Document:

EXHIBIT 4.2

                        TRUST INDENTURE AND MORTGAGE
                                [ATA 2000-1]

                        Dated as of _______ __, ____

                                  Between

                         AMERICAN TRANS AIR, INC.,

                                   Owner

                                    and

                         WILMINGTON TRUST COMPANY,
                      not in its individual capacity,
                     except as expressly stated herein,
                          but solely as Mortgagee,

                                 Mortgagee

                          EQUIPMENT NOTES COVERING
                       ONE BOEING 757-200ER AIRCRAFT
                   BEARING U.S. REGISTRATION MARK N_____
                    AND MANUFACTURER'S SERIAL NO. _____

<PAGE>

                             TABLE OF CONTENTS

                                                                       Page

GRANTING CLAUSE..............................................................1
ARTICLE I  DEFINITIONS.......................................................4

ARTICLE II  THE EQUIPMENT NOTES..............................................4
     SECTION 2.01.  Form of Equipment Notes..................................4
     SECTION 2.02.  Issuance and Terms of Equipment Notes....................9
     SECTION 2.03.  [Intentionally Omitted].................................11
     SECTION 2.04.  Method of Payment.......................................11
     SECTION 2.05.  Application of Payments.................................13
     SECTION 2.06.  Termination of Interest in Collateral...................14
     SECTION 2.07.  Registration Transfer and Exchange of
                      Equipment Notes.......................................14
     SECTION 2.08.  Mutilated, Destroyed, Lost or Stolen Equipment
                           Notes............................................15
     SECTION 2.09.  Payment of Expenses on Transfer; Cancellation...........16
     SECTION 2.10.  Mandatory Redemptions of Equipment Notes................16
     SECTION 2.11.  Voluntary Redemptions of Equipment Notes................16
     SECTION 2.12.  Redemptions; Notice of Redemption.......................16
     SECTION 2.13.  Subordination...........................................17

ARTICLE III  RECEIPT, DISTRIBUTION AND APPLICATION OF PAYMENTS..............18
     SECTION 3.01.  Basic Distributions.....................................18
     SECTION 3.02.  Event of Loss; Replacement; Optional
                      Redemption............................................18
     SECTION 3.03.  Payments After Event of Default.........................19
     SECTION 3.04.  Certain Payments........................................21
     SECTION 3.05.  Other Payments..........................................21
     SECTION 3.06.  Application of Payments Under Guarantee.................21

ARTICLE IV  COVENANTS OF THE OWNER..........................................21
     SECTION 4.01.  Liens  .................................................21
     SECTION 4.02.  Possession, Operation and Use, Registration and
                      Markings..............................................22
     SECTION 4.03.  Inspection..............................................27
     SECTION 4.04.  Replacement and Pooling of Parts, Alterations,
                      Modifications and Additions; Substitution of
                      Engines...............................................27
     SECTION 4.05.  Loss, Destruction or Requisition........................30
     SECTION 4.06.  Insurance...............................................34
     SECTION 4.07.  Merger of Owner.........................................35

ARTICLE V  EVENTS OF DEFAULT; REMEDIES OF MORTGAGEE.........................36
     SECTION 5.01.  Event of Default........................................36
     SECTION 5.02.  Remedies................................................37
     SECTION 5.03.  Return of Aircraft, Etc.................................38

<PAGE>

                                                                          Page
     SECTION 5.04.  Remedies Cumulative.....................................39
     SECTION 5.05.  Discontinuance of Proceedings...........................40
     SECTION 5.06.  Waiver of Past Defaults.................................40
     SECTION 5.07.  Appointment of Receiver.................................40
     SECTION 5.08.  Mortgagee Authorized to Execute Bills of Sale,
                     Etc....................................................40
     SECTION 5.09.  Rights of Note Holders to Receive Payment...............41

ARTICLE VI  DUTIES OF THE MORTGAGEE.........................................41
     SECTION 6.01.  Notice of Event of Default..............................41
     SECTION 6.02.  Action Upon Instructions; Certain Rights and
                      Limitations...........................................41
     SECTION 6.03.  Indemnification.........................................42
     SECTION 6.04.  No Duties Except as Specified in Trust Indenture
                      or Instructions.......................................42
     SECTION 6.05.  No Action Except Under Trust Indenture
                      or Instructions.......................................43
     SECTION 6.06.  Investment of Amounts Held by Mortgagee.................43

