Document:

EXECUTION COPY

                                  AMTRAN, INC.

                            AMERICAN TRANS AIR, INC.

                                       and

                            WILMINGTON TRUST COMPANY

                                   as Trustee

                          PASS THROUGH TRUST AGREEMENT

                          Dated as of December 23, 1997

                 American Trans Air 1997-1C-S Pass Through Trust
          7.46% American Trans Air 1997-1C-S Pass Through Certificates

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I  DEFINITIONS.........................................................2
         Section 1.01. Definitions.............................................2
         Section 1.02. COMPLIANCE CERTIFICATES AND OPINIONS...................12
         Section 1.03. FORM OF DOCUMENTS DELIVERED TO TRUSTEE.................13
         Section 1.04. ACTS OF CERTIFICATEHOLDERS.............................13

ARTICLE II  ACQUISITION OF TRUST PROPERTY.....................................15
         Section 2.01. [Intentionally omitted]................................15
         Section 2.02. ACQUISITION OF TRUST PROPERTY..........................15
         Section 2.03.  ACCEPTANCE BY TRUSTEE.................................16
         Section 2.04. LIMITATION OF POWERS...................................16

ARTICLE III THE CERTIFICATES..................................................16
         Section 3.01. TITLE, FORM, DENOMINATION AND EXECUTION OF
         Section 3.02. RESTRICTIVE LEGENDS....................................18
         CERTIFICATES.........................................................16
         Section 3.03. AUTHENTICATION OF CERTIFICATES.........................19
         Section 3.04. TRANSFER AND EXCHANGE..................................19
         Section 3.05. BOOK-ENTRY   PROVISIONS  FOR  U.S.  GLOBAL
                       CERTIFICATE  AND  OFFSHORE  GLOBAL  CERTIFICATES.......20
         Section 3.06. SPECIAL TRANSFER PROVISIONS............................22
         Section 3.07. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES......24
         Section 3.08. PERSONS DEEMED OWNERS..................................25
         Section 3.09. CANCELLATION...........................................25
         Section 3.10. LIMITATION OF LIABILITY FOR PAYMENTS...................25
         Section 3.11. TEMPORARY CERTIFICATES.................................25

ARTICLE IV  DISTRIBUTIONS; STATEMENTS TO......................................26
         Section 4.01. CERTIFICATE ACCOUNT AND SPECIAL PAYMENTS ACCOUNT.......26
         Section 4.02. DISTRIBUTIONS FROM CERTIFICATE ACCOUNT AND SPECIAL
         PAYMENTS ACCOUNT.....................................................26
         Section 4.03. STATEMENTS TO CERTIFICATEHOLDERS.......................28
         Section 4.04. INVESTMENT OF SPECIAL PAYMENT MONEYS...................29

ARTICLE V  THE COMPANY........................................................30
         Section 5.01. MAINTENANCE OF CORPORATE EXISTENCE.....................30
         Section 5.02. CONSOLIDATION, MERGER, ETC.............................30
         Section 5.03.  RULE 144A(D)(4) INFORMATION...........................31

ARTICLE VI  DEFAULT...........................................................31
         Section 6.01. EVENTS OF DEFAULT......................................31
         Section 6.02. INCIDENTS OF SALE OF EQUIPMENT NOTES...................32
         Section 6.03. JUDICIAL PROCEEDINGS INSTITUTED BY TRUSTEE; TRUSTEE
         MAY BRING SUIT.......................................................33
         Section 6.04. CONTROL BY CERTIFICATEHOLDERS..........................33
         Section 6.05. WAIVER OF PAST DEFAULTS................................33
         Section 6.06. RIGHT OF CERTIFICATEHOLDERS TO RECEIVE PAYMENTS NOT
         TO BE IMPAIRED.......................................................34
         Section 6.07. CERTIFICATEHOLDERS MAY NOT BRING SUIT EXCEPT UNDER
         CERTAIN CONDITIONS...................................................34
         Section 6.08. REMEDIES CUMULATIVE....................................35
         Section 6.09. UNDERTAKING FOR COSTS..................................35

ARTICLE VII  THE TRUSTEE......................................................35
         Section 7.01. NOTICE OF DEFAULTS.....................................35
         Section 7.02. CERTAIN RIGHTS OF TRUSTEE..............................36
         Section 7.03. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF
         CERTIFICATES.........................................................37
         Section 7.04. MAY HOLD CERTIFICATES..................................37
         Section 7.05. MONEY HELD IN TRUST....................................37
         Section 7.06. COMPENSATION AND REIMBURSEMENT.........................38
         Section 7.07. CORPORATE TRUSTEE REQUIRED, ELIGIBILITY................39
         Section 7.08. RESIGNATION AND REMOVAL: APPOINTMENT OF SUCCESSOR......39
         Section 7.09. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.................41
         Section 7.10.  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION
         TO BUSINESS..........................................................41
         Section 7.11. MAINTENANCE OF AGENCIES................................42
         Section 7.12. MONEY FOR CERTIFICATE PAYMENTS TO BE HELD IN TRUST.....43
         Section 7.13. REGISTRATION OF EQUIPMENT NOTES IN NAME OF
         SUBORDINATION AGENT..................................................43
         Section 7.14. REPRESENTATIONS AND WARRANTIES OF TRUSTEE..............43
         Section 7.15. WITHHOLDING TAXES, INFORMATION REPORTING...............44
         Section 7.16. TRUSTEE'S LIENS........................................45
         Section 7.17. PREFERENTIAL COLLECTION OF CLAIMS......................45

ARTICLE VIII  CERTIFICATEHOLDERS' LISTS AND REPORTS BY TRUSTEE................45
         Section 8.01. THE COMPANY TO FURNISH TRUSTEE WITH NAMES AND
         ADDRESSES OF CERTIFICATEHOLDERS......................................45
         Section 8.02. PRESERVATION OF INFORMATION; COMMUNICATIONS TO
         CERTIFICATEHOLDERS...................................................46
         Section 8.03. REPORTS BY TRUSTEE.....................................46
         Section 8.04. REPORTS BY THE GUARANTOR AND COMPANY...................46

ARTICLE IX  SUPPLEMENTAL AGREEMENTS...........................................47
         Section 9.01. SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF
CERTIFICATEHOLDERS............................................................47
Section 9.02. SUPPLEMENTAL AGREEMENTS WITH CONSENT OF
CERTIFICATEHOLDERS............................................................48
Section 9.03. DOCUMENTS AFFECTING IMMUNITY OR INDEMNITY.......................49
         Section 9.04. EXECUTION OF SUPPLEMENTAL AGREEMENTS...................49
         Section 9.05. EFFECT OF SUPPLEMENTAL AGREEMENTS......................50
         Section 9.06. CONFORMITY WITH TRUST INDENTURE ACT....................50
         Section 9.07. REFERENCE IN CERTIFICATES TO SUPPLEMENTAL AGREEMENTS...50

ARTICLE X  AMENDMENTS TO INDENTURES AND NOTE DOCUMENTS........................50
         Section 10.01. AMENDMENTS AND SUPPLEMENTS TO INDENTURES AND
         OTHER NOTE DOCUMENTS.................................................50

ARTICLE XI  TERMINATION OF TRUSTS.............................................51
         Section 11.01. TERMINATION OF THE TRUST..............................51

ARTICLE XII  MISCELLANEOUS PROVISIONS.........................................52
         Section 12.01. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS............52
         Section 12.02. LIABILITIES OF CERTIFICATEHOLDERS.....................52
         Section 12.03. CERTIFICATES NONASSESSABLE AND FULLY PAID.............52
         Section 12.04. [Intentionally omitted]...............................52
         Section 12.05. NOTICES...............................................53
         Section 12.06. GOVERNING LAW.........................................54
         Section 12.07. SEVERABILITY OF PROVISIONS............................54
         Section 12.08. [Intentionally omitted]...............................54
         Section 12.09. EFFECT OF HEADINGS AND TABLE OF CONTENTS..............54
         Section 12.10. SUCCESSORS AND ASSIGNS................................54
         Section 12.11. BENEFITS OF AGREEMENT.................................54
         Section 12.12. LEGAL HOLIDAYS........................................54
         Section 12.13. COUNTERPARTS..........................................54
         Section 12.14. COMMUNICATION BY CERTIFICATEHOLDERS WITH OTHER
         CERTIFICATEHOLDERS...................................................55
         Section 12.15. INTENTION OF PARTIES..................................55

<PAGE>

Exhibit         A - Form of  Certificate  to be  Delivered  in  Connection  with
                Transfers Pursuant to Regulation S
Exhibit         B - Form of  Certificate  to be  Delivered  in  Connection  with
                Transfers to Non-QIB Accredited Investors
Exhibit C - Form of  Assignment  and  Assumption  Agreement  Exhibit D - Form of
Certificate to be Delivered in Connection with
                     Transfers to QIBs

<PAGE>

     .........This PASS THROUGH TRUST AGREEMENT,  dated as of December 23, 1997,
among AMTRAN,  INC., an Indiana  corporation (the  "Guarantor"),  AMERICAN TRANS
AIR, INC., an Indiana corporation (the "Company"), and WILMINGTON TRUST COMPANY,
a  Delaware  banking  corporation,  as  Trustee,  is made  with  respect  to the
formation of the  American  Trans Air  1997-1C-S  Pass  Through  Trust,  and the
issuance  of 7.46%  American  Trans  Air  1997-1C-S  Pass  Through  Certificates
representing fractional undivided interests in the Trust.

                                   WITNESSETH:

     .........WHEREAS,  the Company  has  obtained  commitments  from The Boeing
Company for the delivery of certain Aircraft;

     .........WHEREAS,  as of the Transfer  Date (as defined  below) the Company
will have financed the  acquisition of all or a portion of such Aircraft  either
(i) through separate  leveraged leases  transactions in which the Company leases
such aircraft  (collectively,  the "LEASED  AIRCRAFT") or (ii) through  separate
secured loan transactions in which the Company owns such Aircraft (collectively,
the "OWNED AIRCRAFT");

     .........WHEREAS, as of the Transfer Date (as defined below) in the case of
each Leased Aircraft,  each Owner Trustee, acting on behalf of the corresponding
Owner Participant,  will have issued pursuant to an Indenture, on a non-recourse
basis,  three  series of  Equipment  Notes in order to  finance a portion of the
purchase price of each such Leased Aircraft;

     .........WHEREAS, as of the Transfer Date (as defined below) in the case of
each Owned Aircraft, the Company will have issued pursuant to an Indenture, on a
recourse  basis,  three  series of  Equipment  Notes to finance a portion of the
purchase price of each such Owned Aircraft;

     .........WHEREAS, as of the Transfer Date, the Related Trustee will assign,
transfer  and deliver all of such  trustee's  right,  title and  interest to the
trust  property  held by the  Related  Trustee to the  Trustee  pursuant  to the
Assignment and Assumption Agreement (as defined below);

     .........WHEREAS,  the Trustee,  effectively only, but  automatically  upon
execution and delivery of this  Assignment  and  Assumption  Agreement,  will be
deemed to have declared the creation of this Trust (the  "1997-1C-S  Trust") for
the  benefit  of  the  Certificateholders,   and  each  Holder  of  Certificates
outstanding as of the Transfer Date, as the grantors of the 1997-1C-S  Trust, by
their respective  acceptances of the Certificates,  will join in the creation of
this 1997-1C-S Trust with the Trustee;

     .........WHEREAS,  except for those Certificates to which an Escrow Receipt
(as defined below) has been affixed, all Certificates deemed issued by the Trust
will  evidence  fractional  undivided  interests in the Trust and will convey no
rights,  benefits or interests  in respect of any property  other than the Trust
Property;

     .........WHEREAS,  the Company as the "issuer",  as such term is defined in
and solely for  purposes  of the  Securities  Act of 1933,  as  amended,  of the
Certificates to be issued pursuant hereto, and as the "obligor", as such term is
defined  in and solely  for  purposes  of the Trust  Indenture  Act of 1939,  as
amended,  and (ii) the  Guarantor  have  each  duly  authorized  the  execution,
delivery  and   effectiveness  of  this  Agreement  with  respect  to  all  such
Certificates  and  are  undertaking  to  perform  certain   administrative   and
ministerial  duties  hereunder  and are  also  undertaking  to pay the  fees and
expenses of the Trustee; and

     .........WHEREAS,  upon the  execution and delivery of the  Assignment  and
Assumption Agreement,  all of the conditions and requirements  necessary to make
this Agreement a valid, binding and legal instrument,  enforceable in accordance
with its terms  and for the  purposes  herein  expressed,  will have been  done,
performed and fulfilled, and the execution and delivery of this Agreement in the
form and with the terms hereof will have been in all respects duly authorized;

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

                                    ARTICLE I

                                   DEFINITIONS

     .........Section  1.01.  Definitions.  For all purposes of this  Agreement,
except as otherwise expressly provided or unless the context otherwise requires:

     (1) the  terms  used  herein  that are  defined  in this  Article  have the
meanings assigned to them in this Article, and include the plural as well as the
singular;

     (2) all other  terms used herein  which are defined in the Trust  Indenture
Act, either directly or by reference herein,  have the meanings assigned to them
therein;

     (3) all references in this Agreement to designated  "Articles",  "Sections"
and  other  subdivisions  are to the  designated  Articles,  Sections  and other
subdivisions of this Agreement;

     (4) the words "herein", "hereof' and "hereunder" and other words of similar
import  refer to this  Agreement as a whole and not to any  particular  Article,
Section or other subdivision; and

     (5) unless the context otherwise requires,  whenever the words "including",
"include" or  "includes"  are used herein,  it shall be deemed to be followed by
the phrase "without limitation".

     ACT:  With respect to any  Certificateholder  has the meaning  specified in
Section 1.04.

                  AFFILIATE:  With respect to any  specified  Person,  means any
other Person directly or indirectly controlling or controlled by or under direct
or  indirect  common  control  with  such  Person.  For  the  purposes  of  this
definition, "control", when used with respect to any specified Person, means the
power to  direct  the  management  and  policies  of such  Person,  directly  or
indirectly,  whether through the ownership of voting securities,  by contract or
otherwise,   and  the  terms   "controlling"   and  "controlled"  have  meanings
correlative to the foregoing.

     AGENT MEMBERS: Has the meaning specified in Section 3.05(a).

     AIRCRAFT:  means each of the Aircraft or Substitute  Aircraft in respect of
which a  Participation  Agreement  is entered into in  accordance  with the Note
Purchase Agreement.

     ASSIGNMENT  AND ASSUMPTION  AGREEMENT:  Means the assignment and assumption
agreement  substantially  in the form of Exhibit D to the Related  Pass  Through
Trust Agreement executed and delivered in accordance with Section 11.01 thereto.

     AUTHORIZED AGENT: Means any Paying Agent or Registrar for the Certificates.

     AVOIDABLE TAX: Has the meaning specified in Section 7.08(e) hereof.

     BOOK-ENTRY  CERTIFICATES:  With  respect  to  the  Certificates,   means  a
beneficial interest in the Certificates,  ownership and transfers of which shall
be made through book entries as described in Section 3.04.

     BUSINESS  DAY:  Means any day other than a  Saturday,  a Sunday or a day on
which  commercial  banks are required or  authorized  to close in  Indianapolis,
Indiana;  New York,  New York;  or  Phoenix,  Arizona;  and, so long as any such
Certificate is outstanding, a city and state in which the Trustee or any related
Loan Trustee  maintains  its  Corporate  Trust Office or receives and  disburses
funds.

     CEDEL: Means Cedel Bank societe anonyme.

     CERTIFICATE:  Means any one of the certificates issued by the Related Trust
and that are  "Outstanding"  (as  defined  in the  Related  Pass  Through  Trust
Agreement) as of the Transfer Date (the  "Transfer Date  Certificates")  and any
such certificate issued in Exchange  thereafter or replacement  thereof pursuant
to this Agreement.

     CERTIFICATE  ACCOUNT:  Means the account or accounts created and maintained
pursuant to Section

     CERTIFICATEHOLDER  OR HOLDER:  Means the Person in whose name a Certificate
is registered in the Register.

     CLEARING AGENCY:  Means an organization  registered as a "clearing  agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.

     CLEARING AGENCY PARTICIPANT:  Means a broker, dealer, bank, other financial
institution  or  other  Person  for whom  from  time to time a  Clearing  Agency
effects, directly or indirectly,  book-entry transfers and pledges of securities
deposited with the Clearing Agency.

     COMPANY:  Means American Trans Air,  Inc., an Indiana  corporation,  or its
successor in interest pursuant to Section 5.02.

     CONTROLLING PARTY: Means the Person entitled to act as such pursuant to the
terms of the Intercreditor Agreement.

     CORPORATE  TRUST  OFFICE:  With respect to the Trustee or any Loan Trustee,
means the office of such trustee in the city at which at any particular time its
corporate trust business shall be principally administered.

     DELIVERY PERIOD  TERMINATION  DATE: Has the meaning specified in Annex A to
the Note Purchase Agreement.

     DEPOSIT  AGREEMENT:  Means  the  Deposit  Agreement  (Class  C) dated as of
December 23, 1997 relating to the  Certificates,  between the Depositary and the
Escrow Agent,  as the same may be amended,  supplemented  or otherwise  modified
from time to time in accordance with its terms.

     DEPOSITARY:  Means NBD  Bank,  National  Association,  a  national  banking
association.

     DEPOSITS: Has the meaning specified in the Deposit Agreement.

     DIRECTION: Has the meaning specified in Section 1.04(c).

     DISTRIBUTION  DATE: Means each Regular  Distribution  Date and each Special
Distribution Date.

     DTC: Means The Depository Trust Company,  its nominees and their respective
successors.

     EQUIPMENT  NOTE:  Means  the  "Secured  Certificates"  as  defined  in  the
Indentures.

     ERISA:  Means the  Employee  Retirement  Income  Security  Act of 1974,  as
amended from time to time, or any successor federal statute.

     ESCROW AGENT: Means, initially,  First Security Bank, National Association,
and any  replacement  or successor  therefor  appointed in  accordance  with the
Escrow Agreement.

     ESCROW  AGREEMENT:  Means the Escrow and Paying Agent  Agreement  (Class C)
dated as of December  23, 1997  relating to the  Certificates,  among the Escrow
Agent,  the Escrow  Paying  Agent,  the Related  Trustee (and after the Transfer
Date,  the  Trustee)  and the  Initial  Purchasers,  as the same may be amended,
supplemented  or otherwise  modified  from time to time in  accordance  with its
terms.

     ESCROW  PAYING  AGENT:  Means the Person  acting as paying  agent under the
Escrow Agreement.

     ESCROW RECEIPT:  Means the receipt substantially in the form annexed to the
Escrow Agreement  representing a fractional undivided interest in the funds held
in escrow thereunder.

     EUROCLEAR: Means the Euroclear System.

     EVENT OF DEFAULT:  Means the  occurrence of an Indenture  Default under any
Indenture pursuant to which Equipment Notes held by the Trust were issued.

     FINAL WITHDRAWAL: Has the meaning specified in the Escrow Agreement.

     FINAL WITHDRAWAL DATE: Has the meaning specified in the Escrow Agreement.

     FRACTIONAL  UNDIVIDED INTEREST:  Means the fractional undivided interest in
the Trust that is evidenced by a Certificate.

     GLOBAL CERTIFICATES: Has the meaning assigned to such term in Section 3.01.

     GUARANTOR: Means Amtran, Inc., an Indiana corporation,  or its successor in
interest.

     INDENTURE:  Means each of the three separate  trust  indenture and security
agreements  relating to the Aircraft,  each entered into pursuant to the related
Participation  Agreement, in each case as the same may be amended,  supplemented
or otherwise modified from time to time in accordance with its terms.

     INDENTURE  DEFAULT:  With  respect  to any  Indenture,  means  any Event of
Default (as such term is defined in such Indenture).

     INITIAL  PURCHASERS:  Means  Salomon  Brothers  Inc and  Furman  Selz  LLC,
collectively.

     INITIAL REGULAR  DISTRIBUTION  DATE:  Means the first Regular  Distribution
Date on which a Scheduled Payment is to be made.

     INSTITUTIONAL  ACCREDITED INVESTOR: Means an institutional investor that is
an "accredited  investor"  within the meaning set forth in Rule 501(a)(1),  (2),
(3) or (7) of Regulation D under the Securities Act.

     INTERCREDITOR  AGREEMENT:  Means the Intercreditor Agreement dated December
23, 1997 among the Related  Trustee (and after the Transfer  Date, the Trustee),
the Related Other Trustees (and after the Transfer Date, the Other Trustees) the
Liquidity  Provider,   the  liquidity   providers,   if  any,  relating  to  the
Certificates  issued  under (and as defined in) the Related  Other Pass  Through
Trust  Agreements,   and  Wilmington  Trust  Company,   as  Subordination  Agent
thereunder, as amended,  supplemented or otherwise modified from time to time in
accordance with its terms.

     ISSUANCE DATE: Means the date of the issuance of the Certificates.

     LEASE:  Means any lease between an Owner  Trustee,  as the lessor,  and the
Company, as the lessee, referred to in the related Indenture, as each such lease
may be amended or  supplemented  in accordance  with its respective  terms;  and
LEASES means all such leases.

     LEASED  AIRCRAFT:  Has the meaning  specified in the second recital to this
Agreement.

     LETTER OF  REPRESENTATIONS:  Means the  agreement  dated the Issuance  Date
among the Company, the Trustee and the initial Clearing Agency.

     LIQUIDITY FACILITY:  Means the Irrevocable Revolving Credit Agreement Class
A Certificates dated December 23, 1997 relating to the Certificates  between the
Liquidity   Provider  and  the  Subordination   Agent,  as  amended,   replaced,
supplemented  or otherwise  modified  from time to time in  accordance  with its
terms and the terms of the Intercreditor Agreement.

     LIQUIDITY  PROVIDER:  Means,  initially,  ING Bank,  a Dutch bank,  and any
replacement  or successor  therefor  appointed in accordance  with the Liquidity
Facility and the Intercreditor Agreement.

     LOAN  TRUSTEE:  With  respect  to  any  Equipment  Note  or  the  Indenture
applicable  thereto,  means  the bank or  trust  company  designated  as loan or
indenture  trustee under such Indenture;  and any successor to such Loan Trustee
as such  trustee;  and LOAN TRUSTEES  means all of the Loan  Trustees  under the
Indentures.

     NON-U.S.  PERSON:  Means a Person  that is not a U.S.  Person as defined in
Regulation S.

     NOTE  DOCUMENTS:  With  respect to any  Equipment  Note,  means the related
Indenture,  Lease  (if the  related  Aircraft  is  leased  to the  Company)  and
Participation Agreement.

     NOTE  PURCHASE  AGREEMENT:  Means the Note Purchase  Agreement  dated as of
December 23, 1997 among the Related  Trustee (and after the Transfer  Date,  the
Trustee),  the Related Other  Trustees (and after the Transfer  Date,  the Other
Trustees)  the  Company,  the  Escrow  Agent,  the Escrow  Paying  Agent and the
Subordination  Agent,  as the same may be  amended,  supplemented  or  otherwise
modified from time to time, in accordance with its terms.

     OFFERING MEMORANDUM:  Means the Offering Memorandum dated December 17, 1997
relating to the offering of the Certificates  and the certificates  issued under
the Related Other Pass Through Trust Agreements.

     OFFICER'S  CERTIFICATE:  Means a certificate  signed (a) in the case of the
Guarantor or the Company,  by (i) the President or any Executive  Vice President
or Senior Vice President of the Guarantor or the Company, respectively,  signing
alone  or (ii)  any Vice  President  of the  Guarantor  or the  Company  signing
together  with the  Secretary,  the  Assistant  Secretary,  the Treasurer or any
Assistant Treasurer of the Guarantor or the Company, respectively, or (b) in the
case of the Trustee or an Owner Trustee or a Loan Trustee, a Responsible Officer
of the Trustee or such Owner Trustee or such Loan Trustee, as the case may be.

     OFFSHORE  GLOBAL  CERTIFICATES:  Has the  meaning  assigned to such term in
Section 3.01.

     OFFSHORE  PHYSICAL  CERTIFICATES:  Has the meaning assigned to such term in
Section 3.01.

     OPINION OF COUNSEL: Means a written opinion of legal counsel who (a) in the
case of counsel for the Guarantor or the Company,  may be (i) a senior  attorney
in rank of the  officers of the  Guarantor  or the  Company a principal  duty of
which is  furnishing  advice  as to legal  matters  or (ii) such  other  counsel
designated  by the  Guarantor or the Company and  reasonably  acceptable  to the
Trustee  and (b) in the case of any Owner  Trustee or any Loan  Trustee,  may be
such counsel as may be  designated by any of them whether or not such counsel is
an  employee  of any of them,  and who  shall be  reasonably  acceptable  to the
Trustee.

     OTHER  PASS  THROUGH  TRUST  AGREEMENT:  Means (i) the  American  Trans Air
1997-1A-S  Pass  Through  Trust  Agreement  relating to the  American  Trans Air
1997-1A-S  Pass Through  Trust,  and (ii) the American  Trans Air 1997-1B-S Pass
Through  Trust  Agreement  relating to the  American  Trans Air  1997-1B-S  Pass
Through  Trust,  each  dated the date  hereof;  and  OTHER  PASS  THROUGH  TRUST
AGREEMENTS means all such agreements.

     OTHER TRUSTEE: Means the trustee under each of the Other Pass Through Trust
Agreements, and any successor or other trustee appointed as provided therein and
Other Pass Through Trustees means both such trustees.

     OTHER TRUSTS: Means the American Trans Air 1997-1B-S Pass Through Trust and
the American Trans Air 1997-1C-S Pass Through Trust.

     OUTSTANDING:  With  respect  to  Certificates,  means,  as of the  date  of
determination,  all  Transfer  Date  Certificates,  and all  other  Certificates
theretofore  authenticated  and  delivered  under this  Agreement,  in each case
except:

     (i) Certificates  theretofore canceled by the Registrar or delivered to the
Trustee or the Registrar for cancellation;

     (ii) All of the  Certificates  if money in the full amount required to make
the final distribution with respect thereto pursuant to Section 11.01 hereof has
been  theretofore  deposited  with the  Trustee in trust for the Holders of such
Certificates  as provided in Section 4.01 pending  distribution of such money to
such Certificateholders pursuant to such final distribution payment; and

     (iii)  Certificates in exchange for or in lieu of which other  Certificates
have been authenticated and delivered pursuant to this Agreement.

     OWNED  AIRCRAFT:  Has the meaning  specified in the second  recital to this
Agreement.

     OWNER  PARTICIPANT:  With respect to any Equipment  Note,  means the "Owner
Participant"  as referred to in the Indenture  pursuant to which such  Equipment
Note is issued and any permitted  successor or assign of such Owner Participant;
and  Owner  Participants  at any time of  determination  means  all of the Owner
Participants thus referred to in the Indentures.

     OWNER  TRUSTEE:  With  respect  to any  Equipment  Note,  means the  "Owner
Trustee",  as referred to in the Indenture pursuant to which such Equipment Note
is issued,  not in its  individual  capacity  but solely as  trustee;  and Owner
Trustees  means  all of  the  Owner  Trustees  party  to  any of the  respective
Indentures.

     PARTICIPATION  AGREEMENT:  Means each Participation Agreement to be entered
into by the Related Trustee and the Related Other Trustees  pursuant to the Note
Purchase  Agreement,  as the  same may be  amended,  supplemented  or  otherwise
modified in accordance with its terms;  and  PARTICIPATION  AGREEMENTS means all
such agreements.

     PAYING  AGENT:  Means the paying agent  maintained  and  appointed  for the
Certificates pursuant to Section 7.11.

     PERMITTED INVESTMENTS: Means obligations of the United States of America or
agencies  or  instrumentalities  thereof for the payment of which the full faith
and credit of the United States of America is pledged, maturing in not more than
60 days or such lesser time as is necessary for payment of any Special  Payments
on a Special Distribution Date.

     PERSON:   Means  any  person,   including  any   individual,   corporation,
partnership,   joint  venture,   association,   joint  stock   company,   trust,
unincorporated   organization,   or   government  or  any  agency  or  political
subdivision thereof.

     PHYSICAL CERTIFICATES: Has the meaning specified in Section 3.01.

     POOL BALANCE: Means, as of any date, (i) the original aggregate face amount
of the  "Certificates"  as defined in the Related Pass Through  Trust  Agreement
less  (ii)  the  aggregate  amount  of all  payments  made  in  respect  of such
Certificates  other than payments made in respect of interest or premium thereon
or reimbursement of any costs or expenses incurred in connection  therewith less
(iii) the aggregate amount of unused Deposits  distributed as a Final Withdrawal
other than payments in respect of interest or premium thereon.  The Pool Balance
as of any Distribution Date shall be computed after giving effect to the payment
of principal, if any, on the Equipment Notes or other Trust Property held in the
Trust and the distribution  thereof to be made on such Distribution Date and the
distribution of the Final Withdrawal to be made on such Distribution Date.

     POOL FACTOR: Means, as of any date, the quotient (rounded to
the seventh  decimal place) computed by dividing (i) the Pool Balance as at such
date by (ii) the original aggregate face amount of the "Certificates" as defined
in  the  Related  Pass  Through  Trust  Agreement.  The  Pool  Factor  as of any
Distribution  Date  shall be  computed  after  giving  effect to the  payment of
principal,  if any,  on the  Equipment  Notes or other  Trust  Property  and the
distribution  thereof to be made on such  Distribution Date and the distribution
of the Final Withdrawal to be made on such Distribution Date.

     PRIVATE PLACEMENT LEGEND: Has the meaning specified in Section 3.02.

     PTC EVENT OF DEFAULT:  Means any failure to pay within 10 Business  Days of
the due date thereof:  (i) the outstanding Pool Balance on June 15, 2009 or (ii)
interest  due  on  the  Certificates  on  any  Distribution   Date  (unless  the
Subordination  Agent  shall have made an  Interest  Drawing  (as  defined in the
Intercreditor  Agreement) or a withdrawal or withdrawals  from a cash collateral
account pursuant to Section 3.6(f) of the Intercreditor Agreement,  with respect
thereto in an amount  sufficient to pay such interest and shall have distributed
such amount to the Certificateholders).

     PURCHASE  AGREEMENT:  Means the Purchase  Agreement dated December 17, 1997
among the Initial Purchasers, the Company and the Depositary, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
its terms.

     QIB: Means a qualified institutional buyer as defined in Rule 144A.

     RECORD DATE:  Means (i) for  Scheduled  Payments to be  distributed  on any
Regular  Distribution  Date,  other  than the final  distribution,  the 15th day
(whether or not a Business Day)  preceding such Regular  Distribution  Date, and
(ii) for Special  Payments to be distributed on any Special  Distribution  Date,
other than the final distribution,  the 15th day (whether or not a Business Day)
preceding such Special Distribution Date.

     REGISTER and  REGISTRAR:  Mean the register  maintained  and the  registrar
appointed pursuant to Sections 3.04 and 7.11.

     REGULAR  DISTRIBUTION  DATE:  With  respect to  distributions  of Scheduled
Payments in respect of the  Certificates,  means each date designated as such in
this Agreement, until payment of all the Scheduled Payments to be made under the
Equipment Notes held in the Trust has been made; PROVIDED, HOWEVER, that, if any
such day shall not be a Business Day, the related  distribution shall be made on
the next succeeding Business Day without additional interest.

     REGULATION S RESTRICTED DATE: Means the date 40 days after the later of the
commencement of the initial offering of the Certificates and the date of initial
issuance thereof.

     RELATED OTHER PASS THROUGH TRUST AGREEMENTS:  Means the "Other Pass Through
Trust Agreements" as defined in the Related Pass Through Trust Agreement.

     RELATED OTHER TRUSTS:  Means the "Other Trustees" as defined in the Related
Pass Through Trust Agreement.

     RELATED  OTHER TRUSTS:  Means the "Other  Trusts" as defined in the Related
Pass Through Trust Agreement.

     RELATED  PASS  THROUGH  TRUST  AGREEMENT:  Means  the  American  Trans  Air
1997-1A-O  Pass  Through  Trust  Agreement  relating to the  American  Trans Air
1997-1A-O Pass Through Trust, dated as of December 23, 1997, between the Company
and the institution acting as trustee  thereunder,  as amended,  supplemented or
otherwise modified from time to time in accordance with its terms.

     RELATED  TRUST:  Means the American Trans Air 1997-1C-O Pass Through Trust,
formed under the Related Pass Through Trust Agreement.

     RELATED  TRUSTEE:  Means the  institution  serving  the  trustee  under the
Related Pass Through Trust Agreement.

     REQUEST: Means a request by the Company setting forth the subject matter of
the request accompanied by an Officer's Certificate and an Opinion of Counsel as
provided in Section 1.02 of this Agreement.

     RESPONSIBLE OFFICER:  With respect to the Trustee, any Loan Trustee and any
Owner Trustee, means any officer in the Corporate Trust Division of the Trustee,
Loan  Trustee  or Owner  Trustee  or any other  officer  customarily  performing
functions  similar to those  performed  by the  persons who at the time shall be
such officers,  respectively,  or to whom any corporate trust matter is referred
because of his knowledge of and familiarity with a particular subject.

     RULE  144A:  Means  Rule 144A under the  Securities  Act and any  successor
regulation thereto.

     SCHEDULED PAYMENT: With respect to any Equipment Note, means any payment of
principal and interest on such  Equipment Note or any payment of interest on the
Certificates with funds drawn under the Liquidity  Facility (other than any such
payment which is not in fact received by the Trustee or any Subordination  Agent
within five days of the date on which such  payment is scheduled to be made) due
from the obligor  thereon which payment  represents the installment of principal
at the stated maturity of such  installment of principal on such Equipment Note,
the payment of  regularly  scheduled  interest  accrued on the unpaid  principal
amount of such Equipment Note, or both;  PROVIDED that any payment of principal,
premium,  if any, or interest  resulting  from the redemption or purchase of any
Equipment Note shall not constitute a Scheduled Payment.

     SEC:  Means the  Securities  and Exchange  Commission  as from time to time
constituted or created under the Securities  Exchange Act of 1934, or, if at any
time after the execution of this  instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties on such date.

     SECURITIES ACT: Means the United States  Securities Act of 1933, as amended
from time to time, or any successor thereto.

     SPECIAL DISTRIBUTION DATE: Means each date on which a Special Payment is to
be distributed as specified in this Agreement;  PROVIDED,  HOWEVER, that, if any
such day shall not be a Business Day, the related  distribution shall be made on
the next succeeding Business Day without additional interest.

     SPECIAL  PAYMENT:  Means any payment  (other  than a Scheduled  Payment) in
respect of, or any proceeds of, any Equipment Note or Trust Indenture Estate (as
defined in each Indenture) or Special Redemption Premium (if applicable).

     SPECIAL  PAYMENTS  ACCOUNT:  Means the  account  or  accounts  created  and
maintained pursuant to Section 4.01(b).

     SPECIAL  REDEMPTION  PREMIUM:  Means the  premium,  if any,  payable by the
Company  in  respect  of the  Final  Withdrawal  pursuant  to the Note  Purchase
Agreement.

     SUBORDINATION  AGENT:  Shall have the  meaning  specified  therefor  in the
Intercreditor Agreement.

     SUBSTITUTE  AIRCRAFT:  Has  the  meaning  specified  in the  Note  Purchase
Agreement.

     TRANSFER DATE: Means the moment of execution and delivery of the Assignment
and Assumption Agreement by each of the parties thereto.

     TRANSFER DATE CERTIFICATES:  Has the meaning specified in the definition of
"Certificates".

     TRUST:  Means the trust  created  by this  Agreement,  the  estate of which
consists of Trust Property.

     TRUST  INDENTURE ACT: Except as otherwise  provided in Section 9.06,  means
the  Trust  Indenture  Act of 1939 as in  force  at the  date as of  which  this
Agreement was executed.

                  TRUST  PROPERTY:  Means (i) the  Equipment  Notes  held as the
     property of the Trust,  all monies at any time paid  thereon and all monies
due
and to become due thereunder,  (ii) the rights of the Trust and the Trustee,  on
behalf of the Trust,  under the Intercreditor  Agreement,  the Escrow Agreement,
the Note Purchase  Agreement and the Liquidity  Facilities,  including,  without
limitation,  all monies  receivable  in respect of such  rights,  PROVIDED  that
rights  with  respect to the  Deposits  or under the Escrow  Agreement  will not
constitute  Trust  Property,  and (iii) funds from time to time deposited in the
Certificate  Account  and the  Special  Payments  Account  and,  subject  to the
Intercreditor  Agreement,  any proceeds from the sale by the Trustee pursuant to
Article VI hereof of any such Equipment Note.

     TRUSTEE:  Means Wilmington Trust Company, or its successor in interest, and
any successor trustee appointed as provided herein.

     U.S. GLOBAL CERTIFICATE: Has the meaning specified in Section 3.01.

     U.S. PHYSICAL CERTIFICATES: Has the meaning specified in Section 3.01.

     Section 1.02. COMPLIANCE CERTIFICATES AND OPINIONS. Upon any application or
request by the Company,  any Owner Trustee or any Loan Trustee to the Trustee to
take any action under any provision of this Agreement,  the Company,  such Owner
Trustee or such Loan  Trustee,  as the case may be, shall furnish to the Trustee
an  Officers'  Certificate  stating  that,  in the opinion of the  signers,  all
conditions  precedent,  if any,  provided for in this Agreement  relating to the
proposed  action have been complied with and an Opinion of Counsel  stating that
in the opinion of such counsel all such conditions precedent,  if any, have been
complied with,  except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this  Agreement  relating  to such  particular  application  or  request,  no
additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant  provided  for in this  Agreement  (other than a  certificate  provided
pursuant to Section 8.04(d)) shall include:

     (1) a statement that each  individual  signing such  certificate or opinion
has read such  covenant  or  condition  and the  definitions  in this  Agreement
relating thereto;

     (2) a brief  statement  as to the  nature and scope of the  examination  or
investigation   upon  which  the  statements  or  opinions   contained  in  such
certificate or opinion are based;

     (3) a statement that, in the opinion of each such  individual,  he has made
such  examination or  investigation  as is necessary to enable him to express an
informed  opinion as to  whether  or not such  covenant  or  condition  has been
complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.

     Section  1.03.  FORM OF DOCUMENTS  DELIVERED TO TRUSTEE.  In any case where
several  matters are required to be  certified  by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or  covered by only one  document,  but one such  Person may  certify or give an
opinion  with  respect to some  matters and one or more other such Persons as to
other  matters  and any such  Person  may  certify or give an opinion as to such
matters in one or several documents.

     Any Opinion of Counsel  stated to be based on the opinion of other  counsel
shall be accompanied by a copy of such other opinion.

     Where  any  Person  is  required  to  make,  give  or  execute  two or more
applications,  requests, consents,  certificates,  statements, opinions or other
instruments  under this Agreement,  they may, but need not, be consolidated  and
form one instrument.

     Section 1.04. ACTS OF CERTIFICATEHOLDERS.

     (a) Any  direction,  consent,  waiver  or  other  action  provided  by this
Agreement  to be given or taken by  Certificateholders  may be  embodied  in and
evidenced by one or more  instruments of  substantially  similar tenor signed by
such  Certificateholders  in person or by an agent or proxy  duly  appointed  in
writing;  and, except as herein otherwise expressly provided,  such action shall
become  effective  when such  instrument  or  instruments  are  delivered to the
Trustee and, where it is hereby expressly  required  pursuant to this Agreement,
to the Company or any Loan  Trustee.  Such  instrument or  instruments  (and the
action embodied therein and evidenced  thereby) are herein sometimes referred to
as the "Act" of the  Certificateholders  signing such instrument or instruments.
Proof of execution of any such  instrument or of a writing  appointing  any such
agent shall be sufficient  for any purpose of this  Agreement and  conclusive in
favor of the Trustee,  the Company and any Loan  Trustee,  if made in the manner
provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument
or  writing  may be  proved by the  certificate  of any  notary  public or other
officer  of any  jurisdiction  authorized  to take  acknowledgments  of deeds or
administer oaths that the Person  executing such instrument  acknowledged to him
the execution  thereof,  or by an affidavit of a witness to such execution sworn
to before any such notary or such other  officer and where such  execution is by
an officer of a corporation  or  association  or a member of a  partnership,  on
behalf of such  corporation,  association or  partnership,  such  certificate or
affidavit shall also constitute sufficient proof of his authority.  The fact and
date of the execution of any such instrument or writing, or the authority of the
Person  executing the same,  may also be proved in any other  reasonable  manner
which the Trustee deems sufficient.

     (c)  In  determining  whether  the   Certificateholders  of  the  requisite
Fractional  Undivided  Interests  of  Certificates  Outstanding  have  given any
direction, consent or waiver (a "Direction"), under this Agreement, Certificates
owned by the Company, the Guarantor, any Owner Trustee, any Owner Participant or
any  Affiliate  of any such  Person  shall be  disregarded  and deemed not to be
Outstanding for purposes of any such  determination.  In determining whether the
Trustee shall be protected in relying upon any such Direction, only Certificates
which the Trustee knows to be so owned shall be so disregarded.  Notwithstanding
the foregoing, (i) if any such Person owns 100% of the Certificates Outstanding,
such  Certificates  shall not be so  disregarded  as aforesaid,  and (ii) if any
amount of  Certificates  so owned by any such Person  have been  pledged in good
faith,  such  Certificates  shall not be disregarded as aforesaid if the pledgee
establishes  to the  satisfaction  of the Trustee the pledgee's  right so to act
with respect to such  Certificates and that the pledgee is not the Company,  the
Guarantor, any Owner Trustee, any Owner Participant or any Affiliate of any such
Person.

     (d) The Company may, at its option by delivery of an Officer's  Certificate
to the Trustee, set a record date to determine the  Certificateholders  entitled
to give any consent, request, demand,  authorization,  direction, notice, waiver
or other Act.  Notwithstanding  Section 316(c) of the Trust  Indenture Act, such
record date shall be the record date  specified  in such  Officer's  Certificate
which shall be a date not more than 30 days prior to the first  solicitation  of
Certificateholders in connection therewith. If such a record date is fixed, such
consent request, demand,  authorization,  direction, notice, waiver or other Act
may be given before or after such record date,  but only the  Certificateholders
of record at the close of  business  on such  record  date shall be deemed to be
Certificateholders for the purposes of determining whether Certificateholders of
the requisite  proportion of Outstanding  Certificates have authorized or agreed
or consented to such consent, request, demand, authorization, direction, notice,
waiver or other Act, and for that purpose the Outstanding  Certificates shall be
computed as of such record date; PROVIDED that no such consent, request, demand,
authorization,  direction, notice, waiver or other Act by the Certificateholders
on such record date shall be deemed  effective  unless it shall become effective
pursuant to the  provisions of this  Agreement not later than one year after the
record date.

     (e) Any direction, consent, waiver or other action by the Certificateholder
of any Certificate shall bind the  Certificateholder of every Certificate issued
upon the transfer thereof or in exchange therefor or in lieu thereof, whether or
not notation of such action is made upon such Certificate.

     (f) Except as otherwise provided in Section 1.04(c),  Certificates owned by
or pledged to any Person shall have an equal and proportionate benefit under the
provisions of this Agreement,  without preference,  priority,  or distinction as
among all of the Certificates.

                                   ARTICLE II

                          ACQUISITION OF TRUST PROPERTY

                  Section 2.01. [Intentionally omitted].

                  Section 2.02.  ACQUISITION OF TRUST  PROPERTY.  The Trustee is
hereby irrevocably authorized and directed to execute and deliver the Assignment
and  Assumption  Agreement on the date specified in Section 11.01 of the Related
Pass Through Trust Agreement, subject only to the satisfaction of the conditions
to such execution set forth in said Section 11.01.  This Agreement  (except only
for the immediately preceding sentence hereof, which is effective upon execution
and delivery  hereof) shall become  effective upon the execution and delivery of
the Assignment and Assumption  Agreement by the Trustee and the Related Trustee,
automatically  and without any  further  signature  or action on the part of the
Company and the Trustee,  and shall  thereupon  constitute the legal,  valid and
binding obligation of the parties hereto enforceable against each of the parties
hereto in  accordance  with its terms.  Upon such  execution and delivery of the
Assignment and Assumption Agreement, the Related Trust shall be terminated,  the
Certificateholders  shall receive beneficial  interests in the Trust in exchange
for their  interests in the Related Trust equal to their  respective  beneficial
interests in the Related Trust and the  "Outstanding" (as defined in the Related
Pass Through Trust Agreement) pass through certificates  representing fractional
undivided  interests  in the Related  Trust shall be deemed for all  purposes of
this  Agreement and the Related Pass Through Trust  Agreement,  without  further
signature  or  action  of any  party or  Certificateholder,  to be  Certificates
representing the same Fractional  Undivided Interests in the Trust and the Trust
Property. By acceptance of its Certificate,  each Certificateholder  consents to
and ratifies such assignment, transfer and delivery of the trust property of the
Related Trust to the Trustee upon the  execution and delivery of the  Assignment
and Assumption Agreement.

                  Section  2.03.  ACCEPTANCE BY TRUSTEE.  The Trustee,  upon the
execution and delivery of the Assignment and Assumption Agreement,  acknowledges
its  acceptance of all right,  title,  and interest in and to the Trust Property
and  declares  that the  Trustee  holds  and will hold such  right,  title,  and
interest for the benefit of all then present and future Certificateholders, upon
the trusts herein set forth. By the acceptance of each Certificate  issued to it
under the Related  Pass Through  Trust  Agreement  and deemed  issued under this
Agreement,  each Holder of any such  Certificate as grantor of the Trust thereby
joins in the creation and declaration of the Trust.

                  Section 2.04.  LIMITATION OF POWERS.  The Trust is constituted
solely for the purpose of making the  investment  in the Equipment  Notes,  and,
except as set forth herein,  the Trustee shall not be authorized or empowered to
acquire  any  other  investments  or  engage in any  other  activities  and,  in
particular, the Trustee shall not be authorized or empowered to do anything that
would  cause such Trust to fail to  qualify  as a  "grantor  trust" for  federal
income tax purposes  (including  as subject to this  restrictions  acquiring the
Aircraft  (as defined in the  respective  related  Indentures)  by bidding  such
Equipment  Notes or  otherwise,  or taking any action  with  respect to any such
Aircraft once acquired).

                                   ARTICLE III
                                THE CERTIFICATES

     Section 3.01. TITLE, FORM, DENOMINATION AND EXECUTION OF CERTIFICATES.
             -------------------------------------------------------

                  (a) The  Certificates  shall be known as the "7.46%  1997-1C-S
Pass Through  Certificates"  of the Trust.  Each  Certificate  will  represent a
fractional  undivided  interest in the Trust and shall be  substantially  in the
form set forth as Exhibit A to the Related Pass Through  Trust  Agreement,  with
such appropriate  insertions,  omissions,  substitutions and other variations as
are required or permitted  by the Related Pass Through  Trust  Agreement or this
Agreement, as the case may be, or as the Trustee may deem appropriate to reflect
the fact that the  Certificates  are being  issued  hereunder  as opposed to the
Related Pass Through  Trust  Agreement,  and may have such  letters,  numbers or
other marks of identification and such legends or endorsements placed thereon as
may be required to comply with the rules of any  securities  exchange or as may,
consistently   herewith,   be   determined  by  the  officers   executing   such
Certificates,  as evidenced by their execution of the Certificates.  Any portion
of the text of any Certificate may be set forth on the reverse thereof,  with an
appropriate  reference  thereto  on the face of the  Certificate.  At the Escrow
Agent's  request  under  the  Escrow  Agreement,  the  Trustee  shall  affix the
corresponding  Escrow Receipt to any Certificate issued hereunder.  Any transfer
or exchange of any  Certificate  shall also effect a transfer or exchange of the
related  Escrow  Receipt.  Prior to the Final  Withdrawal  Date,  no transfer or
exchange of any Certificate shall be permitted unless the  corresponding  Escrow
Receipt  is  attached  thereto  and  also is so  transferred  or  exchanged.  By
acceptance  of any  Certificate  to which an Escrow  Receipt is  attached,  each
Holder of such Certificate acknowledges and accepts the restrictions on transfer
of the Escrow Receipt set forth herein and in the Escrow Agreement.

                  (b) The Certificates  shall be issued only in fully registered
form without coupons and only in denominations of $100,000 or integral multiples
of $1,000 in excess  thereof,  except  that one  Certificate  may be issued in a
denomination of less than $100,000.  Each Certificate shall be dated the date of
its authentication.  The aggregate Fractional Undivided Interest of Certificates
shall not at any time exceed $18,153,000.

                  (c)  Certificates  offered  and sold in  reliance on Rule 144A
shall be issued initially in the form of a single  permanent global  Certificate
in  registered  form,  substantially  in the form set forth as  Exhibit A to the
Related  Pass  Through  Trust  Agreement  with such  applicable  legends  as are
provided  for in  clauses  (a)  and  (b)  of  Section  3.02  (the  "U.S.  Global
Certificate").  The U.S. Global  Certificate will be registered in the name of a
nominee for DTC and  deposited  with the  Trustee,  as  custodian  for DTC.  The
aggregate  principal amount of the U.S. Global Certificate may from time to time
be  increased  or  decreased  by  adjustments  made on the records of DTC or its
nominee,  or of the  Trustee,  as  custodian  for  the  DTC or its  nominee,  as
hereinafter provided.

                  (d) Certificates offered and sold in offshore  transactions in
reliance  on  Regulation  S shall  be  issued  in the  form of a  single  global
Certificate in registered form, substantially in the form set forth as Exhibit A
to the Related Pass Through Trust Agreement with such applicable  legends as are
provided for in clause (b) of Section 3.02 (the "Offshore Global  Certificate").
The Temporary  Offshore Global  Certificate  will be registered in the name of a
nominee  of DTC for  credit  to the  account  of the  Agent  Members  acting  as
depositories for Euroclear and Cedel and deposited with the Trustee as custodian
for DTC. The U.S. Global  Certificate and the Offshore Global  Certificates  are
sometimes referred to as the "Global Certificates".

                  (e) Certificates offered and sold to Institutional  Accredited
Investors shall be issued in the form of permanent certificated  Certificates in
registered form in substantially  the form set forth as Exhibit A to the Related
Pass Through Trust Agreement with such applicable legends as are provided for in
clauses (a) and (b) of Section 3.02 hereto (the "U.S.  Physical  Certificates").
Certificates issued pursuant to Section 3.05(b) in exchange for interests in any
Offshore  Global  Certificate  shall  be in the form of  permanent  certificated
Certificates in registered form substantially in the form set forth in Exhibit A
(the "Offshore Physical  Certificates").  The Offshore Physical Certificates and
U.S. Physical Certificates are sometimes  collectively herein referred to as the
"Physical Certificates".

                  (f) The definitive  Certificates  shall be in registered  form
and shall be  typed,  printed,  lithographed  or  engraved  or  produced  by any
combination  of these  methods or may be  produced in any other  manner,  all as
determined by the officers  executing such  Certificates,  as evidenced by their
execution of such Certificates.

