to enter into and perform
            its obligations under this Agreement;

      (ii)  neither the execution and delivery by the Seller of this Agreement,
            nor the consummation of any of the transactions by the Seller
            contemplated hereby, nor the performance by the Seller of the
            obligations hereunder, constitutes a breach of any agreement to
            which the Seller is a party or by which its assets are bound;

      (iii) this Agreement has been duly authorized, executed and delivered by
            the Seller and constitutes the legal, valid and binding obligation
            of the Seller enforceable against the Seller in accordance with its
            terms.

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IN WITNESS WHEREOF, these presents were entered into as of the day and year
first above written.

AVSA, S.A.R.L.

By: __________________________

Title: _______________________

US AIRWAYS, INC.

By: __________________________

Title: _______________________

AMERICA WEST AIRLINES, INC.

By: __________________________

Title: _______________________

US AIRWAYS GROUP, INC.

By: __________________________

Title: _______________________

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