ARTICLE VII  THE MORTGAGEE..................................................43
     SECTION 7.01.  Acceptance of Trusts and Duties.........................43
     SECTION 7.02.  Absence of Duties.......................................44
     SECTION 7.03.  No Representations or Warranties as to Aircraft
                           or Documents.....................................44
     SECTION 7.04.  No Segregation of Monies; No Interest...................44
     SECTION 7.05.  Reliance; Agreements; Advice of Counsel.................45
     SECTION 7.06.  Compensation............................................45
     SECTION 7.07.  Instructions from Note Holders..........................46

ARTICLE VIII  INDEMNIFICATION...............................................46
     SECTION 8.01.  Scope of Indemnification................................46

ARTICLE IX  SUCCESSOR AND SEPARATE TRUSTEES.................................46
     SECTION 9.01.  Resignation of Mortgagee; Appointment of
                      Successor.............................................46
     SECTION 9.02.  Appointment of Additional and Separate Trustees.........47

ARTICLE X  SUPPLEMENTS AND AMENDMENTS TO THIS TRUST
             INDENTURE AND OTHER DOCUMENTS..................................49
     SECTION 10.01.  Instructions of Majority; Limitations..................49
     SECTION 10.02.  Mortgagee Protected....................................50
     SECTION 10.03.  Documents Mailed to Note Holders.......................50
     SECTION 10.04.  No Request Necessary for Mortgage
                       Supplement...........................................50

<PAGE>

                                                                          Page

     SECTION 10.05.  Notices to Liquidity Provider and Policy
                        Provider............................................50

ARTICLE XI  MISCELLANEOUS...................................................50
     SECTION 11.01.  Termination of Trust Indenture.........................50
     SECTION 11.02.  No Legal Title to Collateral in Note Holders...........51
     SECTION 11.03.  Sale of Aircraft by Mortgagee Is Binding...............51
     SECTION 11.04.  Trust Indenture for Benefit of Owner,
                       Mortgagee, Note Holders and the other
                       Mortgage Indemnitees.................................51
     SECTION 11.05.  Notices................................................51
     SECTION 11.06.  Severability...........................................52
     SECTION 11.07.  No Oral Modification or Continuing Waivers.............52
     SECTION 11.08.  Successors and Assigns.................................52
     SECTION 11.09.  Headings...............................................52
     SECTION 11.10.  Normal Commercial Relations............................52
     SECTION 11.11  Governing Law; Counterpart Form.........................53
     SECTION 11.12.  Voting By Note Holders.................................53
     SECTION 11.13.  Bankruptcy.............................................53
     SECTION 11.14.  Payments With Respect to Insured Obligations...........53

ANNEX A         Definitions

ANNEX B         Insurance

EXHIBIT A       Form of Trust Indenture and Mortgage Supplement

SCHEDULE I      Equipment Notes Amortization and Interest Rates

<PAGE>

                         TRUST INDENTURE AND MORTGAGE
                                 [ATA 2000-1]

          TRUST INDENTURE AND MORTGAGE [ATA 2000-1], dated as of
______________ __, ____ ("Trust Indenture"), between AMERICAN TRANS AIR,
INC., an Indiana corporation ("Owner"), and WILMINGTON TRUST COMPANY, a
Delaware banking corporation, not in its individual capacity, except as
expressly stated herein, but solely as Mortgagee hereunder (together with
its successors hereunder, the "Mortgagee").

                            W I T N E S S E T H

          WHEREAS, all capitalized terms used herein shall have the
respective meanings set forth or referred to in Article I hereof;

          WHEREAS, the parties hereto desire by this Trust Indenture, among
other things, (i) to provide for the issuance by the Owner of the Equipment
Notes and (ii) to provide for the assignment, mortgage and pledge by the
Owner to the Mortgagee, as part of the Collateral hereunder, among other
things, of all of the Owner's right, title and interest in and to the
Aircraft and, except as hereinafter expressly provided, all payments and
other amounts received hereunder in accordance with the terms hereof, as
security for, among other things, the Owner's obligations to the Note
Holders and the Mortgage Indemnitees;

          WHEREAS, all things have been done to make the Equipment Notes,
when executed by the Owner and authenticated and delivered by the Mortgagee
hereunder, the valid, binding and enforceable obligations of the Owner; and

          WHEREAS, all things necessary to make this Trust Indenture the
valid, binding and legal obligation of the Owner for the uses and purposes
herein set forth, in accordance with its terms, have been done and
performed and have happened;