                  Section 3.02. RESTRICTIVE LEGENDS.
                                -------------------

                  (a) Subject to Section 3.06, each U.S. Global  Certificate and
each U.S.  Physical  Certificate  shall bear the following  legend (the "Private
Placement Legend") on the face thereof:

                  THIS  CERTIFICATE  HAS NOT  BEEN  REGISTERED  UNDER  THE  U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY
NOT BE OFFERED OR SOLD  WITHIN  THE UNITED  STATES OR TO, OR FOR THE  ACCOUNT OR
BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING  SENTENCE.  BY ITS
ACQUISITION  HEREOF,  THE  HOLDER  (1)  REPRESENTS  THAT (A) IT IS A  "QUALIFIED
INSTITUTIONAL  BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT
IS AN INSTITUTIONAL  "ACCREDITED  INVESTOR" (AS DEFINED IN RULE 501(A)(1),  (2),
(3) OR (7)  OF  REGULATION  D  UNDER  THE  SECURITIES  ACT)  (AN  "INSTITUTIONAL
ACCREDITED  INVESTOR")  OR (C) IT IS NOT A U.S.  PERSON  AND IS  ACQUIRING  THIS
CERTIFICATE IN AN OFFSHORE TRANSACTION,  (2) AGREES THAT IT WILL NOT, WITHIN TWO
YEARS AFTER THE LATER OF THE ORIGINAL  ISSUANCE OF THIS  CERTIFICATE OR THE LAST
DATE ON WHICH THIS  CERTIFICATE WAS HELD BY AMERICAN TRANS AIR, INC.  ("ATA") OR
AN AFFILIATE OF ATA, RESELL OR OTHERWISE TRANSFER THIS CERTIFICATE EXCEPT (A) TO
ATA OR ANY  SUBSIDIARY  THEREOF,  (B) INSIDE THE  UNITED  STATES TO A  QUALIFIED
INSTITUTIONAL  BUYER IN COMPLIANCE  WITH RULE 144A UNDER THE SECURITIES ACT, (C)
INSIDE THE  UNITED  STATES TO AN  INSTITUTIONAL  ACCREDITED  INVESTOR  ACQUIRING
$100,000 OR MORE AGGREGATE  PRINCIPAL  AMOUNT OF SUCH  CERTIFICATES  THAT, TAKES
DELIVERY OF THIS  CERTIFICATE  IN  DEFINITIVE  FORM AND PRIOR TO SUCH  TRANSFER,
FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN  REPRESENTATIONS AND
AGREEMENTS  RELATING TO THE  RESTRICTIONS ON TRANSFER OF THIS  CERTIFICATE  (THE
FORM OF WHICH LETTER CAN BE OBTAINED FROM THE  TRUSTEE),  (D) OUTSIDE THE UNITED
STATES  IN AN  OFFSHORE  TRANSACTION  IN  COMPLIANCE  WITH  RULE 904  UNDER  THE
SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE
144 UNDER THE  SECURITIES  ACT (IF  AVAILABLE)  OR (F)  PURSUANT TO AN EFFECTIVE
REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT, AND (3) AGREES THAT IT WILL
DELIVER  TO EACH  PERSON  TO WHOM  THIS  CERTIFICATE  IS  TRANSFERRED  A  NOTICE
SUBSTANTIALLY  TO THE  EFFECT OF THIS  LEGEND.  IN CASE THIS  CERTIFICATE  IS IN
DEFINITIVE FORM IN CONNECTION WITH ANY TRANSFER OF THIS  CERTIFICATE  WITHIN TWO
YEARS AFTER THE LATER OF THE ORIGINAL  ISSUANCE OF THE  CERTIFICATE  OR THE LAST
DATE ON WHICH  THIS  CERTIFICATE  WAS HELD BY ATA OR AN  AFFILIATE  OF ATA,  THE
HOLDER MUST CHECK THE  APPROPRIATE  BOX SET FORTH ON THE REVERSE HEREOF RELATING
TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS  CERTIFICATE  TO THE TRUSTEE.  AS
USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON"
HAVE THE MEANINGS  GIVEN TO THEM BY REGULATION S UNDER THE  SECURITIES  ACT. THE
PASS  THROUGH  TRUST  AGREEMENT  CONTAINS A PROVISION  REQUIRING  THE TRUSTEE TO
REFUSE  TO  REGISTER  ANY  TRANSFER  OF THIS  CERTIFICATE  IN  VIOLATION  OF THE
FOREGOING RESTRICTIONS.

     (b) Each Global  Certificate  shall also bear the  following  legend on the
face thereof:

UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN  AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR  REGISTRATION  OF TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE
ISSUED IN EXCHANGE FOR THIS  CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC
(AND ANY  PAYMENT  HEREON  IS MADE TO CEDE & CO. OR TO SUCH  OTHER  ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR  OTHERWISE  BY OR TO ANY PERSON IS WRONGFUL  INASMUCH AS
THE REGISTERED OWNER HEREOF,  CEDE & CO., HAS AN INTEREST  HEREIN.  TRANSFERS OF
THIS GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO  NOMINEES OF DTC OR TO A SUCCESSOR  THEREOF OR SUCH  SUCCESSOR'S  NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL  CERTIFICATE  SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE  RESTRICTIONS SET FORTH IN SECTIONS 3.05 AND 3.06 OF
THE PASS THROUGH TRUST AGREEMENT REFERRED TO HEREIN.

                  Section 3.03.  AUTHENTICATION OF CERTIFICATES.  No Certificate
shall be entitled to any benefit under this  Agreement or be valid or obligatory
for any purpose,  unless there  appears on such  Certificate  a  certificate  of
authentication  substantially  in the form  provided for herein  executed by the
Trustee by the manual signature of one of its authorized  signatories,  and such
certificate  upon any  Certificate  shall be conclusive  evidence,  and the only
evidence,  that such  Certificate  has been  duly  authenticated  and  delivered
hereunder.

                  Section 3.04. TRANSFER AND EXCHANGE.
                                ---------------------

                  (a) The Trustee shall cause to be kept at the office or agency
to be maintained by it in accordance with the provisions of Section 7.11 of this
Agreement a register (the "Register") for the Certificates in which,  subject to
such reasonable  regulations as it may prescribe,  the Trustee shall provide for
the  registration  of the  Certificates  and of transfers  and  exchanges of the
Certificates  as herein  provided.  The Trustee shall initially be the registrar
(the  "Registrar") for the purpose of registering the Certificates and transfers
and exchanges of the Certificates as herein provided.  A  Certificateholder  may
transfer a Certificate by written  application to the Registrar stating the name
of the  proposed  transferee  and  otherwise  complying  with the  terms of this
Agreement,  including  providing  a written  certificate  or other  evidence  of
compliance with any restrictions on transfer. No such transfer shall be effected
until,  and such transferee  shall succeed to the rights of a  Certificateholder
only upon, final acceptance and registration of the transfer by the Registrar in
the Register.  Prior to the registration of any transfer by a  Certificateholder
as  provided  herein,  the  Trustee  shall  treat the  person in whose  name the
Certificate is registered as the owner thereof for all purposes, and the Trustee
shall not be  affected by notice to the  contrary.  Furthermore,  DTC shall,  by
acceptance of a Global Certificate, agree that transfers of beneficial interests
in such Global  Certificate  may be effected  only through a  book-entry  system
maintained by DTC (or its agent), and that ownership of a beneficial interest in
the  Certificate  shall  be  required  to be  reflected  in a book  entry.  When
Certificates  are  presented  to the  Registrar  with a request to register  the
transfer or to exchange them for an equal face amount of  Certificates  of other
authorized denominations,  the Registrar shall register the transfer or make the
exchange as  requested if its  requirements  for such  transactions  are met. To
permit  registrations  of transfers and exchanges in accordance  with the terms,
conditions and restrictions  hereof,  the Trustee shall execute and authenticate
Certificates at the Registrar's request. No service charge shall be made for any
registration  of transfer or exchange of the  Certificates,  but the Trustee may
require  payment by the transferor of a sum sufficient to cover any transfer tax
or similar  governmental charge payable in connection  therewith (other than any
such transfer taxes or other similar governmental charges payable upon exchanges
pursuant to Section 3.11 or 9.07).

     Section  3.05.  BOOK-ENTRY  PROVISIONS  FOR  U.S.  GLOBAL  CERTIFICATE  AND
OFFSHORE GLOBAL CERTIFICATES.

                  (a) Members  of, or  participants  in, DTC  ("Agent  Members")
shall have no rights under this Agreement with respect to any Global Certificate
held on their  behalf by DTC,  or the Trustee as its  custodian,  and DTC may be
treated by the  Trustee and any agent of the  Trustee as the  absolute  owner of
such  Global  Certificate  for  all  purposes  whatsoever.  Notwithstanding  the
foregoing,  nothing herein shall prevent the Trustee or any agent of the Trustee
from giving effect to any written  certification,  proxy or other  authorization
furnished  by DTC or shall  impair,  as between DTC and its Agent  Members,  the
operation  of  customary  practices  governing  the  exercise of the rights of a
holder of any  Certificate.  Upon the  issuance of any Global  Certificate,  the
Registrar  or its duly  appointed  agent  shall  record a nominee  of DTC as the
registered holder of such Global Certificate.

                  (b)  Transfers of any Global  Certificate  shall be limited to
transfers of such Global  Certificate in whole,  but not in part, to nominees of
DTC, its successor or such  successor's  nominees.  Beneficial  interests in the
U.S. Global  Certificate and any Offshore Global  Certificate may be transferred
in accordance with the rules and procedures of DTC and the provisions of Section
3.06.  Beneficial interests in the U.S. Global Certificate or an Offshore Global
Certificate  shall be (or, under the Related Pass Through Trust  Agreement,  may
have  been)  delivered  to all  beneficial  owners in the form of U.S.  Physical
Certificates or Offshore Physical  Certificates,  as the case may be, if (i) the
Company  notifies  the  Trustee in writing  that DTC is  unwilling  or unable to
discharge  properly  its  responsibilities  as  depositary  for the U.S.  Global
Certificate  or such Offshore  Global  Certificate,  as the case may be, and the
Company is unable to locate a qualified  successor  depositary within 90 days of
such  notice or (ii) after the  occurrence  of an Event of  Default,  beneficial
owners of the U.S. Global Certificate or Offshore Global Certificates evidencing
Fractional Undivided Interests  aggregating not less than a majority in interest
in the Trust, by Act of such Certificateholders delivered to the Company and the
Trustee,  advise the Company,  the Trustee and DTC through its  Clearing  Agency
Participants in writing that the continuation of a book-entry system through DTC
is no longer in the best interests of the  Certificateholders,  then the Trustee
shall notify all owners of beneficial  interests in the U.S. Global  Certificate
or an Offshore  Global  Certificate,  through DTC, of the occurrence of any such
event and the availability of definitive Certificates.

                  (c) Any beneficial  interest in one of the Global Certificates
that is transferred to a Person who takes delivery in the form of an interest in
the other Global  Certificate will, upon such transfer,  cease to be an interest
in  such  Global  Certificate  and  become  an  interest  in  the  other  Global
Certificate  and,  accordingly,  will  thereafter  be  subject  to all  transfer
restrictions, if any, and other procedures applicable to beneficial interests in
such other Global Certificate for as long as it remains such an interest.

                  (d)      [Intentionally omitted].

                  (e) In connection  with the transfer of the entire U.S. Global
Certificate or an entire  Offshore Global  Certificate to the beneficial  owners
thereof  pursuant  to  paragraph  (b) of this  Section  3.05,  such U.S.  Global
Certificate or Offshore Global Certificate,  as the case may be, shall be deemed
to be  surrendered  to the  Trustee  for  cancellation,  and the  Trustee  shall
execute, authenticate and deliver, to each beneficial owner identified by DTC in
exchange for its beneficial interest in such U.S. Global Certificate or Offshore
Global  Certificate,  as the case may be, an equal aggregate principal amount of
U.S. Physical  Certificates or Offshore Physical  Certificates,  as the case may
be, of authorized denominations.

                  (f) Any U.S. Physical Certificate delivered in exchange for an
interest  in the U.S.  Global  Certificate  pursuant  to  paragraph  (b) of this
Section  3.05 shall,  except as otherwise  provided by paragraph  (f) of Section
3.06, bear the Private Placement Legend.

                  (g) Any Offshore  Physical  Certificate  delivered in exchange
for an interest in an Offshore Global  Certificate  pursuant to paragraph (b) of
this Section  shall,  except as otherwise  provided by paragraph  (f) of Section
3.06, bear the applicable  legend regarding  transfer  restrictions set forth in
Section 3.02(a).

                  (h) The registered  holder of the U.S.  Global  Certificate or
any Offshore Global  Certificate  may grant proxies and otherwise  authorize any
Person,  including  Agent  Members and Persons that may hold  interests  through
Agent Members,  to take any action which a Holder is entitled to take under this
Agreement or the Certificates.

     Section 3.06. SPECIAL TRANSFER  PROVISIONS.  The following provisions shall
apply to the Certificates:

     (a) TRANSFERS TO NON-QIB INSTITUTIONAL  ACCREDITED INVESTORS. The following
provisions shall apply with respect to the registration of any proposed transfer
of a Certificate  to any  Institutional  Accredited  Investor which is not a QIB
(excluding  transfers  to, or on or after the  Regulation S Restricted  Date, by
Non-U.S. Persons):

     (i) The Registrar shall register the transfer of any  Certificate,  whether
or not such Certificate bears the Private Placement Legend, if (x) the requested
transfer is at least two years after the later of the original issue date of the
Certificates and the last date on which such Certificate was held by the Company
or any  affiliate  thereof or (y) the proposed  transferee  has delivered to the
Registrar  a letter  substantially  in the  form of  Exhibit  B  hereto  and the
aggregate  principal  amount of the Certificates  being  transferred is at least
$100,000.

     (ii) If the proposed  transferor  is an Agent  Member  holding a beneficial
interest in the U.S. Global  Certificate or, at a date prior to the Regulation S
Restricted Date, an Offshore Global  Certificate,  upon receipt by the Registrar
of (x) the  documents,  if any,  required by paragraph (i) and (y)  instructions
given in accordance  with DTC's and the  Registrar's  procedures,  the Registrar
shall  reflect on its books and records the date of the  transfer and a decrease
in the principal  amount of such U.S.  Global  Certificate in an amount equal to
the principal amount of the beneficial  interest in such U.S. Global Certificate
to be  transferred,  and  the  Company  shall  execute,  and the  Trustee  shall
authenticate and deliver to the transferor or at its direction, one or more U.S.
Physical Certificates of like tenor and amount.

     (b) TRANSFERS TO QIBS. The following provisions shall apply with respect to
the  registration of any proposed  transfer of a Certificate to a QIB (excluding
Non-U.S. Persons):

     (i)  If  the  Certificate  to be  transferred  consists  of  U.S.  Physical
Certificates  or an interest in any  Offshore  Global  Certificate  prior to the
Regulation S Restricted  Date, the Registrar shall register the transfer if such
transfer is being made by a proposed transferor who has checked the box provided
for on the form of U.S.  Physical  Certificate or delivered a certificate to the
Trustee in the form of Exhibit E hereto  stating,  or has otherwise  advised the
Trustee and the Registrar in writing,  that the sale has been made in compliance
with the provisions of Rule 144A to a transferee  who, in the case of a transfer
of a U.S. Physical Certificate, has signed the certification provided for on the
form  of  Certificate  and,  in  the  case  of an  Offshore  Global  Certificate
transferred  prior to the  Regulation  S  Restricted  Date,  who has  signed the
certification  provided  for in  Exhibit E  hereto,  stating,  or has  otherwise
advised the Trustee and the  Registrar  in writing,  that it is  purchasing  the
Certificate for its own account or an account with respect to which it exercises
sole  investment  discretion  and that it, or the  Person on whose  behalf it is
acting  with  respect to any such  account,  is a QIB within the meaning of Rule
144A,  and is aware that the sale to it is being made in  reliance  on Rule 144A
and has been advised of the  applicable  transfer  restrictions  relating to the
Certificates  and acknowledges  that it has received such information  regarding
the Trust  and/or the Company as it has  requested  pursuant to Rule 144A or has
determined  not to  request  such  information  and  that it is  aware  that the
transferor is relying upon its foregoing  representations  in order to claim the
exemption from registration provided by Rule 144A.

                  (ii) Upon receipt by the Registrar of the  documents  referred
         to in clause (i) above and instructions  given in accordance with DTC's
         and the Registrar's procedures therefor, the Registrar shall reflect on
         its books and records the date of such  transfer and an increase in the
         principal  amount of the U.S. Global  Certificate in an amount equal to
         the principal amount of the U.S. Physical  Certificates or interests in
         the Offshore Global Certificate, as the case may be, being transferred,
         and the  Trustee  shall  cancel  such  U.S.  Physical  Certificates  or
         decrease the amount of such Offshore Global Certificate so transferred.

                  (c)      [Intentionally omitted].

     (d) TRANSFERS OF INTERESTS IN THE OFFSHORE  GLOBAL  CERTIFICATE ON OR AFTER
THE REGULATION S RESTRICTED  DATE. The Registrar  shall register any transfer of
interests  in the  Offshore  Global  Certificate  on or after the  Regulation  S
Restricted Date without requiring any additional certification.

     (e) TRANSFERS TO NON-U.S.  PERSONS AT ANY TIME.  The  following  provisions
shall apply with respect to any registration of any transfer of a Certificate to
a Non-U.S. Person:

                  (i) The Registrar  shall  register any proposed  transfer of a
         U.S. Global  Certificate or U.S.  Physical  Certificate to any Non-U.S.
         Person,  upon  receipt of a  certificate  substantially  in the form of
         Exhibit A hereto from the  proposed  transferor.  The  Registrar  shall
         promptly send a copy of such certificate to the Company.

                  (ii) (A) Upon receipt by the  Registrar of (x) the  documents,
         if any,  required by paragraph (c) and (y)  instructions  in accordance
         with DTC's and the Registrar's procedures,  the Registrar shall reflect
         on its books and records the date of such transfer and shall cancel the
         Physical Certificate, if any, so transferred, or decrease the principal
         amount of any such U.S.  Global  Certificate  in an amount equal to the
         principal  amount  of the  beneficial  interest  in  such  U.S.  Global
         Certificate to be transferred, and (B) upon receipt by the Registrar of
         instructions  given  in  accordance  with  DTC's  and  the  Registrar's
         procedures,  the  Registrar  shall reflect on its books and records the
         date and an increase in the  principal  amount of the  Offshore  Global
         Certificate  in an  amount  equal to the  principal  amount of the U.S.
         Physical  Certificate or the U.S. Global  Certificate,  as the case may
         be, to be  transferred,  and the  Trustee  shall  cancel  the  Physical
         Certificate, if any, so transferred or decrease the amount of such U.S.
         Global Certificate.

                  (f) PRIVATE PLACEMENT LEGEND.  Upon the transfer,  exchange or
replacement  of  Certificates  not  bearing the Private  Placement  Legend,  the
Registrar  shall  deliver  Certificates  that do not bear the Private  Placement
Legend. Upon the transfer,  exchange or replacement of Certificates  bearing the
Private  Placement  Legend,  the Registrar shall deliver only  Certificates that
bear  the  Private   Placement  Legend  unless  either  (i)  the   circumstances
contemplated  by  paragraph  (a)(i)(x)  or (e)(ii) of this Section 3.06 exist or
(ii) there is  delivered  to the  Registrar  an Opinion of Counsel to the effect
that neither such legend nor the related  restrictions  on transfer are required
in order to maintain compliance with the provisions of the Securities Act.

                  (g) GENERAL.  By its acceptance of any Certificate bearing the
Private  Placement  Legend,  each Holder of such a Certificate  acknowledges the
restrictions  on transfer of such  Certificate  set forth in this  Agreement and
agrees  that  it  will  transfer  such  Certificate  only  as  provided  in this
Agreement. The Registrar shall not register a transfer of any Certificate unless
such transfer complies with the restrictions on transfer of such Certificate set
forth in this Agreement.  In connection with any transfer of Certificates,  each
Certificateholder  agrees by its acceptance of the  Certificates  to furnish the
Registrar  or  the  Trustee  such   certifications,   legal  opinions  or  other
information  as either  of them may  reasonably  require  to  confirm  that such
transfer is being made  pursuant to an  exemption  from,  or a  transaction  not
subject to, the registration  requirements of the Securities Act;  PROVIDED that
the  Registrar  shall not be required to determine the  sufficiency  of any such
certifications, legal opinions or other information.

                  Until such time as no  Certificates  remain  Outstanding,  the
Registrar  shall  retain  copies  of all  letters,  notices  and  other  written
communications  received  pursuant to Section  3.05 or this  Section  3.06.  The
Trustee,  if not the Registrar at such time, shall have the right to inspect and
make copies of all such letters,  notices or other written communications at any
reasonable time upon the giving of reasonable written notice to the Registrar.

                  Section   3.07.   MUTILATED,   DESTROYED,   LOST   OR   STOLEN
CERTIFICATES.  If (a) any mutilated Certificate is surrendered to the Registrar,
or the Registrar receives evidence to its satisfaction of the destruction,  loss
or theft of any Certificate, and (b) there is delivered to the Registrar and the
Trustee such  security,  indemnity  or bond,  as may be required by them to save
each of them  harmless,  then,  in the absence of notice to the Registrar or the
Trustee that such  Certificate has been acquired by a bona fide  purchaser,  the
Trustee shall execute,  authenticate and deliver,  in exchange for or in lieu of
any such mutilated,  destroyed, lost or stolen Certificate, a new Certificate or
Certificates,  in  authorized  denominations  and of like  Fractional  Undivided
Interest.  In  connection  with the issuance of any new  Certificate  under this
Section 3.07, the Trustee shall require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other  expenses  (including  the fees and  expenses  of the  Trustee and the
Registrar)  connected  therewith.  Any duplicate  Certificate issued pursuant to
this  Section  3.07 shall  constitute  conclusive  evidence  of the  appropriate
Fractional  Undivided  Interest in the related Trust,  as if originally  issued,
whether or not the lost stolen or  destroyed  Certificate  shall be found at any
time.

                  Section 3.08. PERSONS DEEMED OWNERS. Prior to due presentation
of a Certificate for registration of transfer,  the Trustee, the Registrar,  and
any  Paying  Agent of the  Trustee  may  treat  the  person  in  whose  name any
Certificate  is registered as the owner of such  Certificate  for the purpose of
receiving  distributions  pursuant  to Section  4.02 and for all other  purposes
whatsoever,  and neither the Trustee, the Registrar, nor any Paying Agent of the
Trustee shall be affected by any notice to the contrary.

                  Section 3.09.  CANCELLATION.  All Certificates surrendered for
payment or transfer or exchange shall, if surrendered to any Person party hereto
other than the  Registrar,  be delivered to the Registrar for  cancellation.  No
Certificates  shall  be  authenticated  in  lieu  of  or  in  exchange  for  any
Certificates  cancelled  as  provided  in  this  Section,  except  as  expressly
permitted by this Agreement.  All cancelled  Certificates  held by the Registrar
shall be destroyed and a  certification  of their  destruction  delivered to the
Trustee.

                  Section  3.10.  LIMITATION  OF  LIABILITY  FOR  PAYMENTS.  All
payments or distributions made to Certificateholders shall be made only from the
Trust  Property  and only to the extent that the Trustee  shall have  sufficient
income or proceeds  from the Trust  Property to make such payments in accordance
with the terms of Article IV of this Agreement.  Each Certificateholder,  by its
acceptance of a  Certificate,  agrees that it will look solely to the income and
proceeds from the Trust  Property to the extent  available for  distribution  to
such Certificateholder as provided in this Agreement.

                  Section  3.11.   TEMPORARY   CERTIFICATES.   Until  definitive
Certificates are ready for delivery,  the Trustee shall  authenticate  temporary
Certificates.  Temporary  Certificates  shall  be  substantially  in the form of
definitive  Certificates but may have insertions,  substitutions,  omissions and
other  variations  determined to be  appropriate  by the officers  executing the
temporary  Certificates,  as  evidenced  by their  execution  of such  temporary
Certificates.  If  temporary  Certificates  are issued,  the Trustee  will cause
definitive  Certificates to be prepared without  unreasonable  delay.  After the
preparation  of definitive  Certificates,  the temporary  Certificates  shall be
exchangeable  for  definitive  Certificates  upon  surrender  of  the  temporary
Certificates at the office or agency of the Trustee  designated for such purpose
pursuant  to  Section  7.11,  without  charge  to  the  Certificateholder.  Upon
surrender  for  cancellation  of any one or  more  temporary  Certificates,  the
Trustee shall execute, authenticate and deliver in exchange therefor a like face
amount  of  definitive  Certificates  of  authorized  denominations.   Until  so
exchanged,  the  temporary  Certificates  shall be entitled to the same benefits
under this Agreement as definitive Certificates.

                                   ARTICLE IV

                          DISTRIBUTIONS; STATEMENTS TO
                               CERTIFICATEHOLDERS

         Section 4.01. CERTIFICATE ACCOUNT AND SPECIAL PAYMENTS ACCOUNT.
                ------------------------------------------------

                  (a) The Trustee shall  establish and maintain on behalf of the
Certificateholders  a  Certificate  Account as one or more  non-interest-bearing
accounts.  The  Trustee  shall  hold the  Certificate  Account  in trust for the
benefit  of  the  Certificateholders,  and  shall  make  or  permit  withdrawals
therefrom  only as  provided  in this  Agreement.  On each day when a  Scheduled
Payment  is made to the  Trustee,  the  Trustee,  upon  receipt  thereof,  shall
immediately  deposit the  aggregate  amount of such  Scheduled  Payment into the
Certificate Account.

                  (b) The Trustee shall  establish and maintain on behalf of the
Certificateholders  a Special  Payments  Account as one or more accounts,  which
shall be  non-interest-bearing  except as provided in Section 4.04.  The Trustee
shall  hold the  Special  Payments  Account  in  trust  for the  benefit  of the
Certificateholders,  and shall  make or  permit  withdrawals  therefrom  only as
provided in this  Agreement.  On each day when one or more Special  Payments are
made to the  Trustee,  the  Trustee,  upon receipt  thereof,  shall  immediately
deposit the aggregate  amount of such Special Payments into the Special Payments
Account.

                  (c) The Trustee shall cause the Subordination Agent to present
to the Loan Trustee to which an Equipment  Note relates such  Equipment  Note on
the date of its stated  final  maturity  or, in the case of any  Equipment  Note
which is to be redeemed  in whole  pursuant to the  relevant  Indenture,  on the
applicable redemption date under such Indenture.

     Section  4.02.DISTRIBUTIONS  FROM CERTIFICATE  ACCOUNT AND SPECIAL PAYMENTS
ACCOUNT.

                  (a) On each Regular Distribution Date or as soon thereafter as
the Trustee has confirmed  receipt of the payment of the Scheduled  Payments due
on such date, the Trustee shall  distribute out of the  Certificate  Account the
entire amount deposited  therein pursuant to Section 4.01 (a). There shall be so
distributed to each  Certificateholder of record on the Record Date with respect
to such  Regular  Distribution  Date (other  than as  provided in Section  11.01
concerning the final distribution), by check mailed to such Certificateholder at
the address appearing in the Register,  such  Certificateholder's PRO RATA share
(based on the aggregate  Fractional Undivided Interest in the Trust held by such
Certificateholder)  of the aggregate amount in the Certificate  Account,  except
that, with respect to Certificates  registered on the Record Date in the name of
the nominee of DTC (initially, such nominee to be Cede & Co.), such distribution
shall be made by wire  transfer in  immediately  available  funds to the account
designated by such nominee.

                  (b) On each  Special  Distribution  Date with  respect  to any
Special  Payment or as soon  thereafter as the Trustee has confirmed  receipt of
any Special  Payments due on the  Equipment  Notes or realized  upon the sale of
such Equipment  Note, the Trustee shall  distribute out of the Special  Payments
Account the entire amount deposited  therein pursuant to Section 4.01(b) of such
Special  Payment.  There shall be so  distributed to each  Certificateholder  of
record on the Record Date with respect to such Special  Distribution Date (other
than as provided in Section 11.01 concerning the final  distribution),  by check
mailed to such Certificateholder at the address appearing in the Register,  such
Certificateholder's  pro rata share (based on the aggregate Fractional Undivided
Interest in the Trust held by such Certificateholder) of the aggregate amount in
the Special Payments  Account on account of such Special  Payment,  except that,
with respect to  Certificates  registered  on the Record Date in the name of the
nominee of DTC  (initially,  such nominee to be Cede & Co.),  such  distribution
shall be made by wire  transfer in  immediately  available  funds to the account
designated by such nominee.

                  (c) The Trustee  shall,  at the expense of the Company,  cause
notice of each  Special  Payment to be mailed to each  Certificateholder  at his
address as it appears in the Register. In the event of redemption or purchase of
Equipment Notes held in the Trust,  such notice shall be mailed not less than 20
days prior to the date any such Special  Payment is scheduled to be distributed.
In the event the Company is required to pay a Special  Redemption Premium to the
Trustee under the Note Purchase Agreement, such notice shall be mailed, together
with the notice by the Escrow  Paying  Agent  under  Section  2.06 of the Escrow
Agreement, not less than 20 days prior to the Special Distribution Date for such
amount,  which Special  Distribution Date shall be the Final Withdrawal Date. In
the case of any other Special  Payments,  such notice shall be mailed as soon as
practicable  after the Trustee has confirmed that it has received funds for such
Special Payment,  stating the Special Distribution Date for such Special Payment
which  shall  occur not less than 20 days  after the date of such  notice and as
soon as practicable thereafter. Notices mailed by the Trustee shall set forth:

     (i) the Special  Distribution  Date and the Record Date therefor (except as
otherwise provided in Section 11.01),

     (ii) the  amount  of the  Special  Payment  for  each  $1,000  face  amount
Certificate and the amount thereof constituting principal,  premium, if any, and
interest,

     (iii) the reason for the Special Payment, and

     (iv) if the  Special  Distribution  Date  is the  same  date  as a  Regular
Distribution Date for the Certificates,  the total amount to be received on such
date for each $1,000 face amount Certificate.

     If the  amount of (i)  premium,  if any,  payable  upon the  redemption  or
purchase of an Equipment Note or (ii) the Special  Redemption  Premium,  if any,
has not been  calculated  at the time that the Trustee mails notice of a Special
Payment, it shall be sufficient if the notice sets forth the other amounts to be
distributed and states that any premium received will also be distributed.

                  If any redemption of the Equipment  Notes held in the Trust is
cancelled,  the Trustee, as soon as possible after leasing thereof,  shall cause
notice  thereof  to be mailed to each  Certificateholder  at its  address  as it
appears on the Register.

                  Section 4.03. STATEMENTS TO CERTIFICATEHOLDERS.
                        --------------------------------

                  (a) On each Regular Distribution Date and Special Distribution
Date, the Trustee will include with each  distribution to  Certificateholders  a
statement,  giving  effect  to such  distribution  to be  made  on such  Regular
Distribution  Date or Special  Distribution  Date,  as the case may be,  setting
forth the following information (in the case of a Special Payment, including any
Special Redemption Premium,  reflecting in part the information  provided by the
Escrow  Paying  Agent  under the Escrow  Agreement)  (per a $1,000  face  amount
Certificate as to clauses (ii), (iii), (iv) and (v) below):

     (i) the aggregate  amount of funds  distributed on such  Distribution  Date
hereunder and under the Escrow  Agreement,  indicating  the amount  allocable to
each source;

     (ii) the amount of such distribution  allocable to principal and the amount
allocable to premium (including any Special Redemption Premium), if any;

     (iii) the amount of such distribution hereunder allocable to interest;

     (iv) the amount of such distribution  under the Escrow Agreement  allocable
to interest on the Deposits;

     (v) the amount of such distribution under the Escrow Agreement allocable to
the principal of the unused Deposits; and

     (vi) the Pool Balance and the Pool Factor.

                  With respect to the  Certificates  registered in the name of a
Clearing  Agency or its nominee,  on the record date prior to each  Distribution
Date,  the Trustee will request from the Clearing  Agency a securities  position
listing  setting  forth  the  names  of all  the  Clearing  Agency  Participants
reflected  on  the  Clearing   Agency's  books  as  holding   interests  in  the
Certificates  on such record date. On each  Distribution  Date, the Trustee will
mail to each such Clearing Agency Participant the statement  described above and
will make  available  additional  copies as  requested by such  Clearing  Agency
Participant for forwarding to holders of Certificates.

                  (b) Within a  reasonable  period of time after the end of each
calendar  year but not later than the latest date  permitted by law, the Trustee
shall  furnish to each Person who at any time during  such  calendar  year was a
Certificateholder  of  record  a  statement  containing  the sum of the  amounts
determined  pursuant to clauses (a)(i)  through  (a)(v),  inclusive,  above with
respect to the Trust for such  calendar  year or, in the event such Person was a
Certificateholder  of record  during a portion of such  calendar  year,  for the
applicable  portion of such year, and such other items as are readily  available
to the  Trustee  and  which a  Certificateholder  shall  reasonably  request  as
necessary for the purpose of such Certificateholder's preparation of its federal
income tax returns.  With respect to  Certificates  registered  in the name of a
Clearing  Agency or its  nominee,  such  report  and such other  items  shall be
prepared on the basis of  information  supplied  to the Trustee by the  Clearing
Agency  Participants  and shall be  delivered  by the  Trustee to such  Clearing
Agency  Participants  to be available for  forwarding  by such  Clearing  Agency
Participants.

                  (c) Promptly  following  (i) the Transfer  Date,  if there has
been any change in the  information  set forth in clauses (x), (y) and (z) below
from that set forth in pages 102 and 103 of the  Offering  Memorandum,  and (ii)
any early  redemption or purchase of, or any default in the payment of principal
or interest in respect of, any of the Equipment  Notes held in the Trust, or any
Final Withdrawal,  the Trustee shall furnish to  Certificateholders of record on
such date a statement  setting  forth (x) the  expected  Pool  Balances for each
subsequent  Regular  Distribution Date following the Delivery Period Termination
Date, (y) the related Pool Factors for such Regular  Distribution  Dates and (z)
the expected  principal  distribution  schedule of the Equipment  Notes,  in the
aggregate,  held as Trust  Property at the date of such notice.  With respect to
the Certificates  registered in the name of a Clearing Agency or its nominee, on
the  Transfer  Date,  the  Trustee  will  request  from  the  Clearing  Agency a
securities  position  listing setting forth the names of all the Clearing Agency
Participants  reflected on the Clearing  Agency's books as holding  interests in
the  "Certificates"  (as defined in the Related Pass Through Trust Agreement) on
the  Delivery  Period  Termination  Date.  The  Trustee  will  mail to each such
Clearing  Agency  Participant  the  statement  described  above  and  will  make
available additional copies as requested by such Clearing Agency Participant for
forwarding to holders of Certificates.

                  Section 4.04.  INVESTMENT OF SPECIAL PAYMENT MONEYS. Any money
received  by the  Trustee  pursuant to Section  4.01(b)  representing  a Special
Payment  which  is  not  to  be  promptly   distributed  shall,  to  the  extent
practicable,  be  invested in  Permitted  Investments  by the Trustee  (and such
Permitted  Investments  shall  be  registered  in the  name of the  Trustee)  as
directed in writing by the Company pending  distribution of such Special Payment
pursuant to Section  4.02.  Any  investment  made  pursuant to this Section 4.04
shall be in such Permitted Investments having maturities not later than the date
that such  moneys are  required to be used to make the  payment  required  under
Section 4.02 on the applicable  Special  Distribution Date and the Trustee shall
hold any such Permitted  Investments  until maturity.  The Trustee shall have no
liability  with respect to any  investment  made  pursuant to this Section 4.04,
other than by reason of the willful misconduct or negligence of the Trustee. All
income and earnings from such  investments  shall be distributed on such Special
Distribution Date as part of such Special Payment.

                                    ARTICLE V

                                   THE COMPANY

                  Section 5.01. MAINTENANCE OF CORPORATE EXISTENCE. The Company,
at its own cost and expense, will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate  existence,  rights and
franchises,   except  as  otherwise  specifically  permitted  in  Section  5.02;
PROVIDED,  HOWEVER, that the Company shall not be required to preserve any right
or franchise if the Company shall determine that the preservation  thereof is no
longer desirable in the conduct of the business of the Company.

                  Section 5.02.  CONSOLIDATION,  MERGER,  ETC. The Company shall
not consolidate with or merge into any other corporation or convey,  transfer or
lease substantially all of its assets as an entirety to any Person unless:

                  (a) the corporation formed by such consolidation or into which
         the  Company  is merged or the Person  which  acquires  by  conveyance,
         transfer or lease  substantially all of the assets of the Company as an
         entirety shall be organized and validly  existing under the laws of the
         United  States of  America  or any state  thereof  or the  District  of
         Columbia  and a "citizen  of the United  States" (as defined in Section
         40102(a)(15)  of Title 49 of the  United  States  Code)  holding an air
         carrier   operating   certificate   issued  by  the  Federal   Aviation
         Administration,  or any successor agency thereto (the "FAA"),  pursuant
         to  Chapter  447 of Title  49,  United  States  Code,  authorizing  the
         operation in air  transportation  of aircraft capable of carrying 10 or
         more  individuals or 6,000 pounds or more of cargo pursuant to Part 121
         of the FAA's regulations (14 CFR Part 121);

                  (b) the corporation formed by such consolidation or into which
         the  Company  is merged or the Person  which  acquires  by  conveyance,
         transfer or lease  substantially all of the assets of the Company as an
         entirety  shall  execute and deliver to the Trustee a duly  authorized,
         valid,  binding  and  enforceable   agreement  in  form  and  substance
         reasonably satisfactory to the Trustee containing an assumption by such
         successor corporation or Person of the due and punctual performance and
         observance of each covenant and  condition of the Note  Documents,  the
         Note Purchase Agreement, the Other Pass Through Trust Agreements and of
         this Agreement to be performed or observed by the Company;

                  (c) immediately  after giving effect to such  transaction,  no
         Event of Default  applicable to the  Certificates or event which is, or
         after  notice or passage of time,  or both,  would be, such an Event of
         Default shall have occurred and be continuing; and

                  (d)  the  Company  shall  have  delivered  to the  Trustee  an
         Officers'  Certificate  of the Company and an Opinion of Counsel of the
         Company  (which  may  be  the  Company's  General  Counsel)  reasonably
         satisfactory  to the Trustee,  each  stating  that such  consolidation,
         merger,  conveyance,  transfer  or lease and the  assumption  agreement
         mentioned  in clause (b) above  comply with this  Section 5.02 and that
         all  conditions   precedent   herein  provided  for  relating  to  such
         transaction have been complied with.

                  Upon any consolidation or merger, or any conveyance,  transfer
or lease of  substantially  all of the assets of the  Company as an  entirety in
accordance with this Section 5.02, the successor corporation or Person formed by
such  consolidation  or into  which  the  Company  is  merged  or to which  such
conveyance, offer or lease is made shall succeed to, and be substituted for, and
may exercise every right and power of, the Company under this Agreement with the
same  effect as if such  successor  corporation  or Person had been named as the
Company herein.  No such conveyance,  transfer or lease of substantially  all of
the assets of the Company as an entirety  shall have the effect of releasing the
Company or any  successor  corporation  or Person which shall  theretofore  have
become such in the manner  prescribed in this Section 5.02 from its liability in
respect of this Agreement,  the Note Purchase  Agreement or any Note Document to
which it is a party.

                  Section 5.03. RULE 144A(D)(4)  INFORMATION.  So long as any of
the  Certificates  are  "restricted  securities"  within  the  meaning  of  Rule
144(a)(3)  under the  Securities  Act, at any time when the Guarantor is neither
subject  to  Section  13 or 15(d) of the  Securities  Exchange  Act of 1934,  as
amended (the "EXCHANGE  ACT"), the Company and the Guarantor will provide to any
holder of such restricted  securities,  or to any prospective  purchaser of such
restricted securities designated by a holder, upon the request of such holder or
prospective  purchaser,  any information required to be delivered to holders and
prospective purchasers of the Certificates pursuant to Rule 144A(d)(4) under the
Securities Act.

                                   ARTICLE VI

                                     DEFAULT

                  Section 6.01. EVENTS OF DEFAULT.
                                -----------------

                  (a) EXERCISE OF REMEDIES.  Upon the  occurrence and during the
continuation of any Indenture  Default under any Indenture,  the Trustee may, to
the extent it is the  Controlling  Party at such time,  direct the  exercise  of
remedies as provided in the Intercreditor Agreement.

                  (b) PURCHASE RIGHTS OF  CERTIFICATEHOLDERS.  At any time after
the  occurrence  and  during  the  continuation  of  a  Triggering  Event,  each
Certificateholder shall have the right (which shall not expire upon any purchase
of the Class A Certificates pursuant to the Class B Trust Agreement) to purchase
all,  but not  less  than  all,  of the  Class A  Certificates  and the  Class B
Certificates  upon ten days' written notice to the Class A Trustee,  the Class B
Trustee and each other Certificateholder,  PROVIDED that (A) if prior to the end
of such ten-day  period any other  Certificateholder  notifies  such  purchasing
Certificateholder that such other Certificateholder wants to participate in such
purchase,  then  such  other  Certificateholder  may join  with  the  purchasing
Certificateholder  to  purchase  all,  but not less  than  all,  of the  Class A
Certificates  and the  Class B  Certificates  pro rata  based on the  Fractional
Undivided Interest in the Trust held by each such  Certificateholder  and (B) if
prior to the end of such  ten-day  period any other  Certificateholder  fails to
notify the purchasing Certificateholder of such other Certificateholder's desire
to participate in such a purchase,  then such other Certificateholder shall lose
its right to  purchase  the Class A  Certificates  and the Class B  Certificates
pursuant to this Section 6.01(b).

                  No such purchase of the Class A  Certificates  and the Class B
Certificates  shall be effective unless the purchaser shall certify to the Other
Trustees  of each such Class that  contemporaneously  with such  purchase,  such
purchaser is  purchasing,  pursuant to the terms of this Agreement and the Other
Pass  Through  Trust  Agreements,  the  Class A  Certificates  and  the  Class B
Certificates. Each payment of the purchase price of the Class A Certificates and
the  Class  B  Certificates  as  determined  in the  Other  Pass  Through  Trust
Agreements  shall be made to an account or  accounts  designated  by the Trustee
under such Other Pass Through Trust  Agreements  and each such purchase shall be
subject to the terms of this Section.  The Class A Certificates  and the Class B
Certificates  will be deemed to be purchased on the date payment of the purchase
price is made  notwithstanding the failure of the  Certificateholders  of either
Class to deliver any Certificates  (whether in the form of Physical Certificates
or beneficial interests in Global  Certificates) and, upon such a purchase,  (i)
the  only  rights  of the  Certificateholders  will be to  deliver  the  Class A
Certificates or the Class B  Certificates,  as the case may be, to the purchaser
and receive the purchase  price for the  Certificates  and (ii) if the purchaser
shall so request such  Certificateholder  will comply with all of the provisions
of Section  3.04 of the Other Pass  Through  Trust  Agreement  for such Class to
enable new  Certificates to be issued to the purchaser in such  denominations as
it shall  request.  All charges and expenses in connection  with the issuance of
any such new Certificates shall be borne by the purchaser thereof.

                  As used in this Section 6.01(b), the terms ""Class",  "Class A
Certificate",   "Class  A  Trustee",  "Class  B  Certificate",  "Class  B  Trust
Agreement" and "Class B Trustee" shall have the respective  meanings assigned to
such terms in the Intercreditor Agreement.

                  Section 6.02.  INCIDENTS OF SALE OF EQUIPMENT NOTES.  Upon any
sale of all or any part of the  Equipment  Notes made either  under the power of
sale  given  under this  Agreement  or  otherwise  for the  enforcement  of this
Agreement, the following shall be applicable:

                  (1)  CERTIFICATEHOLDERS  AND  TRUSTEE MAY  PURCHASE  EQUIPMENT
         NOTES.  Any  Certificateholder,  the Trustee in its  individual  or any
         other  capacity or any other Person may bid for and purchase any of the
         Equipment  Notes, and upon compliance with the terms of sale, may hold,
         retain,  possess  and  dispose  of such  Equipment  Notes in their  own
         absolute right without further accountability.

                  (2) RECEIPT OF TRUSTEE SHALL DISCHARGE PURCHASER.  The receipt
         of the Trustee or of the officer making such sale shall be a sufficient
         discharge to any purchaser for his purchase  money,  and,  after paying
         such purchase money and receiving  such receipt,  such purchaser or its
         personal  representative  or assigns shall not be obliged to see to the
         application of such purchase money, or be in any way answerable for any
         loss, misapplication or non-application thereof.

                  (3)  APPLICATION  OF MONEYS  RECEIVED  UPON  SALE.  Any moneys
         collected  by the Trustee  upon any sale made either under the power of
         sale given by this  Agreement or otherwise for the  enforcement of this
         Agreement shall be applied as provided in Section 4.02.

                  Section  6.03.  JUDICIAL  PROCEEDINGS  INSTITUTED  BY TRUSTEE;
TRUSTEE  MAY BRING  SUIT.  If there  shall be a failure  to make  payment of the
principal of,  premium,  if any, or interest on any Equipment  Note, or if there
shall be any failure to pay Rent (as defined in the  relevant  Lease)  under any
Lease when due and payable, then the Trustee, in its own name, and as trustee of
an express trust, as holder of such Equipment  Notes, to the extent permitted by
and in  accordance  with the  terms  of the  Intercreditor  Agreement,  the Note
Purchase  Agreement  and  the  Note  Documents  (subject  to the  rights  of the
applicable  Owner  Trustee  or Owner  Participant  to cure any such  failure  in
accordance with Section 4.03 of the applicable Indenture), shall be entitled and
empowered to institute any suits,  actions or  proceedings  at law, in equity or
otherwise,  for the  collection of the sums so due and unpaid on such  Equipment
Notes or under such Lease and may  prosecute  any such  claim or  proceeding  to
judgment or final  decree with  respect to the whole  amount of any such sums so
due and unpaid.

                  Section  6.04.  CONTROL  BY  CERTIFICATEHOLDERS.   Subject  to
Section 6.03 and the Intercreditor  Agreement,  the  Certificateholders  holding
Certificates evidencing Fractional Undivided Interests aggregating not less than
a majority  in  interest  in the Trust  shall have the right to direct the time,
method and place of conducting any  proceeding  for any remedy  available to the
Trustee with respect to the Trust or pursuant to the terms of the  Intercreditor
Agreement,  or exercising any trust or power conferred on the Trustee under this
Agreement or the Intercreditor Agreement,  including any right of the Trustee as
Controlling  Party  under  the  Intercreditor  Agreement  or as  holder  of  the
Equipment Notes, PROVIDED that:

     (1) such  Direction  shall not be in conflict  with any rule of law or with
this  Agreement  and would not  involve the  Trustee in  personal  liability  or
expense,

     (2) the Trustee  shall not determine  that the action so directed  would be
unjustly  prejudicial  to  the   Certificateholders  not  taking  part  in  such
Direction, and

     (3) the  Trustee  may take any other  action  deemed  proper by the Trustee
which is not inconsistent with such Direction.

                  Section  6.05.  WAIVER  OF  PAST  DEFAULTS.   Subject  to  the
Intercreditor Agreement, the Certificateholders  holding Certificates evidencing
Fractional Undivided Interests  aggregating not less than a majority in interest
in the Trust (i) may on behalf of all of the  Certificateholders  waive any past
Event of Default  hereunder and its  consequences  or (ii) if the Trustee is the
Controlling  Party,  may direct the  Trustee to  instruct  the  applicable  Loan
Trustee  to  waive  any past  Indenture  Default  under  any  Indenture  and its
consequences,  and thereby annul any Direction given by such  Certificateholders
or the Trustee to such Loan Trustee with respect thereto, except a default:

     (1) in the  deposit  of any  Scheduled  Payment or  Special  Payment  under
Section 4.01 or in the  distribution  of any payment  under  Section 4.02 on the
Certificates, or

     (2) in the payment of the principal of (premium, if any) or interest on the
Equipment Notes, or

     (3) in respect of a covenant or  provision  hereof  which under  Article IX
hereof   cannot  be   modified   or  amended   without   the   consent  of  each
Certificateholder holding an Outstanding Certificate affected thereby.

                  Upon any such waiver,  such default  shall cease to exist with
respect to the Certificates and any Event of Default arising  therefrom shall be
deemed to have  been  cured for every  purpose  and any  direction  given by the
Trustee on behalf of the  Certificateholders  to the relevant Loan Trustee shall
be  annulled  with  respect  thereto;  but no such  waiver  shall  extend to any
subsequent or other  default or Event of Default or impair any right  consequent
thereon. Upon any such waiver, the Trustee shall vote the Equipment Notes issued
under the relevant Indenture to waive the corresponding Indenture Default.

                  Section 6.06. RIGHT OF  CERTIFICATEHOLDERS TO RECEIVE PAYMENTS
NOT TO BE IMPAIRED.  Anything in this Agreement to the contrary notwithstanding,
including,  without  limitation,   Section  6.07  hereof,  but  subject  to  the
Intercreditor   Agreement,   the  right  of  any  Certificateholder  to  receive
distributions  of  payments  required  pursuant  to Section  4.02  hereof on the
Certificates  when due, or to  institute  suit for the  enforcement  of any such
payment  on or  after  the  applicable  Regular  Distribution  Date  or  Special
Distribution Date, shall not be impaired or affected without the consent of such
Certificateholder.

                  Section  6.07.  CERTIFICATEHOLDERS  MAY NOT BRING SUIT  EXCEPT
UNDER  CERTAIN  CONDITIONS.  A  Certificateholder  shall  not have the  right to
institute any suit,  action or proceeding at law or in equity or otherwise  with
respect  to  this  Agreement,  for  the  appointment  of a  receiver  or for the
enforcement of any other remedy under this Agreement, unless:

     (1) such  Certificateholder  previously  shall have given written notice to
the Trustee of a continuing Event of Default;

     (2) Certificateholders holding Certificates evidencing Fractional Undivided
Interests  aggregating  not less than 25% of the Trust shall have  requested the
Trustee in writing to institute  such action,  suit or proceeding and shall have
offered to the Trustee indemnity as provided in Section 7.02(e);

     (3) the Trustee  shall have  refused or  neglected  to  institute  any such
action, suit or proceeding for 60 days after receipt of such notice, request and
offer of indemnity; and

     (4) no Direction  inconsistent  with such written request has been given to
the  Trustee  during  such  60-day  period  by  the  Certificateholders  holding
Certificates evidencing Fractional Undivided Interests aggregating not less than
a majority in interest in the Trust.

                  It is  understood  and  intended  that  no one or  more of the
Certificateholders  shall have any right in any  manner  whatever  hereunder  or
under the  Certificates  to (i) surrender,  impair,  waive,  affect,  disturb or
prejudice any property in the Trust Property or the lien of any Indenture on any
property subject thereto, or the rights of the Certificateholders or the holders
of the related  Equipment Notes,  (ii) obtain or seek to obtain priority over or
preference to any other such  Certificateholder or (iii) enforce any right under
this Agreement,  except in the manner herein provided and for the equal, ratable
and common  benefit of all the  Certificateholders  subject to the provisions of
this Agreement.

                  Section  6.08.   REMEDIES   CUMULATIVE.   Every  remedy  given
hereunder  to the  Trustee  or to any of  the  Certificateholders  shall  not be
exclusive  of any other  remedy or  remedies,  and every  such  remedy  shall be
cumulative  and in addition  to every other  remedy  given  hereunder  or now or
hereafter given by statute, law, equity or otherwise.

                  Section  6.09.  UNDERTAKING  FOR  COSTS.  In any  suit for the
enforcement of any right or remedy under this Agreement,  or in any suit against
the Trustee for any action taken,  suffered or omitted by it as Trustee, a court
may require any party  litigant in such suit to file an  undertaking  to pay the
costs of such suit, and may assess costs against any such party litigant, in the
manner and to the extent  provided in the Trust  Indenture  Act;  PROVIDED  that
neither  this Section nor the Trust  Indenture  Act shall be deemed to authorize
any court to require such an  undertaking  or to make such an  assessment in any
suit instituted by the Company or the Guarantor.

                                   ARTICLE VII

                                   THE TRUSTEE

                  Section 7.01.  NOTICE OF DEFAULTS.  As promptly as practicable
after,  and in any event within 90 days after the  occurrence of any default (as
such term is defined below) hereunder actually known to the Trustee, the Trustee
shall transmit by mail to the Company,  the related Owner Trustees,  the related
Loan Trustees and the  Certificateholders  in accordance  with Section 313(c) of
the Trust Indenture Act, notice of such default hereunder  actually known to the
Trustee, unless such default shall have been cured or waived; PROVIDED, HOWEVER,
that,  except  in the case of a  default  in the  payment  of the  principal  of
(premium,  if any) or  interest on any  Equipment  Note,  the  Trustee  shall be
protected in  withholding  such notice if and so long as the board of directors,
the executive  committee or a trust  committee of directors  and/or  Responsible
Officers of the Trustee in good faith  determine  that the  withholding  of such
notice is in the  interests of the  Certificateholders.  For the purpose of this
Section, the term "default" means any event that is, or after notice or lapse of
time or both would become, an Event of Default.

     Section  7.02.  CERTAIN  RIGHTS OF TRUSTEE.  Subject to the  provisions  of
Section 315 of the Trust Indenture Act:

                  (a) the Trustee may rely and shall be  protected  in acting or
         refraining  from acting in reliance upon any  resolution,  certificate,
     statement, instrument, opinion, report, notice, request, direction,
         consent,  order, bond, debenture or other paper or document believed by
         it to be genuine  and to have been  signed or  presented  by the proper
         party or parties;

     (b) any request or  direction  of the  Company  mentioned  herein  shall be
sufficiently evidenced by a Request;

     (c) whenever in the  administration  of this Agreement or the Intercreditor
Agreement  the  Trustee  shall  deem it  desirable  that a matter  be  proved or
established  prior to taking,  suffering or omitting any action  hereunder,  the
Trustee (unless other evidence be herein  specifically  prescribed)  may, in the
absence  of bad faith on its part,  rely upon an  Officers'  Certificate  of the
Company, any Owner Trustee or any Loan Trustee;

     (d) the Trustee may consult  with counsel and the advice of such counsel or
any Opinion of Counsel shall be full and complete  authorization  and protection
in respect of any action  taken,  suffered  or omitted by it  hereunder  in good
faith and in reliance thereon;

     (e) the Trustee  shall be under no obligation to exercise any of the rights
or powers vested in it by this Agreement or the  Intercreditor  Agreement at the
request or direction of any of the Certificateholders pursuant to this Agreement
or the Intercreditor Agreement unless such Certificateholders shall have offered
to the Trustee reasonable  security or indemnity against the cost,  expenses and
liabilities  which might be incurred by it in  compliance  with such  request or
direction;

     (f) the Trustee shall not be bound to make any investigation into the facts
or  matters  stated  in  any  resolution,  certificate,  statement,  instrument,
opinion, or report, notice, request, direction,  consent, order, bond, debenture
or other paper or document;

     (g) the  Trustee  may  execute  any of the  trusts  or  powers  under  this
Agreement  or the  Intercreditor  Agreement  or perform  any  duties  under this
Agreement or the Intercreditor Agreement either directly or by or through agents
or attorneys  and the Trustee  shall not be  responsible  for any  misconduct or
negligence  on the part of any agent or attorney  appointed  with due care by it
under this Agreement or the Intercreditor Agreement;

     (h) the  Trustee  shall not be liable with  respect to any action  taken or
omitted to be taken by it in good faith in accordance  with the direction of the
Certificateholders   holding   Certificates   evidencing   Fractional  Undivided
Interests aggregating not less than a majority in interest in the Trust relating
to the time,  method  and place of  conducting  any  proceeding  for any  remedy
available to the Trustee,  or exercising  any trust or power  conferred upon the
Trustee, under this Agreement or the Intercreditor Agreement;

     (i) the  Trustee  shall not be  required to expend or risk its own funds in
the performance of any of its duties under this Agreement, or in the exercise of
any of its rights or powers,  if it shall have reason to believe that  repayment
of such funds or adequate  indemnity against such risk is not reasonably assured
to it; and

     (j) except  during the  continuance  of an Event of  Default,  the  Trustee
undertakes  and  shall  be  responsible  to  perform  only  such  duties  as are
specifically set forth herein and no implied  covenants or obligations  shall be
read into this Agreement or be enforceable against Trustee.

                  Section  7.03.  NOT  RESPONSIBLE  FOR  RECITALS OR ISSUANCE OF
CERTIFICATES. The recitals contained herein and in the Certificates,  except the
certificates  of  authentication,  shall not be taken as the  statements  of the
Trustee,  and the  Trustee  assumes  no  responsibility  for their  correctness.
Subject to Section 7.14, the Trustee makes no representations as to the validity
or  sufficiency  of this  Agreement,  the  Note  Purchase  Agreement,  any  Note
Documents,  any  Participation  Agreement or any  Intercreditor  Agreement,  the
Deposit Agreement, the Escrow Agreement and Equipment Notes or the Certificates,
except that the Trustee  hereby  represents and warrants that this Agreement has
been,  and each  Certificate,  the  Intercreditor  Agreement,  the Note Purchase
Agreement,  the Escrow  Agreement  and each  Certificate  will be,  executed and
delivered by one of its officers who is duly  authorized  to execute and deliver
such document on its behalf.

                  Section 7.04. MAY HOLD CERTIFICATES.  The Trustee,  any Paying
Agent,  Registrar  or any of  their  Affiliates  or any  other  agent,  in their
respective individual or any other capacity,  may become the owner or pledgee of
Certificates  and subject to Sections 310(b) and 311 of the Trust Indenture Act,
if  applicable,  may otherwise deal with the Company,  the Guarantor,  the Owner
Trustees or the Loan  Trustees with the same rights it would have if it were not
Trustee, Paying Agent, Registrar or such other agent.

                  Section 7.05.  MONEY HELD IN TRUST.  Money held by the Trustee
or the Paying Agent in trust  hereunder need not be segregated  from other funds
except to the extent  required  herein or by law and neither the Trustee nor the
Paying Agent shall have any  liability  for interest upon any such moneys except
as provided for herein.

        Section 7.06. COMPENSATION AND REIMBURSEMENT. The Company agrees:
                         ------------------------------

                  (1) to pay, or cause to be paid,  to the Trustee  compensation
         (as set out in a separate  fee  agreement  between  the Trustee and the
         Company) for all services rendered by it hereunder (which  compensation
         shall  not  be  limited  by any  provision  of  law  in  regard  to the
         compensation of a trustee of an express trust);

                  (2)  except  as  otherwise   expressly   provided   herein  to
         reimburse, or cause to be reimbursed,  the Trustee upon its request for
         all  reasonable  out-of-pocket  expenses,  disbursements  and  advances
         incurred or made by the Trustee in  accordance  with any  provision  of
         this Agreement or the Intercreditor Agreement (including the reasonable
         compensation  and the  expenses  and  disbursements  of its  agents and
         counsel),  except any such expense,  disbursement  or advance as may be
         attributable to its negligence,  willful  misconduct or bad faith or as
         may be incurred due to the Trustee's breach of its  representations and
         warranties set forth in Section 7.14;

                  (3) to indemnify, or cause to be indemnified, the Trustee for,
         and to hold it harmless against,  any loss, liability or expense (other
         than for or with  respect  to any  tax)  incurred  without  negligence,
         willful  misconduct  or bad faith,  on its part,  arising  out of or in
         connection  with  the  acceptance  or  administration  of  this  Trust,
         including the costs and expenses of defending  itself against any claim
         or liability in connection  with the exercise or  performance of any of
         its powers or duties hereunder,  except for any such loss, liability or
         expense   incurred   by   reason  of  the   Trustee's   breach  of  its
         representations  and  warranties set forth in Section 7.14. The Trustee
         shall  notify the Company and the  Guarantor  promptly of any claim for
         which it may seek indemnity. The Company and the Guarantor shall defend
         the claim and the Trustee shall  cooperate in the defense.  The Trustee
         may have  separate  counsel  with the  consent of the  Company  and the
         Guarantor  and the Company and the  Guarantor  will pay the  reasonable
         fees  and  expenses  of  such  counsel.  Neither  the  Company  nor the
         Guarantor need pay for any settlement made without its consent; and

                  (4) to  indemnify,  or cause to be  indemnified,  the Trustee,
         solely  in its  individual  capacity,  for,  and to  hold  it  harmless
         against,  any tax  (except  to the extent  the  Trustee  is  reimbursed
         therefor   pursuant   to  the   next   paragraph,   provided   that  no
         indemnification shall be available with respect to any tax attributable
         to the Trustee's  compensation  for serving as such)  incurred  without
         negligence,  willful  misconduct or bad faith, on its part, arising out
         of or in  connection  with the  acceptance  or  administration  of this
         Trust,  including  any costs and expenses  incurred in  contesting  the
         imposition of any such tax. The Trustee,  in its  individual  capacity,
         shall  notify the Company and the  Guarantor  promptly of any claim for
         any tax for which it may seek  indemnity.  The Trustee shall permit the
         Company and the Guarantor to contest the imposition of such tax and the
         Trustee,  in its individual  capacity,  shall cooperate in the defense.
         The Trustee, in its individual capacity, may have separate counsel with
         the consent of the Company  and the  Guarantor  and the Company and the
         Guarantor  will pay the  reasonable  fees and expenses of such counsel.
         Neither the Company nor the  Guarantor  need pay for any taxes paid, in
         settlement or otherwise, without its consent.

                  The Trustee shall be entitled to reimbursement from, and shall
have a lien  prior to the  Certificates  upon,  the Trust  Property  for any tax
incurred  without  negligence,  bad  faith or  willful  misconduct  on its part,
arising out of or in connection  with the acceptance or  administration  of such
Trust (other than any tax attributable to the Trustee's compensation for serving
as such), including any costs and expenses incurred in contesting the imposition
of any such tax.  The Trustee  shall notify the Company of any claim for any tax
for which it may seek reimbursement.  The Trustee shall cooperate in the contest
by the Company of any such  claim.  If the  Trustee  reimburses  itself from the
Trust  Property  for any such tax it will  within  30 days  mail a brief  report
setting  forth  the  amount  of such tax and the  circumstances  thereof  to all
Certificateholders as their names and addresses appear in the Register.

                  As security  for the  performance  of the  obligations  of the
Company  under  this  Section  the  Trustee  shall  have  a  lien  prior  to the
Certificates upon the Trust Property.

                  Section 7.07. CORPORATE TRUSTEE REQUIRED,  ELIGIBILITY . There
shall at all times be a Trustee  hereunder  which  shall be eligible to act as a
trustee  under  Section  310(a) of the  Trust  Indenture  Act and  shall  have a
combined capital and surplus of at least  $75,000,000 (or a combined capital and
surplus in excess of $5,000,000  and the  obligations  of which,  whether now in
existence or hereafter incurred,  are fully and unconditionally  guaranteed by a
corporation  organized and doing  business  under the laws of the United States,
any  State or  Territory  thereof  or of the  District  of  Columbia  that has a
combined  capital  and  surplus of at least  $75,000,000).  If such  corporation
publishes  reports of  conditions at least  annually,  pursuant to law or to the
requirements of federal, state,  territorial or District of Columbia supervising
or examining authority, then for the purposes of this Section 7.07, the combined
capital  and  surplus  of such  corporation  shall be deemed to be its  combined
capital  and  surplus as set forth in its most recent  report of  conditions  so
published.

                  In case at any time the Trustee  shall cease to be eligible in
accordance  with the  provisions  of this  Section  7.07 to act as Trustee,  the
Trustee  shall resign  immediately  as Trustee in the manner and with the effect
specified in Section 7.08.

        Section 7.08. RESIGNATION AND REMOVAL: APPOINTMENT OF SUCCESSOR.
                -------------------------------------------------

                  (a)  No   resignation   or  removal  of  the  Trustee  and  no
appointment  of a  successor  Trustee  pursuant  to this  Article  shall  become
effective  until the acceptance of  appointment  by the successor  Trustee under
Section 7.09.

                  (b) The  Trustee  may  resign at any time as trustee by giving
written notice thereof to the Company, the Authorized Agents, the Owner Trustees
and the Loan  Trustees.  If an instrument  of acceptance by a successor  Trustee
shall not have been delivered to the Company,  the Authorized  Agents, the Owner
Trustees,  the Loan Trustees and the Trustee  within 30 days after the giving of
such notice of  resignation,  the  resigning  Trustee may  petition any court of
competent jurisdiction for the appointment of a successor Trustee.

                  (c)  The  Trustee  may be  removed  at any  time by Act of the
Certificateholders   holding   Certificates   evidencing   Fractional  Undivided
Interests  aggregating  not  less  than a  majority  in  interest  in the  Trust
delivered to the Trustee, the Company, the Owner Trustees and the Loan Trustees.

                  (d)      If at any time:

                  (1) the Trustee  shall fail to comply with  Section 310 of the
         Trust Indenture Act after written request therefor by the Company or by
         any Certificateholder who has been a bona fide certificateholder for at
         least six months; or

                  (2) the Trustee shall cease to be eligible  under Section 7.07
         and shall fail to resign after written request  therefor by the Company
         or by any such Certificateholder; or

                  (3) the Trustee  shall become  incapable of acting or shall be
         adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
         property  shall be appointed or any public officer shall take charge or
         control of the Trustee or of its property or affairs for the purpose of
         rehabilitation, conservation or liquidation;

then,  in any  case,  (i) the  Company  may  remove  the  Trustee  or  (ii)  any
Certificateholder  who has been a bona fide  Certificateholder  for at least six
months may, on behalf of himself and all others similarly situated, petition any
court  of  competent  jurisdiction  for  the  removal  of the  Trustee  and  the
appointment of a successor Trustee.

                  (e) If a  Responsible  Officer  of the  Trustee  shall  obtain
actual knowledge of an Avoidable Tax (as hereinafter  defined) which has been or
is likely to be  asserted,  the Trustee  shall  promptly  notify the Company and
shall,  within 30 days of such notification,  resign as Trustee hereunder unless
within  such  30-day  period the  Trustee  shall have  received  notice that the
Company  has  agreed to pay such  tax.  The  Company  shall  promptly  appoint a
successor Trustee in a jurisdiction  where there are no Avoidable Taxes. As used
herein,  an "Avoidable  Tax" means a state or local tax: (i) upon (w) the Trust,
(x) the Trust Property,  (y) Certificateholders or (z) the Trustee for which the
Trustee is  entitled to seek  reimbursement  from the Trust  Property,  and (ii)
which  would be avoided  if the  Trustee  were  located  in  another  state,  or
jurisdiction  within a state,  within the United  States.  A tax shall not be an
Avoidable  Tax if the Company or any Owner Trustee shall agree to pay, and shall
pay, such tax.

                  (f)  If  the  Trustee  shall  resign,  be  removed  or  become
incapable of acting as trustee or if a vacancy  shall occur in the office of the
Trustee for any cause, the Company shall promptly  appoint a successor  Trustee.
If, within 90 days after such  resignation,  removal or  incapability,  or other
occurrence of such vacancy, a successor Trustee shall be appointed by Act of the
Certificateholders   holding   Certificates   evidencing   Fractional  Undivided
Interests  aggregating  not  less  than a  majority  in  interest  in the  Trust
delivered to the Company, the Owner Trustees,  the Loan Trustee and the retiring
Trustee,  the successor  Trustees so appointed  shall,  with the approval of the
Company, which approval shall not be unreasonably  withheld,  forthwith upon its
acceptance of such  appointment,  become the successor Trustee and supersede the
successor  Trustee  appointed as provided above.  If no successor  Trustee shall
have been so appointed as provided above and accepted  appointment in the manner
hereinafter  provided,  the resigning Trustee or any  Certificateholder  who has
been a bona fide  Certificateholder  for at least six months  may,  on behalf of
himself  and all others  similarly  situated,  petition  any court of  competent
jurisdiction for the appointment of a successor Trustee.

                  (g) The successor  Trustee of a Trust shall give notice of the
resignation and removal of the Trustee and appointment of the successor  Trustee
by mailing written notice of such event by first-class mail, postage prepaid, to
the Certificateholders as their names and addresses appear in the Register. Each
notice shall include the name of such  successor  Trustee and the address of its
Corporate Trust Office.

                  Section 7.09.  ACCEPTANCE OF APPOINTMENT  BY SUCCESSOR.  Every
successor Trustee appointed hereunder shall execute,  acknowledge and deliver to
the  Company  and  to  the  retiring   Trustee  an  instrument   accepting  such
appointment,  and thereupon the  resignation or removal of the retiring  Trustee
shall become effective and such successor Trustee, without any further act, deed
or  conveyance,  shall  become  vested with all the rights,  powers,  trusts and
duties of the retiring Trustee;  but, on request of the Company or the successor
Trustee,   such  retiring  Trustee  shall  execute  and  deliver  an  instrument
transferring to such successor Trustee all such rights, powers and trusts of the
retiring  Trustee and shall duly assign,  transfer and deliver to such successor
Trustee  all  property  and  money  held  by  such  retiring  Trustee,   subject
nevertheless to its lien, if any,  provided for in Section 7.06. Upon request of
any such successor Trustee, the Company, the retiring Trustee and such successor
Trustee  shall  execute  and  deliver any and all  instruments  containing  such
provisions  as shall be  necessary  or desirable to transfer and confirm to, and
for more fully and certainly vesting in, such successor Trustee all such rights,
powers and trusts.

                  No successor  Trustee shall accept its  appointment  unless at
the time of such  acceptance  such  successor  Trustee  shall be  qualified  and
eligible under this Article.

                  Section 7.10. MERGER, CONVERSION,  CONSOLIDATION OR SUCCESSION
TO BUSINESS.  Any corporation  into which the Trustee may be merged or converted
or with which it may be  consolidated,  or any  corporation  resulting  from any
merger,  conversion or  consolidation  to which the Trustee shall be a party, or
any corporation  succeeding to all or  substantially  all of the corporate trust
business  of the  Trustee,  shall be the  successor  of the  Trustee  hereunder,
PROVIDED such corporation  shall be otherwise  qualified and eligible under this
Article,  without the execution or filing of any paper or any further act on the
part of any of the  parties  hereto.  In case any  Certificates  shall have been
executed or authenticated, but not delivered, by the Trustee then in office, any
successor by merger,  conversion or consolidation to such authenticating Trustee
may adopt such  execution  or  authentication  and deliver the  Certificates  so
executed or authenticated  with the same effect as if such successor Trustee had
itself executed or authenticated such Certificates.

                  Section 7.11. MAINTENANCE OF AGENCIES.
                                -----------------------

                  (a) There shall at all times be maintained an office or agency
where  Certificates may be presented or surrendered for registration of transfer
or for  exchange,  and for payment  thereof and where  notices and demands to or
upon the Trustee in respect of such  Certificates  may be served.  Presentations
and demands may be made and notices may be served at the Corporate  Trust Office
of the Trustee.

                  (b) There shall at all times be a Registrar and a Paying Agent
hereunder with respect to the Certificates.  Each such Authorized Agent shall be
a bank or trust  company,  shall be a corporation  organized and doing  business
under the laws of the United  States or any state,  with a combined  capital and
surplus of at least $75,000,000,  or a corporation having a combined capital and
surplus in excess of $5,000,000  the  obligations  of which are  guaranteed by a
corporation  organized and doing business under the laws of the United States or
any state,  with a combined  capital  and surplus of at least  $75,000,000,  and
shall be authorized under such laws to exercise corporate trust powers,  subject
to supervision by federal or state  authorities.  The Trustee shall initially be
the Paying  Agent and, as provided in Section  3.04,  Registrar  hereunder  with
respect to the  Certificates.  Each Registrar  shall furnish to the Trustee,  at
stated  intervals  of not more than six  months,  and at such other times as the
Trustee  may  request in  writing,  a copy of the  Register  maintained  by such
Registrar.

                  (c) Any  corporation  into which any  Authorized  Agent may be
merged or converted  or with which it may be  consolidated,  or any  corporation
resulting from any merger,  consolidation  or conversion to which any Authorized
Agent,  shall be a party, or any  corporation  succeeding to the corporate trust
business of any  Authorized  Agent,  shall be the  successor of such  Authorized
Agent hereunder,  if such successor corporation is otherwise eligible under this
Section,  without the execution or filing of any paper or any further act on the
part  of  the  parties  hereto  or  such  Authorized  Agent  or  such  successor
corporation.

                  (d) Any  Authorized  Agent  may at any time  resign  by giving
written notice of resignation  to the Trustee,  the Company,  the Owner Trustees
and the Loan Trustees. The Company may, and at the request of the Trustee shall,
at any time  terminate  the  agency of any  Authorized  Agent by giving  written
notice of  termination  to such  Authorized  Agent and to the Trustee.  Upon the
resignation  or  termination  of an Authorized  Agent or in case at any time any
such  Authorized  Agent shall cease to be eligible  under this Section  (when in
either  case,  no  other  Authorized  Agent  performing  the  functions  of such
Authorized Agent shall have been appointed),  the Company shall promptly appoint
one or more qualified successor  Authorized Agents,  reasonably  satisfactory to
the Trustee, to perform the functions of the Authorized Agent which has resigned
or whose  agency has been  terminated  or who shall have  ceased to be  eligible
under  this  Section.  The  Company  shall  give  written  notice  of  any  such
appointment made by it to the Trustee, the Owner Trustees and the Loan Trustees;
and in each  case the  Trustee  shall  mail  notice of such  appointment  to all
Certificateholders as their names and addresses appear on the Register.

                  (e) The Company agrees to pay, or cause to be paid,  from time
to time to each Authorized Agent reasonable compensation for its services and to
reimburse it for its reasonable expenses.

                  Section  7.12.  MONEY FOR  CERTIFICATE  PAYMENTS TO BE HELD IN
TRUST. All moneys deposited with any Paying Agent for the purpose of any payment
on  Certificates  shall be  deposited  and held in trust for the  benefit of the
Certificateholders  entitled to such payment,  subject to the provisions of this
Section. Moneys so deposited and held in trust shall constitute a separate trust
fund for the benefit of the Certificateholders  with respect to which such money
was deposited.

                  The Trustee may at any time,  for the purpose of obtaining the
satisfaction  and discharge of this Agreement or for any other  purpose,  direct
any Paying  Agent to pay to the  Trustee  all sums held in trust by such  Paying
Agent,  such sums to be held by the  Trustee  upon the same trusts as those upon
which such sums were held by such  Paying  Agent and,  upon such  payment by any
Paying  Agent to the  Trustee,  such Paying  Agent  shall be  released  from all
further liability with respect to such money.

                  Section  7.13.  REGISTRATION  OF  EQUIPMENT  NOTES  IN NAME OF
SUBORDINATION AGENT. The Trustee agrees that all Equipment Notes to be purchased
by the  Trust  shall be  issued  in the name of the  Subordination  Agent or its
nominee  and held by the  Subordination  Agent in trust for the  benefit  of the
Certificateholders,  or, if not so held, the Subordination  Agent or its nominee
shall be reflected as the owner of such  Equipment  Notes in the register of the
issuer of such Equipment Notes.

     Section 7.14. REPRESENTATIONS AND WARRANTIES OF TRUSTEE. The Trustee hereby
represents and warrants on the Transfer Date that:

     (a) the Trustee is a Delaware  banking  corporation  organized  and validly
existing, and in good standing under the laws of the State of Delaware;

     (b) the Trustee has full  power,  authority  and legal right to receive the
Trust Property  assigned by the Related Trustee,  assume the obligations  under,
and perform,  the Assignment  and  Assumption  Agreement,  this  Agreement,  the
Intercreditor  Agreement,  the Escrow Agreement, the Note Purchase Agreement and
the Note Documents to which it is a party and has taken all necessary  action to
authorize such receipt,  assumption and  performance by it of the Assignment and
Assumption Agreement,  this Agreement,  the Intercreditor  Agreement, the Escrow
Agreement,  the Note Purchase  Agreement and the Note Documents to which it is a
party;

     (c) the receipt of the Trust  Property  under the Assignment and Assumption
Agreement and the  performance  by the Trustee of the  Assignment and Assumption
Agreement,  this Agreement,  the Intercreditor  Agreement, the Escrow Agreement,
the Note Purchase  Agreement  and the Note  Documents to which it is a party (i)
will not violate any  provision of any United  States  federal law or the law of
the State of Delaware  governing  the banking and trust powers of the Trustee or
any order, writ, judgment,  or decree of any court,  arbitrator,or  governmental
authority  applicable to the Trustee or any of its assets, (ii) will not violate
any  provision of the  articles of  association  or by-laws of the Trustee,  and
(iii) will not violate any provision of, or  constitute,  with or without notice
or lapse of time, a default  under,  or result in the creation or  imposition of
any lien on any  properties  included  in the  Trust  Property  pursuant  to the
provisions of, any mortgage, indenture, contract, agreement or other undertaking
to which it is a party,  which  violation,  default or lien could  reasonably be
expected to have an adverse  effect on the Trustee's  performance  or ability to
perform its duties hereunder or thereunder or on the  transactions  contemplated
herein or therein;

     (d) the receipt of the Trust  Property  under the Assignment and Assumption
Agreement and the  performance  by the Trustee of the  Assignment and Assumption
Agreement,  this Agreement,  the Intercreditor  Agreement, the Escrow Agreement,
the Note Purchase  Agreement and the Note  Documents to which it is a party will
not require the authorization, consent, or approval of, the giving of notice to,
the filing or  registration  with,  or the taking of any other action in respect
of, any  governmental  authority or agency of the United  States or the State of
Delaware  regulating the banking and corporate trust  activities of the Trustee;
and

     (e) the  Assignment  and  Assumption  Agreement  has been duly executed and
delivered  by the Trustee and this  Agreement,  the  Assignment  and  Assumption
Agreement,  the Intercreditor Agreement, the Escrow Agreement, the Note Purchase
Agreement and the Note  Documents to which it is a party have been duly executed
and  delivered  by the  Trustee and  constitute  the legal,  valid,  and binding
agreements  of the  Trustee,  enforceable  against it in  accordance  with their
respective terms,  provided that enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
rights of creditors generally and (ii) general principles of equity.

                  Section 7.15. WITHHOLDING TAXES,  INFORMATION  REPORTING.  (a)
The Trustee,  as trustee of the grantor trust created by this  Agreement,  shall
exclude and withhold from each distribution of principal,  premium,  if any, and
interest and other  amounts due under this  Agreement or under the  Certificates
any and all withholding taxes applicable thereto as required by law. The Trustee
agrees to act as such withholding agent and, in connection  therewith,  whenever
any taxes or similar  charges are  required to be withheld  with  respect to any
amounts paid by or on behalf of the Trustee in respect of the  Certificates,  to
withhold  such  amounts and timely pay the same to the  authority in the name of
and on  behalf  of the  Certificateholders,  that it  will  file  any  necessary
withholding  tax  returns or  statements  when due,  and that,  as  promptly  as
possible   after  the   payment   thereof,   it  will   deliver   to  each  such
Certificateholder  necessary documentation showing the payment thereof, together
with  such  additional  documentary  evidence  as  such  Certificateholders  may
reasonably  request  from  time to time.  The  Trustee  agrees to file any other
information reports as it may be required to file under United States law.

                  (b) The Trustee may satisfy  certain of its  obligations  with
respect to this Agreement by retaining, at the expense of the Company, a firm of
independent   public  accountants  (the   "Accountants")   which  shall  (i)  be
responsible for all tax filing  requirements and (ii) perform the obligations of
the Trustee in respect of tax filing  requirements.  The Trustee shall be deemed
to have  discharged  its tax filing  obligations  under this  Agreement upon its
retention of the  Accountants,  and, if the Trustee  shall have  selected in the
Accountants  in good faith and without gross  negligence,  the Trustee shall not
have any liability with respect to the default or misconduct of the Accountants.

                  (c) The Trustee, at the request of the Company, will make such
United  States  federal  income tax elections as may be necessary to prevent the
Trust from being  classified  for federal  income tax purposes as an association
taxable as a corporation.

                  Section 7.16.  TRUSTEE'S  LIENS. The Trustee in its individual
capacity  agrees  that it will at its own cost  and  expense  promptly  take any
action as may be necessary to duly  discharge  and satisfy in full any mortgage,
pledge,  lien,  charge,  encumbrance,  security  interest  or claim  ("Trustee's
Liens") on or with respect to the Trust  Property which is  attributable  to the
Trustee  either (i) in its  individual  capacity  and which is  unrelated to the
transactions  contemplated by this Agreement,  the Intercreditor  Agreement, the
Participation Agreements,  the Note Purchase Agreement or the Note Documents, or
(ii) as Trustee hereunder or in its individual  capacity and which arises out of
acts or omissions which are not contemplated by this Agreement.

                  Section 7.17.  PREFERENTIAL  COLLECTION OF CLAIMS. The Trustee
shall comply with  Section  311(a) of the Trust  Indenture  Act,  excluding  any
creditor  relationship  listed in Section 311(b) of the Trust  Indenture Act. If
the  Trustee  shall  resign or be  removed  as  Trustee,  it shall be subject to
Section 311(a) of the Trust Indenture Act to the extent provided therein.

                                  ARTICLE VIII

                CERTIFICATEHOLDERS' LISTS AND REPORTS BY TRUSTEE

                  Section  8.01.  THE COMPANY TO FURNISH  TRUSTEE WITH NAMES AND
ADDRESSES  OF  CERTIFICATEHOLDERS.  The  Company  will  furnish  or  cause to be
furnished to the Trustee within 15 days after each Record Date with respect to a
Scheduled  Payment,  and at such  other  times as the  Trustee  may  request  in
writing,  within 30 days after  receipt by the  Company of any such  request,  a
list, in such form as the Trustee may reasonably  require, of all information in
the  possession  or control of the Company as to the names and  addresses of the
Certificateholders, in each case as of a date not more than 15 days prior to the
time such list is furnished;  PROVIDED,  HOWEVER, that so long as the Trustee is
the sole  Registrar,  no such  list need be  furnished;  and  provided  FURTHER,
HOWEVER,  that  no such  list  need  be  furnished  for so long as a copy of the
Register is being furnished to the Trustee pursuant to Section 7.11.

                  Section 8.02.  PRESERVATION OF INFORMATION;  COMMUNICATIONS TO
CERTIFICATEHOLDERS.  The  Trustee  shall  preserve,  in as  current a form as is
reasonably practicable,  the names and addresses of Certificateholders contained
in the most recent list  furnished to the Trustee as provided in Section 7.11 or
Section   8.01,   as  the  case  may  be,  and  the  names  and   addresses   of
Certificateholders  received by the Trustee in its capacity as Registrar,  if so
acting.  The Trustee may destroy any list furnished to it as provided in Section
7.11 or  Section  8.01,  as the  case  may be,  upon  receipt  of a new  list so
furnished.

                  Section 8.03. REPORTS BY TRUSTEE.  Within 60 days after May 15
of each year commencing with the first full year following the date hereof,  the
Trustee shall transmit to the Certificateholders,  as provided in Section 313(c)
of the Trust  Indenture Act, a brief report dated as of such May 15, if required
by Section 313(a) of the Trust Indenture Act.

     Section 8.04.  REPORTS BY THE GUARANTOR AND COMPANY.  The Guarantor and the
Company each shall:

                  (a) file with the Trustee,  within 30 days after the Guarantor
         or the Company is required to file the same with the SEC, copies of the
         annual reports and of the information,  documents and other reports (or
         copies of such  portions  of any of the  foregoing  as the SEC may from
         time to time by rules and regulations prescribe) which the Guarantor or
         the Company is required to file with the SEC  pursuant to section 13 or
         section 15(d) of the Securities  Exchange Act of 1934, as amended;  or,
         if the  Guarantor or the Company is not  required to file  information,
         documents or reports pursuant to either of such sections,  then to file
         with the Trustee and the SEC, in accordance  with rules and regulations
         prescribed  by  the  SEC,  such  of  the   supplementary  and  periodic
         information,  documents and reports  which may be required  pursuant to
         section 13 of the  Securities  Exchange  Act of 1934,  as  amended,  in
         respect of a security  listed and  registered on a national  securities
         exchange as may be prescribed in such rules and regulations;

                  (b) file with the Trustee and the SEC, in accordance  with the
         rules  and   regulations   prescribed  by  the  SEC,  such   additional
         information,  documents  and reports with respect to  compliance by the
         Guarantor  and the Company  with the  conditions  and  covenants of the
         Guarantor  and the Company  provided for in this  Agreement,  as may be
         required  by such  rules  and  regulations,  including,  in the case of
         annual reports, if required by such rules and regulations, certificates
         or  opinions  of  independent  public  accountants,  conforming  to the
         requirements of Section 1.02;

                  (c) transmit to all  Certificateholders,  in the manner and to
         the extent  provided in Section 313(c) of the Trust Indenture Act, such
         summaries  of any  information,  documents  and reports  required to be
         filed by the Guarantor and the Company  pursuant to subsections (a) and
         (b) of this  Section  8.04 as may be required by rules and  regulations
         prescribed by the SEC;

                  (d) furnish to the Trustee,  not less often than  annually,  a
         brief  certificate  from the  principal  executive  officer,  principal
         financial  officer  or  principal  accounting  officer as to his or her
         knowledge of the  Guarantor's  and the  Company's  compliance  with all
         conditions and covenants under this Agreement (it being understood that
         for purposes of this paragraph (d), such compliance shall be determined
         without regard to any period of grace or requirement of notice provided
         under this Agreement); and

                  (e) make available to any Certificateholder, upon request, the
         annual  audited and  quarterly  unaudited  financial  statements of the
         Guarantor which are provided to the Trustee.

                                   ARTICLE IX

                             SUPPLEMENTAL AGREEMENTS

                  Section  9.01.  SUPPLEMENTAL  AGREEMENTS  WITHOUT  CONSENT  OF
CERTIFICATEHOLDERS. Without the consent of the Certificateholders, the Guarantor
and the Company may,  and the Trustee  (subject to Section  9.03) shall,  at any
time  and from  time to time,  enter  into one or more  agreements  supplemental
hereto  or, if  applicable,  to the  Indenture,  the  Lease,  the  Participation
Agreement,  Intercreditor  Agreement,  the Escrow  Agreement,  the Note Purchase
Agreement,  the Deposit Agreement or the Liquidity Facility in form satisfactory
to the Trustee, for any of the following purposes:

                  (1) to evidence the  succession of another  corporation to the
         Company or the  Guarantor and the  assumption by any such  successor of
         the  covenants of the Company or the Guarantor  contained  herein or in
         each of the other  related  documents to which Company or the Guarantor
         is a party; or

                  (2) to add to the  covenants  of the  Guarantor or the Company
         for the benefit of the Certificateholders, or to surrender any right or
         power in this Agreement, the Note Purchase Agreement, the Intercreditor
         Agreement or any Liquidity Facility conferred upon the Guarantor or the
         Company; or

                  (3) to correct or supplement any provision in this  Agreement,
         the Intercreditor  Agreement,  the Escrow Agreement,  the Note Purchase
         Agreement, the Deposit Agreement or the Liquidity Facility which may be
         defective or inconsistent with any other provision herein or therein or
         to modify any other  provisions  with  respect to matters or  questions
         arising under this Agreement,  the Intercreditor  Agreement, the Escrow
         Agreement,  the Note Purchase  Agreement,  the Deposit Agreement or the
         Liquidity  Facility,  provided that any such action shall not adversely
         affect  the  interests  of  the  Certificateholders;  or  to  cure  any
         ambiguity or correct any mistake in such  documents,  or as provided in
         the  Intercreditor  Agreement,  to  give  effect  to or  provide  for a
         Replacement   Liquidity  Facility  (as  defined  in  the  Intercreditor
         Agreement); or

                  (4) to comply with any  requirement of the SEC, any applicable
         law, rules or regulations of any exchange or quotation  system on which
         the Certificates are listed, or any regulatory body; or

                  (5) to  modify,  eliminate  or add to the  provisions  of this
         Agreement  to such  extent  as  shall  be  necessary  to  continue  the
         qualification of this Agreement (including any supplemental  agreement)
         under the Trust  Indenture  Act, or under any similar  Federal  statute
         hereafter  enacted,  and to add to this Agreement such other provisions
         as may be expressly  permitted by the Trust  Indenture Act,  excluding,
         however,  the provisions  referred to in Section 316(a)(2) of the Trust
         Indenture Act as in effect at the date as of which this  instrument was
         executed or any corresponding  provision in any similar Federal statute
         hereafter enacted; or

                  (6) to evidence and provide for the  acceptance of appointment
         under this  Agreement by the Trustee of a successor  Trustee and to add
         to or  change  any of the  provisions  of this  Agreement  as  shall be
         necessary to provide for or facilitate the administration of the Trust,
         pursuant to the requirements of Section 7.09; or

                  (7) if with respect to any Owned  Aircraft the Company  issues
         "class D" pass through certificates, to modify, eliminate or add to the
         provisions of this Agreement to the extent necessary to provide for the
         subordination  of such  "class  D"  pass  through  certificates  to the
         Certificates;

PROVIDED  that no such action  described in this  Section 9.01 shall  materially
adversely affect the interests of the Certificateholders.

                  Section  9.02.   SUPPLEMENTAL   AGREEMENTS   WITH  CONSENT  OF
CERTIFICATEHOLDERS.   With  the  consent  of  the   Certificateholders   holding
Certificates evidencing Fractional Undivided Interests aggregating not less than
a majority in interest of the Trust, by Act of said Certificateholders delivered
to the Guarantor, the Company and the Trustee, the Guarantor and the Company may
(with the consent of the Owner  Trustees,  if any,  which  consent  shall not be
unreasonably  withheld),  and the Trustee (subject to Section 9.03) shall, enter
into an agreement or  agreements  supplemental  hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement,  the Intercreditor  Agreement, the Escrow Agreement, the Note
Purchase  Agreement,  the Deposit  Agreement  or the  Liquidity  Facility to the
extent applicable to such  Certificateholders  or of modifying in any manner the
rights and  obligations of such  Certificateholders  under this  Agreement,  the
Intercreditor  Agreement,  any Liquidity  Facility,  the Escrow  Agreement,  the
Deposit Agreement or the Note Purchase  Agreement;  PROVIDED,  HOWEVER,  that no
such supplemental  agreement shall, without the consent of the Certificateholder
of each Outstanding Certificate affected thereby:

     (1) reduce in any manner the amount of, or delay the timing of, any receipt
by the Trustee (or, with respect to the  Deposits,  the  Certificateholders)  of
payments on the Equipment Notes held in the Trust or under the Deposit Agreement
or  distributions  that are  required to be made herein on any  Certificate,  or
change  any date of payment  of any  Certificate  or change the place of payment
where, or the coin or currency in which,  any Certificate is payable,  or impair
the  right  to  institute  suit  for the  enforcement  of any  such  payment  or
distribution on or after the Regular  Distribution Date or Special  Distribution
Date applicable thereto; or

     (2) permit the  disposition  of any  Equipment  Note  included in the Trust
Property  except as  permitted  by this  Agreement,  or  otherwise  deprive such
Certificateholder  of the benefit of the ownership of the Equipment Notes in the
Trust; or

     (3) alter the  priority of  distributions  specified  in the  Intercreditor
Agreement; or

     (4) modify any of the provisions of this Section or Section 6.05, except to
increase any such percentage or to provide that certain other provisions of this
Agreement   cannot  be   modified   or  waived   without   the  consent  of  the
Certificateholder of each Certificate affected thereby; or

     (5)  adversely  affect  the  status of any Trust as a grantor  trust  under
Subpart E, Part I of  Subchapter  J of Chapter 1 of  Subtitle A of the  Internal
Revenue Code of 1986, as amended, for U.S. federal income tax purposes.

     It shall not be  necessary  for any Act of  Certificateholders  under  this
Section to approve the particular  form of any proposed  supplemental  agreement
but it shall be sufficient if such Act shall approve the substance thereof.

                  Section 9.03. DOCUMENTS AFFECTING IMMUNITY OR INDEMNITY. If in
the opinion of the Trustee any  document  required to be executed by it pursuant
to the terms of Section 9.01 or 9.02 affects any interest, right, duty, immunity
or indemnity in favor of the Trustee  under this  Agreement,  the Trustee may in
its discretion decline to execute such document.

                  Section  9.04.  EXECUTION  OF  SUPPLEMENTAL   AGREEMENTS.   In
executing,  or accepting  the  additional  trusts  created by, any  supplemental
agreement  permitted by this Article or the  modifications  thereby of the trust
created by this Agreement,  the Trustee shall be entitled to receive,  and shall
be fully  protected in relying upon,  written advice of counsel or an Opinion of
Counsel stating that the execution of such supplemental  agreement is authorized
or permitted by this Agreement.

                  Section  9.05.  EFFECT OF  SUPPLEMENTAL  AGREEMENTS.  Upon the
execution of any supplemental agreement under this Article, this Agreement shall
be modified in accordance therewith,  and such supplemental agreement shall form
a  part  of  this  Agreement  for  all  purposes;  and  every  Certificateholder
theretofore or thereafter  authenticated and delivered  hereunder shall be bound
thereby.

                  Section  9.06.  CONFORMITY  WITH TRUST  INDENTURE  ACT.  Every
supplemental  agreement  executed  pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

                  Section  9.07.   REFERENCE  IN  CERTIFICATES  TO  SUPPLEMENTAL
AGREEMENTS.  Certificates authenticated and delivered after the execution of any
supplemental  agreement  pursuant  to this  Article  may bear a notation in form
approved  by the  Trustee as to any  matter  provided  for in such  supplemental
agreement;  and, in such case,  suitable  notation may be made upon  Outstanding
Certificates after proper presentation and demand.

                                    ARTICLE X

                   AMENDMENTS TO INDENTURES AND NOTE DOCUMENTS

                  Section 10.01.  AMENDMENTS  AND  SUPPLEMENTS TO INDENTURES AND
OTHER NOTE  DOCUMENTS.  In the event that the Trustee,  as holder (or beneficial
owner through the  Subordination  Agent) of any Equipment  Note in trust for the
benefit  of  the   Certificateholders   or  as   Controlling   Party  under  the
Intercreditor   Agreement,   receives   (directly  or  indirectly   through  the
Subordination  Agent) a request  for a consent to any  amendment,  modification,
waiver or supplement under any Indenture, any other Note Document, any Equipment
Note,  the Note Purchase  Agreement or any other related  document,  the Trustee
shall forthwith send a notice of such proposed amendment,  modification,  waiver
or  supplement  to each  Certificateholder  registered on the Register as of the
date of such notice.  The Trustee  shall request from the  Certificateholders  a
Direction as to (a) whether or not to take or refrain from taking (or direct the
Subordination Agent to take or refrain from taking) any action which a holder of
such  Equipment  Note has the  option to direct,  (b)  whether or not to give or
execute  (or direct the  Subordination  Agent to give or execute)  any  waivers,
consents, amendments, modifications or supplements as a holder of such Equipment
Note or a  Controlling  Party and (c) how to vote (or direct  the  Subordination
Agent to vote) any  Equipment  Note if a vote has been  called for with  respect
thereto. Provided such a request for Certificateholder Direction shall have been
made,  in directing  any action or casting any vote or giving any consent as the
holder of any Equipment Note (or in directing the Subordination  Agent in any of
the foregoing),  (i) other than as Controlling Party, the Trustee shall vote for
or give  consent to any such action with respect to such  Equipment  Note in the
same  proportion as that of (A) the aggregate  face amounts of all  Certificates
actually  voted  in  favor  of or for  giving  consent  to such  action  by such
Direction  of  Certificateholders  to  (B)  the  aggregate  face  amount  of all
Outstanding  Certificates and (ii) as Controlling  Party, the Trustee shall vote
as  directed  in  such  Certificateholder  Direction  by the  Certificateholders
evidencing a Fractional  Undivided Interest aggregating not less than a majority
in interest in the Trust. For purposes of the immediately  preceding sentence, a
Certificate  shall have been "actually  voted" if the Holder of such Certificate
has delivered to the Trustee an instrument  evidencing such Holder's  consent to
such Direction prior to two Business Days before the Trustee directs such action
or casts such vote or gives such consent.  Notwithstanding  the  foregoing,  but
subject to Section 6.04 and the Intercreditor Agreement, the Trustee may, in its
own discretion  and at its own  direction,  consent and notify the relevant Loan
Trustee of such consent (or direct the Subordination Agent to consent and notify
the Loan  Trustee of such  consent) to any  amendment,  modification,  waiver or
supplement under the relevant Indenture,  any other Note Document, any Equipment
Note, the Note Purchase Agreement or any other related document,  if an Event of
Default  hereunder shall have occurred and be continuing,  or if such amendment,
modification,  waiver or supplement  will not  materially  adversely  affect the
interests of the Certificateholders.

                                   ARTICLE XI

                              TERMINATION OF TRUSTS

                  Section  11.01.  TERMINATION  OF  THE  TRUST.  The  respective
obligations and  responsibilities of the Company,  the Guarantor and the Trustee
with respect to the Trust shall  terminate upon the  distribution to all Holders
of the Certificates and the Trustee of all amounts required to be distributed to
them pursuant to this Agreement and the disposition of all property held as part
of the  Trust  Property;  PROVIDED,  HOWEVER,  that in no event  shall the Trust
continue  beyond one hundred ten (110) years  following the date of the earliest
execution of this Agreement.

                  Notice of any termination, specifying the Regular Distribution
Date  (or  Special  Distribution  Date,  as the  case  may be)  upon  which  the
Certificateholders  may surrender their  Certificates to the Trustee for payment
of the final  distribution  and  cancellation,  shall be mailed  promptly by the
Trustee to  Certificateholders  not earlier than the 60th day and not later than
the 20th day next preceding such final  distribution  specifying (A) the Regular
Distribution Date (or Special  Distribution Date, as the case may be) upon which
the proposed final payment of the  Certificates  will be made upon  presentation
and  surrender of  Certificates  at the office or agency of the Trustee  therein
specified,  (B) the amount of any such proposed final payment,  and (C) that the
Record Date otherwise  applicable to such Regular  Distribution Date (or Special
Distribution  Date, as the case may be) is not  applicable,  payments being made
only upon presentation and surrender of the Certificates at the office or agency
of the Trustee  therein  specified.  The  Trustee  shall give such notice to the
Registrar  at  the  time  such  notice  is  given  to  Certificateholders.  Upon
presentation  and surrender of the  Certificates,  the Trustee shall cause to be
distributed  to   Certificateholders   amounts  distributable  on  such  Regular
Distribution Date (or Special Distribution Date, as the case may be) pursuant to
Section 4.02.

                  In the  event  that all of the  Certificateholders  shall  not
surrender their  Certificates for cancellation  within six months after the date
specified in the above-mentioned written notice, the Trustee shall give a second
written  notice  to  the  remaining   Certificateholders   to  surrender   their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  No  additional  interest  shall accrue on the  Certificates  after the
Regular Distribution Date (or Special Distribution Date, as the case may be). In
the event that any money held by the Trustee for the payment of distributions on
the  Certificates  shall remain  unclaimed for two years (or such lesser time as
the Trustee  shall be satisfied,  after sixty days' notice from the Company,  is
one month prior to the escheat period  provided under  applicable law) after the
final distribution date with respect thereto, the Trustee shall pay to each Loan
Trustee the appropriate  amount of money relating to such Loan Trustee and shall
give written notice thereof to the related Owner Trustees and the Company.

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

                  Section 12.01. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. The
death or incapacity of any Certificateholder shall not operate to terminate this
Agreement,   or  the  Trust,   nor  entitle   such   Certificateholder's   legal
representatives  or  heirs  to claim an  accounting  or to take  any  action  or
commence any proceeding in any court for a partition or winding up of the Trust,
nor otherwise  affect the rights,  obligations,  and  liabilities of the parties
hereto or any of them.

                  Section 12.02. LIABILITIES OF CERTIFICATEHOLDERS.  Neither the
existence  of the Trust nor any  provision  in this  Agreement is intended to or
shall limit the liability the  Certificateholders  would  otherwise incur if the
Certificateholders   owned  Trust   Property  as  co-owners,   or  incurred  any
obligations of the Trust, directly rather than through the Trust.

                  Section  12.03.  CERTIFICATES  NONASSESSABLE  AND FULLY  PAID.
Subject to Section 12.02,  Certificateholders shall not be personally liable for
obligations of the Trust, the Fractional Undivided Interests  represented by the
Certificates  shall be nonassessable  for any losses or expenses of the Trust or
for any reason whatsoever,  and Certificates upon authentication  thereof by the
Trustee  pursuant  to  Section  3.03 are and  shall be  deemed  fully  paid.  No
Certificateholder  shall have any right (except as expressly provided herein) to
vote or in any manner  otherwise  control the  operation  and  management of the
Trust Property,  the Trust, or the obligations of the parties hereto,  nor shall
anything set forth  herein,  or contained in the terms of the  Certificates,  be
construed  so as to  constitute  the  Certificateholders  from  time  to time as
partners or members of an association.

                  Section 12.04. [Intentionally omitted].

                  Section 12.05. NOTICES.
                                 -------

                  (a) Unless otherwise specifically provided herein, all notices
required under the terms and  provisions of this  Agreement  shall be in English
and in writing,  and any such notice may be given by United States mail, courier
service, telegram, telemessage, telecopy, telefax, cable or facsimile (confirmed
by  telephone  or in  writing  in the case of notice by  telegram,  telemessage,
telecopy,  telefax,  cable  or  facsimile)  or  any  other  customary  means  of
communication,  and any such notice shall be  effective  when  delivered,  or if
mailed,  three days after deposit in the United States mail with proper  postage
for ordinary mail prepaid, if to the Company or the Guarantor, to:

     American Trans Air, Inc.
     7337 West Washington Street
     Indianapolis International Airport
     Indianapolis, Indiana 06927

     ATTENTION:        Executive Vice President and Chief Financial Officer
     ----------
     FACSIMILE:     (317) 240-7087
     ----------

     if to the Trustee, to:
     Wilmington Trust Company
     Rodney Square North
     1100 North Market Street
     Wilmington, Delaware 19890

     ATTENTION:        Corporate Trust Administration
     ----------
     FACSIMILE:        (302) 651-8882
     ----------

                  (b) The Company,  the  Guarantor or the Trustee,  by notice to
the other,  may  designate  additional  or different  addresses  for  subsequent
notices or communications.

                  (c) Any notice or communication to Certificateholders shall be
mailed by first-class mail to the addresses for Certificateholders  shown on the
Register kept by the Registrar and to addresses filed with the Trustee.  Failure
so to  mail  a  notice  or  communication  or  any  defect  in  such  notice  or
communication   shall  not  affect  its   sufficiency   with  respect  to  other
Certificateholders.

                  (d) If a notice  or  communication  is  mailed  in the  manner
provided above within the time prescribed,  it is conclusively  presumed to have
been duly given, whether or not the addressee receives it.

                  (e) If the  Company  mails a notice  or  communication  to the
Certificateholders, it shall mail a copy to the Trustee and to each Paying Agent
at the same time.

                  (f)  Notwithstanding  the  foregoing,  all  communications  or
notices  to the  Trustee  shall be deemed to be given  only when  received  by a
Responsible Officer of the Trustee.

                  (g) The Trustee shall promptly furnish the Company with a copy
of any demand, notice or written communication received by the Trustee hereunder
from any Certificateholder, Owner Trustee or Loan Trustee.

                  Section   12.06.   GOVERNING  LAW.  THIS  AGREEMENT  HAS  BEEN
DELIVERED IN THE STATE OF NEW YORK AND THIS AGREEMENT AND THE CERTIFICATES SHALL
BE GOVERNED BY AND  CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO CONFLICT-OF-LAW PRINCIPLES.

                  Section 12.07.  SEVERABILITY OF PROVISIONS. If any one or more
of the covenants,  agreements,  provisions,  or terms of this Agreement shall be
for any  reason  whatsoever  held  invalid,  then  such  covenants,  agreements,
provisions,  or terms shall be deemed  severable  from the remaining  covenants,
agreements,  provisions,  or terms of this  Agreement and shall in no way affect
the validity or  enforceability of the other provisions of this Agreement or the
Trust or of the Certificates or the rights of the Certificateholders thereof.

                  Section 12.08. [Intentionally omitted].

                  Section 12.09.  EFFECT OF HEADINGS AND TABLE OF CONTENTS.  The
Article  and  Section  headings  herein  and  the  Table  of  Contents  are  for
convenience only and shall not affect the construction hereof.

                  Section  12.10.   SUCCESSORS   AND  ASSIGNS.   All  covenants,
agreements, representations and warranties in this Agreement by the Trustee, the
Guarantor and the Company shall bind and, to the extent permitted hereby,  shall
inure to the benefit of and be  enforceable by their  respective  successors and
assigns, whether so expressed or not.

                  Section  12.11.   BENEFITS  OF  AGREEMENT.   Nothing  in  this
Agreement or in the Certificates,  express or implied, shall give to any Person,
other  than  the  parties  hereto  and  their  successors  hereunder,   and  the
Certificateholders, any benefit or any legal or equitable right, remedy or claim
under this Agreement.

                  Section 12.12.  LEGAL HOLIDAYS.  In any case where any Regular
Distribution Date or Special Distribution Date relating to any Certificate shall
not be a  Business  Day,  then  (notwithstanding  any  other  provision  of this
Agreement)  payment  need not be made on such date,  but may be made on the next
succeeding  Business  Day with  the same  force  and  effect  as if made on such
Regular  Distribution Date or Special  Distribution  Date, and no interest shall
accrue during the intervening period.

                  Section 12.13.  COUNTERPARTS.  For the purpose of facilitating
the execution of this  Agreement and for other  purposes,  this Agreement may be
executed   simultaneously   in  any  number  of  counterparts,   each  of  which
counterparts  shall be deemed to be an original,  and all of which  counterparts
shall constitute but one and the same instrument.