                              GRANTING CLAUSE

          NOW, THEREFORE, THIS TRUST INDENTURE AND MORTGAGE WITNESSETH,
that, to secure the prompt payment of the Original Amount of, interest on,
Make-Whole Amount, if any, and all other amounts due with respect to, all
Equipment Notes from time to time outstanding hereunder according to their
tenor and effect and to secure the performance and observance by the Owner
of all the agreements, covenants and provisions contained herein and in the
Participation Agreement and in the Equipment Notes, for the benefit of the
Note Holders and each of the Mortgage Indemnitees, and in consideration of
the premises and of the covenants herein contained, and of the acceptance
of the Equipment Notes by the holders thereof, and for other good and
valuable consideration the receipt and adequacy whereof are hereby
acknowledged, the Owner has granted, bargained, sold, assigned,
transferred, conveyed, mortgaged, pledged and confirmed, and does hereby
grant, bargain, sell, assign, transfer, convey, mortgage, pledge and
confirm, unto the Mortgagee, its successors in trust and assigns, for the
security and benefit of, the Note Holders and each of the Mortgage
Indemnitees, a first priority security interest in and mortgage lien on all
right, title and interest of the Owner in, to and under the following
described property, rights and privileges, whether now or hereafter
acquired (which, collectively, together with all property hereafter
specifically subject to the Lien of this Trust Indenture by the terms
hereof or any supplement hereto, are included

<PAGE>

within, and are referred to as, the "Collateral"), to wit:

          (1) The Airframe which is one Boeing 757-200ER aircraft with the
FAA Registration number of NAT and the manufacturer's serial number of
_____ and Engines, each of which is a ____________________________ engine
with the manufacturer's serial numbers of _____ and _____, is of 750 or
more rated takeoff horsepower or the equivalent of such horsepower (such
Airframe and Engines more particularly described in the Mortgage Supplement
executed and delivered as provided herein) as the same is now and will
hereafter be constituted, whether now owned by the Owner or hereafter
acquired, and in the case of such Engines, whether or not any such Engine
shall be installed in or attached to the Airframe or any other airframe,
together with (a) all Parts of whatever nature, which are from time to time
included within the definitions of "Airframe" or "Engines", whether now
owned or hereafter acquired, including all substitutions, renewals and
replacements of and additions, improvements, accessions and accumulations
to the Airframe and Engines (other than additions, improvements, accessions
and accumulations which constitute appliances, parts, instruments,
appurtenances, accessories, furnishings or other equipment excluded from
the definition of Parts) and (b) all Aircraft Documents;

          (2) The Purchase Agreement (to the extent such Agreement relates
to the Aircraft) and the Bills of Sale to the extent the same relate to
continuing rights of the Owner in respect of any warranty, indemnity or
agreement, express or implied, as to title, materials, workmanship, design
or patent infringement or related matters with respect to the Airframe or
the Engines (reserving to the Owner, however, all of the Owner's other
rights and interest in and to the Purchase Agreement) together with all
rights, powers, privileges, options and other benefits of the Owner in
respect of such provisions (subject to such reservation) with respect to
the Airframe or the Engines, including, without limitation, the right to
make all waivers and agreements, to give and receive all notices and other
instruments or communications, and to take such action upon the occurrence
of a default in respect of such provisions, including the commencement,
conduct and consummation of legal, administrative or other proceedings, as
shall be permitted thereby or by law, and to do any and all other things
which the Owner is or may be entitled to do in respect of such provisions
(subject to such reservation), subject, with respect to the Purchase
Agreement, to the terms and conditions of the Consent and Agreement and the
Engine Consent and Agreement;

          (3) All proceeds with respect to the requisition of title to or
use of the Aircraft or any Engine by any Government Entity or from the sale
or other disposition of the Aircraft, the Airframe, any Engine or other
property described in any of these Granting Clauses by the Mortgagee
pursuant to the terms of this Trust Indenture, and all insurance proceeds
with respect to the Aircraft, the Airframe, any Engine or any part thereof,
but excluding any insurance maintained by the Owner and not required under
Section 4.06;

          (4) All rents, revenues and other proceeds collected by the
Mortgagee pursuant to Section 5.03(b) and all monies and securities from
time to time deposited or required to be deposited with the Mortgagee by or
for the account of the Owner pursuant to any terms of this Trust Indenture
held or required to be held by the Mortgagee hereunder; and

          (5) All proceeds of the foregoing;

<PAGE>

          PROVIDED, HOWEVER, that notwithstanding any of the foregoing
provisions, so long as no Event of Default shall have occurred and be
continuing, (a) the Mortgagee shall not take or cause to be taken any
action contrary to the Owner's or any Permitted Lessee's right hereunder to
quiet enjoyment of the Airframe and Engines, and to possess, use, retain
and control the Airframe and Engines and all revenues, income and profits
derived therefrom, and (b) the Owner shall have the right, to the exclusion
of the Mortgagee, with respect to the Purchase Agreement, to exercise in
the Owner's name all rights and powers assigned hereunder under the
Purchase Agreement (other than to amend, modify or waive any of the
warranties or indemnities contained therein and assigned hereunder, except
in the exercise of the Owner's reasonable business judgment) and to retain
any recovery or benefit resulting from the enforcement of any warranty or
indemnity under the Purchase Agreement; and provided further that,
notwithstanding the occurrence or continuation of an Event of Default, the
Mortgagee shall not enter into any amendment of the Purchase Agreement
which would increase the obligations of the Owner thereunder.