                  Section 12.14.  COMMUNICATION BY CERTIFICATEHOLDERS WITH OTHER
CERTIFICATEHOLDERS.    Certificateholders    may    communicate    with    other
Certificateholders  with  respect to their  rights  under this  Agreement or the
Certificates  pursuant  to  Section  3.12(b)  of the Trust  Indenture  Act.  The
Company, the Guarantor,  the Trustee and any and all other persons benefitted by
this Agreement shall have the protection afforded by Section 312(c) of the Trust
Indenture Act.

                  Section 12.15. INTENTION OF PARTIES. The parties hereto intend
that the Trust be classified  for U.S.  federal income tax purposes as a grantor
trust under  Subpart E, Part I of  Subchapter J of the Internal  Revenue Code of
1986, as amended,  and not as a trust or association taxable as a corporation or
as a partnership.  Each Certificateholder,  by its acceptance of its Certificate
or a beneficial  interest therein,  agrees to treat the Trust as a grantor trust
for all U.S.  federal,  state and local income tax purposes.  The powers granted
and obligations  undertaken  pursuant to this Agreement shall be so construed so
as to further such intent.

<PAGE>

                  IN WITNESS WHEREOF, the Guarantor, the Company and the Trustee
have caused this Agreement to be duly executed by their respective officers, all
as of the day and year first above written.

                                        AMTRAN, INC.

                                        By /s/ Kenneth K. Wolff

                                        -----------------------------
                                        Title:  Executive Vice President and
                                                Chief Financial Officer

                                        AMERICAN TRANS AIR, INC.

   /                                    By /s/ Kenneth K. Wolff

                                        -----------------------------
                                        Title:  Chief Financial Officer

                                        WILMINGTON TRUST COMPANY, as Trustee
                                        By /s/ Patricia A. Evans

                                        -----------------------------
                                        Title: Financial Services Officer

<PAGE>

                                    EXHIBIT A

                FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
                     WITH TRANSFERS PURSUANT TO REGULATION S

                                                                 [date]

Wilmington Trust Company,
 not in its individual
 capacity but solely as Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention:  Corporate Trust Administration

     Re:  American Trans Air 1997-1C-S  Pass Through Trust (the "Trust"),  ____%
American   Trans  Air  Pass   Through   Certificates   Series   1997-1C-S   (the
"CERTIFICATES")
--------------------------------------------------------------------------------

Sirs:

         In connection with our proposed sale of $ Fractional Undivided Interest
of the Certificates, we confirm that such sale has been effected pursuant to and
in accordance  with  Regulation S under the  Securities Act of 1933, as amended,
and, accordingly, we represent that:

     (1) the offer of the  Certificates  was not made to a person in the  United
States;

     (2) either (a) at the time the buy order was originated, the transferee was
outside the United States or we and any person  acting on our behalf  reasonably
believed  that  the  transferee  was  outside  the  United  States  or  (b)  the
transaction  was  executed  in, on or through  the  facilities  of a  designated
off-shore  securities  market and neither we nor any person acting on our behalf
knows  that the  transaction  has been  pre-arranged  with a buyer in the United
States;

     (3) no  directed  selling  efforts  have been made in the United  States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; and

     (4)  the  transaction  is not  part  of a  plan  or  scheme  to  evade  the
registration requirements
         of the Securities Act.

                  In addition,  if the sale is made during a  restricted  period
and the  provisions  of Rule  903(c)(3) or Rule  904(c)(1)  of  Regulation S are
applicable  thereto,  we confirm that such sale has been made in accordance with
the applicable  provisions of Rule 903(c)(3) or Rule 904(c)(1),  as the case may
be.

                  You and  American  Trans Air,  Inc.  are entitled to rely upon
this  letter and are  irrevocably  authorized  to produce  this letter or a copy
hereof to any interested  party in any  administrative  or legal  proceedings or
official inquiry with respect to the matters covered hereby.  Terms used in this
certificate have the meanings set forth in Regulation S.

                                                     Very truly yours,

                                                     [Name of Transferor]

By:
   ------
                                                     Authorized Signature

<PAGE>

                                    EXHIBIT B

                            FORM OF CERTIFICATE TO BE
                          DELIVERED IN CONNECTION WITH
                    TRANSFERS TO NON-QIB ACCREDITED INVESTORS

                                                                       [date]

Wilmington Trust Company,
 not in its individual capacity
 but solely as Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention:  Corporate Trust Administration

     Re: American Trans Air 1997-1C-S  Pass-Through  Trust (the "Trust"),  ____%
American   Trans  Air  Pass   Through   Certificates   Series   1997-1C-S   (THE
"CERTIFICATES")
---------------------------------------------------------------------------

Dear Sirs:

     In connection with our proposed purchase of $ aggregate principal amount of
the ----------- Certificates, we confirm that:

                  1.  We  understand   that  any  subsequent   transfer  of  the
         Certificates  is subject to certain  restrictions  and  conditions  set
         forth in the Pass Through Trust Agreement dated as of December __, 1997
         relating to the Certificates  (the "Pass Through Trust  Agreement") and
         the  undersigned  agrees to be bound by, and not to  resell,  pledge or
         otherwise  transfer the  Certificates  except in compliance  with, such
         restrictions  and conditions and the Securities Act of 1933, as amended
         (the "Securities Act").

                  2.  We  are  purchasing   Certificates   having  an  aggregate
         principal  amount of not less than  $100,000  and each account (if any)
         for which we are  purchasing  Certificates  is purchasing  Certificates
         having an aggregate principal amount of not less than $100,000.

                  3.  We  understand  that  the   Certificates   have  not  been
         registered  under the Securities Act, and that the Certificates may not
         be offered or sold except as permitted in the  following  sentence.  We
         agree, on our own behalf and on behalf of any accounts for which we are
         acting as hereinafter  stated,  that if we should sell any Certificate,
         we  will  do so  only  (A) in  accordance  with  Rule  144A  under  the
         Securities  Act  to  a  "qualified  institutional  buyer"  (as  defined
         therein),  (B) to an  institutional  "accredited  investor" (as defined
         below)  that,  prior to such  transfer,  furnishes  to you and American
         Trans Air,  Inc.,  a signed  letter  substantially  in the form of this
         letter,  (C) outside the United States in  accordance  with Rule 904 of
         Regulation S under the  Securities  Act, (D) pursuant to the  exemption
         from registration provided by Rule 144 under the Securities Act, or (E)
         pursuant to an effective  registration  statement  under the Securities
         Act, and we further  agree to provide to any person  purchasing  any of
         the Certificates  from us a notice advising such purchaser that resales
         of the Notes are  restricted as stated  herein.  We further  understand
         that  the  Certificates  purchased  by us  will  bear a  legend  to the
         foregoing effect.

                  4.  We  understand   that,  on  any  proposed  resale  of  any
         Certificates,  we will be required to furnish to you and American Trans
         Air, Inc. such certifications,  legal opinions and other information as
         you and American Trans Air, Inc. may reasonably require to confirm that
         the proposed sale complies with the foregoing restrictions.  We further
         understand that the Certificates  purchased by us will bear a legend to
         the foregoing effect.

                  5. We are an institutional  "accredited  investor" (as defined
         in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
         Act) and have such  knowledge and  experience in financial and business
         matters  as to be  capable  of  evaluating  the merits and risks of our
         investment in the Certificates and we and any accounts for which we are
         acting  are  each  able  to  bear  the  economic  risk  of  our  or its
         investment.

                  6. We are acquiring the  Certificates  purchased by us for our
         own  account  or  for  one  or  more  accounts  (each  of  which  is an
         institutional  "accredited  investor")  as to each of which we exercise
         sole investment discretion.

                  You and  American  Trans Air,  Inc.  are entitled to rely upon
this  letter and are  irrevocably  authorized  to produce  this letter or a copy
hereof to any interested  party in any  administrative  or legal  proceedings or
official inquiry with respect to the matters covered hereby.

                                                     Very truly yours,

                                                     [Name of Transferee]

By:
   ------
                                                          Authorized Signature

<PAGE>

                                    EXHIBIT C

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
                American Trans Air 1997-1[__] Pass Through Trust

                  ASSIGNMENT AND ASSUMPTION AGREEMENT, dated ____________,  199_
(the  "AGREEMENT"),   between  Wilmington  Trust  Company,  a  Delaware  banking
corporation ("WTC"), not in its individual capacity except as expressly provided
herein, but solely as trustee under the Pass Through Trust Agreement dated as of
December __, 1997 (as amended,  modified or otherwise  supplemented from time to
time,  the "PASS THROUGH TRUST  AGREEMENT") in respect of the American Trans Air
1997-1C-S Pass Through Trust (the "ASSIGNOR"),  and Wilmington Trust Company,  a
Delaware banking corporation, not in its individual capacity except as expressly
provided  herein,  but solely as trustee under the Pass Through Trust  Agreement
dated as of  December  __,  1997 (the "NEW PASS  THROUGH  TRUST  AGREEMENT")  in
respect of the American Trans Air 1997-1C-S Pass Through Trust (the "ASSIGNEE").

                                               W I T N E S S E T H:
                                               - - - - - - - - - -

                  WHEREAS,  the  parties  hereto  desire  to  effect on the date
hereof (the "TRANSFER DATE") (a) the transfer by the Assignor to the Assignee of
all of the right,  title and interest of the Assignor in, under and with respect
to, among other things,  the Trust Property and each of the documents  listed in
Schedule I hereto (the  "SCHEDULED  DOCUMENTS")  and (b) the  assumption  by the
Assignee of the  obligations  of the Assignor (i) under the Scheduled  Documents
and (ii) in respect of the  Certificates  issued  under the Pass  Through  Trust
Agreement; and

                  WHEREAS,  the  Scheduled  Documents  permit such transfer upon
satisfaction of certain  conditions  heretofore or  concurrently  herewith being
complied with;

                  NOW,  THEREFORE,  in  consideration of the premises and of the
mutual covenants and agreements herein  contained,  the parties hereto do hereby
agree as follows  (capitalized  terms used herein without  definition having the
meaning ascribed thereto in the Pass Through Trust Agreement):

     1. ASSIGNMENT.  The Assignor does hereby sell, assign, convey, transfer and
set over unto the Assignee as of the Transfer Date all of its present and future
right,  title and interest in, under and with respect to the Trust  Property and
the  Scheduled  Documents  and  each  other  contract,  agreement,  document  or
instrument relating to the Trust Property or the Scheduled Documents (such other
contracts,  agreements,  documents or  instruments,  together with the Scheduled
Documents,  to be referred to as the  "ASSIGNED  DOCUMENTS"),  and any  proceeds
therefrom,  together with all documents and  instruments  evidencing any of such
right, title and interest.

     2. ASSUMPTION.  The Assignee hereby assumes for the benefit of the Assignor
and  each of the  parties  listed  in  Schedule  II  hereto  (collectively,  the
"BENEFICIARIES")  all of the duties and  obligations  of the Assignor,  whenever
accrued, pursuant to the Assigned Documents and hereby confirms that it shall be
deemed a party to each of the  Assigned  Documents  to which the  Assignor  is a
party and shall be bound by all the terms thereof  (including the agreements and
obligations  of the  Assignor  set forth  therein)  as if  therein  named as the
Assignor.  Further,  the Assignee hereby assumes for the benefit of the Assignor
and the  Beneficiaries  all of the duties and  obligations of the Assignor under
the  Outstanding   Certificates   and  hereby  confirms  that  the  Certificates
representing  Fractional  Undivided  Interests  under  the  Pass  Through  Trust
Agreement  shall be deemed for all purposes of the Pass Through Trust  Agreement
and the New Pass Through Trust  Agreement to be  certificates  representing  the
same fractional  undivided  interests under the New Pass Through Trust Agreement
equal to their  respective  beneficial  interests in the trust created under the
Pass Through Trust Agreement.

     3. EFFECTIVENESS.  This Agreement shall be effective upon the execution and
delivery  hereof  by the  parties  hereto,  and each  Certificateholder,  by its
acceptance of its  Certificate or a beneficial  interest  therein,  agrees to be
bound by the terms of this Agreement.

     4. PAYMENTS.  The Assignor  hereby  covenants and agrees to pay over to the
Assignee,  if and  when  received  following  the  Transfer  Date,  any  amounts
(including  any sums payable as interest in respect  thereof) paid to or for the
benefit of the Assignor that, under Section 1 hereof, belong to the Assignee.

     5. FURTHER  ASSURANCES.  The Assignor  shall,  at any time and from time to
time,  upon the request of the  Assignee,  promptly and duly execute and deliver
any and all such further  instruments and documents and take such further action
as the  Assignee  may  reasonably  request to obtain the full  benefits  of this
Agreement and of the right and powers  herein  granted.  The Assignor  agrees to
deliver the Global  Certificates,  and all Trust  Property,  if any, then in the
physical possession of the Assignor, to the Assignee.

     6. REPRESENTATIONS AND WARRANTIES. (a) The Assignee represents and warrants
to the Assignor and each of the Beneficiaries that:

     (i) it has all requisite  power and authority and legal right to enter into
and carry out the transactions contemplated hereby and to
         carry out and perform the  obligations  of the "Pass  Through  Trustee"
         under the Assigned Documents;

     (ii) on and as of the date hereof,  the  representations  and warranties of
the Assignee set forth in Section 7.14 of the New Pass Through  Trust  Agreement
are true and correct.

     (b) The Assignor represents and warrants to the Assignee that:

     (i) it is duly  incorporated,  validly  existing and in good standing under
the laws of the State of Delaware  and has the full trust power,  authority  and
legal  right  under  the laws of the State of  Delaware  and the  United  States
pertaining  to its trust  and  fiduciary  powers to  execute  and  deliver  this
Agreement;

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

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

     7.  GOVERNING  LAW.  THIS  AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH  THE  LAWS  OF THE  STATE  OF NEW  YORK  INCLUDING  MATTERS  OF
CONSTRUCTION,  VALIDITY AND PERFORMANCE,  WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS.

     8.  COUNTERPARTS.   This  Agreement  may  be  executed  in  any  number  of
counterparts,  all of which together shall  constitute a single  instrument.  It
shall not be necessary that any counterpart be signed by both parties so long as
each party shall sign at least one counterpart.

     9. THIRD PARTY  BENEFICIARIES.  The Assignee hereby agrees, for the benefit
of  the  Beneficiaries,  that  its  representations,  warranties  and  covenants
contained  herein are also  intended to be for the benefit of each  Beneficiary,
and each  Beneficiary  shall be deemed to be an express third party  beneficiary
with  respect  thereto,  entitled  to enforce  directly  and in its own name any
rights or claims it may have against such party as such beneficiary.

<PAGE>

                  IN  WITNESS  WHEREOF,   the  parties  hereto,   through  their
respective   officers  thereunto  duly  authorized,   have  duly  executed  this
Assignment as of the day and year first above written.

                                    ASSIGNOR:

                                                     WILMINGTON  TRUST  COMPANY,
                                                     not   in   its   individual
                                                     capacity      except     as
                                                     expressly  provided herein,
                                                     but solely as trustee under
                                                     the  Pass   Through   Trust
                                                     Agreement in respect of the
                                                     American      Trans     Air
                                                     1997-1C-S    Pass   Through
                                                     Trust

                                                     By:________________________
                                                              Title:

                                    ASSIGNEE:

                                                     WILMINGTON  TRUST  COMPANY,
                                                     not   in   its   individual
                                                     capacity      except     as
                                                     expressly  provided herein,
                                                     but solely as trustee under
                                                     the  Pass   Through   Trust
                                                     Agreement in respect of the
                                                     American      Trans     Air
                                                     1997-1C-S    Pass   Through
                                                     Trust

                                                     By:________________________
                                                              Title:

<PAGE>

                                   Schedule I

                         Schedule of Assigned Documents

     (1)  Intercreditor  Agreement  dated as of  December  23,  1997  among  the
Trustee, the Other Trustees,  the Liquidity Providers,  the liquidity providers,
if any,  relating to the  Certificates  issued under (and as defined in) each of
the Other Pass Through Trust Agreements and the Subordination Agent.

     (2) Escrow and Paying  Agent  Agreement  (Class C) dated as of December 23,
1997 among the Escrow Agent, the Initial Purchasers,  the Trustee and the Paying
Agent.

     (3) Note  Purchase  Agreement  dated as of  December  23,  1997  among  the
Company, the Trustee, the Other Trustees, the Depositary,  the Escrow Agent, the
Paying Agent and the Subordination Agent.

     (4) Deposit  Agreement  (Class C) dated as of December 23, 1997 between the
Escrow Agent and the Depositary.

     (5)  Each of the  Operative  Documents  (as  defined  in the  Participation
Agreement for each Aircraft) in effect as of the Transfer Date.

<PAGE>

                                  Schedule II

                            Schedule of Beneficiaries

Wilmington  Trust  Company,  not  in  its  individual  capacity  but  solely  as
         Subordination Agent.

Wilmington Trust Company, not in its individual capacity but
         solely as Paying Agent

ING Bank, as Liquidity Provider

Amtran, Inc.

American Trans Air, Inc.

Salomon Brothers Inc, as Initial Purchaser

Furman Selz LLC, as Initial Purchaser

First Security Bank, National Association, as Escrow Agent

Each of the other parties to the Assigned Documents

<PAGE>

                                    EXHIBIT D

                FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
                             WITH TRANSFERS TO QIBs

                                                                    [date]

Wilmington Trust Company,
 not in its individual
 capacity but solely as Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention:  Corporate Trust Administration

     Re:  American Trans Air 1997-1C-S  Pass Through Trust (the "Trust"),  ____%
American   Trans  Air  Pass   Through   Certificates   Series   1997-1C-S   (the
"CERTIFICATES")
--------------------------------------------------------------------------------

Sirs:

         In connection with our proposed sale of $ Fractional Undivided Interest
of the Certificates,  we confirm that without utilizing any general solicitation
or  general   advertising  that  such  Certificates  are  being  transferred  in
compliance  with the exemption  from  registration  under the  Securities Act of
1933, as amended, provided by Rule 144A thereunder.

Date:                                                        [NAME OF TRANSFEROR
      ------------                                           -------------------

                                                     NOTE:  The  signature  must
                                                     correspond with the name as
                                                     written  upon  the  face of
                                                     the        within-mentioned
                                                     Certificate     in    every
                                                     particular,         without
                                                     alteration  or  any  change
                                                     whatsoever.

Signature Guarantee:

TO BE COMPLETED BY PURCHASER:

         The  undersigned  represents  and warrants  that it is  purchasing  the
within-mentioned  Certificate  for its own account or an account with respect to
which it exercises sole  investment  discretion and that it and any such account
is a "qualified  institutional  buyer" within the meaning of Rule 144A under the
Securities  Act of 1933,  as amended,  and is aware that the sale to it is being
made in reliance on Rule 144A and has been  advised of the  applicable  transfer
restrictions  relating to the Certificates and acknowledges that it has received
such information regarding the Company as the undersigned has requested pursuant
to Rule 144A or has  determined not to request such  information  and that it is
aware  that  the  transferor  is  relying  upon  the   undersigned's   foregoing
representations  in order to claim the exemption from  registration  provided by
Rule 144A.

Dated:
      -------------
[Name of Transferee]

                        NOTE:    To be executed by an executive officer.AIRCRAFT GENERAL TERMS AGREEMENT

                                    AGTA-AAT

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

<PAGE>

                                TABLE OF CONTENTS
                                                                       PAGE
     ARTICLES                                                         NUMBER
     --------                                                         ------

        1.     Subject Matter of Sale                                      1

        2.     Price, Taxes and Payment                                    1

        3.     Regulatory Requirements and Certificates                    3

        4.     Detail Specification; Changes                               4

        5.     Representatives, Inspection, Demonstration Flights,
               Test Data and Performance Guarantee Compliance              4

        6.     Delivery                                                    5

        7.     Excusable Delay                                             5

        8.     Risk Allocation/Insurance                                   7

        9.     Assignment, Resale or Lease                                 8

        10.    Termination for Certain Events                              9

        11.    Notices                                                    10

        12.    Miscellaneous                                              10

     EXHIBITS

         A          Buyer Furnished Equipment Provisions Document

         B          Customer Support Document

         C          Product Assurance Document

APPENDICES

         I          Insurance Certificate

        II          Purchase Agreement Assignment

        III         Post-Delivery Sale Notice

        IV          Post-Delivery Lease Notice

         V          Purchaser's/Lessee's Agreement

        VI          Owner Appointment of Agent - Warranties

        VII         Contractor Confidentiality Agreement

<PAGE>

                AIRCRAFT GENERAL TERMS AGREEMENT NUMBER AGTA-AAT

                                     between

                               The Boeing Company

                                       and

                            American Trans Air, Inc.

                                   Relating to

                                 BOEING AIRCRAFT

                  This Aircraft  General Terms Agreement  Number AGTA-AAT (AGTA)
between The Boeing  Company,  including its  wholly-owned  subsidiary  McDonnell
Douglas Corporation, (Boeing) and American Trans Air, Inc. (Customer) will apply
to all Boeing aircraft contracted for purchase from Boeing by Customer after the
effective date of this AGTA.

Article 1.        Subject Matter of Sale.
                  ----------------------

                  1.1 Aircraft. Boeing will manufacture and sell to Customer and
Customer will purchase  from Boeing  aircraft  under  purchase  agreements  that
incorporate the terms and conditions of this AGTA.

                  1.2 Buyer  Furnished  Equipment.  Exhibit A,  Buyer  Furnished
Equipment  Provisions Document to the AGTA, contains the obligations of Customer
and Boeing with respect to equipment  purchased and provided by Customer,  which
Boeing will receive,  inspect, store, and install in an aircraft before delivery
to Customer. This equipment is defined as Buyer Furnished Equipment (BFE).

                  1.3 Customer Support.  Exhibit B, Customer Support Document to
the AGTA,  contains the  obligations of Boeing relating to Materials (as defined
in Part 3 thereof), training, services, and other things in support of aircraft.

                  1.4 Product  Assurance.  Exhibit C, Product Assurance Document
to the AGTA,  contains the  obligations of Boeing and the suppliers of equipment
installed  in  each  aircraft  at  delivery   relating  to  warranties,   patent
indemnities, software copyright indemnities, and service life policies.

Article 2.        Price, Taxes, and Payment.
                  -------------------------

                  2.1      Price.
                           -----

     2.1.1 Airframe Price is defined as the price of the airframe for a specific
model of  aircraft  described  in a purchase  agreement.  (For  Models  717-200,
737-600,  737-700,  737-800 and 737-900,  the Airframe Price includes the engine
price at its basic thrust level.)

     2.1.2  Optional  Features  Prices are  defined  as the prices for  optional
features  selected by Customer for a specific  model of aircraft  described in a
purchase agreement.

     2.1.3 Engine  Price is defined as the price set by the engine  manufacturer
for a specific  engine to be installed  on the model of aircraft  described in a
purchase agreement (not applicable to Models 717-200,  737-600, 737-700, 737-800
and 737-900).

     2.1.4  Aircraft  Basic Price is defined as the sum of the  Airframe  Price,
Optional Features Prices, and the Engine Price, if applicable.

     2.1.5  Escalation  Adjustment  is  defined as the price  adjustment  to the
Airframe  Price  (which  includes  the basic  engine  price for Models  717-200,
737-600, 737-700 737-800 and 737-900) and the Optional Features Prices resulting
from the calculation  using the economic price formula contained in the Airframe
Escalation Adjustment to the applicable purchase agreement. The price adjustment
to the Engine Price for all other models of aircraft  will be  calculated  using
the economic price formula in the Engine Escalation Adjustment to the applicable
purchase agreement.

     2.1.6 Advance  Payment Base Price is defined as the  estimated  price of an
aircraft  rounded to the nearest thousand  dollars,  as of the date of signing a
purchase  agreement,  for the scheduled month of delivery of such aircraft using
commercial forecasts of the Escalation Adjustment.

     2.1.7 Aircraft Price is defined as the total amount  Customer is to pay for
an  aircraft at the time of  delivery,  which is the sum of the  Aircraft  Basic
Price, the Escalation  Adjustment,  and other price adjustments made pursuant to
the purchase agreement.

                  2.2      Taxes.
                           -----

     2.2.1 Taxes. Taxes are defined as all taxes, fees,  charges,  or duties and
any interest, penalties, fines, or other additions to tax, including, but
not limited to sales, use, value added, gross receipts, stamp, excise, transfer,
and similar taxes imposed by any domestic or foreign taxing  authority,  arising
out  of or in  connection  with  the  performance  of  the  applicable  purchase
agreement or the sale, delivery,  transfer, or storage of any aircraft,  BFE, or
other things furnished under the applicable purchase agreement.  Except for U.S.
federal or California State income taxes imposed on Boeing or Boeing's assignee,
and Washington State business and occupation taxes imposed on Boeing or Boeing's
assignee,  Customer  will be  responsible  for and pay all  Taxes.  Customer  is
responsible for filing all tax returns, reports, declarations and payment of any
taxes related to or imposed on BFE.

     2.2.2  Reimbursement of Boeing.  Customer will promptly reimburse Boeing on
demand, net of additional taxes thereon, for any Taxes
that are  imposed  on and paid by  Boeing  or that  Boeing  is  responsible  for
collecting.

<PAGE>

                  2.3      Payment.
                           -------

     2.3.1 Advance  Payment  Schedule.  Customer  will make advance  payments to
Boeing  for each  aircraft  in the  amounts  and on the dates  indicated  in the
schedule set forth in the applicable purchase agreement.

     2.3.2  Payment at  Delivery.  Customer  will pay any unpaid  balance of the
Aircraft Price at the time of delivery of each aircraft.

     2.3.3  Form of  Payment.  Customer  will  make all  payments  to  Boeing by
unconditional  wire  transfer of  immediately  available  funds in United States
Dollars in a bank account in the United States designated by Boeing.

     2.3.4 Monetary and  Government  Regulations.  Customer is  responsible  for
complying  with all monetary  control  regulations  and for obtaining  necessary
governmental authorizations related to payments.

Article 3.        Regulatory Requirements and Certificates.
                  ----------------------------------------

                  3.1  Certificates.  Boeing will  manufacture  each aircraft to
conform to the appropriate Type Certificate  issued by the United States Federal
Aviation Administration (FAA) for the specific model of aircraft and will obtain
from the FAA and  furnish to Customer  at  delivery  of each  aircraft  either a
Standard  Airworthiness  Certificate or an Export  Certificate of  Airworthiness
issued pursuant to Part 21 of the Federal Aviation Regulations.

     3.2  FAA  or  Applicable   Regulatory   Authority   Manufacturer   Changes.

     3.2.1 A Manufacturer  Change is defined as any change to an aircraft,  data
relating to an aircraft, or testing of an aircraft required by the FAA to obtain
a  Standard  Airworthiness  Certificate,  or by the  country  of  import  and/or
registration to obtain an Export Certificate of Airworthiness.

     3.2.2 Boeing will bear the cost of incorporating  all Manufacturer  Changes
into the aircraft:

     (i) resulting from requirements  issued by the FAA prior to the date of the
Type Certificate for the applicable aircraft;

     (ii) resulting from requirements issued by the FAA prior to the date of
the applicable purchase agreement; and

     (iii) for any aircraft  delivered  during the 18 month  period  immediately
following the date of the applicable purchase agreement  (regardless of when the
requirement for such change was issued by the FAA).

     3.2.3  Customer  will pay  Boeing's  charge  for  incorporating  all  other
Manufacturer Changes into the aircraft,  including all changes for validation of
an aircraft required by any governmental  agency of the country of import and/or
registration.

                  3.3      FAA Operator Changes.
                           --------------------

     3.3.1 An  Operator  Change  is  defined  as a change in  equipment  that is
required by Federal Aviation  Regulations  which (i) is generally  applicable to
transport  category  aircraft to be used in United States certified air carriage
and (ii) the required  compliance  date is on or before the  scheduled  delivery
month of the aircraft.

     3.3.2 Boeing will deliver each aircraft with Operator Changes  incorporated
or, at Boeing's option,  with suitable  provisions for the incorporation of such
Operator Changes, and Customer will pay Boeing's applicable charges.

                  3.4 Export License. If an export license is required by United
States law or regulation  for any aircraft or any other things  delivered  under
the purchase agreement,  it is Customer's  obligation to obtain such license. If
requested,  Boeing will assist Customer in applying for any such export license.
Customer will furnish any required supporting documents.

Article 4.        Detail Specification; Changes.
                  -----------------------------

                  4.1 Configuration Changes. The Detail Specification is defined
as the  Boeing  document  that  describes  the  configuration  of each  aircraft
purchased by Customer. The Detail Specification for each aircraft may be amended
(i) by Boeing to reflect the incorporation of Manufacturer  Changes and Operator
Changes or (ii) by the  agreement of the parties.  In either case the  amendment
will  describe  the  particular  changes  to be made and any  effect on  design,
performance,  weight,  balance,  scheduled delivery month, Aircraft Basic Price,
Aircraft Price, and/or Advance Payment Base Price.

                  4.2 Development  Changes.  Development  Changes are defined as
changes to aircraft that do not affect the Aircraft Price or scheduled  delivery
month, and do not adversely affect guaranteed weight, guaranteed performance, or
compliance with the interchangeability or replaceability  requirements set forth
in the applicable Detail Specification.  Boeing may, at its option,  incorporate
Development Changes into the Detail  Specification and into an aircraft prior to
delivery to Customer.

     4.3 Notices.  Boeing will promptly  notify  Customer of any amendments to a
Detail Specification.

     Article 5. Representatives,  Inspection,  Demonstration  Flights, Test Data
and Performance Guarantee Compliance.

     5.1 Office  Space.  Twelve  months  before  delivery of the first  aircraft
purchased, and continuing until the delivery of the last aircraft on firm order,
Boeing will furnish, free of charge, suitable office space and equipment for the
accommodation  of up to three  representatives  of Customer  in or  conveniently
located near the assembly plant.

     5.2 Inspection. Customer's representatives may inspect each aircraft at any
reasonable  time,  provided such  inspection  does not  interfere  with Boeing's
performance.

     5.3 Demonstration Flights. Prior to delivery, Boeing will fly each aircraft
up to 4 hours to  demonstrate  to Customer  the function of the aircraft and its
equipment  using  Boeing's  production  flight  test  procedures.  Customer  may
designate up to five representatives to participate as observers.

     5.4 Test Data; Performance Guarantee Compliance. Performance Guarantees are
defined  as  the  written  guarantees  in a  purchase  agreement  regarding  the
operational  performance of an aircraft.  Boeing will furnish to Customer flight
test data obtained on an aircraft of the same model to evidence  compliance with
the  Performance  Guarantees.  Performance  Guarantees will be met if reasonable
engineering  interpretations  and  calculations  based on the  flight  test data
establish that the  particular  aircraft  being  delivered  under the applicable
purchase agreement would, if actually flown, comply with the guarantees.

     5.5 Special  Aircraft  Test  Requirements.  Boeing may use an aircraft  for
flight and ground  tests prior to  delivery,  without  reduction in the Aircraft
Price, if the tests are considered necessary by Boeing (i) to obtain or maintain
the Type Certificate or Certificate of Airworthiness for the aircraft or (ii) to
evaluate  potential  improvements that may be offered for production or retrofit
incorporation.

Article 6.        Delivery.
                  --------

     6.1  Notices  of  Delivery  Dates.  Boeing  will  notify  Customer  of  the
approximate delivery date of each aircraft at least 30 days before the scheduled
month of delivery and again at least 14 days before the scheduled delivery date.

     6.2 Place of  Delivery.  Each  aircraft  will be  delivered  at a  facility
selected  by  Boeingin  the same  state as the  primary  assembly  plant for the
aircraft.

     6.3 Bill of Sale. At delivery of an aircraft,  Boeing will provide Customer
a bill of sale conveying good title, free of encumbrances.

     6.4  Delay.  If  Customer  delays  acceptance  of an  aircraft  beyond  the
scheduled  delivery date,  Customer will reimburse Boeing for all costs incurred
by Boeing as a result of the delay.

Article 7.        Excusable Delay.
                  ---------------

     7.1  General.  Boeing  will not be liable  for any  delay in the  scheduled
delivery month of an aircraft or other  performance  under a purchase  agreement
caused by (i) acts of God; (ii) war or armed hostilities;  (iii) government acts
or priorities; (iv) fires, floods, or earthquakes; (v) strikes or labor troubles
causing cessation,  slowdown, or interruption of work; (vi) inability, after due
and timely diligence, to procure materials, systems,  accessories,  equipment or
parts;  or (vii) any other  cause to the extent  such  cause is beyond  Boeing's
control and not occasioned by Boeing's fault or  negligence.  A delay  resulting
from any such cause is defined as an Excusable Delay.

     7.2 Notice.  Boeing will give written  notice to Customer (i) of a delay as
soon as Boeing  concludes  that an aircraft will be delayed beyond the scheduled
delivery  month due to an  Excusable  Delay and,  when known,  (ii) of a revised
delivery month based on Boeing's appraisal of the facts.

     7.3 Delay in Delivery  of Twelve  Months or Less.  If the revised  delivery
month is 12 months or less after the  scheduled  delivery  month,  Customer will
accept such aircraft when tendered for delivery, subject to the following:

     7.3.1 The  calculation  of the Escalation  Adjustment  will be based on the
previously scheduled delivery month.

     7.3.2 The advance payment  schedule will be adjusted to reflect the revised
delivery month.

     7.3.3 All other provisions of the applicable purchase agreement,  including
the BFE on-dock dates for the delayed  aircraft,  are unaffected by an Excusable
Delay.

     7.4 Delay in Delivery of More Than Twelve Months.  If the revised  delivery
month is more than 12 months after the scheduled  delivery  month,  either party
may terminate the  applicable  purchase  agreement with respect to such aircraft
within 30 days of the notice.  If either party does not terminate the applicable
purchase  agreement with respect to such  aircraft,  all terms and conditions of
the applicable purchase agreement will remain in effect.

     7.5 Aircraft Damaged Beyond Repair.  If an aircraft is destroyed or damaged
beyond repair for any reason before delivery, Boeing will give written notice to
Customer specifying the earliest month possible,  consistent with Boeing's other
contractual commitments and production capabilities, in which Boeing can deliver
a  replacement.  Customer will have 30 days from receipt of such notice to elect
to have  Boeing  manufacture  a  replacement  aircraft  under the same terms and
conditions of purchase, except that the calculation of the Escalation Adjustment
will be based upon the scheduled  delivery month in effect  immediately prior to
the date of such notice,  or,  failing such election,  the  applicable  purchase
agreement  will  terminate  with  respect to such  aircraft.  Boeing will not be
obligated  to  manufacture  a  replacement   aircraft  if  reactivation  of  the
production line for the specific model of aircraft would be required.

     7.6  Termination.   Termination  under  this  Article  will  discharge  all
obligations  and liabilities of Boeing and Customer with respect to any aircraft
and all related undelivered Materials (as defined in Exhibit B, Customer Support
Document),  training, services, and other things terminated under the applicable
purchase  agreement,  except  that  Boeing  will  return  to  Customer,  without
interest,  an amount  equal to all advance  payments  paid by  Customer  for the
aircraft.  If Customer  terminates the applicable  purchase  agreement as to any
aircraft,  Boeing may elect,  by written  notice to Customer  within 30 days, to
purchase  from  Customer any BFE related to the  aircraft at the invoice  prices
paid, or contracted to be paid, by Customer.

     7.7  Exclusive  Rights.  The  termination  rights  in this  Article  are in
substitution  for all  other  rights of  termination  or any  claim  arising  by
operation of law due to delays in performance covered by this Article.

Article 8.        Risk Allocation/Insurance.
                  -------------------------

                  8.1      Title and Risk with Boeing.
                           --------------------------

     8.1.1 Boeing's  Indemnification of Customer.  Until transfer of title to an
aircraft to  Customer,  Boeing will  indemnify  and hold  harmless  Customer and
Customer's observers from and against all claims and liabilities,  including all
expenses and attorneys' fees incident  thereto or incident to  establishing  the
right to  indemnification,  for injury to or death of any  person(s),  including
employees of Boeing but not  employees of Customer,  or for loss of or damage to
any property, including an aircraft, arising out of or in any way related to the
operation of an aircraft  during all  demonstration  and test flights  conducted
under the  provisions  of the  applicable  purchase  agreement,  whether  or not
arising in tort or occasioned by the negligence of Customer or any of Customer's
observers.

     8.1.2 Definition of Customer. For the purposes of this Article,  "Customer"
is  defined as American Trans Air, Inc., its divisions,
subsidiaries, affiliates, the assignees of each, and their respective directors,
officers, employees, and agents.

                  8.2      Insurance.
                           ---------

     8.2.1 Insurance Requirements. Customer will purchase and maintain insurance
acceptable to Boeing and will provide a certificate of such insurance that names
Boeing as an  additional  insured  for any and all  claims and  liabilities  for
injury to or death of any person or persons, including employees of Customer but
not employees of Boeing, or for loss of or damage to any property, including any
aircraft,  arising  out  of or in  any  way  relating  to  Materials,  training,
services,  or other things  provided under Exhibit B of the AGTA,  which will be
incorporated by reference into the applicable purchase agreement, whether or not
arising in tort or occasioned by the  negligence of Boeing,  except with respect
to legal  liability  to persons or parties  other than  Customer  or  Customer's
assignees  arising out of an accident  caused  solely by a product  defect in an
aircraft.  Customer will provide such  certificate  of insurance at least thirty
(30) days prior to the scheduled delivery of the first aircraft under a purchase
agreement.  The insurance  certificate will reference each aircraft delivered to
Customer  pursuant  to  each  applicable  purchase  agreement.   Annual  renewal
certificates  will be submitted to Boeing  before the  expiration  of the policy
periods. The form of the insurance  certificate,  attached as Appendix I, states
the terms, limits, provisions, and coverages required by this Article 8.2.1. The
failure of Boeing to demand  compliance  with this 8.2.1 in any year will not in
any way relieve Customer of its obligations hereunder nor constitute a waiver by
Boeing of these obligations.

     8.2.2  Noncompliance  with  Insurance  Requirements.  If Customer  fails to
comply with any of the insurance  requirements of Article 8.2.1 or if any of the
insurers  fails to pay a claim  covered by the  insurance or otherwise  fails to
meet any of insurer's  obligations required by Appendix I, Customer will provide
the same protection to Boeing as that required by Article 8.2.1 above.

     8.2.3  Definition  of Boeing.  For  purposes of this  article,  "Boeing" is
defined  as  The  Boeing  Company,  its  divisions,  subsidiaries,   affiliates,
assignees of each, and their  respective  directors,  officers,  employees,  and
agents.

Article 9.        Assignment, Resale, or Lease.
                  ----------------------------

     9.1 Assignment.  This AGTA and each applicable  purchase  agreement are for
the benefit of the parties  and their  respective  successors  and  assigns.  No
rights or duties of either party may be assigned or delegated,  or contracted to
be assigned or delegated,  without the prior written consent of the other party,
except:

     9.1.1  Either  party may  assign its  interest  to a  corporation  that (i)
results from any merger,  reorganization,  or acquisition of such party and (ii)
acquires substantially all the assets of such party;

     9.1.2 Boeing may assign its rights to receive money; and

     9.1.3  Boeing may  assign any of its rights and duties to any  wholly-owned
subsidiary of Boeing.

     9.1.4  Boeing may assign any of its rights and duties with  respect to Part
1, Articles 1, 2, 4 and 5 of Exhibit B, Customer  Support  Document to the AGTA,
to FlightSafety Boeing Training International L.L.C.

     9.2 Transfer by Customer at Delivery. Boeing will take any requested action
reasonably required for the purpose of causing an aircraft, at time of delivery,
to  be  subject  to  an  equipment  trust,  conditional  sale,  lien,  or  other
arrangement for Customer to finance the aircraft.  However,  no such action will
require  Boeing to divest itself of title to or possession of the aircraft until
delivery of and payment for the aircraft. A sample form of assignment acceptable
to Boeing is attached as Appendix II.

     9.3 Sale or Lease by Customer After Delivery.  If, following delivery of an
aircraft,  Customer  sells  or  leases  the  aircraft  (including  any  sale and
lease-back for financing purposes), all of Customer's rights with respect to the
aircraft  under the applicable  purchase  agreement will inure to the benefit of
the purchaser or lessee of such aircraft, effective upon Boeing's receipt of the
written  agreement of the purchaser or lessee, in a form satisfactory to Boeing,
to comply with all applicable  terms and  conditions of the applicable  purchase
agreement.  Sample  forms of  agreement  acceptable  to Boeing are  attached  as
Appendices III and IV.

     9.4 Notice of Sale or Lease After  Delivery.  Customer  will give notice to
Boeing as soon as practicable of the sale or lease of an aircraft,  including in
the notice the name of the entity or entities  with title and/or  possession  of
such aircraft.

     9.5 Exculpatory  Clause in  Post-Delivery  Sale or Lease. If, following the
delivery of an aircraft, Customer sells or leases such aircraft and obtains from
the transferee any form of exculpatory clause protecting Customer from liability
for  loss  of  or  damage  to  the  aircraft,   and/or  related   incidental  or
consequential  damages,  including without  limitation loss of use, revenue,  or
profit,  Customer shall obtain for Boeing the  purchaser's  or lessee's  written
agreement  to be bound by terms  and  conditions  substantially  as set forth in
Appendix  V. This  Article  9.5  applies  only if  purchaser  or lessee  has not
provided to Boeing the written agreement described in Article 9.3 above.

     9.6 Appointment of Agent - Warranty Claims.  If,  following  delivery of an
aircraft,  Customer  appoints  an  agent to act  directly  with  Boeing  for the
administration  of  claims  relating  to the  warranties  under  the  applicable
purchase agreement,  Boeing will deal with the agent for that purpose, effective
upon Boeing's receipt of the agent's written  agreement,  in a form satisfactory
to Boeing,  to comply with all applicable terms and conditions of the applicable
purchase agreement.  A sample form of agreement acceptable to Boeing is attached
as Appendix VI.

     9.7 No Increase in Boeing Liability.  No action taken by Customer or Boeing
relating to the resale or lease of an aircraft or the  assignment  of Customer's
rights  under the  applicable  purchase  agreement  will  subject  Boeing to any
liability beyond that in the applicable  purchase agreement or modify in any way
Boeing's obligations under the applicable purchase agreement.

Article 10.       Termination of Purchase Agreements for Certain Events.
                  -----------------------------------------------------

                  10.1     Termination.  If either party

                           (i) ceases  doing  business  as a going  concern,  or
                           suspends  all  or  substantially   all  its  business
                           operations, or makes an assignment for the benefit of
                           creditors,  or  generally  does not pay its  debts as
                           they become  due, or admits in writing its  inability
                           to pay its debts; or

                           (ii)  petitions for or acquiesces in the  appointment
                           of  any  receiver,  trustee  or  similar  officer  to
                           liquidate or conserve its business or any substantial
                           part of its assets;  commences  any legal  proceeding
                           such as bankruptcy,  reorganization,  readjustment of
                           debt,  dissolution,  or liquidation available for the
                           relief of financially  distressed debtors; or becomes
                           the  object  of  any  such  proceeding,   unless  the
                           proceeding is dismissed or stayed within a reasonable
                           period, not to exceed 60 days,

the other  party may  terminate  any  purchase  agreement  with  respect  to any
undelivered aircraft, Materials,  training, services, and other things by giving
written notice of termination.

     10.2 Repayment of Advance Payments.  If Customer  terminates the applicable
purchase  agreement under this Article,  Boeing will repay to Customer,  without
interest,  an amount  equal to any  advance  payments  received  by Boeing  from
Customer with respect to undelivered aircraft.

<PAGE>

Article 11.       Notices.
                  -------

                  All  notices  required  by  this  AGTA  or by  any  applicable
purchase agreement will be in English, will be effective on the date of receipt,
and  will be  transmitted  by any  customary  means  of  written  communication,
addressed as follows:

                    Customer:          American Trans Air, Inc.
                                       7337 West Washington Street
                                       Indianapolis, IN 46231
                                       U.S.A.

                                       Attention:        Treasurer

                    Boeing:            Boeing Commercial Airplane Group
                                       P.O. Box 3707
                                       Seattle, Washington  98124-2207
                                       U.S.A.

                                       Attention:     Vice President - Contracts
                                                      Mail Code 21-34

Article 12.       Miscellaneous.
                  -------------

     12.1  Government  Approval.  Boeing and Customer  will assist each other in
obtaining   any   governmental   consents  or   approvals   required  to  effect
certification and sale of aircraft under the applicable purchase agreement.

     12.2 Headings.  Article and paragraph headings used in this AGTA and in any
purchase  agreement are for  convenient  reference  only and are not intended to
affect the interpretation of this AGTA or any purchase agreement.

     12.3  GOVERNING  LAW.  THIS  AGTA  AND  ANY  PURCHASE   AGREEMENT  WILL  BE
INTERPRETED  UNDER AND GOVERNED BY THE LAWS OF THE STATE OF WASHINGTON,  U.S.A.,
EXCEPT  THAT  WASHINGTON'S  CHOICE OF LAW RULES  SHALL  NOT BE  INVOKED  FOR THE
PURPOSE OF APPLYING THE LAW OF ANOTHER JURISDICTION.

     12.4 Waiver/Severability.  Failure by either party to enforce any provision
of this AGTA or any purchase agreement will not be construed as a waiver. If any
provision  of this AGTA or any  provision  of any  purchase  agreement  are held
unlawful or  otherwise  ineffective  by a court of competent  jurisdiction,  the
remainder  of the AGTA or the  applicable  purchase  agreement  will  remain  in
effect.

     12.5  Survival  of  Obligations.  The  Articles  and  Exhibits of this AGTA
including but not limited to those relating to insurance, DISCLAIMER AND RELEASE
and the EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES will survive termination or
cancellation of any purchase agreement or part thereof.

     12.6 AGTA  Changes.  The  intent of the AGTA is to  simplify  the  standard
contracting  process for terms and conditions  which are related to the sale and
purchase of all Boeing  aircraft.  This AGTA has been mutually  agreed to by the
parties as of the date indicated below. From time to time the parties may elect,
by mutual agreement to update,  or modify the existing  articles as written.  If
such  changes are made,  any existing  executed  Purchase  Agreement(s)  will be
governed by the terms and conditions of the Revision level of the AGTA in effect
based on the date of the executed Purchase Agreement.

DATED AS OF  June 30, 2000
             --------------

AMERICAN TRANS AIR, INC.                       THE BOEING COMPANY

By:   /s/ Kenneth K. Wolff                     By:   /s/ R. C. Nelson
      -------------------------------               --------------------

Its:  Executive Vice President & CFO           Its: Attorney-In-Fact
      -------------------------------               ---------------------

                                    EXHIBIT A

                                       to

                        AIRCRAFT GENERAL TERMS AGREEMENT

                                    AGTA-AAT

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                  BUYER FURNISHED equipment provisions document

<PAGE>

                  BUYER FURNISHED EQUIPMENT PROVISIONS DOCUMENT

1.       General.
         -------

         Certain  equipment  to be  installed  in the  Aircraft is  furnished to
Boeing by Customer at Customer's  expense.  This equipment is designated  "Buyer
Furnished  Equipment"  (BFE) and is listed in the Detail  Specification.  Boeing
will  provide to Customer a BFE  Requirements  On-Dock/Inventory  Document  (BFE
Document) or an electronically  transmitted BFE Report which may be periodically
revised,  setting  forth the  items,  quantities,  on-dock  dates  and  shipping
instructions relating to the in sequence installation of BFE as described in the
applicable Supplemental Exhibit to this Exhibit A in a purchase agreement at the
time of aircraft purchase.

2.       Supplier Selection.
         ------------------

         Customer will:

     2.1 Select and notify  Boeing of the  suppliers of BFE items by those dates
appearing in Supplemental  Exhibit BFE1to the applicable  purchase  agreement at
the time of aircraft purchase.

     2.2 Meet with Boeing and such  selected BFE suppliers  promptly  after such
selection to:

     2.2.1 complete BFE configuration design requirements for such BFE; and

     2.2.2 confirm technical data submittal requirements for BFE certification.

3.       Customer's Obligations.
         ----------------------

         Customer will:

     3.1 comply with and cause the supplier to comply with the provisions of the
BFE Document or BFE Report;

     3.1.1 deliver  technical data (in English) to Boeing as required to support
installation and FAA  certification in accordance with the schedule  provided by
Boeing or as mutually agreed upon during the BFE meeting referred to above;

     3.1.2 deliver BFE including  production  and/or flight  training spares and
BFE Aircraft  Software to Boeing in accordance  with the quantities and schedule
provided therein; and

     3.1.3 assure that all BFE Aircraft Software is delivered in compliance with
Boeing's then-current Standards for Loadable Systems;

     3.1.4 assure that all BFE parts are  delivered  to Boeing with  appropriate
quality assurance documentation;

     3.2  authorize  Boeing to discuss all details of the BFE directly  with the
BFE suppliers;

     3.3 authorize  Boeing to conduct or delegate to the supplier quality source
inspection and supplier hardware acceptance of BFE at the supplier location;

     3.3.1 require supplier's  contractual  compliance to Boeing defined quality
assurance  requirements,  source  inspection  programs and  supplier  delegation
programs,  including  availability  of adequate  facilities for Boeing  resident
personnel; and

     3.3.2  assure  that all BFE  supplier's  quality  systems  are  approved to
Boeing's then current standards for such systems ;

     3.4  obtain  from  supplier  a  non-exclusive,   perpetual,   royalty-free,
irrevocable  license for Boeing to copy BFE  Aircraft  Software.  The license is
needed to enable Boeing to load the software  copies in (i) the aircraft's  mass
storage device (MSD), (ii) media (e.g., diskettes, CD-ROMs, etc.), (iii) the BFE
hardware and/or (iv) an intermediate device or other media to facilitate copying
of the BFE Aircraft Software into the aircraft's MSD, BFE hardware and/or media,
including media as Boeing may deliver to Customer with the aircraft;

     3.5  grant  Boeing a  license,  extending  the  same  rights  set  forth in
paragraph  3.4 above,  to copy:  a) BFE Aircraft  Software and data Customer has
modified  and/or  b) other  software  and  data  Customer  has  added to the BFE
Aircraft Software;

     3.6 provide necessary field service  representation at Boeing's  facilities
to support Boeing on all issues related to the installation and certification of
BFE;

     3.7  deal  directly  with  all  BFE  suppliers  to  obtain  overhaul  data,
provisioning  data,  related  product  support  documentation  and any  warranty
provisions applicable to the BFE;

     3.8  work  closely  with  Boeing  and  the BFE  suppliers  to  resolve  any
difficulties, including defective equipment, that arise;

     3.9 be  responsible  for modifying,  adjusting  and/or  calibrating  BFE as
required for FAA approval and for all related expenses;

     3.10 assure that a  proprietary  information  agreement is in place between
Boeing and BFE suppliers  prior to Boeing  providing any  documentation  to such
suppliers,

     3.11 warrant that the BFE will comply with all applicable FARs and the U.S.
Food and Drug Administration (FDA) sanitation  requirements for installation and
use in the Aircraft at the time of delivery.  Customer will be  responsible  for
supplying any data and adjusting,  calibrating,  re-testing or updating such BFE
and data to the extent  necessary to obtain  applicable FAA and FDA approval and
shall bear the resulting expenses.

     3.12  warrant  that  the BFE  will  meet  the  requirements  of the  Detail
Specification; and

     3.13 be responsible  for providing  equipment  which is FAA  certifiable at
time  of  Aircraft  delivery,  or for  obtaining  waivers  from  the  applicable
regulatory agency for non-FAA certifiable equipment.

4.       Boeing's Obligations.
         --------------------

         Other than as set forth below, Boeing will provide for the installation
of and install the BFE and obtain  certification  of the  Aircraft  with the BFE
installed.

5.       Nonperformance by Customer.
         --------------------------

         If Customer's  nonperformance  of obligations in this Exhibit or in the
BFE Document  causes a delay in the delivery of the Aircraft or causes Boeing to
perform  out-of-sequence or additional work,  Customer will reimburse Boeing for
all  resulting  expenses  and be  deemed  to have  agreed  to any such  delay in
Aircraft delivery. In addition Boeing will have the right to:

     5.1 provide and install specified equipment or suitable alternate equipment
and increase the price of the Aircraft accordingly; and/or

         5.2      deliver the Aircraft to Customer without the BFE installed.

6.       Return of Equipment.
         -------------------

         BFE not  installed  in the  Aircraft  will be  returned  to Customer in
accordance with Customer's instructions and at Customer's expense.

<PAGE>

7.       Title and Risk of Loss.
         ----------------------

         7.1 With respect to Aircraft  manufactured  in the State of Washington,
title to and risk of loss of BFE  provided for such  Aircraft  will at all times
remain with  Customer or other owner.  Boeing will have only such  liability for
BFE as a bailee for mutual  benefit would have,  but will not be liable for loss
of use.

         7.2 With respect to Aircraft  manufactured  in the State of California,
Customer  agrees  to  sell  and  Boeing  agrees  to  purchase  each  item of BFE
concurrently with its delivery to Boeing. A reasonable shipset price for the BFE
shall be established with Customer.  Customer and Boeing agree that the Aircraft
Price will be increased by the amount of said shipset price and such amount will
be included on Boeing's invoice at time of Aircraft  delivery.  Boeing's payment
for the purchase of each shipset of BFE from  Customer  will be made at the time
of delivery of the Aircraft in which the BFE is installed.

8.       Interchange of BFE

         To properly maintain Boeing's  production flow and to preserve Boeing's
delivery commitments,  Boeing reserves the right, if necessary, due to equipment
shortages  or failures,  to  interchange  new items of BFE acquired  from or for
Customer  with new items of the same  part  numbers  acquired  from or for other
customers of Boeing.  Used BFE acquired from Customer or from other customers of
Boeing will not be interchanged.

9.       Indemnification of Boeing.
         -------------------------

         Customer hereby  indemnifies and holds harmless Boeing from and against
all claims and liabilities,  including costs and expenses (including  attorneys'
fees) incident  thereto or incident to  successfully  establishing  the right to
indemnification,  for  injury to or death of any  person or  persons,  including
employees of Customer but not  employees of Boeing,  or for loss of or damage to
any property,  including  any  Aircraft,  arising out of or in any way connected
with any  nonconformance or defect in any BFE and whether or not arising in tort
or occasioned by the  negligence of Boeing.  This  indemnity will not apply with
respect to any  nonconformance or defect caused solely by Boeing's  installation
of the BFE.

10.      Patent Indemnity.
         ----------------

         Customer hereby  indemnifies and holds harmless Boeing from and against
all claims,  suits, actions,  liabilities,  damages and costs arising out of any
actual or  alleged  infringement  of any patent or other  intellectual  property
rights by BFE or arising out of the installation, sale or use of BFE by Boeing.

<PAGE>

11.      Definitions.
         -----------

         For the purposes of the above  indemnities,  the term "Boeing" includes
The Boeing Company, its divisions, subsidiaries and affiliates, the assignees of
each, and their directors, officers, employees and agents.

                                    EXHIBIT B

                                       to

                        AIRCRAFT GENERAL TERMS AGREEMENT

                                    AGTA-AAT

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                            CUSTOMER SUPPORT DOCUMENT

                             This document contains:

              Part 1:      Maintenance and Flight Training Programs; Operations
                           Engineering Support

              Part 2:      Field Services and Engineering Support
                           Services

              Part 3:      Technical Information and Materials

              Part 4:      Alleviation or Cessation of Performance

              Part 5:      Protection of Proprietary Information and
                           Proprietary Materials

<PAGE>

                            CUSTOMER SUPPORT DOCUMENT

                 PART 1: BOEING MAINTENANCE AND FLIGHT TRAINING
                    PROGRAMS; OPERATIONS ENGINEERING SUPPORT

1.       Boeing Training Programs.
         ------------------------

     1.1 Boeing will provide  maintenance  training and flight training programs
to support the  introduction  of a specific model of aircraft into service.  The
training  programs will consist of general and  specialized  courses and will be
described in a Supplemental Exhibit to the applicable purchase agreement.

     1.2 Boeing will conduct all training at Boeing's primary training  facility
for the model of aircraft purchased unless otherwise agreed.

     1.3 All training will be presented in the English language.  If translation
is required, Customer will provide interpreters.

         1.4  Customer  will be  responsible  for  all  expenses  of  Customer's
personnel.  Boeing  will  transport  Customer's  personnel  between  their local
lodging and Boeing's training facility.

2.       Training Planning Conferences.
         -----------------------------

         Customer and Boeing will conduct planning conferences  approximately 12
months before the scheduled  delivery  month of the first aircraft of a model to
define and schedule the maintenance and flight training programs.

3.       Operations Engineering Support.
         ------------------------------

         3.1 As long  as an  aircraft  purchased  by  Customer  from  Boeing  is
operated  by  Customer  in  scheduled  revenue  service,   Boeing  will  provide
operations engineering support. Such support will include:

     3.1.1  assistance with the analysis and preparation of performance  data to
be  used  in  establishing  operating  practices  and  policies  for  Customer's
operation of aircraft;

     3.1.2  assistance with  interpretation  of the minimum  equipment list, the
definition of the  configuration  deviation  list and the analysis of individual
aircraft performance;

     3.1.3 assistance with solving operational problems associated with delivery
and route-proving flights;

     3.1.4 information  regarding significant service items relating to aircraft
performance or flight operations; and

     3.1.5 if requested by Customer,  Boeing will provide operations engineering
support during an aircraft ferry flight.

4.       Training at a Facility Other Than Boeing's.
         ------------------------------------------

         If requested by Customer, Boeing will conduct the classroom portions of
the  maintenance  and  flight  training  (except  for the  Performance  Engineer
training courses) at a mutually  acceptable  alternate training site, subject to
the following conditions:

     4.1 Customer  will  provide  acceptable  classroom  space,  simulators  (as
necessary for flight  training) and training  equipment  required to present the
courses;

     4.2 Customer will pay Boeing's then-current per diem charge for each Boeing
instructor for each day, or fraction  thereof,  that the instructor is away from
their home location , including travel time;

     4.3  Customer  will  reimburse  Boeing for the actual  costs of  round-trip
transportation  for  Boeing's  instructors  and the  shipping  costs of training
Materials between the primary training facility and the alternate training site;

     4.4 Customer will be responsible  for all taxes,  fees,  duties,  licenses,
permits and similar expenses incurred by Boeing and its employees as a result of
Boeing's  providing  training at the  alternate  site or incurred as a result of
Boeing providing revenue service training; and

     4.5 Those portions of training that require the use of training devices not
available at the  alternate  site will be  conducted at Boeing's  facility or at
some other alternate site.

5.       General Terms and Conditions.
         ----------------------------

     5.1 Boeing flight  instructor  personnel  will not be required to work more
than 5 days per week, or more than 8 hours in any one 24-hour  period,  of which
not more than 5 hours per 8-hour workday will be spent in actual  flying.  These
foregoing  restrictions  will not apply to ferry  assistance or revenue  service
training services, which will be governed by FAA rules and regulations.

     5.2 Normal  Line  Maintenance  is defined as line  maintenance  that Boeing
might  reasonably  be expected  to furnish for flight crew  training at Boeing's
facility,  and will include ground support and aircraft storage in the open, but
will not include  provision  of spare  parts.  Boeing will  provide  Normal Line
Maintenance services for any aircraft while the aircraft is used for flight crew
training at Boeing's  facility in accordance  with the Boeing  Maintenance  Plan
(Boeing  document  D6-82076) and the Repair  Station  Operation  and  Inspection
Manual (Boeing document D6-25470). Customer will provide such services if flight
crew  training  is  conducted  elsewhere.  Regardless  of the  location  of such
training,  Customer will be  responsible  for providing  all  maintenance  items
(other  than those  included  in Normal Line  Maintenance)  required  during the
training,  including,  but not limited to,  fuel,  oil,  landing  fees and spare
parts.

     5.3 If the  training is based at  Boeing's  facility,  and the  aircraft is
damaged  during such  training,  Boeing will make all  necessary  repairs to the
aircraft as promptly as possible.  Customer will pay Boeing's reasonable charge,
including the price of parts and materials,  for making the repairs. If Boeing's
estimated labor charge for the repair exceeds $25,000,  Boeing and Customer will
enter into an agreement  for  additional  services  before  beginning the repair
work.

     5.4 If the flight training is based at Boeing's facility,  several airports
in surrounding  states may be used, at Boeing's option.  Unless otherwise agreed
in the flight training planning conference, it will be Customer's responsibility
to make arrangements for the use of such airports.

     5.5 If Boeing agrees to make arrangements on behalf of Customer for the use
of  airports  for flight  training,  Boeing  will pay on  Customer's  behalf any
landing  fees  charged  by any  airport  used in  conjunction  with  the  flight
training. At least 30 days before flight training,  Customer will provide Boeing
an open  purchase  order  against  which  Boeing will  invoice  Customer for any
landing fees Boeing paid on Customer's  behalf. The invoice will be submitted to
Customer  approximately  60 days after flight  training is  completed,  when all
landing fee charges have been received and verified. Customer will pay to Boeing
within 30 days of the date of the invoice.

     5.6 If  requested  by Boeing,  in order to provide  the flight  training or
ferry  flight  assistance,  Customer  will make  available to Boeing an aircraft
after delivery to familiarize  Boeing  instructor or ferry flight crew personnel
with such  aircraft.  If flight  of the  aircraft  is  required  for any  Boeing
instructor  or ferry  flight  crew  member to maintain an FAA license for flight
proficiency or landing  currency,  Boeing will be  responsible  for the costs of
fuel,  oil,  landing  fees and spare parts  attributable  to that portion of the
flight.

     5.7 If any part of the training  described in paragraph 1.1 of this Exhibit
is not used by Customer within 12 months after the delivery of the last aircraft
under the relevant purchase  agreement,  Boeing will not be obligated to provide
such training.

<PAGE>

                            CUSTOMER SUPPORT DOCUMENT

                 PART 2: FIELD AND ENGINEERING SUPPORT SERVICES

1.       Field Service Representation.
         ----------------------------

         Boeing will furnish field  service  representation  to advise  Customer
with respect to the  maintenance  and  operation of an aircraft  (Field  Service
Representatives).

         1.1  Field  Service   representation  will  be  available  at  or  near
Customer's  main  maintenance  or  engineering  facility  beginning  before  the
scheduled  delivery  month of the first  aircraft  and  ending  12 months  after
delivery of the last aircraft covered by a specific purchase agreement.

         1.2 Customer will provide,  at no charge to Boeing,  suitable furnished
office  space and office  equipment  at the  location  where Boeing is providing
Field  Service  Representatives.  As required,  Customer  will assist each Field
Service  Representative  with  visas,  work  permits,  customs,  mail  handling,
identification passes and formal introduction to local airport authorities.

         1.3  Boeing  Field  Service  Representatives  are  assigned  to various
airports around the world.  Whenever  Customer's  aircraft are operating through
any such airport,  the services of Boeing's  Field Service  Representatives  are
available to Customer.

2.       Engineering Support Services.
         ----------------------------

         Boeing  will,  if requested by  Customer,  provide  technical  advisory
assistance  for any aircraft and Boeing Product (as defined in Part I of Exhibit
C). Technical advisory  assistance,  provided from the Seattle area or at a base
designated by Customer as appropriate, will include:

         2.1 Operational  Problem Support. If Customer  experiences  operational
problems  with an  aircraft,  Boeing will  analyze the  information  provided by
Customer  to  determine  the  probable  nature and cause of the  problem  and to
suggest possible solutions.

         2.2 Schedule Reliability Support. If Customer is not satisfied with the
schedule  reliability  of a specific  model of  aircraft,  Boeing  will  analyze
information  provided  by  Customer  to  determine  the  nature and cause of the
problem and to suggest possible solutions.

         2.3 Maintenance Cost Reduction  Support.  If Customer is concerned that
actual  maintenance costs of a specific model of aircraft are excessive,  Boeing
will analyze information  provided by Customer to determine the nature and cause
of the problem and to suggest possible solutions.

         2.4  Aircraft  Structural  Repair  Support.  If Customer  is  designing
structural repairs and desires Boeing's support, Boeing will analyze and comment
on Customer's engineering releases relating to structural repairs not covered by
Boeing's Structural Repair Manual.

         2.5 Aircraft  Modification  Support.  If Customer is designing aircraft
modifications and requests Boeing's support,  Boeing will analyze and comment on
Customer's  engineering  proposals for changes in, or replacement  of,  systems,
parts, accessories or equipment manufactured to Boeing's detailed design. Boeing
will not analyze or comment on any major  structural  change  unless  Customer's
request for such  analysis  and comment  includes  complete  detailed  drawings,
substantiating  information  (including any  information  required by applicable
government agencies),  all stress or other appropriate analyses,  and a specific
statement  from  Customer  of the  substance  of the  review  and  the  response
requested.

         2.6  Facilities,  Ground  Equipment and Maintenance  Planning  Support.
Boeing will, at Customer's request,  evaluate Customer's  technical  facilities,
tools and equipment for servicing and maintaining aircraft, to recommend changes
where necessary and to assist in the formulation of an initial  maintenance plan
for the introduction of the aircraft into service.

         2.7 Post-Delivery Service Support.  Boeing will, at Customer's request,
perform work on an aircraft  after  delivery but prior to the initial  departure
flight  or upon  the  return  of the  aircraft  to  Boeing's  facility  prior to
completion of that flight. In that event the following provisions will apply.

     2.7.1  Boeing  may rely upon the  commitment  authority  of the  Customer's
personnel requesting the work.

     2.7.2 As title  and risk of loss has  passed  to  Customer,  the  insurance
provisions of Article 8.2 of the AGTA apply.

     2.7.3 The provisions of the Boeing  Warranty in Part 2 of Exhibit C of this
AGTA apply.

     2.7.4 Customer will pay Boeing for requested work not covered by the Boeing
Warranty, if any.

                  2.7.5  The   DISCLAIMER   AND   RELEASE   and   EXCLUSION   OF
CONSEQUENTIAL AND OTHER DAMAGES  provisions in Article 11 of Part 2 of Exhibit C
of this AGTA apply.

         2.8 Additional  Services.  Boeing may, at Customer's  request,  provide
additional services for an aircraft after delivery,  which may include,  but not
be limited to, retrofit kit changes (kits and/or information),  training, flight
services,  maintenance and repair of aircraft.  Such additional services will be
subject  to a  mutually  acceptable  price,  schedule  and  scope of  work.  The
DISCLAIMER  AND RELEASE and the  EXCLUSION OF  CONSEQUENTIAL  AND OTHER  DAMAGES
provisions  in Article 11 of Part 2 of Exhibit C of this AGTA and the  insurance
provisions in Article 8.2 of this AGTA will apply to any such work. Title to and
risk of loss of any such aircraft will always remain with Customer.

<PAGE>

                            CUSTOMER SUPPORT DOCUMENT

                   PART 3: TECHNICAL INFORMATION AND MATERIALS

1.       General.
         -------

         Materials  are  defined as any and all items that are created by Boeing
or a third party,  which are  provided  directly or  indirectly  from Boeing and
serve primarily to contain, convey or embody information.  Materials may include
either tangible embodiments (for example,  documents or drawings), or intangible
embodiments (for example,  software and other  electronic  forms) of information
but excludes Aircraft Software. Aircraft Software is defined as software that is
installed on and used in the operation of the aircraft.

         Boeing  will  furnish to  Customer  certain  Materials  to support  the
maintenance  and operation of the aircraft at no additional  charge to Customer,
except as otherwise  provided  herein.  Such Materials  will, if applicable,  be
prepared generally in accordance with Air Transport Association of America (ATA)
Specification  No. 100, entitled  "Specification  for  Manufacturers'  Technical
Data".  Materials  will be in English and in the units of measure used by Boeing
to manufacture an aircraft.

         Digitally-produced Materials will, if applicable, be prepared generally
in accordance with ATA Specification No. 2100, dated January 1994, "Digital Data
Standards for Aircraft Support."

2.       Materials Planning Conferences.
         ------------------------------

         Customer and Boeing will conduct planning conferences  approximately 12
months before the scheduled  delivery  month of the first aircraft of a model in
order to mutually  determine  the proper  format and quantity of Materials to be
furnished to Customer in support of the aircraft.

         When  available,  Customer may select one Boeing  digital format as the
delivery  medium.  Should a Boeing  digital  format not be chosen,  Customer may
select a reasonable  quantity of printed and 16mm  microfilm  formats,  with the
exception  of the  Illustrated  Parts  Catalog,  which will be  provided  in one
selected format only.

3.       Information and Materials - Incremental Increase.
         ------------------------------------------------

         Until one year after the month of delivery of the last aircraft covered
by a specific  purchase  agreement,  Customer may annually  request in writing a
reasonable increase in the quantity of Materials with the exception of microfilm
master  copies,  digital  formats,  and others for which a  specified  number of
copies  are  provided.  Boeing  will  provide  the  additional  quantity  at  no
additional  charge  beginning with the next normal revision cycle.  Customer may
request a decrease in revision quantities at any time.

4.       Advance Representative Copies.
         -----------------------------

         All  advance  representative  copies of  Materials  will be selected by
Boeing from available sources.  Such advance copies will be for advance planning
purposes only.

5.       Customized Materials.
         --------------------

         All  customized  Materials  will  reflect  the  configuration  of  each
aircraft as delivered.

6.       Revisions.
         ---------

         6.1 Revision  Service.  Boeing will provide revisions free of charge to
certain  Materials to be identified in the planning  conference  conducted for a
specific model of aircraft,  reflecting  changes developed by Boeing, as long as
Customer operates an aircraft of that model.

         6.2 Revisions Based on Boeing Service Bulletin Incorporation. If Boeing
receives   written  notice  that  Customer   intends  to  incorporate,   or  has
incorporated,  any Boeing  service  bulletin in an  aircraft,  Boeing will at no
charge issue revisions to Materials with revision service reflecting the effects
of such incorporation into such aircraft.

7.       Supplier Technical Data.
         -----------------------

     7.1 For  supplier-manufactured  programmed airborne avionics components and
equipment  classified as Seller  Furnished  Equipment (SFE) or Seller  Purchased
Equipment  (SPE) or Buyer  Designated  Equipment  (BDE) which  contain  computer
software  designed and developed in accordance with Radio  Technical  Commission
for Aeronautics  Document No.  RTCA/DO-178 dated January 1982, No.  RTCA/DO-178A
dated March 1985, or later as available,  Boeing will request that each supplier
of the  components  and  equipment  make  software  documentation  available  to
Customer.

     7.2 The provisions of this Article will not be applicable to items of BFE.

     7.3 Boeing will  furnish to Customer a document  identifying  the terms and
conditions of the product  support  agreements  between Boeing and its suppliers
requiring the suppliers to fulfill  Customer's  requirements for information and
services in support of the specific model of aircraft.

<PAGE>

8.       Buyer Furnished Equipment Data.
         ------------------------------

         Boeing will incorporate BFE information  into the customized  Materials
providing  Customer  makes the  information  available  to Boeing at least  nine
months prior to the scheduled  delivery month of Customer's  first aircraft of a
specific  model.  Customer  agrees to furnish the information in Boeing standard
digital  format if  Materials  are to be delivered  in Boeing  standard  digital
format.

9.       Materials Shipping Charges.
         --------------------------

         Boeing will pay the reasonable  transportation  costs of the Materials.
Customer is responsible for any customs clearance charges, duties, and taxes.

10.      Customer's Shipping Address.
         ---------------------------

         The  Materials  furnished  to  Customer  hereunder  are to be sent to a
single  address to be specified.  Customer  will  promptly  notify Boeing of any
change to the address.

<PAGE>

                            CUSTOMER SUPPORT DOCUMENT

                 PART 4: ALLEVIATION OR CESSATION OF PERFORMANCE

Boeing  will not be required to provide  any  Materials,  services,  training or
other  things at a  facility  designated  by  Customer  if any of the  following
conditions exist:

     1. a labor stoppage or dispute in progress involving Customer;

     2. wars or warlike operations,  riots or insurrections in the country where
the facility is located;

     3. any  condition  at the  facility  which,  in the  opinion of Boeing,  is
detrimental to the general  health,  welfare or safety of its personnel or their
families;

     4. the United States Government  refuses  permission to Boeing personnel or
their  families to enter into the  country  where the  facility  is located,  or
recommends that Boeing personnel or their families leave the country; or

     5. the United  States  Government  refuses  permission to Boeing to deliver
Materials,  services, training or other things to the country where the facility
is located.

     After the location of Boeing  personnel  at the  facility,  Boeing  further
reserves the right,  upon the  occurrence of any of such events,  to immediately
and without prior notice to Customer relocate its personnel and their families.

<PAGE>

                            CUSTOMER SUPPORT DOCUMENT

                  PART 5: PROTECTION OF PROPRIETARY INFORMATION
                                      AND PROPRIETARY MATERIALS

1.       General.
         -------

         All  Materials  provided  by Boeing to  Customer  and not  covered by a
Boeing CSGTA or other agreement between Boeing and Customer defining  Customer's
right to use and disclose the Materials and included information will be covered
by, and subject to the terms of this AGTA.  Title to all  Materials  containing,
conveying or embodying  confidential,  proprietary  or trade secret  information
(Proprietary  Information)  belonging  to Boeing or a third  party  (Proprietary
Materials),  will at all times remain with Boeing or such third party.  Customer
will  treat  all  Proprietary  Materials  and  all  Proprietary  Information  in
confidence and use and disclose the same only as specifically authorized in this
AGTA.

2.       License Grant.
         -------------

         Boeing grants to Customer a worldwide, non-exclusive,  non-transferable
license to use and disclose  Proprietary  Materials in accordance with the terms
and conditions of this AGTA.  Customer is authorized to make copies of Materials
(except for Materials  bearing the copyright  legend of a third party),  and all
copies  of  Proprietary  Materials  will  belong  to Boeing  and be  treated  as
Proprietary  Materials  under this AGTA.  Customer will preserve all proprietary
legends,  and all copyright notices on all Materials and insure the inclusion of
those legends and notices on all copies.

3.       Use of Proprietary Materials and Proprietary Information.
         --------------------------------------------------------

         Customer is authorized  to use  Proprietary  Materials and  Proprietary
Information  for  the  purpose  of:  (a)  operation,   maintenance,  repair,  or
modification  of  Customer's  aircraft for which the  Proprietary  Materials and
Proprietary  Information  have been specified by Boeing and (b)  development and
manufacture of training devices and maintenance tools for use by Customer.

4.       Providing of Proprietary Materials to Contractors.
         -------------------------------------------------

         Customer is authorized to provide  Proprietary  Materials to Customer's
contractors  for the sole purpose of  maintenance,  repair,  or  modification of
Customer's  aircraft for which the Proprietary  Materials have been specified by
Boeing. In addition,  Customer may provide  Proprietary  Materials to Customer's
contractors  for the sole  purpose  of  developing  and  manufacturing  training
devices and maintenance  tools for Customer's use. Before providing  Proprietary
Materials to its contractor, Customer will first obtain a written agreement from
the  contractor  by  which  the  contractor  agrees  (a) to use the  Proprietary
Materials only on behalf of Customer, (b) to be bound by all of the restrictions
and limitations of this Part 5, and (c) that Boeing is a third party beneficiary
under the  written  agreement.  Customer  agrees to  provide  copies of all such
written agreements to Boeing upon request and be liable to Boeing for any breach
of those agreements by a contractor.  A sample agreement acceptable to Boeing is
attached as Appendix VII.

     5.  Providing of  Proprietary  Materials  and  Proprietary  Information  to
Regulatory Agencies.
-----------------------------------------------------------------------------

         When and to the  extent  required  by a  government  regulatory  agency
having  jurisdiction  over  Customer or an aircraft,  Customer is  authorized to
provide  Proprietary  Materials and to disclose  Proprietary  Information to the
agency for use in connection with Customer's operation,  maintenance, repair, or
modification of such aircraft.  Customer agrees to take all reasonable  steps to
prevent the agency from making any distribution,  disclosure,  or additional use
of the Proprietary Materials and Proprietary  Information provided or disclosed.
Customer  further agrees to notify Boeing  immediately  upon learning of any (a)
distribution,  disclosure,  or additional use by the agency,  (b) request to the
agency for distribution,  disclosure, or additional use, or (c) intention on the
part  of  the  agency  to  distribute,  disclose,  or  make  additional  use  of
Proprietary Materials or Proprietary Information.

                                    EXHIBIT C

                                       to

                        AIRCRAFT GENERAL TERMS AGREEMENT

                                    AGTA-AAT

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                           PRODUCT ASSURANCE DOCUMENT

                             This document contains:

       Part 1:     Exhibit C Definitions

       Part 2:     Boeing Warranty

       Part 3:     Boeing Service Life Policy

       Part 4:     Supplier Warranty Commitment

       Part 5:     Boeing Interface Commitment

       Part 6:     Boeing Indemnities against Patent and Copyright Infringement

<PAGE>

                           PRODUCT ASSURANCE DOCUMENT

                          PART 1: EXHIBIT C DEFINITIONS

         Authorized  Agent - Agent appointed by Customer to perform  corrections
and to administer  warranties (see Appendix VI to the AGTA for a form acceptable
to Boeing).

         Average Direct Hourly Labor Rate - the average  hourly rate  (excluding
all fringe benefits, premium-time allowances, social charges, business taxes and
the like) paid by Customer to its Direct Labor employees.

         Boeing  Product - any system,  accessory,  equipment,  part or Aircraft
Software that is manufactured  by Boeing or  manufactured  to Boeing's  detailed
design with Boeing's authorization.

         Correct - to repair,  modify, provide modification kits or replace with
a new product.

         Correction  -  a  repair,   a  modification,   a  modification  kit  or
replacement with a new product.

         Corrected  Boeing Product - a Boeing Product which is free of defect as
a result of a Correction.

         Direct  Labor - Labor spent by  Customer's  direct  labor  employees to
remove,  disassemble,  modify, repair, inspect and bench test a defective Boeing
Product,  and to  reassemble,  reinstall a Corrected  Boeing Product and perform
final inspection.

         Direct Materials - Items such as parts,  gaskets,  grease,  sealant and
adhesives,   installed  or  consumed  in  performing  a  Correction,   excluding
allowances for administration, overhead, taxes, customs duties and the like.

         Source   Control   Drawing   (SCD)  -  a   Boeing   document   defining
specifications for certain Supplier Products.

         Supplier - the manufacturer of a Supplier Product.

         Supplier Product - any system,  accessory,  equipment, part or Aircraft
Software that is not manufactured to Boeing's detailed design. This includes but
is not limited to parts  manufactured  to a SCD, all standards,  and other parts
obtained from non-Boeing sources.

<PAGE>

                           PRODUCT ASSURANCE DOCUMENT

                             PART 2: BOEING WARRANTY

1.       Applicability.
         -------------

         This warranty applies to all Boeing Products.  Warranties applicable to
Supplier  Products  are in Part 4.  Warranties  applicable  to  engines  will be
provided by Supplemental Exhibits to individual purchase agreements.

2.       Warranty.
         --------

     2.1 Coverage. Boeing warrants that at the time of delivery:

     (i) the  aircraft  will  conform  to the  Detail  Specification  except for
portions stated to be estimates, approximations or design objectives;

     (ii) all Boeing Products will be free from defects in material,  process of
manufacture  and  workmanship,  including  the  workmanship  utilized to install
Supplier Products, engines and BFE, and;

     (iii) all Boeing  Products  will be free from defects in design,  including
selection of materials and the process of  manufacture,  in view of the state of
the art at the time of design

     2.2 Exceptions.  The following  conditions do not constitute a defect under
this warranty:

     (i) conditions resulting from normal wear and tear;

     (ii) conditions resulting from acts or omissions of Customer; and

     (iii) conditions  resulting from failure to properly service and maintain a
Boeing Product .

     3. Warranty Periods.

         3.1  Warranty.  The warranty  period  begins on the date of aircraft or
Boeing Product delivery and ends: (i) after 48 months for Boeing aircraft models
777-200,  -300 or 737-600,  -700,  -800,  or new  aircraft  models  designed and
manufactured  with  similar,  new  technology;  or, (ii) after 36 months for any
other Boeing aircraft model.

         3.2  Warranty  on  Corrected  Boeing  Products.   The  warranty  period
applicable to a Corrected  Boeing Product,  including the workmanship to Correct
and install, resulting from a defect in material or workmanship is the remainder
of the initial warranty period for the defective Boeing Product it replaced. The
warranty period for a Corrected Boeing Product resulting from a defect in design
is 18 months or the  remainder  of the initial  warranty  period,  whichever  is
longer.  The 18 month  period  begins on the date of delivery  of the  Corrected
Boeing  Product or date of delivery of the kit or kits  furnished to Correct the
Boeing Product.

     3.3 Survival of  Warranties.  All warranty  periods are stated  above.  The
Performance Guarantees will  not survive delivery of the
aircraft.

4.       Remedies.
         --------

     4.1  Correction  Options.  Customer  may, at its option,  either  perform a
Correction  of a  defective Boeing  Product or return the
Boeing Product to Boeing for Correction.

     4.2 Warranty  Labor Rate. If Customer or its  Authorized  Agent  Corrects a
defective Boeing Product,  Boeing will reimburse Customer for Direct Labor Hours
at Customer's  established Warranty Labor Rate. Customer's  established Warranty
Labor Rate will be the greater of the standard  labor rate or 150% of Customer's
Average  Direct Hourly Labor Rate. The standard labor rate paid by Boeing to its
customers is established and published  annually.  Prior to or concurrently with
submittal of Customer's first claim for Direct Labor reimbursement, Customer may
notify Boeing of Customer's  then-current  Average Direct Hourly Labor Rate, and
thereafter  notify  Boeing of any  material  change in such  rate.  Boeing  will
require information from Customer to substantiate such rates.

         4.3  Warranty  Inspections.  In  addition  to the  remedies  to Correct
defects in Boeing  Products,  Boeing  will  reimburse  Customer  for the cost of
Direct Labor to perform  certain  inspections  of the aircraft to determine  the
occurrence of a condition Boeing has identified as a covered defect, provided:

     4.3.1 the  inspections  are  recommended  by a service  bulletin or service
letter issued by Boeing during the warranty period; and

     4.3.2 such reimbursement will not apply to any inspections  performed after
a Correction is available to Customer.

     4.4 Credit Memorandum Reimbursement. Boeing will make all reimbursements by
credit  memoranda which  may be applied toward
the purchase of Boeing goods and services.

     4.5  Maximum   Reimbursement.   Unless  previously   agreed,   the  maximum
reimbursement  for Direct Labor and Direct Materials used to Correct a defective
Boeing  Product will not exceed 65% of Boeing's  then-current  sales price for a
new replacement Boeing Product.

5.       Discovery and Notice.
         --------------------

         5.1      For a claim to be valid:

     (i) the defect must be discovered during the warranty period; and

     (ii) Boeing  Warranty must receive written notice of the discovery no later
than 90 days after  expiration of the warranty  period.  The notice must include
sufficient information to substantiate the claim.

     5.2 Receipt of Customer's or its Authorized Agent's notice of the discovery
of a defect  secures  Customer's  rights to remedies  under this Exhibit C, even
though a Correction is performed after the expiration of the warranty period.

     5.3 Once  Customer has given valid notice of the  discovery of a defect,  a
claim  should be  submitted  as soon as  practicable  after  performance  of the
Correction.

     5.4 Boeing may  release  service  bulletins  or  service  letters  advising
Customer of the availability of certain warranty  remedies.  When such advice is
provided,  Customer  will be  deemed  to have  fulfilled  the  requirements  for
discovery  of the defect and  submittal of notice under this Exhibit C as of the
date specified in the service bulletin or service letter.

6.       Filing a Claim.
         --------------

     6.1  Authority to File.  Claims may be filed by Customer or its  Authorized
Agent.  Appointment of an Authorized  Agent will only be effective upon Boeing's
receipt  of  the  Authorized  Agent's  express  written  agreement,  in  a  form
satisfactory to Boeing,  to be bound by and to comply with all applicable  terms
and conditions of this Aircraft General Terms Agreement.

         6.2      Claim Information.
                  -----------------

     6.2.1  Claimant is  responsible  for providing  sufficient  information  to
substantiate  Customer's  rights to  remedies  under this  Exhibit C. Boeing may
reject  a  claim  for  lack  of  sufficient  information.  At  a  minimum,  such
information must include:

     (i) identity of claimant;

     (ii) serial or block number of the aircraft on which the  defective  Boeing
Product was delivered;

     (iii) part number and nomenclature of the defective Boeing Product;

     (iv) purchase order number and date of delivery of the defective spare part

     (v) description and substantiation of the defect;

     (vi) date the defect was discovered;

     (vii) date the Correction was completed;

     (viii) the total flight hours or cycles accrued;

     (ix) an itemized  account of direct labor hours  expended in performing the
Correction;  and (x) an itemized account of any direct materials incorporated in
the Correction.

     6.2.2  Additional  information  may be required  based on the nature of the
defect and the remedies requested.

         6.3      Boeing Claim Processing.
                  -----------------------

                  6.3.1 Any claim for a Boeing  Product  returned by Customer or
its Authorized Agent to Boeing for Correction must accompany the Boeing Product.
Any claim not associated  with the return of a Boeing Product must be signed and
submitted  in writing  directly by Customer  or its  Authorized  Agent to Boeing
Warranty.

                  6.3.2  Boeing  will  promptly  review  the claim and will give
notification  of claim approval or rejection.  If the claim is rejected,  Boeing
will provide a written explanation.

7.       Corrections Performed by Customer or Its Authorized Agent.
         ---------------------------------------------------------

         7.1 Facilities Requirements. Provided Customer, its Authorized Agent or
its third party  contractor,  as  appropriate,  are certified by the appropriate
Civil  Aviation  Authority  or  Federal  Aviation  Authority,  Customer  or  its
Authorized  Agent may, at its option,  Correct  defective Boeing Products at its
facilities, or may subcontract Corrections to a third party contractor.

         7.2  Technical  Requirements.  All  Corrections  done by Customer,  its
Authorized  Agent or a third party  contractor  must be performed in  accordance
with  Boeing's   applicable   service   manuals,   bulletins  or  other  written
instructions, using parts and materials furnished or approved by Boeing.

         7.3      Reimbursement.
                  -------------

                  7.3.1 Boeing will  reimburse  Customer's  reasonable  costs of
Direct  Materials  and Direct Labor  (excluding  time  expended for overhaul) at
Customer's Warranty Labor Rate to Correct a defective Boeing Product. Claims for
reimbursement must contain sufficient  information to substantiate  Direct Labor
hours expended and Direct Materials  consumed.  Customer or its Authorized Agent
may be required to produce invoices for materials.

                  7.3.2   Reimbursement   for  Direct  Labor  hours  to  perform
Corrections stated in a service bulletin will be based on the labor estimates in
the service bulletin.

                  7.3.3  Boeing  will  reimburse   Customer's   freight  charges
associated  with a Correction of a defect on a Boeing  Product  performed by its
Authorized Agent or a third party contractor.

     7.4  Disposition of Defective  Boeing Products  Beyond  Economical  Repair.

                  7.4.1 A defective Boeing Product found to be beyond economical
repair (see Para. 4.5 Maximum Reimbursement) will be retained for a period of 60
days from the date Boeing receives  Customer's claim.  During the 60 day period,
Boeing  may  request   return  of  such  Boeing   Products  for  inspection  and
confirmation of a defect.

                  7.4.2 After the 60 day period, a defective Boeing Product with
a value of U.S. $2000 or less may be scrapped without notification to Boeing. If
such Boeing  Product has a value greater than U.S.  $2000,  Customer must obtain
confirmation  of   unrepairability   by  Boeing's  on-site   Customer   Services
Representative  prior  to  scrapping.  Confirmation  may be in the  form  of the
Representative's  signature on Customer's claim or through direct  communication
between the Representative and Boeing Warranty.

8.       Corrections Performed by Boeing.
         -------------------------------

         8.1 Freight Charges. Customer or its Authorized Agent will pay shipping
charges to return a Boeing Product to Boeing.  Boeing will reimburse Customer or
its  Authorized  Agent for the charge for any item  determined  to be  defective
under this Aircraft General Terms Agreement. Boeing will pay shipping charges to
return the Corrected Boeing Product.

         8.2 Customer Instructions.  The documentation shipped with the returned
defective  Boeing  Product  may  include  specific  technical  instructions  for
additional  work to be  performed  on the Boeing  Product.  The  absence of such
instructions  will evidence  Customer's  authorization for Boeing to perform all
necessary  Corrections  and work  required  to return  the  Boeing  Product to a
serviceable condition.

         8.3      Correction Time Objectives.
                  --------------------------

                  8.3.1 Boeing's  objective for making Corrections is 10 working
days  for  avionics  and  electronic  Boeing  Products,   30  working  days  for
Corrections of other Boeing Products  performed at Boeing's  facilities,  and 40
working  days for  Corrections  of other Boeing  Products  performed at a Boeing
subcontractor's  facilities.  The  objectives  are measured from the date Boeing
receives the defective Boeing Product and a valid claim to the date Boeing ships
the Correction.

                  8.3.2 If Customer has a critical parts shortage because Boeing
has exceeded a Correction  time objective and Customer has procured spare Boeing
Products  for the  defective  Boeing  Product in  quantities  shown in  Boeing's
Recommended  Spare  Parts  List  (RSPL)  or  Spares  Planning  and  Requirements
Evaluation Model  (M-SPARE),  then Boeing will either expedite the Correction or
provide an  interchangeable  Boeing  Product on a no charge  loan or lease basis
until the Corrected Boeing Product is returned.

         8.4      Title Transfer and Risk of Loss.
                  -------------------------------

     8.4.1  Title to and risk of loss of any Boeing  Product  returned to Boeing
will at all times remain with  Customer or any other title holder of such Boeing
Product. While Boeing has possession of the returned Boeing Product, Boeing will
have only such  liabilities  as a bailee for mutual benefit would have, but will
not be liable for loss of use.

     8.4.2 If a Correction  requires  shipment of a new Boeing Product,  then at
the time Boeing ships the new Boeing Product,  title to and risk of loss for the
returned  Boeing Product will pass to Boeing,  and title to and risk of loss for
the new Boeing Product will pass to Customer.

9.       Returning an Aircraft.
         ---------------------

     9.1  Conditions.  An aircraft  may be returned to Boeing's  facilities  for
Correction only if:

     (i) Boeing and Customer agree a covered defect exists;

     (ii) Customer lacks access to adequate  facilities,  equipment or qualified
personnel to perform the Correction; and

     (iii) it is not  practical,  in Boeing's  estimation,  to  dispatch  Boeing
personnel to perform the Correction at a remote site.

     9.2  Correction  Costs.  Boeing will perform the Correction at no charge to
Customer.  Subject to the  conditions  of Article  9.1,  Boeing  will  reimburse
Customer for the costs of fuel,  oil and landing  fees  incurred in ferrying the
aircraft to Boeing and back to Customer's facilities. Customer will minimize the
length of both flights.

     9.3  Separate  Agreement.  Boeing and  Customer  will enter into a separate
agreement  covering  return of the aircraft and  performance of the  Correction.
Authorization by Customer for Boeing to perform additional work that is not part
of the Correction must be received within 24 hours of Boeing's request.  If such
authorization  is not received  within 24 hours,  Customer  will be invoiced for
work performed by Boeing that is not part of the Correction.

10.      Insurance.
         ---------

         The provisions of Article 8.2 "Insurance",  of this AGTA, will apply to
any work performed by Boeing in accordance  with Customer's  specific  technical
instructions,  to the  extent  any legal  liability  of Boeing is based upon the
content of such instructions.

11.      Disclaimer and Release; Exclusion of Liabilities.
         ------------------------------------------------

         11.1   DISCLAIMER  AND  RELEASE.   THE   WARRANTIES,   OBLIGATIONS  AND
LIABILITIES  OF  BOEING  AND THE  REMEDIES  OF  CUSTOMER  IN THIS  EXHIBIT C ARE
EXCLUSIVE AND IN  SUBSTITUTION  FOR, AND CUSTOMER  HEREBY  WAIVES,  RELEASES AND
RENOUNCES,  ALL OTHER WARRANTIES,  OBLIGATIONS AND LIABILITIES OF BOEING AND ALL
OTHER  RIGHTS,  CLAIMS AND  REMEDIES  OF  CUSTOMER  AGAINST  BOEING,  EXPRESS OR
IMPLIED,  ARISING BY LAW OR  OTHERWISE,  WITH RESPECT TO ANY  NONCONFORMANCE  OR
DEFECT IN ANY AIRCRAFT,  MATERIALS,  TRAINING,  SERVICES OR OTHER THING PROVIDED
UNDER  THIS  AGTA AND THE  APPLICABLE  PURCHASE  AGREEMENT,  INCLUDING,  BUT NOT
LIMITED TO:

     (A) ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

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

     (C) ANY OBLIGATION,  LIABILITY,  RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR
NOT ARISING FROM THE NEGLIGENCE OF BOEING; AND

     (D) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE
TO ANY AIRCRAFT.

         11.2 EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES.  BOEING WILL HAVE NO
OBLIGATION OR LIABILITY, WHETHER ARISING IN CONTRACT (INCLUDING WARRANTY), TORT,
WHETHER OR NOT ARISING FROM THE NEGLIGENCE OF BOEING, OR OTHERWISE,  FOR LOSS OF
USE, REVENUE OR PROFIT,  OR FOR ANY OTHER  INCIDENTAL OR  CONSEQUENTIAL  DAMAGES
WITH  RESPECT  TO ANY  NONCONFORMANCE  OR  DEFECT  IN ANY  AIRCRAFT,  MATERIALS,
TRAINING,  SERVICES OR OTHER THING  PROVIDED  UNDER THIS AGTA AND THE APPLICABLE
PURCHASE AGREEMENT.

         11.3 Definitions. For the purpose of this Article, "BOEING" or "Boeing"
is defined as The Boeing Company, its divisions,  subsidiaries,  affiliates, the
assignees of each,  and their  respective  directors,  officers,  employees  and
agents.

<PAGE>

                           PRODUCT ASSURANCE DOCUMENT

                       PART 3: BOEING SERVICE LIFE POLICY

1.       Definitions.
         -----------

         SLP  Component  - any of the  primary  structural  elements  (excluding
industry  standard  parts) of the  landing  gear,  wing,  fuselage,  vertical or
horizontal stabilizer listed in the applicable purchase agreement for a specific
model of aircraft  that is  installed  in the aircraft at time of delivery or is
purchased  from Boeing by Customer as a spare part.  The detailed SLP  Component
listing will be in Supplemental Exhibit SLP1 to each Purchase Agreement.

2.       Service Life Policy.
         -------------------

         2.1 SLP  Commitment.  If a failure  or defect  is  discovered  in a SLP
Component within the time periods  specified in Article 2.2 below,  Boeing will,
at a price calculated pursuant to Article 3 below, Correct the SLP Component.

         2.2      SLP Policy Periods.
                  ------------------

                  2.2.1 The policy period for SLP Components initially installed
on an aircraft is 12 years after the date of delivery of the aircraft.

                  2.2.2 The policy  period  for SLP  Components  purchased  from
Boeing  by  Customer  as  spare  parts  is 12 years  from  delivery  of such SLP
Component or 12 years from the date of delivery of the last aircraft produced by
Boeing of a specific model, whichever first expires.

3.       Price.
         -----

         The price that Customer  will pay for the  Correction of a defective or
failed SLP Component will be calculated pursuant to the following formula:

                  P =      CT
                           ---
                           144

         where:

                  P =      price to Customer for the replacement part
                  C =      SLP Component sales price at time of Correction
                  T        = total age in months of the  defective or failed SLP
                           Component  from the date of  delivery  to Customer to
                           the date of discovery of such condition.

4.       Conditions.
         ----------

         Boeing's  obligations  under  this  Policy  are  conditioned  upon  the
following:

         4.1  Customer  must  notify  Boeing in writing of the defect or failure
within three months after it is discovered.

         4.2 Customer must provide  reasonable  evidence that the claimed defect
or  failure is covered by this  Policy  and if  requested  by Boeing,  that such
defect or failure  was not the result of (i) a defect or failure in a  component
not covered by this Policy, (ii) an extrinsic force, (iii) an act or omission of
Customer,  or (iv) operation or maintenance contrary to applicable  governmental
regulations or Boeing's instructions.

         4.3 If return of a defective or failed SLP Component is practicable and
requested  by Boeing,  Customer  will  return  such SLP  Component  to Boeing at
Boeing's expense.

         4.4 Customer's rights and remedies under this Policy are limited to the
receipt of a Correction at prices calculated pursuant to Article 3 above.

5.       Disclaimer and Release; Exclusion of Liabilities.
         ------------------------------------------------

         This Part 3 and the rights and remedies of Customer and the obligations
of  Boeing  are  subject  to  the   DISCLAIMER  AND  RELEASE  and  EXCLUSION  OF
CONSEQUENTIAL  AND OTHER  DAMAGES  provisions  of  Article  11 of Part 2 of this
Exhibit C.

<PAGE>

                           PRODUCT ASSURANCE DOCUMENT

                      PART 4: SUPPLIER WARRANTY COMMITMENT

1.       Supplier Warranties and Supplier Patent and Copyright Indemnities.
         -----------------------------------------------------------------

         Boeing will use diligent  efforts to obtain  warranties and indemnities
against patent and copyright infringement enforceable by Customer from Suppliers
of Supplier  Products (except for BFE and engines)  installed on the aircraft at
the time of  delivery  that were  selected  and  purchased  by  Boeing,  but not
manufactured  to Boeing's  detailed  design.  Boeing will furnish  copies of the
warranties  and  patent and  copyright  indemnities  to  Customer  contained  in
Supplier  Product  Support  and  Product  Assurance  Agreements,  prior  to  the
scheduled  delivery  month of the  first  aircraft  under the  initial  purchase
agreement to the AGTA.

2.       Boeing Assistance in Administration of Supplier Warranties.
         ----------------------------------------------------------

         Customer will be responsible for submitting warranty claims directly to
Suppliers;  however,  if Customer  experiences  problems  enforcing any Supplier
warranty  obtained by Boeing for Customer,  Boeing will conduct an investigation
of the problem and assist Customer in the resolution of those claims.

3.       Boeing Support in Event of Supplier Default.
         -------------------------------------------

         3.1  If  the  Supplier  defaults  in  the  performance  of  a  material
obligation under its warranty,  and Customer  provides evidence to Boeing that a
default has occurred,  then Boeing will furnish the equivalent warranty terms as
provided by the defaulting Supplier.

         3.2 At Boeing's  request,  Customer  will assign to Boeing,  and Boeing
will be subrogated to, its rights against the Supplier  provided by the Supplier
warranty.

<PAGE>

                           PRODUCT ASSURANCE DOCUMENT

                       PART 5: BOEING INTERFACE COMMITMENT

1.       Interface Problems.
         ------------------

         An Interface Problem is defined as a technical problem in the operation
of an aircraft or its systems experienced by Customer, the cause of which is not
readily  identifiable by Customer but which Customer believes to be attributable
to either the  design  characteristics  of the  aircraft  or its  systems or the
workmanship used in the installation of Supplier Products. In the event Customer
experiences an Interface  Problem,  Boeing will,  without  additional  charge to
Customer,  promptly conduct an investigation and analysis to determine the cause
or causes of the Interface Problem.  Boeing will promptly advise Customer at the
conclusion  of its  investigation  of  Boeing's  opinion as to the causes of the
Interface Problem and Boeing's recommendation as to corrective action.

2.       Boeing Responsibility.
         ---------------------

         If  Boeing   determines   that  the  Interface   Problem  is  primarily
attributable to the design or  installation  of any Boeing Product,  Boeing will
Correct the design or workmanship to the extent of any then-existing obligations
of Boeing  under the  provisions  of the  applicable  Boeing  Warranty or Boeing
Service Life Policy.

3.       Supplier Responsibility.
         -----------------------

         If  Boeing   determines   that  the  Interface   Problem  is  primarily
attributable to the design or installation  of a Supplier  Product,  Boeing will
assist Customer in processing a warranty claim against the Supplier.

4.       Joint Responsibility.
         --------------------

         If  Boeing   determines   that  the  Interface   Problem  is  partially
attributable  to the design or installation of a Boeing Product and partially to
the design or installation of a Supplier Product, Boeing will seek a solution to
the Interface Problem through the cooperative efforts of Boeing and the Supplier
and will  promptly  advise  Customer  of the  resulting  corrective  actions and
recommendations.

5.       General.
         -------

         Customer  will,  if  requested  by Boeing,  assign to Boeing any of its
rights  against any  supplier  as Boeing may require to fulfill its  obligations
hereunder.

<PAGE>

6.       Disclaimer and Release; Exclusion of Liabilities.
         ------------------------------------------------

         This Part 5 and the rights and remedies of Customer and the obligations
of Boeing  herein are subject to the  DISCLAIMER  AND RELEASE and  EXCLUSION  OF
CONSEQUENTIAL  AND OTHER  DAMAGES  provisions  of  Article  11 of Part 2 of this
Exhibit C.

<PAGE>

                           PRODUCT ASSURANCE DOCUMENT

                    PART 6: BOEING INDEMNITIES AGAINST PATENT
                                     AND COPYRIGHT INFRINGEMENT

1.       Indemnity Against Patent Infringement.
         -------------------------------------

         Boeing will defend and  indemnify  Customer with respect to all claims,
suits and liabilities  arising out of any actual or alleged patent  infringement
through  Customer's  use,  lease or resale of any aircraft or any Boeing Product
installed on an aircraft at delivery.

2.       Indemnity Against Copyright Infringement.
         ----------------------------------------

         Boeing will defend and  indemnify  Customer with respect to all claims,
suits  and  liabilities   arising  out  of  any  actual  or  alleged   copyright
infringement  through  Customer's  use,  lease or resale of any  Boeing  created
Materials and Aircraft Software installed on an aircraft at delivery.

3.       Exceptions, Limitations and Conditions.
         --------------------------------------

         3.1 Boeing's  obligation to indemnify Customer for patent  infringement
will  extend  only to  infringements  in  countries  which,  at the  time of the
infringement,  were  party to and fully  bound by either  (a)  Article 27 of the
Chicago  Convention on International  Civil Aviation of December 7, 1944, or (b)
the  International  Convention for the Protection of Industrial  Property (Paris
Convention).

         3.2   Boeing's   obligation   to  indemnify   Customer  for   copyright
infringement is limited to  infringements in countries which, at the time of the
infringement,  are members of The Berne Union and recognize computer software as
a "work" under The Berne Convention.

         3.3 The  indemnities  provided  under this Part 6 will not apply to any
(i) BFE, (ii) engines,  (iii)  Supplier  Product (iv) Boeing  Product used other
than for its intended purpose, or (v) Aircraft Software not created by Boeing.

         3.4 Customer must deliver  written  notice to Boeing (i) within 10 days
after Customer first receives  notice of any suit or other formal action against
Customer  and (ii)  within  20 days  after  Customer  first  receives  any other
allegation or written claim of infringement covered by this Part 6.

<PAGE>

         3.5 At any time,  Boeing  will have the right at its option and expense
to: (i) negotiate with any party claiming  infringement,  (ii) assume or control
the defense of any infringement allegation,  claim, suit or formal action, (iii)
intervene  in any  infringement  suit or formal  action , and/or (iv) attempt to
resolve any claim of  infringement by replacing an allegedly  infringing  Boeing
Product or Aircraft Software with a noninfringing equivalent.

         3.6 Customer will promptly furnish to Boeing all  information,  records
and assistance  within  Customer's  possession or control which Boeing considers
relevant or material to any alleged infringement covered by this Part 6.

         3.7 Except as required by a final judgment  entered against Customer by
a court of  competent  jurisdiction  from which no  appeals  can be or have been
filed,   Customer  will  obtain  Boeing's  written  approval  prior  to  paying,
committing to pay,  assuming any  obligation  or making any material  concession
relative to any infringement covered by these indemnities.

         3.8 Boeing will have no obligation  or liability  under this Part 6 for
loss of use,  revenue or profit,  or for any other  incidental or  consequential
damages.  The  obligations of Boeing and remedies of Customer in this Part 6 are
exclusive and in  substitution  for, and Customer  hereby  waives,  releases and
renounces all other  indemnities,  obligations and liabilities of Boeing and all
other  rights,  claims and  remedies  of  Customer  against  Boeing,  express or
implied,  arising  by law or  otherwise,  with  respect to any actual or alleged
patent, copyright OR OTHER INTELLECTUAL PROPERTY infringement or the like by any
aircraft,  AIRCRAFT  SOFTWARE,  MATERIALS,  TRAINING,  SERVICES  or other  thing
provided under this AGTA and the applicaBLE PURCHASE AGREEMENT.