          TO HAVE AND TO HOLD all and singular the aforesaid property unto
the Mortgagee, and its successors and assigns, in trust for the equal and
proportionate benefit and security of the Note Holders and the Mortgage
Indemnitees, except as provided in Section 2.13 and Article III hereof,
without any preference, distinction or priority of any one Equipment Note
over any other by reason of priority of time of issue, sale, negotiation,
date of maturity thereof or otherwise for any reason whatsoever, and for
the uses and purposes and in all cases and as to all property specified in
paragraphs (1) through (5) inclusive above, subject to the terms and
provisions set forth in this Trust Indenture.

          It is expressly agreed that anything herein contained to the
contrary notwithstanding, the Owner shall remain liable under the Indenture
Agreements to perform all of the obligations assumed by it thereunder,
except to the extent prohibited or excluded from doing so pursuant to the
terms and provisions thereof, and the Mortgagee, the Note Holders and the
Mortgage Indemnitees shall have no obligation or liability under the
Indenture Agreements by reason of or arising out of the assignment
hereunder, nor shall the Mortgagee, the Note Holders or the Mortgage
Indemnitees be required or obligated in any manner to perform or fulfill
any obligations of the Owner under or pursuant to the Indenture Agreements,
or, except as herein expressly provided, to make any payment, or to make
any inquiry as to the nature or sufficiency of any payment received by it,
or present or file any claim, or take any action to collect or enforce the
payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times.

          The Owner does hereby constitute the Mortgagee the true and
lawful attorney of the Owner, irrevocably, granted for good and valuable
consideration and coupled with an interest and with full power of
substitution, and with full power (in the name of the Owner or otherwise)
to ask for, require, demand and receive any and all monies and claims for
monies (in each case including insurance and requisition proceeds) due and
to become due under or arising out of the Indenture Agreements, and all
other property which now or hereafter constitutes part of the Collateral,
to endorse any checks or other instruments or orders in connection
therewith and to file any claims or to take any action or to institute any
proceedings which the Mortgagee may deem to be necessary or advisable in
the premises; provided that the Mortgagee shall not exercise any such
rights except upon the occurrence and during the continuance of an Event of
Default hereunder.

<PAGE>

          The Owner agrees that at any time and from time to time, upon the
written request of the Mortgagee, the Owner will promptly and duly execute
and deliver or cause to be duly executed and delivered any and all such
further instruments and documents (including without limitation UCC
continuation statements) as the Mortgagee may reasonably deem necessary to
perfect, preserve or protect the mortgage, security interests and
assignments created or intended to be created hereby or to obtain for the
Mortgagee the full benefits of the assignment hereunder and of the rights
and powers herein granted.

          IT IS HEREBY COVENANTED AND AGREED by and between the parties
hereto as follows:

                                 ARTICLE I

                                DEFINITIONS

          Capitalized terms used but not defined herein shall have the
respective meanings set forth or incorporated by reference, and shall be
construed in the manner described, in Annex A hereto.

                                 ARTICLE II

                            THE EQUIPMENT NOTES

          SECTION 2.01. Form of Equipment Notes

          The Equipment Notes shall be substantially in the form set forth
below:

        THIS EQUIPMENT NOTE HAS NOT BEEN REGISTERED PURSUANT TO THE
     SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR PURSUANT TO THE
     SECURITIES LAWS OF ANY STATE. ACCORDINGLY, THIS EQUIPMENT NOTE MAY
        NOT BE SOLD UNLESS EITHER REGISTERED UNDER THE ACT AND SUCH
      APPLICABLE STATE LAWS OR AN EXEMPTION FROM SUCH REGISTRATIONS IS
                                 AVAILABLE.

<PAGE>

                          AMERICAN TRANS AIR, INC.

   SERIES [_____] EQUIPMENT NOTE DUE [____] ISSUED IN CONNECTION WITH THE
     BOEING MODEL 757-200ER AIRCRAFT BEARING UNITED STATES REGISTRATION
                               NUMBER NXXXAT.