         3.9 For the  purposes of this Part 6,  "BOEING or Boeing" is defined as
The Boeing Company, its divisions,  subsidiaries,  affiliates,  the assignees of
each and their respective directors, officers, employees and agents.

                                     SAMPLE
                              Insurance Certificate

================================================================================
                               BROKER'S LETTERHEAD
================================================================================

[ date ]

Certificate of Insurance

ISSUED TO:             The Boeing Company
                               Post Office Box 3707
                               Mail Stop 13-57
                               Seattle, Washington 98124
                               Attn:  Manager - Aviation Insurance for
                                      Vice President - Employee Benefits,
                                      Insurance and Taxes

CC:                            Boeing Commercial Airplane Group
                               P.O. Box 3707
                               Mail Stop 21-34
                               Seattle, Washington 98124-2207
                               U.S.A.
                               Attn:  Vice President - Contracts

NAMED INSURED: American Trans Air, Inc.

We hereby  certify  that in our  capacity as Brokers to the Named  Insured,  the
following described insurance is in force on this date:

Insurer                       Policy No.                         Participation

     POLICY  PERIOD:  From [date and time of  inception of the  Policy(ies)]  to
                      [date and time of expiration].

     GEOGRAPHICAL LIMITS: Worldwide (however, as respects "Aircraft Hull War and
                          Allied Perils" Insurance, as agreed by Boeing).

<PAGE>

AIRCRAFT                            INSURED:  All Boeing  manufactured  aircraft
                                    owned or operated by the Named Insured which
                                    are the  subject of the  following  purchase
                                    agreement(s),   entered   into  between  The
                                    Boeing    Company   and    _________________
                                    (hereinafter "Aircraft"):

                    Purchase Agreement No. ____ dated ______
                    Purchase Agreement No. ____ dated ______

COVERAGES:

1.Aircraft "all risks" Hull (Ground and Flight)
2.Aircraft Hull War and Allied Perils (as per LSW 555, or its successor wording)
3.Airline Liability

Including,  but  not  limited  to,  Bodily  Injury,  Property  Damage,  Aircraft
Liability,  Liability War Risks, Passenger Legal Liability,  Premises/Operations
Liability,  Completed  Operations/Products  Liability,  Baggage Legal  Liability
(checked  and  unchecked),  Cargo Legal  Liability,  Contractual  Liability  and
Personal Injury.

The above-referenced  Airline Liability insurance coverage is subject to War and
Other Perils Exclusion  Clause (AV48B) but all sections,  other than section (b)
are reinstated as per AV52C, or their successor endorsements.

LIMITS OF LIABILITY:

To the fullest  extent of the Policy limits that the Named Insured  carries from
the time of delivery of the first Aircraft  under the first  Purchase  Agreement
listed under  "Aircraft  Insured" and thereafter at the inception of each policy
period, but in any event no less than the following:

     Combined  Single Limit Bodily  Injury and  Property  Damage:  U.S.$ any one
occurrence each Aircraft (with aggregates
as applicable).

         (717-200)                                   US$300,000,000
         (737-500/600)                               US$350,000,000
         (737-300/700)                               US$400,000,000
         (737-400)                                   US$450,000,000
         (737-800)                                   US$500,000,000
         (757-200)                                   US$525,000,000
         (757-300)                                   US$550,000,000
         (767-200)                                   US$550,000,000
         (767-300)                                   US$700,000,000
         (767-400ERX)                                US$750,000,000
         (777-200X)                                  US$750,000,000
         (MD-11)                                     US$800,000,000
         (777-200/300)                               US$800,000,000
         (777-300X)                                  US$900,000,000
         (747-400)                                   US$900,000,000

(In regard to all other models and/or derivatives, to be specified by Boeing).

(In  regard to  Personal  Injury  coverage,  limits  are  US$25,000,000  any one
offense/aggregate.)

DEDUCTIBLES / SELF-INSURANCE

Any  deductible  and/or   self-insurance  amount  (other  than  standard  market
deductibles) are to be disclosed and agreed by Boeing.

SPECIAL PROVISIONS APPLICABLE TO BOEING:

It is certified  that Insurers are aware of the terms and conditions of AGTA-AAT
and the following purchase agreements:

PA ______ dated _______
PA ______ dated _______
PA ______ dated _______

Each Aircraft  manufactured by Boeing which is delivered to the Insured pursuant
to the  applicable  purchase  agreement  during the period of effectivity of the
policies represented by this Certificate will be covered to the extent specified
herein.

Insurers have agreed to the following:

         A. In regard to Aircraft  "all risks" Hull  Insurance and Aircraft Hull
War and  Allied  Perils  Insurance,  Insurers  agree  to  waive  all  rights  of
subrogation  or recourse  against  Boeing in accordance  with AGTA-AAT which was
incorporated by reference into the applicable purchase agreement.

         B.    In regard to Airline Liability Insurance, Insurers agree:

                  (1) To include  Boeing as an additional  insured in accordance
with Customer's  undertaking in Article 8.2.1 of AGTA-AAT which was incorporated
by reference into the applicable purchase agreement.

                  (2) To provide  that such  insurance  will be primary  and not
contributory  nor excess with respect to any other  insurance  available for the
protection of Boeing;

                  (3) To provide that with  respect to the  interests of Boeing,
such insurance  shall not be invalidated or minimized by any action or inaction,
omission or misrepresentation by the Insured or any other person or party (other
than Boeing) regardless of any breach or violation of any warranty,  declaration
or condition contained in such policies;

                  (4) To provide that all provisions of the insurance  coverages
referenced  above,  except the limits of  liability,  will  operate to give each
Insured or  additional  insured the same  protection as if there were a separate
Policy issued to each.

         C.    In regard to all of the above referenced policies:

                  (1) Boeing will not be responsible  for payment,  set-off,  or
assessment  of any  kind  or any  premiums  in  connection  with  the  policies,
endorsements or coverages described herein;

                  (2) If a policy is canceled for any reason whatsoever,  or any
substantial change is made in the coverage which affects the interests of Boeing
or if a policy is allowed to lapse for nonpayment of premium, such cancellation,
change or lapse shall not be effective as to Boeing for thirty (30) days (in the
case of war risk and allied perils  coverage  seven (7) days after  sending,  or
such  other  period as may from time to time be  customarily  obtainable  in the
industry)  after  receipt by Boeing of written  notice from the  Insurers or the
authorized representatives or Broker of such cancellation, change or lapse; and

                  (3) For the purposes of the  Certificate,  "Boeing" is defined
as The Boeing Company, its divisions, subsidiaries, affiliates, the assignees of
each and their respective directors, officers, employees and agents.

Subject to the terms,  conditions,  limitations  and  exclusions of the relative
policies.

(signature)
 ---------

(typed name)

(title)

                                     SAMPLE
                          Purchase Agreement Assignment

         THIS PURCHASE  AGREEMENT  ASSIGNMENT  (Assignment) dated as of ________
20__ between  American  Trans Air, Inc., a company  organized  under the laws of
________________  (Assignor) and  ________________________,  a company organized
under the laws of  ________________  (Assignee).  Capitalized  terms used herein
without  definition  will  have  the  same  meaning  as in the  Boeing  Purchase
Agreement.

         Assignor and The Boeing Company, a Delaware corporation  (Boeing),  are
parties to the Boeing Purchase Agreement, providing, among other things, for the
sale by Boeing to Assignor of certain aircraft,  engines and related  equipment,
including the Aircraft.

         Assignee  wishes  to  acquire  the  Aircraft  and  certain  rights  and
interests  under the Boeing  Purchase  Agreement and Assignor,  on the following
terms and  conditions,  is willing to assign to Assignee  certain of  Assignor's
rights and interests under the Boeing Purchase Agreement. Assignee is willing to
accept such assignment.

It is agreed as follows:

     1. For all purposes of this  Assignment,  the following terms will have the
following meanings:

         Aircraft -- one Boeing Model ______  aircraft,  bearing  manufacturer's
serial number  _______,  together  with all engines and parts  installed on such
aircraft on the Delivery Date.

         Boeing -- Boeing shall include Boeing Sales Corporation (a wholly-owned
subsidiary of Boeing), a Guam corporation, and its successors and assigns.

         Boeing Purchase  Agreement -- Purchase  Agreement No. ________ dated as
of  ____________  between  Boeing  and  Assignor,   as  amended,  but  excluding
______________,  providing,  among  other  things,  for the  sale by  Boeing  to
Assignor of the Aircraft, as said agreement may be further amended to the extent
permitted  by its  terms.  The  Purchase  Agreement  incorporated  by  reference
Aircraft General Terms Agreement AGTA/____ (AGTA).

         Delivery  Date -- the date on which the Aircraft is delivered by Boeing
to Assignee  pursuant to and subject to the terms and  conditions  of the Boeing
Purchase Agreement and this Assignment.

         2.  Assignor  does  hereby  assign to  Assignee  all of its  rights and
interests in and to the Boeing Purchase Agreement, as and to the extent that the
same relate to the Aircraft and the purchase and  operation  thereof,  except as
and to the extent expressly reserved below,  including,  without limitation,  in
such assignment:
[TO BE COMPLETED BY THE PARTIES.]

<PAGE>

         {EXAMPLES

     (a) the right upon valid tender to purchase  the  Aircraft  pursuant to the
Boeing Purchase  Agreement  subject to the terms and conditions  thereof and the
right to take title to the  Aircraft  and to be named the "Buyer" in the bill of
sale for the Aircraft;

     (b) the right to accept delivery of the Aircraft;

     (c) all claims for  damages  arising as a result of any  default  under the
Boeing Purchase Agreement in respect of the Aircraft;

     (d) all warranty and indemnity  provisions contained in the Boeing Purchase
Agreement, and all claims arising thereunder, in respect of the Aircraft; and

     (e) any and all rights of  Assignor to compel  performance  of the terms of
the Boeing Purchase Agreement in respect of the Aircraft.}

Reserving exclusively to Assignor, however:

         {EXAMPLES

     (i) all  Assignor's  rights and  interests  in and to the  Boeing  Purchase
Agreement  as and to the extent  the same  relates  to  aircraft  other than the
Aircraft, or to any other matters not directly pertaining to the Aircraft;

     (ii) all  Assignor's  rights and interests in or arising out of any advance
or other  payments or deposits made by Assignor in respect of the Aircraft under
the Boeing Purchase Agreement and any amounts credited or to be credited or paid
or to be paid by Boeing in respect of the Aircraft;

     (iii) the right to obtain services, training, information and demonstration
and test flights pursuant to the Boeing Purchase Agreement; and

     (iv) the right to maintain plant representatives at Boeing's plant pursuant
to the Boeing Purchase Agreement.}

Assignee hereby accepts such assignment.

         3.  Notwithstanding  the  foregoing,  so long as no event of default or
termination  under [specify  document] has occurred and is continuing,  Assignee
hereby  authorizes  Assignor,  to the  exclusion  of  Assignee,  to  exercise in
Assignor's  name all  rights and powers of  Customer  under the Boeing  Purchase
Agreement in respect of the Aircraft.

         4. For all  purposes of this  Assignment,  Boeing will not be deemed to
have  knowledge  of  or  need  recognize  the  occurrence,  continuance  or  the
discontinuance of any event of default or termination  under [specify  document]
unless and until Boeing receives from Assignee written notice thereof, addressed
to its Vice President - Contracts,  Boeing Commercial Airplane Group at P.O. Box
3707, Seattle,  Washington 98124, if by mail, or to 32-9430 Answerback BOEINGREN
RNTN, if by telex. Until such notice has been given,  Boeing will be entitled to
deal solely and  exclusively  with  Assignor.  Thereafter,  until  Assignee  has
provided Boeing written notice that any such events no longer  continue,  Boeing
will be entitled to deal solely and  exclusively  with Assignee.  Boeing may act
with acquittance and conclusively rely on any such notice.

         5. It is  expressly  agreed  that,  anything  herein  contained  to the
contrary  notwithstanding:  (a) prior to the Delivery Date Assignor will perform
its obligations  with respect to the Aircraft to be performed by it on or before
such delivery,  (b) Assignor will at all times remain liable to Boeing under the
Boeing Purchase  Agreement to perform all obligations of Customer  thereunder to
the  same  extent  as if this  Assignment  had not  been  executed,  and (c) the
exercise  by Assignee of any of the  assigned  rights will not release  Assignor
from any of its  obligations  to Boeing  under the  Boeing  Purchase  Agreement,
except  to the  extent  that  such  exercise  constitutes  performance  of  such
obligations.

         6.  Notwithstanding  anything  contained  in  this  Assignment  to  the
contrary (but without in any way releasing  Assignor from any of its obligations
under the Boeing  Purchase  Agreement),  Assignee  confirms  for the  benefit of
Boeing that,  insofar as the provisions of the Boeing Purchase  Agreement relate
to the Aircraft,  in exercising any rights under the Boeing Purchase  Agreement,
or in making any claim with respect to the Aircraft or other things  (including,
without  limitation,  Material,  training  and  services)  delivered  or  to  be
delivered pursuant to the Boeing Purchase Agreement, the terms and conditions of
the Boeing Purchase Agreement, including, without limitation, the DISCLAIMER AND
RELEASE and EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES in Article 11 of Part 2
of Exhibit C to the Aircraft  General Terms Agreement which was  incorporated by
reference  into the Boeing  Purchase  Agreement and the insurance  provisions in
Article 8.2 of the Aircraft  General Terms Agreement  which was  incorporated by
reference  into the  Boeing  Purchase  Agreement  therein,  will apply to and be
binding on  Assignee to the same  extent as if  Assignee  had been the  original
"Customer"  thereunder.  Assignee  further agrees,  expressly for the benefit of
Boeing,  upon the written request of Boeing,  Assignee will promptly execute and
deliver such further  assurances  and documents and take such further  action as
Boeing may reasonably request in order to obtain the full benefits of Assignee's
agreements in this paragraph.

         7. Nothing  contained  herein will subject  Boeing to any  liability to
which it would not otherwise be subject under the Boeing  Purchase  Agreement or
modify in any  respect  the  contract  rights of Boeing  thereunder,  or require
Boeing  to divest  itself of title to or  possession  of the  Aircraft  or other
things until delivery thereof and payment therefor as provided therein.

         8. Notwithstanding  anything in this Assignment to the contrary,  after
receipt  of  notice  of any  event of  default  or  termination  under  [specify
document],  Boeing will continue to owe to Assignor  moneys in payment of claims
made or obligations  arising before such notice,  which moneys may be subject to
rights of set-off  available to Boeing under  applicable law.  Similarly,  after
receipt of notice that such event of default or termination no longer continues,
Boeing  will  continue  to owe to  Assignee  moneys in payment of claims made or
obligations arising before such notice, which moneys may be subject to rights of
set-off available to Boeing under applicable law.

         9.  Effective at any time after an event of default has  occurred,  and
for so long as such  event  of  default  is  continuing,  Assignor  does  hereby
constitute Assignee, Assignor's true and lawful attorney, irrevocably, with full
power (in the name of Assignor or otherwise) to ask, require,  demand,  receive,
and give  acquittance  for any and all  moneys  and claims for moneys due and to
become due under or arising out of the Boeing  Purchase  Agreement in respect of
the Aircraft, to the extent assigned by this Assignment.

         10. Assignee  agrees,  expressly for the benefit of Boeing and Assignor
that it will not  disclose,  directly  or  indirectly,  any terms of the  Boeing
Purchase  Agreement;  provided,  that Assignee may disclose any such information
(a) to its special counsel and public accountants, (b) as required by applicable
law to be disclosed or to the extent that  Assignee may have received a subpoena
or other written demand under color of legal right for such information,  but it
will first, as soon as practicable  upon receipt of such  requirement or demand,
furnish an  explanation  of the basis thereof to Boeing,  and will afford Boeing
reasonable  opportunity,  to  obtain a  protective  order  or  other  reasonably
satisfactory assurance of confidential treatment for the information required to
be  disclosed,  and (c) to any bona fide  potential  purchaser  or lessee of the
Aircraft.  Any  disclosure  pursuant  to (a) and (c) above  will be  subject  to
execution of a confidentiality agreement substantially similar to this paragraph
10.

         11.  This  Assignment  may be  executed  by  the  parties  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.

<PAGE>

     12. This Assignment will be governed by, and construed in accordance  with,
the laws of [----------------------].

--------------------------                           --------------------------
as Assignor                                          as Assignee

By _______________________                           By _______________________

Name:                                                Name:

Title:                                               Title:

[If the  Assignment  is  further  assigned  by  Assignee  in  connection  with a
financing, the following language needs to be included.]

Attest:

The  undersigned,  as  [Indenture  Trustee/Agent  for the  benefit  of the  Loan
Participants/Mortgagee]  and as assignee  of, and holder of a security  interest
in, the estate,  right,  and  interest of the  Assignee in and to the  foregoing
Purchase  Agreement  Assignment and the Purchase Agreement pursuant to the terms
of a certain [Trust Indenture/Mortgage] dated as of _____________, agrees to the
terms of the foregoing Purchase Agreement  Assignment and agrees that its rights
and remedies under such [Trust Indenture/Mortgage] shall be subject to the terms
and  conditions  of the  foregoing  Purchase  Agreement  Assignment,  including,
without limitation, paragraph 6.

[Name of Entity],
 --------------
as Indenture Trustee/Agent

By:____________________________

Name:

Title:

<PAGE>

                                        6
CONSENT AND AGREEMENT OF
THE BOEING COMPANY

         THE  BOEING   COMPANY,   a  Delaware   corporation   (Boeing),   hereby
acknowledges  notice  of  and  consents  to  the  foregoing  Purchase  Agreement
Assignment (Assignment).  Boeing confirms to Assignee that: all representations,
warranties,  indemnities  and  agreements  of Boeing  under the Boeing  Purchase
Agreement with respect to the Aircraft will, subject to the terms and conditions
thereof  and of the  Assignment,  inure to the  benefit of  Assignee to the same
extent as if Assignee were originally named "Customer" therein.

         This  Consent and  Agreement  will be  governed  by, and  construed  in
accordance  with, the law of the State of Washington,  excluding the conflict of
laws principles thereof.

Dated as of ____________________, 20___.

THE BOEING COMPANY

By ________________________
Name:
Title:  Attorney-in-Fact

Aircraft Manufacturer's Serial Number(s) ____________

                                     SAMPLE
                            Post-Delivery Sale Notice

Boeing Commercial Airplane Group
P.O. Box 3707
Seattle, Washington  98124-2207

Attention:        Vice President - Contracts
                  Mail Stop 21-34

Ladies and Gentlemen:

In  connection   with  the  sale  by  American  Trans  Air,  Inc.   (Seller)  to
________________ (Purchaser) of the aircraft identified below, reference is made
to Purchase  Agreement  No.  _____ dated as of  ___________,  20__,  between The
Boeing Company  (Boeing) and Seller (the Purchase  Agreement) under which Seller
purchased certain Boeing Model ________ aircraft, including the aircraft bearing
Manufacturer's Serial No.(s) ______________________ (the Aircraft). The Purchase
Agreement  incorporated by reference  Aircraft General Terms Agreement  AGTA-AAT
(AGTA).

Capitalized  terms used herein without  definition will have the same meaning as
in the Purchase Agreement.

Seller has sold the  Aircraft,  including in that sale the transfer to Purchaser
of all remaining rights related to the Aircraft under the Purchase Agreement. To
accomplish  this  transfer of rights,  as  authorized  by the  provisions of the
Purchase Agreement:

(1) Purchaser  acknowledges it has reviewed the Purchase Agreement and agrees to
be bound by and comply with all applicable  terms and conditions of the Purchase
Agreement,  including,  without  limitation,  the  DISCLAIMER  AND  RELEASE  and
EXCLUSION OF CONSEQUENTIAL  AND OTHER DAMAGES in Article 11 of Part 2 of Exhibit
C to the AGTA and the insurance provisions in Article 8.2 of the AGTA. Purchaser
further  agrees upon the  written  request of Boeing,  to  promptly  execute and
deliver such further  assurances  and documents and take such further  action as
Boeing  may  reasonably  request  in  order  to  obtain  the  full  benefits  of
Purchaser's agreements in this paragraph; and

(2) Seller will remain  responsible  for any  payments due Boeing as a result of
obligations  relating to the Aircraft  incurred by Seller to Boeing prior to the
effective date of this letter.

<PAGE>

We request  that  Boeing  acknowledge  receipt of this  letter and  confirm  the
transfer of rights set forth above by signing the  acknowledgment and forwarding
one copy of this letter to each of the undersigned.

Very truly yours,

American Trans Air, Inc.                                Purchaser

By                                                      By
     -----------------------------------

Its                                                     Its
     -----------------------------------

Dated                                                   Dated
         -------------------------------

Receipt of the above  letter is  acknowledged  and  transfer of rights under the
Purchase  Agreement  with respect to the Aircraft is confirmed,  effective as of
this date.

THE BOEING COMPANY

By
     -----------------------------------

Its  Attorney-in-Fact
     -----------------------------------

Dated
         -------------------------------

Aircraft Manufacturer's Serial Number ____________

                                     SAMPLE
                           Post-Delivery Lease Notice

Boeing Commercial Airplane Group
P.O. Box 3707
Seattle, Washington  98124-2207

Attention:        Vice President - Contracts
                  Mail Stop 21-34

Ladies and Gentlemen:

In connection with the lease by American Trans Air, Inc. (Lessor) to ___________
(Lessee)  of the  aircraft  identified  below,  reference  is made  to  Purchase
Agreement  No.  ____ dated as of  ________,  20__,  between  The Boeing  Company
(Boeing)  and Lessor  (the  Purchase  Agreement)  under which  Lessor  purchased
certain  Boeing  Model  _______   aircraft,   including  the  aircraft   bearing
Manufacturer's Serial No.(s)  ___________________  (the Aircraft).  The Purchase
Agreement  incorporated by reference  Aircraft General Terms Agreement  AGTA-AAT
(AGTA).

Capitalized  terms used herein without  definition will have the same meaning as
in the Purchase Agreement.

Lessor has leased the  Aircraft,  including in that lease the transfer to Lessee
of all remaining rights related to the Aircraft under the Purchase Agreement. To
accomplish  this  transfer of rights,  as  authorized  by the  provisions of the
Purchase Agreement:

(1) Lessor authorizes Lessee to exercise, to the exclusion of Lessor, all rights
and  powers of Lessor  with  respect  to the  remaining  rights  related  to the
Aircraft under the Purchase  Agreement.  This  authorization will continue until
Boeing  receives  written notice from Lessor to the contrary,  addressed to Vice
President - Contracts,  Mail Stop 21-34,  Boeing Commercial Airplane Group, P.O.
Box 3707,  Seattle,  Washington  98124-2207.  Until Boeing receives such notice,
Boeing is entitled to deal  exclusively with Lessee with respect to the Aircraft
under the  Purchase  Agreement.  With respect to the rights and  obligations  of
Lessor under the Purchase  Agreement,  all actions taken or  agreements  entered
into by Lessee  during the period  prior to Boeing's  receipt of this notice are
final and binding on Lessor. Further, any payments made by Boeing as a result of
claims made by Lessee will be made to the credit of Lessee.

(2) Lessee accepts the  authorization  above,  acknowledges  it has reviewed the
Purchase  Agreement  and  agrees to be bound by and comply  with all  applicable
terms and conditions of the Purchase Agreement  including,  without  limitation,
the DISCLAIMER AND RELEASE and EXCLUSION OF  CONSEQUENTIAL  AND OTHER DAMAGES in
Article 11 of Part 2 of Exhibit C AGTA and the  insurance  provisions in Article
8.2 of the AGTA.  Lessee further agrees,  upon the written request of Boeing, to
promptly execute and deliver such further assurances and documents and take such
further  action as Boeing  may  reasonably  request  in order to obtain the full
benefits of Lessee's agreements in this paragraph.

(3) Lessor will remain  responsible  for any  payments due Boeing as a result of
obligations  relating to the Aircraft  incurred by Lessor to Boeing prior to the
effective date of this Notice.

We request  that  Boeing  acknowledges  receipt of this  letter and  confirm the
transfer of rights set forth above by signing the  acknowledgment and forwarding
one copy of this letter to each of the undersigned.

Very truly yours,

American Trans Air, Inc.                                Lessee

By                                                      By
     -----------------------------------

Its                                                     Its
     -----------------------------------

Dated                                                   Dated
         -------------------------------

Receipt of the above  letter is  acknowledged  and  transfer of rights under the
Purchase  Agreement  with respect to the Aircraft is confirmed,  effective as of
this date.

THE BOEING COMPANY

By
     -----------------------------------

Its
     -----------------------------------

Dated
         -------------------------------

Aircraft Manufacturer's Serial Number ____________

                                     SAMPLE
                         Purchaser's/Lessee's Agreement

Boeing Commercial Airplane Group
P. O. Box 3707
Seattle, Washington  98124-2207

Attention         Vice President - Contracts
                  Mail Stop 21-34

Ladies and Gentlemen:

In connection with the sale/lease by American Trans Air, Inc. (Seller/Lessor) to
_______________________  (Purchaser/Lessee)  of the aircraft  identified  below,
reference is made to the following documents:

     (i) Purchase Agreement No. _____ dated as of ___________, 20__, between The
Boeing Company (Boeing) and Seller/Lessor  (the Purchase  Agreement) under which
Seller/Lessor  purchased certain Boeing Model ________  aircraft,  including the
aircraft  bearing  Manufacturer's  Serial  No.(s)   ______________________  (the
Aircraft); and

     (ii) Aircraft Sale/Lease  Agreement dated as of ___________,  20__, between
Seller/Lessor  and   Purchaser/Lessee   (the  Aircraft  Agreement)  under  which
Seller/Lessor is selling/leasing the Aircraft.

Capitalized  terms used herein without  definition will have the same meaning as
in the Aircraft Agreement.

1.  Seller/Lessor  has  sold/leased  the Aircraft under the Aircraft  Agreement,
including  therein a form of exculpatory  clause protecting  Seller/Lessor  from
liability for loss of or damage to the aircraft,  and/or  related  incidental or
consequential  damages,  including  without  limitation loss of use,  revenue or
profit.

2.       Disclaimer and Release; Exclusion of Liabilities

         2.1 In accordance with Seller/Lessor's  obligation under Article 9.5 of
AGTA-AAT  which was  incorporated  by  reference  into the  Purchase  Agreement,
Purchaser/Lessee hereby agrees that:

         2.2 DISCLAIMER AND RELEASE.  IN  CONSIDERATION OF THE SALE/LEASE OF THE
AIRCRAFT, PURCHASER/LESSEE HEREBY WAIVES, RELEASES AND RENOUNCES ALL WARRANTIES,
OBLIGATIONS AND LIABILITIES OF BOEING AND ALL OTHER RIGHTS,  CLAIMS AND REMEDIES
OF  PURCHASER/LESSEE  AGAINST  BOEING,  EXPRESS  OR  IMPLIED,  ARISING BY LAW OR
OTHERWISE,  WITH RESPECT TO ANY NONCONFORMANCE OR DEFECT IN ANY AIRCRAFT, BOEING
PRODUCT,  MATERIALS,  TRAINING,  SERVICES  OR OTHER  THING  PROVIDED  UNDER  THE
AIRCRAFT AGREEMENT, INCLUDING, BUT NOT LIMITED TO:

     (A) ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

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

     (C) ANY OBLIGATION,  LIABILITY,  RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR
NOT ARISING FROM THE NEGLIGENCE OF BOEING; AND

     (D) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE
TO ANY AIRCRAFT.

         2.3 EXCLUSION OF CONSEQUENTIAL  AND OTHER DAMAGES.  BOEING WILL HAVE NO
OBLIGATION OR LIABILITY, WHETHER ARISING IN CONTRACT (INCLUDING WARRANTY), TORT,
WHETHER OR NOT ARISING FROM THE NEGLIGENCE OF BOEING, OR OTHERWISE,  FOR LOSS OF
USE, REVENUE OR PROFIT,  OR FOR ANY OTHER  INCIDENTAL OR  CONSEQUENTIAL  DAMAGES
WITH  RESPECT  TO ANY  NONCONFORMANCE  OR  DEFECT  IN ANY  AIRCRAFT,  MATERIALS,
TRAINING, SERVICES OR OTHER THING PROVIDED UNDER THE AIRCRAFT AGREEMENT.

         2.4  Definitions.  For the  purpose of this  paragraph  2,  "BOEING" or
"Boeing"  is  defined  as  The  Boeing  Company,  its  divisions,  subsidiaries,
affiliates,  the assignees of each, and their  respective  directors,  officers,
employees and agents.

American Trans Air, Inc. (Seller/Lessor)                Purchaser/Lessee

By                                                      By
     -----------------------------------

Its                                                     Its
     -----------------------------------

Dated                                                   Dated
         -------------------------------

                                     SAMPLE
                     Owner Appointment of Agent - Warranties

Boeing Commercial Airplane Group
P.O. Box 3707
Seattle, Washington  98124-2207

Attention:        Vice President - Contracts
                  Mail Stop 21-34

Ladies and Gentlemen:

     1. Reference is made to Purchase Agreement No. ____ dated as of __________,
20__,  between  The  Boeing  Company  (Boeing)  and  American  Trans  Air,  Inc.
(Customer)  (the Purchase  Agreement),  under which Customer  purchased  certain
Boeing Model ________  aircraft  including the aircraft  bearing  Manufacturer's
Serial No.(s) _____________ (the Aircraft).  The Purchase Agreement incorporated
by reference Aircraft General Terms Agreement AGTA-AAT (AGTA).

Capitalized  terms used herein without  definition will have the same meaning as
in the Purchase Agreement.

To accomplish the appointment of an agent, Customer confirms:

     A.  Customer has  appointed  ____________________  as agent  (Agent) to act
directly with Boeing with respect to the remaining warranties under the Purchase
Agreement and requests Boeing to treat Agent as Customer for the  administration
of claims with respect to such warranties;  provided  however,  Customer remains
liable to Boeing to perform  the  obligations  of  Customer  under the  Purchase
Agreement.

     B.  Boeing may  continue  to deal  exclusively  with Agent  concerning  the
matters  described  herein unless and until Boeing receives  written notice from
Customer to the  contrary,  addressed to Vice  President - Contracts,  Mail Stop
21-34,  Boeing  Commercial  Airplane Group, P.O. Box 3707,  Seattle,  Washington
98124-2207,  U.S.A. With respect to the rights and obligations of Customer under
the Purchase Agreement, all actions taken by Agent or agreements entered into by
Agent during the period  prior to Boeing's  receipt of such notice are final and
binding on Customer.  Further, any payments made by Boeing as a result of claims
made by Agent will be made to the  credit of Agent  unless  otherwise  specified
when each claim is submitted.

     C. Customer will remain responsible for any payments due Boeing as a result
of obligations  relating to the Aircraft incurred by Customer to Boeing prior to
the effective date of this Notice.

We request  that  Boeing  acknowledge  receipt of this  letter and  confirm  the
appointment  of  Agent  as  stated  above  by  signing  the  acknowledgment  and
forwarding one copy of this letter to each of the undersigned.

Very truly yours,

American Trans Air, Inc.

By
     -------------------------------

<PAGE>

                                AGENT'S AGREEMENT

Agent accepts the appointment as stated above,  acknowledges it has reviewed the
Purchase  Agreement  and agrees  that,  in  exercising  any rights or making any
claims  thereunder,  Agent will be bound by and comply with all applicable terms
and conditions of the Purchase  Agreement  including,  without  limitation,  the
DISCLAIMER  AND RELEASE and  EXCLUSION  OF  CONSEQUENTIAL  AND OTHER  DAMAGES in
Article 11 of Part 2 of Exhibit C to the AGTA.  Agent further  agrees,  upon the
written  request of  Boeing,  to  promptly  execute  and  deliver  such  further
assurances  and documents and take such further  action as Boeing may reasonably
request  in order to  obtain  the full  benefits  of the  warranties  under  the
Purchase Agreement.

Very truly yours,

Agent

By
     -------------------------------

Its
     -------------------------------

Dated
         ---------------------------

Receipt of the above letter is  acknowledged  and the  appointment of Agent with
respect to the above-described rights under the Purchase Agreement is confirmed,
effective as of this date.

THE BOEING COMPANY

By
     -------------------------------

Its
     -------------------------------

Dated
         ---------------------------

Aircraft Manufacturer's Serial Number __________

                                 SAMPLE
                      Contractor Confidentiality Agreement

Boeing Commercial Airplane Group
P.O. Box 3707
Seattle, Washington  98124-2207

Attention:        Vice President - Contracts
                  Mail Stop 21-34

Ladies and Gentlemen:

This  Agreement is entered into between  ____________________  (Contractor)  and
American Trans Air, Inc.  (Customer) and will be effective as of the date stated
below.

In connection  with  Customer's  provision to  Contractor of certain  Materials,
Proprietary Materials and Proprietary Information, reference is made to Purchase
Agreement  No.  _____  dated as of _______ , 20___  between  The Boeing  Company
(Boeing) and Customer.

Capitalized  terms used herein without  definition will have the same meaning as
in the Purchase Agreement.

Boeing has agreed to permit  Customer  to make  certain  Materials,  Proprietary
Materials  and  Proprietary  Information  relating to  Customer's  Boeing  Model
________  aircraft,   Manufacturer's  Serial  Number  ______,  Registration  No.
________ (the Aircraft)  available to Contractor in connection  with  Customer's
contract with Contractor (the Contract) to maintain/repair/modify  the Aircraft.
As  a  condition  of  receiving  the   Proprietary   Materials  and  Proprietary
Information, Contractor agrees as follows:

1.       For purposes of this Agreement:

         "Aircraft  Software"  means  software that is installed and used in the
operation of an Aircraft.

          "Materials"  are  defined  as any and all items  that are  created  by
Boeing or a third party,  which are provided  directly or indirectly from Boeing
and serve  primarily to contain,  convey or embody  information.  Materials  may
include either tangible  embodiments  (for example,  documents or drawings),  or
intangible  embodiments (for example,  software and other  electronic  forms) of
information but excludes Aircraft Software.

         "Proprietary  Information" means any and all proprietary,  confidential
and/or  trade  secret  information  owned by  Boeing or a Third  Party  which is
contained, conveyed or embodied in Proprietary Materials.

         "Proprietary Materials" means Materials that contain, convey, or embody
Proprietary Information.

         "Third Party" means anyone other than Boeing, Customer and Contractor.

2.  Boeing  has  authorized   Customer  to  grant  to  Contractor  a  worldwide,
non-exclusive, personal and nontransferable license to use Proprietary Materials
and  Proprietary  Information,  owned by Boeing,  internally in connection  with
performance  of the  Contract or as may  otherwise  be  authorized  by Boeing in
writing.  Contractor will keep  confidential  and protect from disclosure to any
person,  entity or government agency,  including any person or entity affiliated
with  Contractor,   all  Proprietary  Materials  and  Proprietary   Information.
Individual  copies of all  Materials  are  provided  to  Contractor  subject  to
copyrights  therein,  and all such copyrights are retained by Boeing or, in some
cases,  by Third  Parties.  Contractor is authorized to make copies of Materials
(except for Materials  bearing the copyright  legend of a Third Party) provided,
however, Contractor preserves the restrictive legends and proprietary notices on
all copies.  All copies of  Proprietary  Materials  will belong to Boeing and be
treated as Proprietary Materials under this Agreement.

3.  Contractor   specifically  agrees  not  to  use  Proprietary   Materials  or
Proprietary  Information in connection  with the manufacture or sale of any part
or design. Unless otherwise agreed with Boeing in writing, Proprietary Materials
and  Proprietary  Information  may be used by  Contractor  only  for work on the
Aircraft for which such  Proprietary  Materials  have been  specified by Boeing.
Customer  and  Contractor  recognize  and agree  that they are  responsible  for
ascertaining  and ensuring  that all Materials  are  appropriate  for the use to
which they are put.

4.  Contractor  will not  attempt  to gain  access  to  information  by  reverse
engineering,  decompiling, or disassembling any portion of any software provided
to Contractor pursuant to this Agreement.

5. Upon Boeing's request at any time,  Contractor will promptly return to Boeing
(or, at Boeing's option,  destroy) all Proprietary Materials,  together with all
copies  thereof and will certify to Boeing that all such  Proprietary  Materials
and copies have been so returned or destroyed.

6. To the extent required by a government  regulatory agency having jurisdiction
over Contractor,  Customer or the Aircraft,  Contractor is authorized to provide
Proprietary Materials and disclose Proprietary Information to the agency for the
agency's use in connection with Contractor's, authorized use of such Proprietary
Materials  and/or  Proprietary   Information  in  connection  with  Contractor's
maintenance,  repair, or modification of the Aircraft. Contractor agrees to take
reasonable  steps to  prevent  such  agency  from  making  any  distribution  or
disclosure,  or additional  use of the  Proprietary  Materials  and  Proprietary
Information  so provided or  disclosed.  Contractor  further  agrees to promptly
notify Boeing upon learning of any (i) distribution,  disclosure,  or additional
use by such agency, (ii) request to such agency for distribution, disclosure, or
additional  use, or (iii)  intention  on the part of such agency to  distribute,
disclose,  or make  additional use of the  Proprietary  Materials or Proprietary
Information.

7. Boeing is a  third-party  beneficiary  under this  Agreement,  and Boeing may
enforce  any  and  all  of the  provisions  of the  Agreement  directly  against
Contractor.  Contractor  hereby  submits to the  jurisdiction  of the Washington
state courts and the United States  District  Court for the Western  District of
Washington with regard to any claims Boeing may make under this Agreement. It is
agreed that Washington law (excluding Washington's  conflict-of-law  principles)
governs this Agreement.

8. No disclosure or physical  transfer by Boeing or Customer to  Contractor,  of
any Proprietary  Materials or Proprietary  Information covered by this Agreement
will be  construed as granting a license,  other than as expressly  set forth in
this  Agreement  or any  ownership  right  in any  patent,  patent  application,
copyright or proprietary information.

9. The provisions of this Agreement will apply notwithstanding any markings
or legends, or the absence thereof, on any Proprietary Materials.

10.  This  Agreement  is the  entire  agreement  of the  parties  regarding  the
ownership and treatment of Proprietary  Materials and  Proprietary  Information,
and no modification of this Agreement will be effective as against Boeing unless
in writing  signed by authorized  representatives  of  Contractor,  Customer and
Boeing.

11.  Failure by either party to enforce any of the  provisions of this Agreement
will not be construed as a waiver of such provisions. If any of the provision of
this Agreement is held unlawful or otherwise ineffective by a court of competent
jurisdiction, the remainder of the Agreement will remain in full force.

ACCEPTED AND AGREED TO this

Date: _____________________, 20___

American Trans Air, Inc.                                Contractor

By                                                      By
     -----------------------------------

Its                                                     Its
     -----------------------------------

                         PURCHASE AGREEMENT NUMBER 2262

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                    Relating to Boeing Model 737-83N Aircraft

<PAGE>

                                TABLE OF CONTENTS

                                                       SA
ARTICLES                                              NUMBER

       1.         Quantity, Model and Description

       2.         Delivery Schedule

       3.         Price

       4.         Payment

       5.         Miscellaneous

TABLE

       1.         Aircraft Information Table

EXHIBIT

       A.         Aircraft Configuration

       B.         Aircraft Delivery Requirements and Responsibilities

SUPPLEMENTAL EXHIBITS

       AE1.       Escalation Adjustment/Airframe and Optional Features

       BFE1.      BFE Variables

       CS1.       Customer Support Variables

       (Confidential Material Omitted)

       SLP1.      Service Life Policy Components

<PAGE>

                                                           SA
LETTER AGREEMENTS                                        NUMBER

2262-01                    Demonstration Flight Waiver

2262-02                    Spares Intial provisioning

(Confidential Material Omitted)

<PAGE>

                           Purchase Agreement No. 2262

                                     between

                               The Boeing Company

                                       and

                            American Trans Air, Inc.

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

     This  Purchase  Agreement  No. 2262 dated as of between The Boeing  Company
(Boeing) and American  Trans Air, Inc.  (Customer)  relating to the purchase and
sale of Model  737-83N  aircraft  incorporates  the terms and  conditions of the
Aircraft General Terms Agreement dated as of between the parties,  identified as
AGTA-AAT (AGTA).

Article 1.        Quantity, Model and Description.
                  -------------------------------

                  The aircraft to be delivered to Customer will be designated as
Model  737-83N  aircraft (the  Aircraft).  Boeing will  manufacture  and sell to
Customer Aircraft conforming to the configuration  described in Exhibit A, which
is part of this Purchase  Agreement,  in the quantities listed in Table 1 to the
Purchase Agreement.

Article 2.        Delivery Schedule.
                  -----------------

                  The scheduled months of delivery of the Aircraft are listed in
the attached Table 1, which is part of this Purchase Agreement. Exhibit B, which
is part of this Purchase Agreement,  describes certain responsibilities for both
Customer and Boeing in order to accomplish the delivery of the Aircraft.

Article 3.        Price.
                  -----

     3.1 Aircraft Basic Price.  The Aircraft Basic Price is listed in Table 1 in
subject to escalation dollars.

                  3.2 Advance  Payment  Base  Prices.  The Advance  Payment Base
Prices listed in Table 1 were calculated utilizing the latest escalation factors
available  to Boeing on the date of this  Purchase  Agreement  projected  to the
month of scheduled delivery.

Article 4.        Payment.
                  -------

     4.1 Boeing acknowledges receipt of a deposit in the amount shown in Table 1
for each Aircraft (Deposit).

     4.2 The standard  advance payment  schedule for the Model 737-83N  aircraft
requires Customer to make certain advance payments, expressed in a percentage of
the Advance Payment Base Price of each Aircraft  beginning with a payment of 1%,
less the  Deposit,  on the  effective  date of the  Purchase  Agreement  for the
Aircraft.  Additional  advance  payments for each  aircraft are due on the first
business day of the months listed in the attached Table 1.

     4.3 For any  Aircraft  whose  scheduled  month of  delivery is less than 24
months from the date of this  Purchase  Agreement,  the total  amount of advance
payments due for payment upon signing of this  Purchase  Agreement  will include
all advance  payments which are past due in accordance with the standard advance
payment schedule set forth in paragraph 4.2 above.

     4.4 Customer will pay the balance of the Aircraft Price of each Aircraft at
delivery.

Article 5.        Miscellaneous.
                  -------------

     5.1 Aircraft Information Table. Table 1 consolidates  information contained
in  Articles  1, 2, 3 and 4 with  respect  to (i)  quantity  of  Aircraft,  (ii)
applicable Detail  Specification,  (iii) month and year of scheduled deliveries,
(iv) Aircraft Basic Price,  (v) applicable  escalation  factors and (vi) Advance
Payment Base Prices and advance payments and their schedules.

     5.2  Escalation  Adjustment/Airframe  and Optional  Features.  Supplemental
Exhibit AE1 contains the applicable  airframe and optional  features  escalation
formula.

     5.3 Buyer Furnished Equipment Variables. Supplemental Exhibit BFE1 contains
vendor  selection  dates,  on dock dates and other  variables  applicable to the
Aircraft.

     5.4  Customer  Support  Variables.  Supplemental  Exhibit CS1  contains the
variable  information  applicable to  information,  training  services and other
things furnished by Boeing in support of the Aircraft.

     5.5 Engine  Escalation  Variables.  Supplemental  Exhibit EE1  contains the
applicable engine escalation formula,  the engine warranty and the engine patent
indemnity for the Aircraft.

     5.6 Service  Life Policy  Component  Variables.  Supplemental  Exhibit SLP1
lists the  airframe  and landing  gear  components  covered by the Service  Life
Policy for the Aircraft.

     5.7  Negotiated  Agreement;  Entire  Agreement.  This  Purchase  Agreement,
including the  provisions of Article 8.2 of the AGTA relating to insurance,  and
Article 11 of Part 2 of Exhibit C of the AGTA relating to DISCLAIMER AND RELEASE
and  EXCLUSION  OF  CONSEQUENTIAL  AND OTHER  DAMAGES,  has been the  subject of
discussion and negotiation and is understood by the parties;  the Aircraft Price
and other  agreements  of the parties  stated in this  Purchase  Agreement  were
arrived  at in  consideration  of  such  provisions.  This  Purchase  Agreement,
including  the AGTA,  contains  the entire  agreement  between  the  parties and
supersedes   all   previous    proposals,    understandings,    commitments   or
representations  whatsoever, oral or written, and may be changed only in writing
signed by authorized representatives of the parties.

DATED AS OF June 30, 2000
            --------------

American Trans Air, Inc.                               THE BOEING COMPANY

By   /s/ Kenneth K. Wolff                              By /s/ R.C. Nelson
     -------------------------------                      ---------------------

Its: Executive Vice President & CFO                    Its: Attorney-In-Fact
     --------------------------------                      ---------------------

                     Table 1 to Purchase Agreement No. 2262
           Aircraft Delivery, Description, Price and Advance Payments

                         (Confidential Material Omitted)

                             AIRCRAFT CONFIGURATION

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                   Exhibit A to Purchase Agreement Number 2262

<PAGE>

                             AIRCRAFT CONFIGURATION

                            Dated ___________________

                                   relating to

                          BOEING MODEL 737-83N AIRCRAFT

             The Detail Specification is Boeing Detail Specification  D019A001-B
dated as of November  11,  1998.  Such Detail  Specification  will be amended to
incorporate the Options listed herein,  including the effects on  Manufacturer's
Empty Weight (MEW) and Operating  Empty Weight (OEW). As soon as practicable but
in no case later than  delivery of the first  Aircraft,  Boeing will  furnish to
Buyer  copies of the  Detail  Specification,  which  copies  will  reflect  such
Options.  The  Aircraft  Basic Price  reflects  and includes all effects of such
Options,  except such Aircraft Basic Price does not include the price effects of
any Buyer Furnished Equipment or Seller Purchased Equipment.

<PAGE>

 OPTION               TITLE              PRICE PER                 PRICE PER
                                              AIRCRAFT                  AIRCRAFT
                                            ($1999 STE)              ($1999 STE)

(Confidential Material Omitted)

              AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                   Exhibit B to Purchase Agreement Number 2262

<PAGE>

               AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES

                                   relating to

                          BOEING MODEL 737-83N AIRCRAFT

Both   Boeing   and   Customer   have   certain   documentation   and   approval
responsibilities  at various times during the  construction  cycle of Customer's
Aircraft  that are critical to making the  delivery of each  Aircraft a positive
experience for both parties. This Exhibit B documents those responsibilities and
indicates recommended completion deadlines for the actions to be accomplished.

<PAGE>

             1.          GOVERNMENT DOCUMENTATION REQUIREMENTS.
                         -------------------------------------

Certain actions are required to be taken by Customer in advance of the scheduled
delivery  month of each  Aircraft with respect to obtaining  certain  government
issued documentation.

                         1.1         Airworthiness and Registration Documents.
                                     ----------------------------------------

     Not later than 6 months prior to delivery of each  Aircraft,  Customer will
notify  Boeing  of the  registration  number  to be  painted  on the side of the
Aircraft.  In  addition,  and not later than 3 months  prior to delivery of each
Aircraft,   Customer  will,  by  letter  to  the  regulatory   authority  having
jurisdiction, authorize the temporary use of such registration numbers by Boeing
during the pre-delivery testing of the Aircraft.

Customer is responsible  for furnishing any Temporary or Permanent  Registration
Certificates  required by any governmental  authority having  jurisdiction to be
displayed aboard the Aircraft after delivery.

     1.2          Certificate         of         Sanitary          Construction.

     1.2.1 U.S.  Registered  Aircraft.  Boeing will obtain from the UnitedStates
Public Health Service, a United States  Certificate of Sanitary  Construction to
be displayed aboard each Aircraft after delivery to Customer.

     1.2.2 Non-U.S.  Registered  Aircraft.  If Customer  requires a UnitedStates
Certificate  of Sanitary  Construction  at the time of delivery of the Aircraft,
Customer will give written  notice  thereof to Boeing at least 3 months prior to
delivery.  Boeing  will then use its  reasonable  best  efforts  to  obtain  the
Certificate  from the United  States  Public  Health  Service  and present it to
Customer at the time of Aircraft delivery.

                         1.3         Customs Documentation.

     1.3.1 Import Documentation. If the Aircraft is intended to be exported from
the United States,  Customer must notify Boeing not later than 3 months prior to
delivery  of  each  Aircraft  of  any  documentation  required  by  the  customs
authorities or by any other agency of the country of import.

     1.3.2 General Declaration - U.S. If the Aircraft is intended to be exported
from  the  United  States,  Boeing  will  prepare  Customs  Form  7507,  General
Declaration, for execution by U.S. Customs immediately prior to the ferry flight
of the  Aircraft.  For this  purpose,  Customer will furnish to Boeing not later
than 20 days prior to delivery a complete crew and passenger list and a complete
ferry flight  itinerary,  including point of exit from the United States for the
Aircraft.

If Customer intends,  during the ferry flight of an Aircraft,  to land at a U.S.
airport  after  clearing  Customs at delivery,  Customer  must notify Boeing not
later than 20 days prior to delivery of such intention.  If Boeing receives such
notification,  Boeing will  provide to Customer  the  documents  constituting  a
Customs  permit to proceed,  allowing  such  Aircraft  to depart  after any such
landing.  Sufficient  copies  of  completed  Form  7507,  along  with  passenger
manifest, will be furnished Customer to cover U.S. stops scheduled for the ferry
flight.

     1.3.3 Export  Declaration  - U.S. If the Aircraft is intended to beexported
from the United States, Boeing will prepare Form 7525V and, immediately prior to
the ferry flight,  will submit such Form to U.S.  Customs in Seattle in order to
obtain  clearance for the departure of the Aircraft,  including any cargo,  from
the United States.  U.S. Customs will deliver the Export Declaration to the U.S.
Department of Commerce after export.

             2.          Insurance CertificateS.
                         ----------------------

     Unless provided earlier,  Customer will provide to Boeing not later than 30
days prior to delivery of the first  Aircraft,  a copy of the  requisite  annual
insurance  certificate in accordance  with the  requirements of Article 8 of the
AGTA.

             3           NOTICE OF FLYAWAY CONFIGURATION.
                         -------------------------------

     Not later than 20 days prior to delivery  of the  Aircraft,  Customer  will
provide  to  Boeing  a  configuration  letter  stating  the  requested  "flyaway
configuration" of the Aircraft for its ferry flight.  This configuration  letter
should include:

     (i) the name of the company  which is to furnish  fuel for the ferry flight
and any scheduled  post-delivery flight training, the method of payment for such
fuel, and fuel load for the ferry flight;

     (ii) the  cargo to be  loaded  and  where it is to be  stowed  on board the
Aircraft,   the  address  where  cargo  is  to  be  shipped  after  flyaway  and
notification of any hazardous materials requiring special handling;

     (iii) any BFE  equipment  to be removed  prior to flyaway  and  returned to
Boeing BFE stores for installation on Customer's subsequent Aircraft;

     (iv) a  complete  list of names and  citizenship  of each crew  member  and
non-revenue passenger who will be aboard the ferry flight; and

     (v) a complete ferry flight itinerary.

<PAGE>

             4.          DELIVERY ACTIONS BY BOEING.
                         --------------------------

     4.1  Schedule  of   Inspections.   All  FAA,   Boeing,   Customer  and,  if
required,Customs  Bureau  inspections will be scheduled by Boeing for completion
prior to delivery or departure  of the  Aircraft.  Customer  will be informed of
such schedules.

     4.2 Schedule of Demonstration  Flights. All FAA and Customer  demonstration
flights  will be  scheduled  by Boeing for  completion  prior to delivery of the
Aircraft.

     4.3 Schedule for Customer's Flight Crew. Boeing will inform Customer of the
date that a flight crew is required  for  acceptance  routines  associated  with
delivery of the Aircraft.

     4.4 Fuel  Provided by Boeing.  Boeing  will  provide to  Customer,  without
charge,  the  amount of fuel shown in U.S.  gallons  in the table  below for the
model of Aircraft being delivered and full capacity of engine oil at the time of
delivery or prior to the ferry flight of the Aircraft.

Aircraft Model                                          Fuel Provided
--------------                                          -------------
737                                                     1,000
747                                                     4,000
757                                                     1,600
767                                                     2,000
777                                                     3,000

     4.5 Flight Crew and Passenger  Consumables.  Boeing will provide reasonable
quantities of food, coat hangers,  towels, toilet tissue, drinking cups and soap
for the first segment of the ferry flight for the Aircraft.

     4.6 Delivery Papers,  Documents and Data. Boeing will have available at the
time of delivery of the Aircraft certain delivery papers, documents and data for
execution  and  delivery.  If title  for the  Aircraft  will be  transferred  to
Customer  through  a  Boeing  sales  subsidiary  and if  the  Aircraft  will  be
registered  with the FAA, Boeing will  pre-position in Oklahoma City,  Oklahoma,
for filing  with the FAA at the time of  delivery  of the  Aircraft  an executed
original Form 8050-2, Aircraft Bill of Sale, indicating transfer of title to the
Aircraft from Boeing's sales subsidiary to Customer.

     4.7  Delegation  of  Authority.  If  specifically  requested  in advance by
Customer, Boeing will present a certified copy of a Resolution of Boeing's Board
of Directors,  designating and authorizing  certain persons to act on its behalf
in connection with delivery of the Aircraft.

<PAGE>

             5.          DELIVERY ACTIONS BY CUSTOMER.
                         ----------------------------

     5.1 Aircraft Radio Station License.  At delivery  Customer will provide its
Aircraft  Radio  Station  License to be placed on board the  Aircraft  following
delivery.

     5.2.  Aircraft  Flight Log. At delivery  Customer will provide the Aircraft
Flight Log for the Aircraft.

     5.3 Delegation of Authority. Customer will present to Boeing at delivery of
the Aircraft an original or certified copy of Customer's Delegation of Authority
designating and  authorizing  certain persons to act on its behalf in connection
with delivery of the specified Aircraft.

                              ESCALATION ADJUSTMENT

                         AIRFRAME AND OPTIONAL FEATURES

                                     between

                               THE BOEING COMPANY

                                       and

                             America Trans Air, inc.

           Supplemental Exhibit AE1 to Purchase Agreement Number 2262

                               (For Model 717-200, 737-600, 737-700, 737-800 and
                       737-900 the Airframe  Price  Includes the Engine Price at
                       its basic thrust level.)

<PAGE>

1.           Formula.
             -------

             Airframe and Optional  Features price  adjustments  (Airframe Price
Adjustment) are used to allow prices to be stated in current year dollars at the
signing  of this  Purchase  Agreement  and to  adjust  the  amount to be paid by
Customer at delivery for the effects of economic fluctuation. The Airframe Price
Adjustment  will be  determined  at the time of Aircraft  delivery in accordance
with the following formula:

             Pa = (P+B)(L + M) - P

             Where:

                      Pa            =  Airframe  Price  Adjustment.  (For  Model
                                    717-200,   737-600,   737-700,  737-800  and
                                    737-900,  the  Airframe  Price  includes the
                                    Engine Price at its basic thrust level.)

                      L =  .65 x ( ECI
                                  -----
                                   ECIb   )where  ECIb  is  the  base
                                           year index (as set forth in
                                           Table  1 of  this  Purchase
                                           Agreement)

                      M =  .35 x ( ICI
                                  -----
                                   ICIb    )where ICIb is the base year index
                                           (as set forth in Table 1 of this
                                            Purchase Agreement)

                      P =  Airframe Price plus Optional Features Price
                           (as set forth in Table 1 of this Purchase Agreement).

                      B =  0.005 x (N/12) x (P)  where N is the calendar month
                                                 and year of scheduled Aircraft
                                                 delivery minus the calendar
                                                 month and year of the Base
                                                 Price Year, both as shown in
                                                 Table 1 of this Purchase
                                                 Agreement.

                      ECI is a value  determined  using the U.S.  Department  of
                      Labor,  Bureau of Labor Statistics  "Employment Cost Index
                      for  workers  in  aerospace   manufacturing  -  Wages  and
                      Salaries" (ECI code 3721W),  calculated by  establishing a
                      three-month  arithmetic  average  value  (expressed  as  a
                      decimal and rounded to the nearest tenth) using the values
                      for the fifth, sixth and seventh months prior to the month
                      of scheduled delivery of the applicable  Aircraft.  As the
                      Employment  Cost  Index  values  are  only  released  on a
                      quarterly basis, the value released for the month of March
                      will be used for the months of January and  February;  the
                      value  for June  used for  April  and May;  the  value for
                      September  used for July and  August;  and the  value  for
                      December used for October and November.

                      ICI is a value  determined  using the U.S.  Department  of
                      Labor,  Bureau of Labor  Statistics  "Producer  Prices and
                      Price Index - Industrial  Commodities  Index ", calculated
                      as a 3-month  arithmetic  average of the released  monthly
                      values  (expressed as a decimal and rounded to the nearest
                      tenth)  using the values  for the 5th,  6th and 7th months
                      prior to the month of scheduled delivery of the applicable
                      Aircraft.

                      As an example,  for an Aircraft  scheduled to be delivered
                      in the month of January,  the months June, July and August
                      of the preceding year will be utilized in determining  the
                      value of ECI and ICI.

     Note:  i. In  determining  the  values  of L and M,  all  calculations  and
resulting  values  will  be  expressed  as a  decimal  rounded  to  the  nearest
ten-thousandth.

     ii. .65 is the numeric  ratio  attributed  to labor in the  Airframe  Price
Adjustment formula.

     iii. .35 is the numeric ratio attributed to materials in the Airframe Price
Adjustment formula.

     Iv. The  denominators  (base year  indices) are the actual  average  values
reported by the U.S.  Department of Labor, Bureau of Labor Statistics (base year
June 1989 = 100).  The  applicable  base year and  corresponding  denominator is
provided by Boeing in Table 1 of this Purchase Agreement.

     iv. The final value of Pa will be rounded to the nearest dollar.

     vi. The Airframe Price  Adjustment  will not be made if it will result in a
decrease in the Aircraft Basic Price.

2.           Values to be Utilized in the Event of Unavailability.
             -----------------------------------------------------

             2.1 If the Bureau of Labor  Statistics  substantially  revises  the
methodology used for the determination of the values to be used to determine the
ECI and ICI values (in contrast to benchmark adjustments or other corrections of
previously released values), or for any reason has not released values needed to
determine the applicable  Airframe Price Adjustment,  the parties will, prior to
the  delivery of any such  Aircraft,  select a  substitute  from other Bureau of
Labor   Statistics   data  or  similar   data   reported   by   non-governmental
organizations.  Such substitute will result in the same  adjustment,  insofar as
possible,  as would have been calculated  utilizing the original values adjusted
for fluctuation during the applicable time period.  However, if within 24 months
after  delivery of the Aircraft,  the Bureau of Labor  Statistics  should resume
releasing  values  for  the  months  needed  to  determine  the  Airframe  Price
Adjustment,  such values will be used to  determine  any increase or decrease in
the Airframe Price  Adjustment for the Aircraft from that determined at the time
of delivery of the Aircraft.

             2.2  Notwithstanding  Article 2.1 above,  if prior to the scheduled
delivery  month of an Aircraft the Bureau of Labor  Statistics  changes the base
year for determination of the ECI and ICI values as defined above, such re-based
values will be incorporated in the Airframe Price Adjustment calculation.

             2.3 In the event escalation  provisions are made non-enforceable or
otherwise  rendered  void by any agency of the  United  States  Government,  the
parties  agree,  to the extent they may lawfully do so, to equitably  adjust the
Aircraft Price of any affected Aircraft to reflect an allowance for increases or
decreases in labor  compensation  and material costs occurring since February of
the price base year shown in the Purchase Agreement which is consistent with the
applicable provisions of paragraph 1 of this Supplemental Exhibit AE1.

             2.4 If within 12 months of Aircraft  delivery,  the published index
values  are  revised  due to an  acknowledged  error  by  the  Bureau  of  Labor
Statistics,  the  Airframe  Price  Adjustment  will be  re-calculated  using the
revised index values (this does not include those values noted as preliminary by
the Bureau of Labor  Statistics).  A credit  memorandum or supplemental  invoice
will be issued for the Airframe Price  Adjustment  difference.  Interest charges
will not  apply  for the  period  of  original  invoice  to  issuance  of credit
memorandum or supplemental invoice.

Note:        i. The  values  released  by the  Bureau  of Labor  Statistics  and
             available to Boeing 30 days prior to the scheduled  delivery  month
             of an Aircraft will be used to determine the ECI and ICI values for
             the applicable  months (including those noted as preliminary by the
             Bureau  of  Labor  Statistics)  to  calculate  the  Airframe  Price
             Adjustment  for the Aircraft  invoice at the time of delivery.  The
             values will be considered  final and no Aircraft Price  Adjustments
             will be made after Aircraft delivery for any subsequent  changes in
             published Index values, subject always to paragraph 2.4 above.

             ii. The maximum  number of digits to the right of the decimal after
             rounding  utilized  in any part of the  Airframe  Price  Adjustment
             equation  will be 4, where  rounding  of the  fourth  digit will be
             increased to the next highest  digit when the 5th digit is equal to
             5 or greater.

                     BUYER FURNISHED EQUIPMENT VARIABLES

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

           Supplemental Exhibit BFE1 to Purchase Agreement Number 2262

<PAGE>

                       BUYER FURNISHED EQUIPMENT VARIABLES

                                   relating to

                          BOEING MODEL 737-83N AIRCRAFT

This  Supplemental  Exhibit BFE1 contains vendor selection dates,  on-dock dates
and other variables applicable to the Aircraft.

1.       Supplier Selection.

         Customer will:

     1.1 Select  and  notify  Boeing of the  suppliers  and part  numbers of the
following BFE items by the following dates:

Galley System                                                Complete

Galley Inserts                                               Complete

Seats (passenger)                                            Complete

Overhead & Audio System                                      Complete

Miscellaneous Emergency Equipment                            Complete

Cargo Handling Systems*                                August 8, 2000

* For a previously certified system.

<PAGE>

2.       On-dock Dates

 On or before  August 2000,  Boeing will provide to Customer a BFE  Requirements
On-Dock/Inventory  Document (BFE Document) or an electronically  transmitted BFE
Report which may be periodically revised,  setting forth the items,  quantities,
on-dock dates and shipping instructions relating to the in-sequence installation
of BFE. For planning  purposes,  a preliminary BFE on-dock schedule is set forth
below:

                            Preliminary On-Dock Dates

                                Aircraft Delivery

                         (Confidential Material Omitted)

                                Aircraft Delivery

                         (Confidential Material Omitted)

                                Aircraft Delivery

                         (Confidential Material Omitted)

                      Preliminary On-Dock Dates (Continued)

                                Aircraft Delivery

                         (Confidential Material Omitted)

                           CUSTOMER SUPPORT VARIABLES

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

           Supplemental Exhibit CS1 to Purchase Agreement Number 2262

<PAGE>

                           CUSTOMER SUPPORT VARIABLES

                                   relating to

                          BOEING MODEL 737-83N AIRCRAFT

Customer and Boeing will conduct  planning  conferences  approximately 12 months
before delivery of the first Aircraft,  or as otherwise  agreed,  to develop and
schedule a  customized  Customer  Support  Program to be  furnished by Boeing in
support of the Aircraft.

The customized  Customer  Services  Program will be based upon and equivalent to
the entitlements summarized below.

1.       MAINTENANCE TRAINING.
         --------------------

     1.1 Airplane General Familiarization Course; 1 class of 24 students;

     1.2 Mechanical/Power Plant Systems Course; 2 classes of 15 students;

     1.3 Electrical Systems Course; 2 classes of 15 students;

     1.4 Avionics Systems Course; 2 classes of 15 students;

     1.5 Corrosion Prevention & Control Course; 1 class of 10 students;

     1.6 Aircraft Rigging Course; 1 class of 6 students;

     1.7 Composite Repair for Technicians - Basic; 1 class of 8 students;

     1.8 Training materials will be provided to each student.  In addition,  one
set of training  materials used in Boeing's training  program,  including visual
aids,  Computer  Based  Training  Courseware,   instrument  panel  wall  charts,
text/graphics,  video programs,  etc. will be provided for use in Customer's own
training program.

<PAGE>

2.       FLIGHT TRAINING.
         ---------------

     2.1  Transition  training for 8 flight crews (16 pilots) in 2 classes;  The
training  will consist of ground school  (utilizing  computer  based  training),
fixed base  simulator,  full flight  simulator and actual  aircraft  training on
Customer's Aircraft.

     2.2 Flight Dispatcher training; 2 classes of 6 students;

     2.3 Flight Attendant training; 2 classes of 12 students;

     2.4 Performance  Engineer training in Boeing's regularly scheduled courses;
schedules are published twice yearly.

     2.5 Training materials will be provided to each student.  In addition,  one
set of training materials as used in Boeing's training program, including visual
aids,  Computer  Based  Training  Courseware,   instrument  panel  wall  charts,
text/graphics,  video programs,  Flight Attendant Manuals, etc. will be provided
for use in Customer's own training program.

     2.6 Additional Flight Operations Services:

     a. Boeing flight crew personnel to assist in ferrying the first aircraft to
Customer's main base;

     b.  Instructor  pilots for 90 calendar  days for revenue  service  training
assistance;

     c. An instructor  pilot to visit  Customer 6 months after  revenue  service
training to review Customer's flight crew operations for a 2 week period.

<PAGE>

3.       PLANNING ASSISTANCE.
         -------------------

         3.1      MAINTENANCE AND GROUND OPERATIONS.
                  ---------------------------------

                  Upon  request,  Boeing  will  visit  Customer's  main  base to
                  evaluate    aircraft    maintenance    facilities,     develop
                  recommendations and assist in maintenance planning.

         3.2      SPARES.
                  ------

                  a)       RECOMMENDED SPARES PARTS LIST (RSPL)
                           ------------------------------------
                           customized  RSPL, data and documents will be provided
                           to  identify  spare  parts  required  for  Customer's
                           support program.

                  b)       ILLUSTRATED PARTS CATALOG (IPC)
                           -------------------------------
                           A customized  IPC in accordance  with ATA 100 will be
provided.

                  c)       PROVISIONING TRAINING
                           Provisioning training will be provided for Customer's
                           personnel at Boeing's facilities, where documentation
                           and technical  expertise are  available.  Training is
                           focused  on  the  initial  provisioning  process  and
                           calculations reflected in the Boeing RSPL.

                  d)       SPARES PROVISIONING CONFERENCE
                           A provisioning conference will be conducted, normally
                           at  Boeing's  facilities  where  technical  data  and
                           personnel are available.

4:       TECHNICAL DATA AND DOCUMENTS

         4.1.     FLIGHT OPERATIONS.
                  -----------------
                  Airplane Flight Manual
                  Operations Manual
                  Quick Reference Handbook
                  Weight and Balance Manual
                  Dispatch Deviation Procedures Guide
                  Flight Crew Training Manual
                  Performance Engineer's Manual
                  Jet Transport Performance Methods
                  FMC Supplemental Data Document
                  Operational Performance Software
                  Fault Reporting Manual
                  ETOPS Guide Vol. III
                  Flight Planning and Performance Manual

         4.2.     MAINTENANCE.
                  -----------
                  Aircraft Maintenance Manual
                  Wiring Diagram Manual
                  Systems Schematics Manual
                  Connector Part Number Options Document
                  Structural Repair Manual
                  Overhaul/Component Maintenance Manual
                  Standard Overhaul Practices Manual
                  Standard Wiring Practices Manual
                  Non-Destructive Test Manual
                  Service Bulletins and Index
                  Corrosion Prevention Manual
                  Fault Isolation Manual
                  Fuel Measuring Stick Calibration  Document Power Plant Buildup
                  Manual Central Maintenance  Computer System Reporting Table In
                  Service  Activity Report All Operator  Letters Service Letters
                  Structural  Item Interim  Advisory  Maintenance  Tips Combined
                  Index

     4.3. MAINTENANCE PLANNING.  --------------------  Maintenance Planning Data
Document Maintenance  Planning Data Tasks Masterfile  Maintenance Task Cards and
Index Maintenance  Inspection Intervals Report ETOPS Guide Vol. II Configuration
Maintenance and Procedures for Extended Range Operations

         4.4.     SPARES.
                  ------
                  Illustrated Parts Catalog
                  Standards Books

         4.5.     FACILITIES AND EQUIPMENT PLANNING.
                  ---------------------------------
                  Facilities and Equipment Planning Document
                  Special Tool and Ground Handling Equipment Drawings and Index
                  Supplementary Tooling Documentation
                  Illustrated Tool and Equipment List/Manual
                  Aircraft Recovery Document
                  Airplane Characteristics for Airport Planning Document
                  Airplane Rescue and Fire Fighting Document
                  Engine Handling Document
                  ETOPS Guide Vol. I

         4.6.     SUPPLIER TECHNICAL DATA.
                  -----------------------
                  Service Bulletins
                  Ground Support Equipment Data
                  Provisioning Information
                  Component Maintenance/Overhaul Manuals and Index
                  Publications Index
                  Product Support Supplier Directory

                          (Confidential Letter Omitted)

                         SERVICE LIFE POLICY COMPONENTS

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

           Supplemental Exhibit SLP1 to Purchase Agreement Number 2262

<PAGE>

                         SERVICE LIFE POLICY COMPONENTS

                                   relating to

                            BOEING MODEL 737 AIRCRAFT

This is the listing of SLP  Components  for the Aircraft which relate to Part 3,
Boeing Service Life Policy of Exhibit C, Product Assurance  Document to the AGTA
and is a part of Purchase Agreement No. 2262.

1.           Wing.
             ----

     (a) Upper and lower skins and stiffeners  between the forward and rear wing
spars.

     (b) Wing spar webs, chords and stiffeners.

     (c) Inspar wing ribs.

     (d) Inspar splice plates and fittings.

     (e) Main landing gear support structure.

     (f) Wing center section floor beams,  lower beams and spanwise  beams,  but
not the seat tracks attached to floor beams.

     (g)  Engine  strut  support  fittings  attached  directly  to wing  primary
structure.

     (h) Wing-to-body structural attachments.

     (i) Support structure in the wing for spoilers and spoiler  actuators;  for
aileron  hinges and  reaction  links;  and for leading edge devices and trailing
edge flaps.

     (j) Trailing edge flap tracks and carriages.

     (k) Aileron  leading edge device and  trailing  edge flap  internal,  fixed
attachment and actuator support structure.

<PAGE>

2.           Body.
             ----

     (a) External surface skins and doublers, longitudinal stiffeners, longerons
and  circumferential  rings and frames between the forward pressure bulkhead and
the vertical  stabilizer rear spar bulkhead and structural support and enclosure
for the APU but excluding all system  components  and related  installation  and
connecting  devices,  insulation,  lining,  and  decorative  panels and  related
installation and connecting devices.

     (b)  Window  and  windshield   structure  but  excluding  the  windows  and
windshields.

     (c) Fixed  attachment  structure of the  passenger  doors,  cargo doors and
emergency exits,  excluding door mechanisms and movable hinge components.  Sills
and frames  around the body openings for the  passenger  doors,  cargo doors and
emergency exits, excluding scuff plates and pressure seals.

     (d) Nose wheel well  structure,  including  the wheel well walls,  pressure
deck, bulkheads, and gear support structure.

     (e) Main gear wheel well structure including pressure deck and landing gear
beam support structure.

     (f) Floor beams and support  posts in the control cab and  passenger  cabin
area, but excluding seat tracks.

     (g) Forward and aft pressure bulkheads.

     (h) Keel  structure  between the wing front spar bulkhead and the main gear
wheel well aft bulkhead including splices.

     (i) Wing front and rear spar support bulkheads, and vertical and horizontal
stabilizer front and rear spar support bulkheads including terminal fittings but
excluding all system components and related installation and connecting devices,
insulation,  lining,  decorative panels and related  installation and connecting
devices.

     (j) Support  structure in the body for the stabilizer  pivot and stabilizer
screw.

<PAGE>

3.           Vertical Stabilizer.
             -------------------

     (a) External skins between front and rear spars.

     (b)  Front,  rear  and  auxiliary  spar  chords,  webs and  stiffeners  and
attachment fittings.

     (c) Inspar ribs.

     (d) Rudder hinges and supporting ribs, excluding bearings.

     (e)  Support  structure  in the  vertical  stabilizer  for  rudder  hinges,
reaction links and actuators.

     (f) Rudder internal, fixed attachment and actuator support structure.

4.           Horizontal Stabilizer.
             ---------------------

     (a) External skins between front and rear spars.

     (b) Front and rear spar chords, webs and stiffeners.

     (c) Inspar ribs.

     (d) Stabilizer center section including hinge and screw support structure.

     (e) Support structure in the horizontal stabilizer for the elevator hinges,
reaction links and actuators.

     (f) Elevator internal, fixed attachment and actuator support structure.

5.           Engine Strut.
             ------------

     (a) Strut external surface skin and doublers and stiffeners.

     (b) Internal strut chords, frames and bulkheads.

     (c) Strut to wing fittings and diagonal brace.

     (d) Engine mount support fittings  attached directly to strut structure and
including the engine-mounted support fittings.

<PAGE>

6.           Main Landing Gear.
             -----------------

     (a) Outer cylinder.

     (b) Inner cylinder, including axles.

     (c)  Upper  and lower  side  struts,  including  spindles,  universals  and
reaction links.

     (d) Drag strut.

     (e) Bell crank.

     (f) Orifice support tube.

     (g) Trunnion link.

     (h) Downlock links including spindles and universals.

     (i) Torsion links.

     (j) Actuator beam, support link and beam arm.

7.           Nose Landing Gear.
             -----------------

     (a) Outer cylinder.

     (b) Inner cylinder, including axles.

     (c) Orifice support tube.

     (d) Upper and lower drag strut, including lock links.

     (e) Steering plates and steering collars.

     (f) Torsion links.

     NOTE: The Service Life Policy does not cover any bearings, bolts, bushings,
clamps, brackets, actuating mechanisms or latching mechanisms used in or on
the Covered Components.

American Trans Air, Inc.
7337 West Washington St.
Indianapolis International Airport
Indianapolis, Indiana  46231

Subject:          Demonstration Flight Waiver

     Reference:  Purchase  Agreement 2262 (the Purchase  Agreement)  between The
Boeing  Company  (Boeing) and American  Trans Air, Inc.  (Customer)  relating to
Model 737-83N aircraft (the Aircraft)

This Letter Agreement amends and supplements the Purchase  Agreement.  All terms
used but not defined in this Letter  Agreement shall have the same meaning as in
the Purchase Agreement.

Definition of Terms:

Correction  Costs:  Customer's  direct  labor costs and the cost of any material
required to correct a Flight  Discrepancy  where direct labor costs are equal to
the warranty  labor rate in effect between the parties at the time such labor is
expended.

Flight Discrepancy: A failure or malfunction of an Aircraft, or the accessories,
equipment or parts  installed on the Aircraft which results from a defect in the
Aircraft,  Boeing Product, engine or Supplier Product or a nonconformance to the
Detail Specification for the Aircraft.

The AGTA  provides  that each  aircraft will be test flown prior to delivery for
the purpose of demonstrating  the functioning of such Aircraft and its equipment
to Customer;  however,  Customer  may elect to waive this test flight.  For each
test flight waived,  Boeing agrees to provide  Customer an amount of jet fuel at
delivery  that,  including the standard fuel  entitlement,  totals the following
amount of fuel:

           --------------- -------------------------------------------------
           Aircraft Model  Total Fuel Entitlement (U.S. Gallons)
           --------------- -------------------------------------------------
           --------------- -------------------------------------------------
                737        Full tanks  (approx.  5,300 to 6,800,  depending
                           on model)
           --------------- -------------------------------------------------
           --------------- -------------------------------------------------
                747        26,000
           --------------- -------------------------------------------------
           --------------- -------------------------------------------------
                757        9,600
           --------------- -------------------------------------------------
           --------------- -------------------------------------------------
                767        11,000
           --------------- -------------------------------------------------
           --------------- -------------------------------------------------
                777        10,300
           --------------- -------------------------------------------------

Further,  Boeing agrees to reimburse  Customer for any Correction Costs incurred
as a result of the discovery of a Flight  Discrepancy during the first flight of
the aircraft by Customer  following delivery to the extent such Correction Costs
are not covered under a warranty provided by Boeing, the engine  manufacturer or
any of Boeing's suppliers.

Should a Flight Discrepancy be detected by Customer which requires the return of
the Aircraft to Boeing's facilities at Seattle,  Washington,  so that Boeing may
correct such Flight  Discrepancy,  Boeing and  Customer  agree that title to and
risk of loss of such  Aircraft  will remain with  Customer.  In addition,  it is
agreed that Boeing will have  responsibility for the Aircraft while it is on the
ground at Boeing's facilities in Seattle, Washington, as is chargeable by law to
a bailee for mutual benefit, but Boeing shall not be chargeable for loss of use.

To be reimbursed for Correction Costs,  Customer shall submit a written itemized
statement describing any flight discrepancies and indicating the Correction Cost
incurred by Customer  for each  discrepancy.  This  request must be submitted to
Boeing's Contracts Regional Director at Renton,  Washington,  within ninety (90)
days after the first flight by Customer.

Very truly yours,

THE BOEING COMPANY

By /s/ R.C. Nelson
  ------------------------------------------

Its:   Attorney-In-Fact
   --------------------------------------

ACCEPTED AND AGREED TO this

Date:   June 30                     ,2000
      -------------------------------

AMERICAN TRANS AIR, INC.

By /s/ Kenneth K. Wolff
  ------------------------------------------

Its: Executive Vice President & CFO
   ------------------------------------------

American Trans Air, Inc.
7337 West Washington St.
Indianapolis International Airport
Indianapolis, Indiana  46231

     Subject: Spares Initial Provisioning

     Reference:  Purchase  Agreement 2262 (the Purchase  Agreement)  between The
Boeing  Company  (Boeing) and American  Trans Air, Inc.  (Customer)  relating to
Model 737-83N aircraft (the Aircraft)

This  Letter  Agreement  is  entered  into on the date  below,  and  amends  and
supplements  the  Purchase  Agreement.  All terms  used but not  defined in this
Letter Agreement have the same meaning as in the Purchase Agreement.

1.           Applicability.
             -------------

             This  letter  will  apply to  initial  provisioning  for the  Model
737-83N Aircraft purchased by Customer under the Purchase Agreement.

2.           Initial Provisioning Meeting.
             ----------------------------

             Boeing  will  conduct  an  initial  provisioning  meeting  (Initial
Provisioning  Meeting) with Customer to establish mutually agreeable  procedures
to accomplish  Customer's initial  provisioning of spare parts for the Aircraft.
The  parties  will  agree,  during  the  Initial  Provisioning  Meeting  on  the
operational  data to be provided by Customer for  Boeing's use in preparing  its
quantity  recommendations  for  initial  provisioning  of  spare  parts  for the
Aircraft,  exclusive of special  tools,  ground support  equipment,  engines and
engine  parts  (Provisioning  Items).  Such  operational  data to be provided by
Customer  will be the data  described  in Chapter 6 of Boeing  Manual  D6-81834,
entitled  "Spares  Provisioning  Products  Guide"  (Boeing  Spares  Provisioning
Products  Guide)  which  will be  furnished  to  Customer  prior to the  Initial
Provisioning   Meeting.   The  parties  will  also  agree  on  the  provisioning
documentation   to  be  provided  by  Boeing  as  described  in  Boeing   Spares
Provisioning   Products  Guide  (such  data  will  be  hereinafter  referred  to
collectively as the "Provisioning Data"). Boeing will provide instruction in the
use of the initial provisioning documentation. This instruction will be provided
in conjunction with the Initial Provisioning  Meeting. In addition,  the parties
will  discuss  spares  ordering  procedures  and other  matters  related  to the
provisioning  for  the  Aircraft.   The  time  and  location  for  such  Initial
Provisioning Meeting will be mutually agreed upon between the parties;  however,
Boeing and Customer  will use their best efforts to convene such meeting  within
30 days after execution of the Purchase Agreement.

3.           Initial Provisioning Documentation.
             ----------------------------------

             3.1 Provisioning  Data.  Boeing will furnish  Provisioning  Data to
Customer on or about August 25, 2000. The Provisioning  Data will be as complete
as possible and will cover  Provisioning  Items selected by Boeing for review by
Customer for initial  provisioning for the Aircraft.  The Provisioning Data will
set forth the prices for  Provisioning  Items  which are Boeing  Spare Parts and
such prices will be firm and remain in effect  until the date or dates set forth
below in Paragraph 4.1,  Boeing Spare Parts, by which orders must be placed with
Boeing.  Boeing  will,  from time to time,  until a date  approximately  90 days
following  delivery of the last Aircraft or until the delivery  configuration of
each of the Aircraft is reflected in the Provisioning Data,  whichever is later,
furnish to Customer revisions to the Provisioning Data.

             3.2  Provisioning  IPC.  Boeing will,  on or about August 18, 2000,
furnish to  Customer  a Boeing  Illustrated  Parts  Catalog  (IPC),  hereinafter
referred to as the "Provisioning  IPC". The Provisioning IPC will be as complete
as possible and will cover  Provisioning  Items selected by Boeing for review by
Customer for initial  provisioning  for the Aircraft.  Boeing will, from time to
time,  until  a date  approximately  90  days  following  delivery  of the  last
Aircraft,  or  until  the  delivery  configuration  of each of the  Aircraft  is
reflected  in the  Provisioning  IPC,  whichever  is later,  furnish to Customer
revisions to the Provisioning IPC.

             3.3         Buyer Furnished Equipment (BFE) Provisioning Data.
                         -------------------------------------------------

     3.3.1  Boeing's  Responsibility.  Boeing will  include BFE end items in the
Provisioning Data and Provisioning IPC for BFE installed on Customer's  Aircraft
provided  such  equipment  has been  installed  on other  Aircraft by Boeing and
Boeing has data on the BFE.

     3.3.2 Customer's Responsibility.  Customer will be responsible for ensuring
BFE data is provided to Boeing by the BFE  supplier  in a format  acceptable  to
Boeing for BFE not covered by 3.3.1 above. If the data is not provided to Boeing
in a timely manner and in a format acceptable to Boeing, such BFE equipment will
not be included in Boeing's Provisioning Data or IPC.

     3.4  Other  Data.   Boeing   will  submit  to  Customer   listings  of  Raw
Materials,Standard  Parts  and  Bulk  Materials  to be used by  Customer  in the
maintenance and repair of the Aircraft.

     4.  Purchase  from  Boeing of Spare Parts as Initial  Provisioning  for the
Aircraft.

     4.1 Boeing Spare Parts.  Customer will place orders for Provisioning  Items
by November 17, 2000;  provided,  however,  that in those instances where Boeing
submits any revision to the  Provisioning  Data,  Customer will place orders for
Boeing Spare Parts covered by such revision within 60 days following the date of
such  submittal.   At  Customer's  request,   Boeing  will  process  "controlled
shipments"  by  shipping  full or partial  quantities  of an order on a schedule
specified  by  Customer,  provided  the final  shipment is made no later than 24
months after receipt of the order.

     4.2 Supplier  Provisioning Items. Customer may place orders with Boeing for
Provisioning  Items which are  manufactured  by suppliers  or to their  detailed
design and are covered by the Provisioning Data as initial  provisioning for the
Aircraft.  The price to Customer for any such supplier Provisioning Item will be
112% of the supplier's  quoted price to Boeing  therefor.  If Customer elects to
purchase such supplier  Provisioning Items from Boeing,  Customer will place its
orders therefor in accordance with the provisions of Paragraph 4.1, Boeing Spare
Parts.

     4.3 Ground Support  Equipment and Special Tools.  Customer may place orders
with Boeing for ground support equipment (GSE) and special tools manufactured by
suppliers which Customer  determines it will initially  require for maintenance,
overhaul and servicing of the Aircraft and/or engines. The price to Customer for
such GSE or  special  tools will be one  hundred  twelve  percent  (112%) of the
supplier's quoted price to Boeing therefor.  If Customer elects to purchase such
GSE and special tools from Boeing,  Customer  will place its orders  therefor by
the date set forth in  Paragraph  4.1,  Boeing Spare Parts or such later date as
the parties may mutually agree.

     4.4 Spare  Engines and Engine Spare  Parts.  Customer may place orders with
Boeing for spare engines and/or engine spare parts which Customer  determines it
will  initially  require for  support of the  Aircraft  or for  maintenance  and
overhaul of the engines.  The price to Customer  for such spare  engines or such
engine spare parts,  will be 105% of the engine  manufacturer's  quoted price to
Boeing for the engine,  and 112% of the engine  manufacturer's  quoted  price to
Boeing for the engine spare  parts.  If Customer  elects to purchase  such spare
engines or engine spare parts through Boeing,  Customer will place its orders on
a date to be mutually agreed upon during the Initial Provisioning Meeting.

     4.5 QEC Kits. Boeing will, on or about June 30, 2000, furnish to Customer a
listing of all  components  which could be included in the Quick  Engine  Change
(QEC) kits which may be purchased by Customer  from Boeing.  Customer  agrees to
review such listing and  indicate by marking on one copy of such  listing  those
components that Customer desires included in its QEC kits.  Customer will return
such  marked  copy to Boeing  within 30 days  after  Customer's  receipt of such
listing.  Within 30 days after Boeing's receipt of such marked copy, Boeing will
republish such listing to reflect only those components selected by Customer and
will provide copies of such  republished  listing to Customer.  Boeing will from
time  to  time  furnish  revisions  to  such  republished  listing  until a date
approximately 90 days after delivery of the last QEC kit ordered by Customer for
the Aircraft. Boeing will furnish to Customer as soon as practicable a statement
setting forth a firm price for the QEC kit  configuration  selected by Customer.
Customer agrees to place orders with Boeing for the QEC kits for the Aircraft by
August 25, 2000.

     4.6 Payment for Provisioning  Items. The payment provisions of the Customer
Services  General Terms  Agreement  (CSGTA)  between Boeing and Customer will be
applicable  to  Provisioning  Items  ordered  by  Customer  from  Boeing for the
Aircraft.

5.           Delivery.
             --------

             Boeing will,  insofar as reasonably  possible,  deliver to Customer
the Spare Parts  ordered by Customer in accordance  with the  provisions of this
letter on dates reasonably calculated to conform to Customer's anticipated needs
in view of the scheduled  deliveries  of the Aircraft.  Customer and Boeing will
agree upon the date to begin delivery of the Provisioning Spare Parts ordered in
accordance with this letter. Where appropriate, Boeing will arrange for shipment
of such Spare Parts,  which are manufactured by suppliers,  directly to Customer
from the applicable supplier's facility.  The routing and method of shipment for
initial deliveries and all subsequent  deliveries of such Spare Parts will be as
mutually agreed between Boeing and Customer.

6.           Substitution for Obsolete Spare Parts.
             -------------------------------------

             6.1 Obligation to Substitute.  In the event that, prior to delivery
of the first  Aircraft  pursuant  to the  Purchase  Agreement,  any  Spare  Part
purchased  by Customer  from Boeing in  accordance  with this letter is rendered
obsolete or unusable due to the  redesign of the  Aircraft or of any  accessory,
equipment  or part  therefor,  (other  than a redesign at  Customer's  request),
Boeing will deliver to Customer new and usable Spare Parts in  substitution  for
such  obsolete or unusable  Spare Parts and Customer will return the obsolete or
unusable  Spare  Parts to Boeing.  Boeing will credit  Customer's  account  with
Boeing with the price paid by Customer for any such  obsolete or unusable  Spare
Part and will invoice  Customer for the  purchase  price of any such  substitute
Spare Part delivered to Customer.

             6.2  Delivery of Obsolete  Spare  Parts and  Substitutes  Therefor.
Obsolete or unusable Spare Parts returned by Customer pursuant to this Item will
be  delivered  to Boeing  at its  Seattle  Distribution  Center,  or such  other
destination as Boeing may reasonably designate. Spare Parts substituted for such
returned  obsolete or  unusable  Spare  Parts will be  delivered  to Customer at
Boeing's  Seattle  Distribution  Center,  or such other Boeing shipping point as
Boeing may  reasonably  designate.  Boeing will pay the freight  charges for the
shipment from Customer to Boeing of any such obsolete or unusable Spare Part and
for the shipment from Boeing to Customer of any such substitute Spare Part.

7.           Repurchase of Provisioning Items.
             --------------------------------

             7.1  Obligation to  Repurchase.  During a period  commencing 1 year
after delivery of the first Aircraft under the Purchase Agreement,  and ending 5
years after such  delivery,  Boeing  will,  upon receipt of  Customer's  written
request and subject to the exceptions in Paragraph 7.2,  Exceptions,  repurchase
unused and undamaged  Provisioning Items which (i) were recommended by Boeing in
the  Provisioning  Data as  initial  provisioning  for the  Aircraft,  (ii) were
purchased by Customer from Boeing, and (iii) are surplus to Customer's needs.

             7.2  Exceptions.  Boeing will not be obligated under Paragraph 7.1,
Obligation to Repurchase,  to repurchase any of the following: (i) quantities of
Provisioning  Items in excess of those  quantities  recommended by Boeing in the
Provisioning  Data for the  Aircraft,  (ii) QEC Kits,  Bulk Material  Kits,  Raw
Material  Kits,  Service  Bulletin Kits,  Standards Kits and components  thereof
(except those  components  listed  separately in the Provisioning  Data),  (iii)
Provisioning  Items for which an order was received by Boeing more than 5 months
after delivery of the last Aircraft,  (iv) Provisioning  Items which have become
obsolete or have been  replaced by other  Provisioning  Items as a result of (a)
Customer's  modification of the Aircraft or (b) design improvements by Boeing or
the supplier (other than  Provisioning  Items which have become obsolete because
of a defect in design if such defect has not been remedied by an offer by Boeing
or the supplier to provide no charge  retrofit kits or  replacement  parts which
correct such defect), and (v) Provisioning Items which become excess as a result
of a change in Customer's operating  parameters,  provided to Boeing pursuant to
the  Initial  Provisioning  meeting  in  Paragraph  2,  which  were the basis of
Boeing's initial provisioning recommendations for the Aircraft.

             7.3  Notification  and  Format.  Customer  will notify  Boeing,  in
writing,  when Customer  desires to return  Provisioning  Items which Customer's
review  indicates are eligible for  repurchase by Boeing under the provisions of
this Repurchase of Provisioning  Items paragraph.  Customer's  notification will
include a detailed summary,  in part number sequence,  of the Provisioning Items
Customer desires to return. Such summary will be in the form of listings, tapes,
diskettes or other media as may be mutually  agreed between Boeing and Customer,
and will include part number,  nomenclature,  purchase  order  number,  purchase
order date and quantity to be returned.  Within 5 business days after receipt of
Customer's notification,  Boeing will advise Customer, in writing, when Boeing's
review of such summary will be completed.

             7.4 Review and  Acceptance by Boeing.  Upon  completion of Boeing's
review of any detailed summary  submitted by Customer pursuant to Paragraph 7.3,
Boeing will issue to Customer a Material  Return  Authorization  (MRA) for those
Provisioning  Items Boeing agrees are eligible for repurchase in accordance with
this Repurchase of Provisioning Items paragraph.  Boeing will advise Customer of
the reason that any spare part  included in Customer's  detailed  summary is not
eligible  for  return.  Boeing's  MRA will state the date by which  Provisioning
Items listed in the MRA must be  redelivered to Boeing and Customer will arrange
for shipment of such Provisioning Items accordingly.

             7.5  Price  and  Payment.  The  price  of  each  Provisioning  Item
repurchased  by  Boeing  pursuant  to  this  Repurchase  of  Provisioning  Items
paragraph will be an amount equal to 100% of the original invoice price thereof.
In the  case  of  Provisioning  Items  manufactured  by a  supplier  which  were
purchased  pursuant  to  Paragraph  4,  Purchase  from  Boeing of Spare Parts as
Initial  Provisioning  for the Aircraft,  hereof the  repurchase  price will not
include  Boeing's 12% handling  charge.  Boeing will pay the repurchase price by
issuing a credit  memorandum in favor of Customer  which may be applied  against
amounts due Boeing for the purchase of aircraft, Spare Parts, services or data.

             7.6 Delivery of Provisioning Items.  Provisioning Items repurchased
by Boeing pursuant to this  Repurchase of  Provisioning  Items paragraph will be
delivered to Boeing F.O.B.  at its Seattle  Distribution  Center,  or such other
destination  as Boeing may reasonably  designate.  Customer will pay the freight
charges for the shipment from Customer to Boeing of any such Provisioning Items.

     8. Obsolete Spare Parts and Surplus  Provisioning Items - Title and Risk of
Loss.

             Title to and risk of loss of any  obsolete or unusable  Spare Parts
returned to Boeing  pursuant to Paragraph  6,  Substitution  for Obsolete  Spare
Parts, will pass to Boeing upon delivery thereof to Boeing. Title to and risk of
loss of any Spare  Part  substituted  for an  obsolete  or  unusable  Spare Part
pursuant to Paragraph 6,  Substitution  for Obsolete  Spare Parts,  will pass to
Customer  upon  delivery  thereof to Customer.  Title to and risk of loss of any
Provisioning  Item  repurchased by Boeing pursuant to Paragraph 7, Repurchase of
Provisioning  Items,  will pass to Boeing upon delivery thereof to Boeing.  With
respect to the obsolete or unusable  Spare Parts which may be returned to Boeing
and the Spare  Parts  substituted  therefor,  pursuant to  Paragraph  6, and the
Provisioning Items which may be repurchased by Boeing,  pursuant to Paragraph 7,
the party  which has risk of loss of any such  Spare Part or  Provisioning  Item
will have the  responsibility of providing any insurance coverage for it desired
by such party.

9.           Supplier Support.
             ----------------

             Boeing has entered, or anticipates  entering,  into product support
agreements  with  suppliers  (Boeing   Suppliers)  of  major  system  components
manufactured  by  such  Suppliers  to be  installed  on the  Aircraft  (Supplier
Components).  Such product support agreements commit, or are expected to commit,
the Boeing  Suppliers to provide to Boeing's  customers  and/or such  customer's
designees support services with respect to the Supplier  Components which can be
reasonably  expected to be required during the course of normal operation.  This
support  includes  but is not limited to  shelf-stock  of certain  spare  parts,
emergency  spare parts,  timely  delivery of spare  parts,  and  technical  data
related to the Supplier  Components.  Copies of such product support  agreements
will be provided to Customer on or about  September 22, 2000, in Boeing Document
D6-56115,  Volumes  1 and 2. In the event  Customer  has used due  diligence  in
attempting to resolve any  difficulty  arising in normal  business  transactions
between  Customer and a Boeing  Supplier  with respect to product  support for a
Supplier Component  manufactured by such Supplier and if such difficulty remains
unresolved,  Boeing will, if requested by Customer, assist Customer in resolving
such difficulty.  Assistance will be provided by the Customer  Supplier Services
organization.

10.          Termination for Excusable Delay.
             -------------------------------

             In the event of termination of the Purchase  Agreement with respect
to any Aircraft  pursuant to Article 7 of the AGTA,  such  termination  will, if
Customer so requests by written  notice  received by Boeing within 15 days after
such  termination,  also discharge and terminate all obligations and liabilities
of the parties as to any Spare Parts which Customer had ordered  pursuant to the
provisions  of this letter as initial  provisioning  for such Aircraft and which
are undelivered on the date Boeing receives such written notice.

Very truly yours,

THE BOEING COMPANY

By /s/ R.C. Nelson
  ------------------------------------------

Its    Attorney-In-Fact
   --------------------------------------

ACCEPTED AND AGREED TO this

Date:  June 30                              , 2000
      -------------------------------

AMERICAN TRANS AIR, INC.

By  /s/ Kenneth K. Wolff
  ------------------------------------------

Its     Executive Vice President & CFO
   ------------------------------------------

                          (Confidential Letter Omitted)

                         (Confidential Letter Omitted)

                         (Confidential Letter Omitted)

                        PURCHASE AGREEMENT NUMBER 2285

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                    Relating to Boeing Model 757-33N Aircraft

<PAGE>

                                TABLE OF CONTENTS

                                                               SA
ARTICLES                                                     NUMBER

       1.         Quantity, Model and Description

       2.         Delivery Schedule

       3.         Price

       4.         Payment

       5.         Miscellaneous

TABLE

       1.         Aircraft Information Table

EXHIBIT

       A.         Aircraft Configuration

       B.         Aircraft Delivery Requirements and Responsibilities

SUPPLEMENTAL EXHIBITS

       AE1.       Escalation Adjustment/Airframe and Optional Features

       BFE1.      BFE Variables

       CS1.       Customer Support Variables

       (CONFIDENTIAL MATERIAL OMITTED)

       SLP1.      Service Life Policy Components

<PAGE>

LETTER AGREEMENTS

2285-01                    Demonstration Flight Waiver

2285-02                    Spares Intial provisioning

2285-03                    Flight Crew Training Spare Parts Support

(CONFIDENTIAL MATERIAL OMITTED)

<PAGE>

                           Purchase Agreement No. 2285

                                     between

                               The Boeing Company

                                       and

                            American Trans Air, Inc.

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

     This  Purchase  Agreement  No. 2285 dated as of           etween The Boeing
Company (BOEING) and American Trans Air, Inc.CUSTOMER)relating to the purchase
and sale of Model 757-33N  aircraft incorporates the terms and conditions of the
Aircraft  General  Terms  Agreement  dated as of --------  between the  parties,
identified as AGTA-AAT (AGTA).

Article 1.        QUANTITY, MODEL AND DESCRIPTION.
                  -------------------------------

                  The aircraft to be delivered to Customer will be designated as
Model  757-33N  aircraft (the  AIRCRAFT).  Boeing will  manufacture  and sell to
Customer Aircraft conforming to the configuration  described in Exhibit A, which
is part of this Purchase  Agreement,  in the quantities listed in Table 1 to the
Purchase Agreement.

Article 2.        DELIVERY SCHEDULE.
                  -----------------

                  The scheduled months of delivery of the Aircraft are listed in
the attached Table 1, which is part of this Purchase Agreement. Exhibit B, which
is part of this Purchase Agreement,  describes certain responsibilities for both
Customer and Boeing in order to accomplish the delivery of the Aircraft.

Article 3.        PRICE.
                  -----

     3.1 AIRCRAFT BASIC PRICE.  The Aircraft Basic Price is listed in Table 1 in
subject to  escalation dollars.

     3.2 ADVANCE PAYMENT BASE PRICES.  The Advance Payment Base Prices listed in
Table 1 were calculated  utilizing the latest  escalation  factors  available to
Boeing  on the  date  of this  Purchase  Agreement  projected  to the  month  of
scheduled delivery.

     3.3 Boeing has not yet  established  the Aircraft  Basic Price for Aircraft
scheduled to be delivered  after December 31, 2004. The prices listed in Table 1
for  such  Aircraft  are  only  to  provide  Customer  with an  estimate  of the
applicable  Advance Payment Base Prices.  Accordingly,  the Aircraft Basic Price
for such  Aircraft  will be the sum of the  Airframe  Price,  Optional  Features
Prices  and the Engine  Price  first  published  by Boeing for the same model of
aircraft and engines to be delivered after December 31, 2004.

Article 4.        PAYMENT.
                  -------

     4.1 Boeing acknowledges receipt of a deposit in the amount shown in Table 1
for each Aircraft (DEPOSIT).

     4.2 The standard  advance payment  schedule for the Model 757-33N  aircraft
requires Customer to make certain advance payments, expressed in a percentage of
the Advance Payment Base Price of each Aircraft  beginning with a payment of 1%,
less the  Deposit,  on the  effective  date of the  Purchase  Agreement  for the
Aircraft.  Additional  advance  payments for each  aircraft are due on the first
business day of the months listed in the attached Table 1.

     4.3 For any  Aircraft  whose  scheduled  month of  delivery is less than 24
months from the date of this  Purchase  Agreement,  the total  amount of advance
payments due for payment upon signing of this  Purchase  Agreement  will include
all advance  payments which are past due in accordance with the standard advance
payment schedule set forth in paragraph 4.2 above.

     4.4 Customer will pay the balance of the Aircraft Price of each Aircraft at
delivery.

Article 5.        MISCELLANEOUS.
                  -------------

     5.1 AIRCRAFT INFORMATION TABLE. Table 1 consolidates  information contained
in  Articles  1, 2, 3 and 4 with  respect  to (i)  quantity  of  Aircraft,  (ii)
applicable Detail  Specification,  (iii) month and year of scheduled deliveries,
(iv) Aircraft Basic Price,  (v) applicable  escalation  factors and (vi) Advance
Payment Base Prices and advance payments and their schedules.

     5.2  ESCALATION  ADJUSTMENT/AIRFRAME  AND OPTIONAL  FEATURES.  Supplemental
Exhibit  AE1contains the applicable  airframe and optional  features  escalation
formula.

     5.3 BUYER FURNISHED EQUIPMENT VARIABLES. Supplemental Exhibit BFE1 contains
vendor  selection  dates,  on dock dates and other  variables  applicable to the
Aircraft.

     5.4  CUSTOMER  SUPPORT  VARIABLES.  Supplemental  Exhibit CS1  contains the
variable  information  applicable to  information,  training  services and other
things furnished by Boeing in support of the Aircraft.

     5.5 ENGINE  ESCALATION  VARIABLES.  Supplemental  Exhibit EE1  contains the
applicable engine escalation formula,  the engine warranty and the engine patent
indemnity for the Aircraft.

     5.6 SERVICE  LIFE POLICY  COMPONENT  VARIABLES.  Supplemental  Exhibit SLP1
lists the  airframe  and landing  gear  components  covered by the Service  Life
Policy for the Aircraft.

     5.7  NEGOTIATED  AGREEMENT;  ENTIRE  AGREEMENT.  This  Purchase  Agreement,
including the  provisions of Article 8.2 of the AGTA relating to insurance,  and
Article 11 of Part 2 of Exhibit C of the AGTA relating to DISCLAIMER AND RELEASE
and  EXCLUSION  OF  CONSEQUENTIAL  AND OTHER  DAMAGES,  has been the  subject of
discussion and negotiation and is understood by the parties;  the Aircraft Price
and other  agreements  of the parties  stated in this  Purchase  Agreement  were
arrived  at in  consideration  of  such  provisions.  This  Purchase  Agreement,
including  the AGTA,  contains  the entire  agreement  between  the  parties and
supersedes   all   previous    proposals,    understandings,    commitments   or
representations  whatsoever, oral or written, and may be changed only in writing
signed by authorized representatives of the parties.

DATED AS OF                      June 30           ,   2000
                     ------------------------------

American Trans Air, Inc.                               THE BOEING COMPANY

By  /s/ Kenneth K. Wolff                          By   /s/   R.C. Nelson
    ----------------------------------------           -------------------------

Its   Executive Vice President & CFO                   Its   ATTORNEY-IN-FACT
     ---------------------------------------           -------------------------

                     Table 1 to Purchase Agreement No. 2285
           Aircraft Delivery, Description, Price and Advance Payments

(Confidential Material Omitted)

                            AIRCRAFT CONFIGURATION

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                   Exhibit A to Purchase Agreement Number 2285

<PAGE>

                             AIRCRAFT CONFIGURATION

                            Dated ___________________

                                   relating to

                          BOEING MODEL 757-33N AIRCRAFT

             The Detail Specification is Boeing Detail Specification  D019N001-A
dated as of August  7,  1998.  Such  Detail  Specification  will be  amended  to
incorporate the Options listed herein,  including the effects on  Manufacturer's
Empty Weight (MEW) and Operating  Empty Weight (OEW). As soon as practicable but
in no case later than  delivery of the first  Aircraft,  Boeing will  furnish to
Buyer  copies of the  Detail  Specification,  which  copies  will  reflect  such
Options.  The  Aircraft  Basic Price  reflects  and includes all effects of such
Options,  except such Aircraft Basic Price does not include the price effects of
any Buyer Furnished Equipment or Seller Purchased Equipment.

<PAGE>

 OPTION            TITLE                 PRICE PER
                                          AIRCRAFT
                                        ($1999 STE)

(Confidential Material Omitted)

               AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                   Exhibit B to Purchase Agreement Number 2285

<PAGE>

               AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES

                                   relating to

                          BOEING MODEL 757-33N AIRCRAFT

Both   Boeing   and   Customer   have   certain   documentation   and   approval
responsibilities  at various times during the  construction  cycle of Customer's
Aircraft  that are critical to making the  delivery of each  Aircraft a positive
experience for both parties. This Exhibit B documents those responsibilities and
indicates recommended completion deadlines for the actions to be accomplished.

<PAGE>

             1.          GOVERNMENT DOCUMENTATION REQUIREMENTS.
                         -------------------------------------

Certain actions are required to be taken by Customer in advance of the scheduled
delivery  month of each  Aircraft with respect to obtaining  certain  government
issued documentation.

                         1.1         AIRWORTHINESS AND REGISTRATION DOCUMENTS.
                                     ----------------------------------------

     Not later than 6 MONTHS PRIOR TO DELIVERY of each  Aircraft,  Customer will
notify  Boeing  of the  registration  number  to be  painted  on the side of the
Aircraft.  In  addition,  and not later than 3 MONTHS  PRIOR TO DELIVERY of each
Aircraft,   Customer  will,  by  letter  to  the  regulatory   authority  having
jurisdiction, authorize the temporary use of such registration numbers by Boeing
during the pre-delivery testing of the Aircraft.

Customer is responsible  for furnishing any Temporary or Permanent  Registration
Certificates  required by any governmental  authority having  jurisdiction to be
displayed aboard the Aircraft after delivery.

                         1.2         CERTIFICATE OF SANITARY CONSTRUCTION.
                                     ------------------------------------

     1.2.1 U.S. REGISTERED  AIRCRAFT.  Boeing will obtain from the United States
Public Health Service, a United States  Certificate of Sanitary  Construction to
be displayed aboard each Aircraft after delivery to Customer.

     1.2.2 NON-U.S.  REGISTERED  AIRCRAFT.  If Customer requires a United States
Certificate  of Sanitary  Construction  at the time of delivery of the Aircraft,
Customer will give written  notice  thereof to Boeing at least 3 MONTHS PRIOR TO
DELIVERY.  Boeing  will then use its  reasonable  best  efforts  to  obtain  the
Certificate  from the United  States  Public  Health  Service  and present it to
Customer at the time of Aircraft delivery.

                         1.3         CUSTOMS DOCUMENTATION.

     1.3.1 IMPORT DOCUMENTATION. If the Aircraft is intended to be exported from
the United States,  Customer must notify Boeing not later than 3 MONTHS PRIOR TO
DELIVERY  of  each  Aircraft  of  any  documentation  required  by  the  customs
authorities or by any other agency of the country of import.

     1.3.2 GENERAL DECLARATION - U.S. If the Aircraft is intended to be exported
from  the  United  States,  Boeing  will  prepare  Customs  Form  7507,  General
Declaration, for execution by U.S. Customs immediately prior to the ferry flight
of the  Aircraft.  For this  purpose,  Customer will furnish to Boeing not later
than 20 DAYS PRIOR TO DELIVERY a complete crew and passenger list and a complete
ferry flight  itinerary,  including point of exit from the United States for the
Aircraft.

If Customer intends,  during the ferry flight of an Aircraft,  to land at a U.S.
airport  after  clearing  Customs at delivery,  Customer  must notify Boeing not
later than 20 DAYS PRIOR TO DELIVERY of such intention.  If Boeing receives such
notification,  Boeing will  provide to Customer  the  documents  constituting  a
Customs  permit to proceed,  allowing  such  Aircraft  to depart  after any such
landing.  Sufficient  copies  of  completed  Form  7507,  along  with  passenger
manifest, will be furnished Customer to cover U.S. stops scheduled for the ferry
flight.

     1.3.3 EXPORT  DECLARATION - U.S. If the Aircraft is intended to be exported
from the United States, Boeing will prepare Form 7525V and, IMMEDIATELY PRIOR TO
THE FERRY FLIGHT,  will submit such Form to U.S.  Customs in Seattle in order to
obtain  clearance for the departure of the Aircraft,  including any cargo,  from
the United States.  U.S. Customs will deliver the Export Declaration to the U.S.
Department of Commerce after export.

             2.          INSURANCE CERTIFICATES.
                         ----------------------

     Unless provided earlier,  Customer will provide to Boeing not later than 30
DAYS PRIOR TO DELIVERY of the first  Aircraft,  a copy of the  requisite  annual
insurance  certificate in accordance  with the  requirements of Article 8 of the
AGTA.

             3           NOTICE OF FLYAWAY CONFIGURATION.
                         -------------------------------

     Not later than 20 DAYS PRIOR TO DELIVERY  of the  Aircraft,  Customer  will
provide  to  Boeing  a  configuration  letter  stating  the  requested  "flyaway
configuration" of the Aircraft for its ferry flight.  This configuration  letter
should include:

     (i) the name of the company  which is to furnish  fuel for the ferry flight
and any scheduled  post-delivery flight training, the method of payment for such
fuel, and fuel load for the ferry flight;

     (ii) the  cargo to be  loaded  and  where it is to be  stowed  on board the
Aircraft,   the  address  where  cargo  is  to  be  shipped  after  flyaway  and
notification of any hazardous materials requiring special handling;

     (iii) any BFE  equipment  to be removed  prior to flyaway  and  returned to
Boeing BFE stores for installation on Customer's subsequent Aircraft;

     (iv) a  complete  list of names and  citizenship  of each crew  member  and
non-revenue passenger who will be aboard the ferry flight; and

     (v) a complete ferry flight itinerary.

<PAGE>

             4.          DELIVERY ACTIONS BY BOEING.
                         --------------------------

     4.1 SCHEDULE OF INSPECTIONS.  All FAA,  Boeing,  Customer and, if required,
U.S. Customs Bureau  inspections will be scheduled by
Boeing for completion  prior to delivery or departure of the Aircraft.  Customer
will be informed of such schedules.

     4.2 SCHEDULE OF DEMONSTRATION  FLIGHTS. All FAA and Customer  demonstration
flights  will be  scheduled  by Boeing for  completion  prior to delivery of the
Aircraft.

     4.3 SCHEDULE FOR CUSTOMER'S FLIGHT CREW. Boeing will inform Customer of the
date that a flight crew is required  for  acceptance  routines  associated  with
delivery of the Aircraft.

     4.4 FUEL  PROVIDED BY BOEING.  Boeing  will  provide to  Customer,  without
charge,  the  amount of fuel shown in U.S.  gallons  in the table  below for the
model of Aircraft being delivered and full capacity of engine oil at the time of
delivery or prior to the ferry flight of the Aircraft.

AIRCRAFT MODEL                                          FUEL PROVIDED
--------------                                          -------------
737                                                     1,000
747                                                     4,000
757                                                     1,600
767                                                     2,000
777                                                     3,000

     4.5 FLIGHT CREW AND PASSENGER  CONSUMABLES.  Boeing will provide reasonable
quantities of food, coat hangers,  towels, toilet tissue, drinking cups and soap
for the first segment of the ferry flight for the Aircraft.

     4.6 DELIVERY PAPERS,  DOCUMENTS AND DATA. Boeing will have available at the
time of delivery of the Aircraft certain delivery papers, documents and data for
execution  and  delivery.  If title  for the  Aircraft  will be  transferred  to
Customer  through  a  Boeing  sales  subsidiary  and if  the  Aircraft  will  be
registered  with the FAA, Boeing will  pre-position in Oklahoma City,  Oklahoma,
for filing  with the FAA at the time of  delivery  of the  Aircraft  an executed
original Form 8050-2, Aircraft Bill of Sale, indicating transfer of title to the
Aircraft from Boeing's sales subsidiary to Customer.

     4.7  DELEGATION  OF  AUTHORITY.  If  specifically  requested  in advance by
Customer, Boeing will present a certified copy of a Resolution of Boeing's Board
of Directors,  designating and authorizing  certain persons to act on its behalf
in connection with delivery of the Aircraft.

<PAGE>

             5.          DELIVERY ACTIONS BY CUSTOMER.
                         ----------------------------

     5.1 AIRCRAFT RADIO STATION LICENSE.  At delivery  Customer will provide its
Aircraft  Radio  Station  License to be placed on board the  Aircraft  following
delivery.

     5.2.  AIRCRAFT  FLIGHT LOG. At delivery  Customer will provide the Aircraft
Flight Log for the Aircraft.

     5.3 DELEGATION OF AUTHORITY. Customer will present to Boeing at delivery of
the Aircraft an original or certified copy of Customer's Delegation of Authority
designating and  authorizing  certain persons to act on its behalf in connection
with delivery of the specified Aircraft.

                             ESCALATION ADJUSTMENT

                         AIRFRAME AND OPTIONAL FEATURES

                                     between

                               THE BOEING COMPANY

                                       and

                             America Trans Air, inc.

                   Supplemental Exhibit AE1 to Purchase Agreement Number 2285

                      (FOR MODEL 717-200,  737-600, 737-700, 737-800 AND 737-900
              THE AIRFRAME  PRICE  INCLUDES THE ENGINE PRICE AT ITS BASIC THRUST
              LEVEL.)

<PAGE>

1.           FORMULA.
             -------

             Airframe and Optional  Features price  adjustments  (Airframe Price
Adjustment) are used to allow prices to be stated in current year dollars at the
signing  of this  Purchase  Agreement  and to  adjust  the  amount to be paid by
Customer at delivery for the effects of economic fluctuation. The Airframe Price
Adjustment  will be  determined  at the time of Aircraft  delivery in accordance
with the following formula:

             Pa = (P+B)(L + M) - P

             Where:

                      Pa            =  Airframe  Price  Adjustment.  (For  Model
                                    717-200,   737-600,   737-700,  737-800  and
                                    737-900,  the  Airframe  Price  includes the
                                    Engine Price at its basic thrust level.)

                      L =  .65 x ( ECI
                                  -----
                                   ECIb   )where  ECIb  is  the  base
                                           year index (as set forth in
                                           Table  1 of  this  Purchase
                                           Agreement)

                      M =  .35 x ( ICI
                                  -----
                                   ICIb    )where ICIb is the base year index
                                           (as set forth in Table 1 of this
Purchase Agreement)

                      P = Airframe  Price plus Optional  Features  Price (as set
                      forth in Table 1 of this Purchase Agreement).

                      B =  0.005 x (N/12) x (P)where N is the calendar month and
                                               year of scheduled Aircraft
                                               delivery minus the calendar month
                                               and year of the Base Price Year,
                                               both as shown in Table 1
                                               of this Purchase Agreement.

                      ECI is a value  determined  using the U.S.  Department  of
                      Labor,  Bureau of Labor Statistics  "Employment Cost Index
                      for  workers  in  aerospace   manufacturing  -  Wages  and
                      Salaries" (ECI code 3721W),  calculated by  establishing a
                      three-month  arithmetic  average  value  (expressed  as  a
                      decimal and rounded to the nearest tenth) using the values
                      for the fifth, sixth and seventh months prior to the month
                      of scheduled delivery of the applicable  Aircraft.  As the
                      Employment  Cost  Index  values  are  only  released  on a
                      quarterly basis, the value released for the month of March
                      will be used for the months of January and  February;  the
                      value  for June  used for  April  and May;  the  value for
                      September  used for July and  August;  and the  value  for
                      December used for October and November.

                      ICI is a value  determined  using the U.S.  Department  of
                      Labor,  Bureau of Labor  Statistics  "Producer  Prices and
                      Price Index - Industrial  Commodities  Index ", calculated
                      as a 3-month  arithmetic  average of the released  monthly
                      values  (expressed as a decimal and rounded to the nearest
                      tenth)  using the values  for the 5th,  6th and 7th months
                      prior to the month of scheduled delivery of the applicable
                      Aircraft.

                      As an example,  for an Aircraft  scheduled to be delivered
                      in the month of January,  the months June, July and August
                      of the preceding year will be utilized in determining  the
                      value of ECI and ICI.

     Note:  i. In  determining  the  values  of L and M,  all  calculations  and
resulting  values  will  be  expressed  as a  decimal  rounded  to  the  nearest
ten-thousandth.

     ii. .65 is the numeric  ratio  attributed  to labor in the  Airframe  Price
Adjustment formula.

     iii. .35 is the numeric ratio attributed to materials in the Airframe Price
Adjustment formula.

     Iv. The  denominators  (base year  indices) are the actual  average  values
reported by the U.S.  Department of Labor, Bureau of Labor Statistics (base year
June 1989 = 100).  The  applicable  base year and  corresponding  denominator is
provided by Boeing in Table 1 of this Purchase Agreement.

     iv. The final value of Pa will be rounded to the nearest dollar.

     vi. The Airframe Price  Adjustment  will not be made if it will result in a
decrease in the Aircraft Basic Price.

2.           VALUES TO BE UTILIZED IN THE EVENT OF UNAVAILABILITY.
             -----------------------------------------------------

             2.1 If the Bureau of Labor  Statistics  substantially  revises  the
methodology used for the determination of the values to be used to determine the
ECI and ICI values (in contrast to benchmark adjustments or other corrections of
previously released values), or for any reason has not released values needed to
determine the applicable  Airframe Price Adjustment,  the parties will, prior to
the  delivery of any such  Aircraft,  select a  substitute  from other Bureau of
Labor   Statistics   data  or  similar   data   reported   by   non-governmental
organizations.  Such substitute will result in the same  adjustment,  insofar as
possible,  as would have been calculated  utilizing the original values adjusted
for fluctuation during the applicable time period.  However, if within 24 months
after  delivery of the Aircraft,  the Bureau of Labor  Statistics  should resume
releasing  values  for  the  months  needed  to  determine  the  Airframe  Price
Adjustment,  such values will be used to  determine  any increase or decrease in
the Airframe Price  Adjustment for the Aircraft from that determined at the time
of delivery of the Aircraft.

             2.2  Notwithstanding  Article 2.1 above,  if prior to the scheduled
delivery  month of an Aircraft the Bureau of Labor  Statistics  changes the base
year for determination of the ECI and ICI values as defined above, such re-based
values will be incorporated in the Airframe Price Adjustment calculation.

             2.3 In the event escalation  provisions are made non-enforceable or
otherwise  rendered  void by any agency of the  United  States  Government,  the
parties  agree,  to the extent they may lawfully do so, to equitably  adjust the
Aircraft Price of any affected Aircraft to reflect an allowance for increases or
decreases in labor  compensation  and material costs occurring since February of
the price base year shown in the Purchase Agreement which is consistent with the
applicable provisions of paragraph 1 of this Supplemental Exhibit AE1.

             2.4 If within 12 months of Aircraft  delivery,  the published index
values  are  revised  due to an  acknowledged  error  by  the  Bureau  of  Labor
Statistics,  the  Airframe  Price  Adjustment  will be  re-calculated  using the
revised index values (this does not include those values noted as preliminary by
the Bureau of Labor  Statistics).  A credit  memorandum or supplemental  invoice
will be issued for the Airframe Price  Adjustment  difference.  Interest charges
will not  apply  for the  period  of  original  invoice  to  issuance  of credit
memorandum or supplemental invoice.

     NOTE:  i.  The  values  released  by the  Bureau  of Labor  Statistics  and
available  to Boeing 30 days prior to the  scheduled  delivery  month of an
Aircraft  will be used to  determine  the ECI and ICI values for the  applicable
months  (including those noted as preliminary by the Bureau of Labor Statistics)
to calculate the Airframe Price  Adjustment for the Aircraft invoice at the time
of  delivery.  The  values  will  be  considered  final  and no  Aircraft  Price
Adjustments will be made after Aircraft  delivery for any subsequent  changes in
published Index values, subject always to paragraph 2.4 above.

     ii. The maximum number of digits to the right of the decimal after rounding
utilized in any part of the Airframe Price Adjustment  equation will be 4, where
rounding of the fourth digit will be  increased  to the next highest  digit when
the 5th digit is equal to 5 or greater.

                              BUYER FURNISHED EQUIPMENT VARIABLES

                                             between

                                       THE BOEING COMPANY

                                               and

                                    American Trans Air, Inc.

                   Supplemental Exhibit BFE1 to Purchase Agreement Number 2285

<PAGE>

                               BUYER FURNISHED EQUIPMENT VARIABLES

                                           relating to

                                  BOEING MODEL 757-33N AIRCRAFT

This  Supplemental  Exhibit BFE1 contains vendor selection dates,  on-dock dates
and other variables applicable to the Aircraft.

1.       SUPPLIER SELECTION.
         ------------------

         Customer will:

     1.1 Select  and  notify  Boeing of the  suppliers  and part  numbers of the
following BFE items by the following dates:

Galley System                                            JULY 24, 2000

Galley Inserts                                           JULY 24, 2000

Seats (passenger)                                             COMPLETE

Overhead & Audio System                                       COMPLETE

Miscellaneous Emergency Equipment                        JULY 24, 2000

Cargo Handling Systems*                                       COMPLETE

* For a previously certified system

<PAGE>

2.       ON-DOCK DATES

 On or before October,  2000, Boeing will provide to Customer a BFE Requirements
On-Dock/Inventory  Document (BFE Document) or an electronically  transmitted BFE
Report which may be periodically revised,  setting forth the items,  quantities,
on-dock dates and shipping instructions relating to the in-sequence installation
of BFE. For planning  purposes,  a preliminary BFE on-dock schedule is set forth
below:

                            PRELIMINARY ON-DOCK DATES

--------------------------------------------------------------------------------
                                AIRCRAFT DELIVERY
--------------------------------------------------------------------------------

                        (CONFIDENTIAL MATERIAL OMITTED)
--------------------------------------------------------------------------------
                                AIRCRAFT DELIVERY
--------------------------------------------------------------------------------

                        (CONFIDENTIAL MATERIAL OMITTED)

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

                           CUSTOMER SUPPORT VARIABLES

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                   Supplemental Exhibit CS1 to Purchase Agreement Number 2285

<PAGE>

                           CUSTOMER SUPPORT VARIABLES

                                   relating to

                          BOEING MODEL 757-33N AIRCRAFT

Customer currently operates an aircraft of the same model as the Aircraft.  Upon
Customer's  request,  Boeing will  develop and  schedule a  customized  Customer
Support  Program to be  furnished  in support of the  Aircraft.  The  customized
program will be based upon and equivalent to the entitlements summarized below.

1.       MAINTENANCE TRAINING.
         --------------------

         1.1      Maintenance   Training  Minor  Model  Differences  Course,  if
                  required,   covering   operational,   structural   or  systems
                  differences between Customer's newly-purchased Aircraft and an
                  aircraft of the same model currently  operated by Customer;  1
                  class of 15 students;

         1.2      Training  materials,  if applicable,  will be provided to each
                  student. In addition, one set of training materials as used in
                  Boeing's  training  program,  including  visual aids, text and
                  graphics will be provided for use in  Customer's  own training
                  program.

2.       FLIGHT TRAINING.
         ---------------

         Boeing will provide,  if required,  one classroom course to acquaint up
         to 15 students with  operational,  systems and performance  differences
         between Customer's newly-purchased Aircraft and an aircraft of the same
         model currently operated by Customer.

         Any training  materials used in Flight Training,  if required,  will be
         provided for use in Customer's own training program.

3.       PLANNING ASSISTANCE.
         -------------------

         3.1      MAINTENANCE AND GROUND OPERATIONS.
                  ---------------------------------

                  Upon  request,   Boeing  will  provide   planning   assistance
                  regarding Minor Model Differences requirements for facilities,
                  tools and equipment.

         3.2      SPARES.
                  ------

                  Boeing will revise, as applicable,  the customized Recommended
                  Spares Parts List (RSPL) and Illustrated Parts Catalog (IPC).

4.       TECHNICAL DATA AND DOCUMENTS.
         ----------------------------

         Boeing  will  revise,  as  applicable,  technical  data  and  documents
         provided with previously delivered aircraft.

(CONFIDENTIAL LETTER OMITTED)

                         SERVICE LIFE POLICY COMPONENTS

                                     between

                               THE BOEING COMPANY

                                       and

                            American Trans Air, Inc.

                   Supplemental Exhibit SLP1 to Purchase Agreement Number 2285

<PAGE>

                         SERVICE LIFE POLICY COMPONENTS

                                   relating to

                            BOEING MODEL 757 AIRCRAFT

This is the listing of Covered  Components for the Aircraft which relate to Part
3, BOEING  SERVICE LIFE POLICY of Exhibit C, PRODUCT  ASSURANCE  DOCUMENT to the
AGTA and is a part of Purchase Agreement No. 2285.

1.           WING.
             ----

     (a) Upper and lower skins and stiffeners  between the forward and rear wing
spars.

     (b) Wing spar webs, chords, and stiffeners.

     (c) Inspar wing ribs.

     (d) Inspar splice plates and fittings.

     (e) Main landing gear support structure.

     (f) Wing center section lower beams,  spanwise  beams and floor beams,  but
not the seat tracks attached to the beams.

     (g) Wing-to-body structural attachments.

     (h)  Engine  strut  support  fittings  attached  directly  to wing  primary
structure.

     (i) Support structure in the wing for spoilers and spoiler  actuators;  for
aileron  hinges and  reaction  links;  and for leading edge devices and trailing
edge flaps.

     (j) Trailing edge flap tracks and carriages.

     (k) Aileron  leading edge device and  trailing  edge flap  internal,  fixed
attachment and actuator support structure.

2.           BODY.
             ----

     (a) External surface skins and doublers, longitudinal stiffeners, longerons
and  circumferential  rings and frames between the forward pressure bulkhead and
the vertical stabilizer rear spar bulkhead, and structural support and enclosure
for the APU but excluding all system  components  and related  installation  and
connecting  devices,  insulation,  lining,  and  decorative  panels and  related
installation and connecting devices.

     (b)  Window  and  windshield   structure  but  excluding  the  windows  and
windshields.

     (c) Fixed  attachment  structure of the  passenger  doors,  cargo doors and
emergency exits,  excluding door mechanisms and movable hinge components.  Sills
and frames  around the body openings for the  passenger  doors,  cargo doors and
emergency exits, excluding scuff plates and pressure seals.

     (d) Nose wheel well  structure,  including  the wheel well walls,  pressure
deck, forward and aft bulkheads, and the gear support structure.

     (e) Main gear wheel well structure  including pressure deck,  bulkheads and
landing gear beam support structure.

     (f) Floor beams and support  posts in the control cab and  passenger  cabin
area, but excluding seat tracks.

     (g) Forward and aft pressure bulkheads.

     (h) Keel  structure  between the wing front spar bulkhead and the main gear
wheel well aft bulkhead, including splices.

     (i) Wing front and rear spar support bulkheads, and vertical and horizontal
stabilizer front and rear spar support bulkheads including terminal fittings but
excluding all system components and related installation and connecting devices,
insulation,  lining,  decorative panels, and related installation and connecting
devices.

     (j) Support  structure in the body for the stabilizer  pivot and stabilizer
screw.

3.           VERTICAL STABILIZER.
             -------------------

     (a) External skins between front and rear spars.

     (b) Front,  rear and  auxiliary  spar chords,  webs,  and  stiffeners,  and
attachment fittings between vertical stabilizer and body.

     (c) Inspar ribs.

     (d)  Support  structure  in the  vertical  stabilizer  for  rudder  hinges,
reaction links and actuator.

     (e) Rudder internal, fixed attachment and actuator support structure.

     (f) Rudder hinges and supporting ribs, excluding bearings.

4.           HORIZONTAL STABILIZER.
             ---------------------

     (a) External skins between front and rear spars.

     (b) Front, rear and auxiliary spar chords, webs, and stiffeners.

     (c) Inspar ribs.

     (d) Stabilizer center splice fittings, pivot and screw support structure.

     (e) Support structure in the horizontal stabilizer for the elevator hinges,
reaction links and actuators.

     (f) Elevator internal, fixed attachment and actuator support structure.

5.           ENGINE STRUT.
             ------------

     (a) Strut external surface skin and doublers and stiffeners.

     (b) Internal strut chords, frames and bulkheads.

     (c) Strut to wing fittings and diagonal brace.

     (d) Engine mount support fittings attached directly to strut structure.

     (e) For Aircraft  equipped with Pratt & Whitney  engines  only,  the engine
mounted support fittings.

6.           MAIN LANDING GEAR.
             -----------------

     (a) Outer cylinder.

     (b) Inner cylinder.

     (c) Upper and lower side struts, including spindles and universals.

     (d) Drag strut.

     (e) Side strut reaction link.

     (f) Side strut support link.

     (g) Downlock links including spindles and universals.

     (h) Orifice plate.

     (i) Trunnion link.

     (j) Truck beam.

     (k) Axles.

     (l) Torsion links.

     (m) Stabilizer link.

7.           NOSE LANDING GEAR.
             -----------------

     (a) Outer cylinder.

     (b) Inner cylinder.

     (c) Upper and lower drag strut, including lock links.

     (d) Axles.

     (e) Torsion links.

     (f) Steering plates and steering collar.

     (g) Orifice plate.

     NOTE: The Service Life Policy does not cover any bearings, bolts, bushings,
clamps, brackets, actuating mechanisms or latching mechanisms used in or on
the Covered Components.

American Trans Air, Inc.
7337 West Washington St.
Indianapolis International Airport
Indianapolis, Indiana  46231

     Subject: Demonstration Flight Waiver

     Reference:  Purchase  Agreement 2285 (the Purchase  Agreement)  between The
Boeing  Company  (Boeing) and American  Trans Air, Inc.  (Customer)  relating to
Model 757-33N aircraft (the Aircraft)

     This Letter  Agreement amends and supplements the Purchase  Agreement.  All
terms used but not defined in this Letter  Agreement shall have the same meaning
as in the Purchase Agreement.

DEFINITION OF TERMS:

CORRECTION  COSTS:  Customer's  direct  labor costs and the cost of any material
required to correct a Flight  Discrepancy  where direct labor costs are equal to
the warranty  labor rate in effect between the parties at the time such labor is
expended.

FLIGHT DISCREPANCY: A failure or malfunction of an Aircraft, or the accessories,
equipment or parts  installed on the Aircraft which results from a defect in the
Aircraft,  Boeing Product, engine or Supplier Product or a nonconformance to the
Detail Specification for the Aircraft.

The AGTA  provides  that each  aircraft will be test flown prior to delivery for
the purpose of demonstrating  the functioning of such Aircraft and its equipment
to Customer;  however,  Customer  may elect to waive this test flight.  For each
test flight waived,  Boeing agrees to provide  Customer an amount of jet fuel at
delivery  that,  including the standard fuel  entitlement,  totals the following
amount of fuel:

 ---------------------- -----------------------------------------------
 AIRCRAFT MODEL         TOTAL FUEL ENTITLEMENT
                        (U.S. GALLONS)
 ---------------------- -----------------------------------------------
 ---------------------- -----------------------------------------------
 737                    Full tanks (approx.  5,300 to 6,800, depending
                        on model)
 ---------------------- -----------------------------------------------
 ---------------------- -----------------------------------------------
 747                    26,000
 ---------------------- -----------------------------------------------
 ---------------------- -----------------------------------------------
 757                    9,600
 ---------------------- -----------------------------------------------
 ---------------------- -----------------------------------------------
 767                    11,000
 ---------------------- -----------------------------------------------
 ---------------------- -----------------------------------------------
 777                    10,300
 ---------------------- -----------------------------------------------

Further,  Boeing agrees to reimburse  Customer for any Correction Costs incurred
as a result of the discovery of a Flight  Discrepancy during the first flight of
the aircraft by Customer  following delivery to the extent such Correction Costs
are not covered under a warranty provided by Boeing, the engine  manufacturer or
any of Boeing's suppliers.

Should a Flight Discrepancy be detected by Customer which requires the return of
the Aircraft to Boeing's facilities at Seattle,  Washington,  so that Boeing may
correct such Flight  Discrepancy,  Boeing and  Customer  agree that title to and
risk of loss of such  Aircraft  will remain with  Customer.  In addition,  it is
agreed that Boeing will have  responsibility for the Aircraft while it is on the
ground at Boeing's facilities in Seattle, Washington, as is chargeable by law to
a bailee for mutual benefit, but Boeing shall not be chargeable for loss of use.

To be reimbursed for Correction Costs,  Customer shall submit a written itemized
statement describing any flight discrepancies and indicating the Correction Cost
incurred by Customer  for each  discrepancy.  This  request must be submitted to
Boeing's Contracts Regional Director at Renton,  Washington,  within ninety (90)
days after the first flight by Customer.

Very truly yours,

THE BOEING COMPANY

By   /s/  R.C. Nelson
  ------------------------------------------

Its       ATTORNEY-IN-FACT
   --------------------------------------

ACCEPTED AND AGREED TO this

Date:     June 30                    , 2000
      -------------------------------

AMERICAN TRANS AIR, INC.

By   /s/  Kenneth K. Wolff
  ------------------------------------------

Its       Executive Vice President & CFO
   ------------------------------------------

2285-02

American Trans Air, Inc.
7337 West Washington St.
Indianapolis International Airport
Indianapolis, Indiana  46231

     Subject: Spares Initial Provisioning

     Reference:  Purchase  Agreement 2285 (the Purchase  Agreement)  between The
Boeing  Company  (Boeing) and American  Trans Air, Inc.  (Customer)  relating to
Model 757-33N aircraft (the Aircraft)

This  Letter  Agreement  is  entered  into on the date  below,  and  amends  and
supplements  the  Purchase  Agreement.  All terms  used but not  defined in this
Letter Agreement have the same meaning as in the Purchase Agreement.

1.           APPLICABILITY.
             -------------

             This  letter  will  apply to  initial  provisioning  for the  Model
757-33N Aircraft purchased by Customer under the Purchase Agreement.

2.           INITIAL PROVISIONING MEETING.
             ----------------------------

             Boeing  will  conduct  an  initial  provisioning  meeting  (Initial
Provisioning  Meeting) with Customer to establish mutually agreeable  procedures
to accomplish  Customer's initial  provisioning of spare parts for the Aircraft.
The  parties  will  agree,  during  the  Initial  Provisioning  Meeting  on  the
operational  data to be provided by Customer for  Boeing's use in preparing  its
quantity  recommendations  for  initial  provisioning  of  spare  parts  for the
Aircraft,  exclusive of special  tools,  ground support  equipment,  engines and
engine  parts  (Provisioning  Items).  Such  operational  data to be provided by
Customer  will be the data  described  in Chapter 6 of Boeing  Manual  D6-81834,
entitled  "Spares  Provisioning  Products  Guide"  (Boeing  Spares  Provisioning
Products  Guide)  which  will be  furnished  to  Customer  prior to the  Initial
Provisioning   Meeting.   The  parties  will  also  agree  on  the  provisioning
documentation   to  be  provided  by  Boeing  as  described  in  Boeing   Spares
Provisioning   Products  Guide  (such  data  will  be  hereinafter  referred  to
collectively as the "Provisioning Data"). Boeing will provide instruction in the
use of the initial provisioning documentation. This instruction will be provided
in conjunction with the Initial Provisioning  Meeting. In addition,  the parties
will  discuss  spares  ordering  procedures  and other  matters  related  to the
provisioning  for  the  Aircraft.   The  time  and  location  for  such  Initial
Provisioning Meeting will be mutually agreed upon between the parties;  however,
Boeing and Customer  will use their best efforts to convene such meeting  within
30 days after execution of the Purchase Agreement.

3.           INITIAL PROVISIONING DOCUMENTATION.
             ----------------------------------

             3.1 PROVISIONING  DATA.  Boeing will furnish  Provisioning  Data to
Customer on or about August 25, 2000. The Provisioning  Data will be as complete
as possible and will cover  Provisioning  Items selected by Boeing for review by
Customer for initial  provisioning for the Aircraft.  The Provisioning Data will
set forth the prices for  Provisioning  Items  which are Boeing  Spare Parts and
such prices will be firm and remain in effect  until the date or dates set forth
below in Paragraph 4.1,  BOEING SPARE PARTS, by which orders must be placed with
Boeing.  Boeing  will,  from time to time,  until a date  approximately  90 days
following  delivery of the last Aircraft or until the delivery  configuration of
each of the Aircraft is reflected in the Provisioning Data,  whichever is later,
furnish to Customer revisions to the Provisioning Data.

             3.2  PROVISIONING  IPC.  Boeing will,  on or about August 18, 2000;
furnish to  Customer  a Boeing  Illustrated  Parts  Catalog  (IPC),  hereinafter
referred to as the "Provisioning  IPC". The Provisioning IPC will be as complete
as possible and will cover  Provisioning  Items selected by Boeing for review by
Customer for initial  provisioning  for the Aircraft.  Boeing will, from time to
time,  until  a date  approximately  90  days  following  delivery  of the  last
Aircraft,  or  until  the  delivery  configuration  of each of the  Aircraft  is
reflected  in the  Provisioning  IPC,  whichever  is later,  furnish to Customer
revisions to the Provisioning IPC.

             3.3         BUYER FURNISHED EQUIPMENT (BFE) PROVISIONING DATA.
                         -------------------------------------------------

     3.3.1  BOEING'S  RESPONSIBILITY.  Boeing will include BFE end -items in the
Provisioning Data and Provisioning IPC for BFE installed on Customer's  Aircraft
provided  such  equipment  has been  installed  on other  Aircraft by Boeing and
Boeing has data on the BFE.

     3.3.2 CUSTOMER'S RESPONSIBILITY.  Customer will be responsible for ensuring
BFE data is provided to Boeing by the BFE  supplier  in a format  acceptable  to
Boeing for BFE not covered by 3.3.1 above. If the data is not provided to Boeing
in a timely manner and in a format acceptable to Boeing, such BFE equipment will
not be included in Boeing's Provisioning Data or IPC.

     3.4 OTHER DATA.  Boeing will submit to Customer  listings of Raw Materials,
Standard Parts and Bulk Materials to be used by Customer in the  maintenance and
repair of the Aircraft.

4. PURCHASE FROM BOEING OF SPARE PARTS AS INITIAL PROVISIONING FOR THE AIRCRAFT.
  ---------------------------------------------- -----------------------------

             4.1 BOEING SPARE PARTS. Customer will place orders for Provisioning
Items by November 17, 2000,  provided,  however,  that in those  instances where
Boeing submits any revision to the Provisioning Data, Customer will place orders
for Boeing Spare Parts  covered by such  revision  within 60 days  following the
date of such submittal.  At Customer's request,  Boeing will process "controlled
shipments"  by  shipping  full or partial  quantities  of an order on a schedule
specified  by  Customer,  provided  the final  shipment is made no later than 24
months after receipt of the order.

             4.2  SUPPLIER  PROVISIONING  ITEMS.  Customer may place orders with
Boeing for  Provisioning  Items which are  manufactured by suppliers or to their
detailed design and are covered by the Provisioning Data as initial provisioning
for the Aircraft.  The price to Customer for any such supplier Provisioning Item
will be 112% of the  supplier's  quoted  price to Boeing  therefor.  If Customer
elects to purchase such supplier  Provisioning Items from Boeing,  Customer will
place its orders  therefor in accordance  with the  provisions of Paragraph 4.1,
BOEING SPARE PARTS.

             4.3 GROUND SUPPORT EQUIPMENT AND SPECIAL TOOLS.  Customer may place
orders  with  Boeing  for  ground  support  equipment  (GSE) and  special  tools
manufactured  by suppliers which Customer  determines it will initially  require
for  maintenance,  overhaul and servicing of the Aircraft  and/or  engines.  The
price to  Customer  for such GSE or  special  tools will be one  hundred  twelve
percent (112%) of the supplier's  quoted price to Boeing  therefor.  If Customer
elects to purchase such GSE and special  tools from Boeing,  Customer will place
its orders  therefor by the date set forth in Paragraph 4.1,  BOEING SPARE PARTS
or such later date as the parties may mutually agree.

             4.4 SPARE ENGINES AND ENGINE SPARE PARTS. Customer may place orders
with  Boeing  for  spare  engines  and/or  engine  spare  parts  which  Customer
determines  it  will  initially  require  for  support  of the  Aircraft  or for
maintenance  and overhaul of the  engines.  The price to Customer for such spare
engines or such engine  spare parts,  will be 105% of the engine  manufacturer's
quoted  price to Boeing for the  engine,  and 112% of the engine  manufacturer's
quoted  price to Boeing  for the  engine  spare  parts.  If  Customer  elects to
purchase such spare engines or engine spare parts through Boeing,  Customer will
place  its  orders on a date to be  mutually  agreed  upon  during  the  Initial
Provisioning Meeting.

             4.5 QEC KITS.  Boeing will,  on or about June 30, 2000,  furnish to
Customer a listing of all components which could be included in the Quick Engine
Change  (QEC) kits which may be  purchased  by Customer  from  Boeing.  Customer
agrees to review  such  listing  and  indicate  by  marking  on one copy of such
listing  those  components  that  Customer  desires  included  in its QEC  kits.
Customer will return such marked copy to Boeing within 30 days after  Customer's
receipt of such listing.  Within 30 days after  Boeing's  receipt of such marked
copy,  Boeing  will  republish  such  listing to reflect  only those  components
selected by Customer  and will  provide  copies of such  republished  listing to
Customer.  Boeing will from time to time furnish  revisions to such  republished
listing until a date  approximately  90 days after  delivery of the last QEC kit
ordered by Customer for the Aircraft. Boeing will furnish to Customer as soon as
practicable a statement setting forth a firm price for the QEC kit configuration
selected by  Customer.  Customer  agrees to place orders with Boeing for the QEC
kits for the Aircraft by August 25, 2000.

             4.6 PAYMENT FOR PROVISIONING  ITEMS. The payment  provisions of the
Customer  Services  General Terms Agreement  (CSGTA) between Boeing and Customer
will be applicable to Provisioning Items ordered by Customer from Boeing for the
Aircraft.

5.           DELIVERY.
             --------

             Boeing will,  insofar as reasonably  possible,  deliver to Customer
the Spare Parts  ordered by Customer in accordance  with the  provisions of this
letter on dates reasonably calculated to conform to Customer's anticipated needs
in view of the scheduled  deliveries  of the Aircraft.  Customer and Boeing will
agree upon the date to begin delivery of the Provisioning Spare Parts ordered in
accordance with this letter. Where appropriate, Boeing will arrange for shipment
of such Spare Parts,  which are manufactured by suppliers,  directly to Customer
from the applicable supplier's facility.  The routing and method of shipment for
initial deliveries and all subsequent  deliveries of such Spare Parts will be as
mutually agreed between Boeing and Customer.

6.           SUBSTITUTION FOR OBSOLETE SPARE PARTS.
             -------------------------------------

             6.1 OBLIGATION TO SUBSTITUTE.  In the event that, prior to delivery
of the first  Aircraft  pursuant  to the  Purchase  Agreement,  any  Spare  Part
purchased  by Customer  from Boeing in  accordance  with this letter is rendered
obsolete or unusable due to the  redesign of the  Aircraft or of any  accessory,
equipment  or part  therefor,  (other  than a redesign at  Customer's  request),
Boeing will deliver to Customer new and usable Spare Parts in  substitution  for
such  obsolete or unusable  Spare Parts and Customer will return the obsolete or
unusable  Spare  Parts to Boeing.  Boeing will credit  Customer's  account  with
Boeing with the price paid by Customer for any such  obsolete or unusable  Spare
Part and will invoice  Customer for the  purchase  price of any such  substitute
Spare Part delivered to Customer.

             6.2  DELIVERY OF OBSOLETE  SPARE  PARTS AND  SUBSTITUTES  THEREFOR.
Obsolete or unusable Spare Parts returned by Customer pursuant to this Item will
be  delivered  to Boeing  at its  Seattle  Distribution  Center,  or such  other
destination as Boeing may reasonably designate. Spare Parts substituted for such
returned  obsolete or  unusable  Spare  Parts will be  delivered  to Customer at
Boeing's  Seattle  Distribution  Center,  or such other Boeing shipping point as
Boeing may  reasonably  designate.  Boeing will pay the freight  charges for the
shipment from Customer to Boeing of any such obsolete or unusable Spare Part and
for the shipment from Boeing to Customer of any such substitute Spare Part.

7.           REPURCHASE OF PROVISIONING ITEMS.
             --------------------------------

             7.1  OBLIGATION TO  REPURCHASE.  During a period  commencing 1 year
after delivery of the first Aircraft under the Purchase Agreement,  and ending 5
years after such  delivery,  Boeing  will,  upon receipt of  Customer's  written
request and subject to the exceptions in Paragraph 7.2,  EXCEPTIONS,  repurchase
unused and undamaged  Provisioning Items which (i) were recommended by Boeing in
the  Provisioning  Data as  initial  provisioning  for the  Aircraft,  (ii) were
purchased by Customer from Boeing, and (iii) are surplus to Customer's needs.

             7.2  EXCEPTIONS.  Boeing will not be obligated under Paragraph 7.1,
OBLIGATION TO REPURCHASE,  to repurchase any of the following: (i) quantities of
Provisioning  Items in excess of those  quantities  recommended by Boeing in the
Provisioning  Data for the  Aircraft,  (ii) QEC Kits,  Bulk Material  Kits,  Raw
Material  Kits,  Service  Bulletin Kits,  Standards Kits and components  thereof
(except those  components  listed  separately in the Provisioning  Data),  (iii)
Provisioning  Items for which an order was received by Boeing more than 5 months
after delivery of the last Aircraft,  (iv) Provisioning  Items which have become
obsolete or have been  replaced by other  Provisioning  Items as a result of (a)
Customer's  modification of the Aircraft or (b) design improvements by Boeing or
the supplier (other than  Provisioning  Items which have become obsolete because
of a defect in design if such defect has not been remedied by an offer by Boeing
or the supplier to provide no charge  retrofit kits or  replacement  parts which
correct such defect), and (v) Provisioning Items which become excess as a result
of a change in Customer's operating  parameters,  provided to Boeing pursuant to
the  Initial  Provisioning  meeting  in  Paragraph  2,  which  were the basis of
Boeing's initial provisioning recommendations for the Aircraft.

             7.3  NOTIFICATION  AND  FORMAT.  Customer  will notify  Boeing,  in
writing,  when Customer  desires to return  Provisioning  Items which Customer's
review  indicates are eligible for  repurchase by Boeing under the provisions of
this Repurchase of Provisioning  Items paragraph.  Customer's  notification will
include a detailed summary,  in part number sequence,  of the Provisioning Items
Customer desires to return. Such summary will be in the form of listings, tapes,
diskettes or other media as may be mutually  agreed between Boeing and Customer,
and will include part number,  nomenclature,  purchase  order  number,  purchase
order date and quantity to be returned.  Within 5 business days after receipt of
Customer's notification,  Boeing will advise Customer, in writing, when Boeing's
review of such summary will be completed.

             7.4 REVIEW AND  ACCEPTANCE BY BOEING.  Upon  completion of Boeing's
review of any detailed summary  submitted by Customer pursuant to Paragraph 7.3,
Boeing will issue to Customer a Material  Return  Authorization  (MRA) for those
Provisioning  Items Boeing agrees are eligible for repurchase in accordance with
this Repurchase of Provisioning Items paragraph.  Boeing will advise Customer of
the reason that any spare part  included in Customer's  detailed  summary is not
eligible  for  return.  Boeing's  MRA will state the date by which  Provisioning
Items listed in the MRA must be  redelivered to Boeing and Customer will arrange
for shipment of such Provisioning Items accordingly.

             7.5  PRICE  AND  PAYMENT.  The  price  of  each  Provisioning  Item
repurchased  by  Boeing  pursuant  to  this  Repurchase  of  Provisioning  Items
paragraph will be an amount equal to 100% of the original invoice price thereof.
In the  case  of  Provisioning  Items  manufactured  by a  supplier  which  were
purchased  pursuant  to  Paragraph  4,  PURCHASE  FROM  BOEING OF SPARE PARTS AS
INITIAL  PROVISIONING  FOR THE AIRCRAFT,  hereof the  repurchase  price will not
include  Boeing's 12% handling  charge.  Boeing will pay the repurchase price by
issuing a credit  memorandum in favor of Customer  which may be applied  against
amounts due Boeing for the purchase of aircraft, Spare Parts, services or data.

             7.6 DELIVERY OF PROVISIONING ITEMS.  Provisioning Items repurchased
by Boeing pursuant to this  Repurchase of  Provisioning  Items paragraph will be
delivered to Boeing F.O.B.  at its Seattle  Distribution  Center,  or such other
destination  as Boeing may reasonably  designate.  Customer will pay the freight
charges for the shipment from Customer to Boeing of any such Provisioning Items.

8. OBSOLETE SPARE PARTS AND SURPLUS PROVISIONING ITEMS - TITLE AND RISK OF LOSS.
  ----------------------------------------------------------------------------

             Title to and risk of loss of any  obsolete or unusable  Spare Parts
returned to Boeing  pursuant to Paragraph  6,  SUBSTITUTION  FOR OBSOLETE  SPARE
PARTS, will pass to Boeing upon delivery thereof to Boeing. Title to and risk of
loss of any Spare  Part  substituted  for an  obsolete  or  unusable  Spare Part
pursuant to Paragraph 6,  SUBSTITUTION  FOR OBSOLETE  SPARE PARTS,  will pass to
Customer  upon  delivery  thereof to Customer.  Title to and risk of loss of any
Provisioning  Item  repurchased by Boeing pursuant to Paragraph 7, REPURCHASE OF
PROVISIONING  ITEMS,  will pass to Boeing upon delivery thereof to Boeing.  With
respect to the obsolete or unusable  Spare Parts which may be returned to Boeing
and the Spare  Parts  substituted  therefor,  pursuant to  Paragraph  6, and the
Provisioning Items which may be repurchased by Boeing,  pursuant to Paragraph 7,
the party  which has risk of loss of any such  Spare Part or  Provisioning  Item
will have the  responsibility of providing any insurance coverage for it desired
by such party.

9.           SUPPLIER SUPPORT.
             ----------------

             Boeing has entered, or anticipates  entering,  into product support
agreements  with  suppliers  (Boeing   Suppliers)  of  major  system  components
manufactured  by  such  Suppliers  to be  installed  on the  Aircraft  (Supplier
Components).  Such product support agreements commit, or are expected to commit,
the Boeing  Suppliers to provide to Boeing's  customers  and/or such  customer's
designees support services with respect to the Supplier  Components which can be
reasonably  expected to be required during the course of normal operation.  This
support  includes  but is not limited to  shelf-stock  of certain  spare  parts,
emergency  spare parts,  timely  delivery of spare  parts,  and  technical  data
related to the Supplier  Components.  Copies of such product support  agreements
will be provided to Customer on or about  September 22, 2000, in Boeing Document
D6-56115,  Volumes  1 and 2. In the event  Customer  has used due  diligence  in
attempting to resolve any  difficulty  arising in normal  business  transactions
between  Customer and a Boeing  Supplier  with respect to product  support for a
Supplier Component  manufactured by such Supplier and if such difficulty remains
unresolved,  Boeing will, if requested by Customer, assist Customer in resolving
such difficulty.  Assistance will be provided by the Customer  Supplier Services
organization.

10.          TERMINATION FOR EXCUSABLE DELAY.
             -------------------------------

             In the event of termination of the Purchase  Agreement with respect
to any Aircraft  pursuant to Article 7 of the AGTA,  such  termination  will, if
Customer so requests by written  notice  received by Boeing within 15 days after
such  termination,  also discharge and terminate all obligations and liabilities
of the parties as to any Spare Parts which Customer had ordered  pursuant to the
provisions  of this letter as initial  provisioning  for such Aircraft and which
are undelivered on the date Boeing receives such written notice.

Very truly yours,

THE BOEING COMPANY

By   /s/  R.C. Nelson
  ------------------------------------------

Its       ATTORNEY-IN-FACT
   --------------------------------------

ACCEPTED AND AGREED TO this

Date:     June 30                   , 2000
      -------------------------------

AMERICAN TRANS AIR, INC.

By  /s/  Kenneth K. Wolff
  ------------------------------------------

Its      Executive Vice President & CFO
   ------------------------------------------

        2285-03

         American Trans Air, Inc.
         7337 West Washington St.
         Indianapolis International Airport
         Indianapolis, Indiana 46231

     Subject: Flight Crew Training Spare Parts Support

     Reference:  Purchase  Agreement 2285 (the Purchase  Agreement)  between The
Boeing  Company  (Boeing) and American  Trans Air, Inc.  (Customer)  relating to
Model 757-33N aircraft (the Aircraft)

         This Letter Agreement is entered into on the date below, and amends and
         supplements  the  Agreement.  All terms  used but not  defined  in this
         Letter Agreement have the same meaning as in the Agreement.

         DEFINITION OF TERMS:

     FLIGHT CREW  TRAINING:  Flight  training  conducted by Boeing and occurring
immediately following delivery of the Aircraft.

     REMOVED PARTS: Parts removed from an Aircraft during Flight Crew Training.

     REPLACEMENT  PARTS:  Parts taken from Boeing  inventory and installed in an
Aircraft because no Standby Parts are available.

     STANDBY PARTS:  Parts which are owned by Customer and located at Customer's
designated storage area at Boeing to support Flight Crew Training.

     TRAINING  AIRCRAFT:  The Aircraft delivered to Customer and used for Flight
Crew Training.

1.       PROVISIONING OF SPARE PARTS

                  To support  Flight  Crew  Training,  Boeing  agrees to provide
         normal line  maintenance and expendable spare parts at no charge on the
         Training Aircraft; and Customer agrees to provide Standby Parts for the
         Training  Aircraft.  The Standby  Parts list,  including  part numbers,
         exact  quantities  and on-dock dates,  will be  established  during the
         provisioning meeting.

                  If parts other than those discussed above fail on the Training
         Aircraft  during Flight Crew  Training,  Boeing will attempt to provide
         Replacement  Parts  for  those  failed  parts.  If  Boeing is unable to
         provide  Replacement Parts,  Customer will be responsible for providing
         those parts.

2.       DISPOSITION OF REMOVED PARTS

                  With respect to Removed Parts, Boeing may:

     (i) repair such Removed Parts, at no charge to Customer,  and either retain
such parts as Standby  Spare Parts or return the Removed  Parts to Customer,  at
Customer expense;

     (ii) return the Removed Parts to Customer at Customer's expense; or

     (iii)  return  the  Removed  Parts  to  the   manufacturer  for  repair  or
replacement  under such  manufacturer's  warranty.  Upon Boeing's receipt of the
repaired  Removed  Parts or their  replacements,  Boeing may retain such Removed
Parts or their  replacements  as Standby  Parts or return such Removed  Parts or
their replacements to Customer, at Customer's expense.

                  Any Removed Parts returned to Customer, or replacements,  will
         be  accomplished  in  accordance  with any  written  instructions  from
         Customer received by Boeing prior to such return.

3.       REDELIVERY OF STANDBY PARTS

                  Standby Parts not  installed in the Training  Aircraft will be
         redelivered to Customer on board the last aircraft used for Flight Crew
         Training.

4.       NON-PERFORMANCE BY CUSTOMER

                  If Customer's  non-performance  of  obligations in this Letter
         Agreement causes a delay in the Flight Crew Training,  Customer will be
         deemed to have  agreed to any such delay in Flight  Crew  Training.  In
         addition, Boeing will have the right to:

     (i) purchase Standby Spare Parts and invoice Customer for the price of such
Parts and for any necessary adjustment and calibration of such Parts;

     (ii) cancel or reschedule the Flight Crew Training.

     (iii)  invoice  Customer  for any  expenses,  including  but not limited to
ground handling expenses, maintenance costs and storage costs, that are directly
attributable to the delay in the Flight Crew Training.

5.       CUSTOMER WARRANTY

                  Customer  warrants  that  the  Standby  Parts  will  meet  the
         requirements of the Detail  Specification and be in a condition to pass
         Boeing's receiving  inspection and functional test, and if not in a new
         condition, will have an attached FAA Serviceable Parts Tag.

6.       TITLE AND RISK OF LOSS

                  Title to and  risk of loss of any  Standby  Parts  or  Removed
         Parts will remain with  Customer.  Boeing will have only such liability
         for  Standby  Parts and  Removed  Parts as a bailee for mutual  benefit
         would  have,  but will not be liable for loss of use.  For  Replacement
         Parts,  title  will  transfer  to  Customer  at the time  such  part is
         installed on the Training Aircraft.

         Very truly yours,

         THE BOEING COMPANY

         By    /s/ R.C. Nelson
            --------------------------------

         Its   ATTORNEY-IN-FACT
            --------------------------------

         ACCEPTED AND AGREED TO this

         Date:         June 30        , 2000
                ----------------------

         AMERICAN TRANS AIR, INC.

         By   /s/ Kenneth K. Wolff
            --------------------------------

         Its  Executive Vice President & CFO
            --------------------------------

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]