No. ____                                         Date: [__________, ____]

______________________

INTEREST RATE                                               MATURITY DATE

[_________________]                                         [__________]

          AMERICAN TRANS AIR, INC., an Indiana corporation ("Owner"),
hereby promises to pay to WILMINGTON TRUST COMPANY, as Subordination Agent
under the Intercreditor Agreement, or the registered assignee thereof, the
principal sum of $____________ (the "Original Amount"), together with
interest on the amount of the Original Amount remaining unpaid from time to
time (calculated on the basis of a year of 360 days comprised of twelve 30-
day months) from the date hereof until paid in full at a rate per annum
equal to the Debt Rate. The Original Amount of this Equipment Note shall be
payable in installments on the dates set forth in Schedule I hereto equal
to the corresponding percentage of the Original Amount of this Equipment
Note set forth in Schedule I hereto. Accrued but unpaid interest shall be
due and payable in quarterly installments commencing on ______ __, ____,
and thereafter on January 15, April 15, July 15 and October 15 of each
year, to and including _______________. Notwithstanding the foregoing, the
final payment made on this Equipment Note shall be in an amount sufficient
to discharge in full the unpaid Original Amount and all accrued and unpaid
interest on, and any other amounts due under, this Equipment Note.
Notwithstanding anything to the contrary contained herein, whenever the
date scheduled for any payment to be made hereunder or under the Trust
Indenture shall not be a Business Day, then such payment shall not be due
on such scheduled date but shall be due on the next succeeding Business Day
with the same effect as if paid on the originally scheduled due date.

          For purposes hereof, the term "Trust Indenture" means the Trust
Indenture and Mortgage [NXXXAT] dated as of _______ __, ____, between the
Owner and Wilmington Trust Company (the "Mortgagee"), as the same may be
amended or supplemented from time to time. All other capitalized terms used
in this Equipment Note and not defined herein shall have the respective
meanings assigned in the Trust Indenture.

          This Equipment Note shall bear interest, payable on demand, at
the Past Due Rate (calculated on the basis of a year of 360 days comprised
of twelve 30-day months) on any overdue Original Amount, any overdue
Make-Whole Amount, if any, and (to the extent permitted by applicable Law)
any overdue interest and any other amounts payable hereunder which are
overdue, in each case for the period the same is overdue. Amounts shall be
overdue if not paid when due (whether at stated maturity, by acceleration
or otherwise).

          The interest rate borne by this Equipment Note shall be subject
to adjustments to the extent, and under the circumstances, specified by the
Registration Rights Agreement.

<PAGE>

          There shall be maintained an Equipment Note Register for the
purpose of registering transfers and exchanges of Equipment Notes at the
Corporate Trust Office of the Mortgagee or at the office of any successor
in the manner provided in Section 2.07 of the Trust Indenture.

          The Original Amount and interest and other amounts due hereunder
shall be payable in Dollars in immediately available funds at the Corporate
Trust Office of the Mortgagee, or as otherwise provided in the Trust
Indenture. Each such payment shall be made on the date such payment is due
and without any presentment or surrender of this Equipment Note, except
that in the case of any final payment with respect to this Equipment Note,
the Equipment Note shall be surrendered promptly thereafter to the
Mortgagee for cancellation.

          The holder hereof, by its acceptance of this Equipment Note,
agrees that, except as provided in the Trust Indenture, each payment of the
Original Amount, Make-Whole Amount, if any, and interest received by it
hereunder shall be applied, first, to the payment of accrued interest on
this Equipment Note (as well as any interest on any overdue Original
Amount, any overdue Make-Whole Amount, if any, or, to the extent permitted
by Law, any overdue interest and other amounts hereunder) to the date of
such payment, second, to the payment of the Original Amount of this
Equipment Note then due, third, to the payment of Make-Whole Amount, if
any, and any other amount due hereunder or under the Trust Indenture, and
fourth, the balance, if any, remaining thereafter, to the payment of
installments of the Original Amount of this Equipment Note remaining unpaid
in the inverse order of their maturity.

          This Equipment Note is one of the Equipment Notes referred to in
the Trust Indenture which have been or are to be issued by the Owner
pursuant to the terms of the Trust Indenture. The Collateral is held by the
Mortgagee as security, in part, for the Equipment Notes. The provisions of
this Equipment Note are subject to the Trust Indenture. Reference is hereby
made to the Trust Indenture and the Participation Agreement for a complete
statement of the rights and obligations of the holder of, and the nature
and extent of the security for, this Equipment Note and the rights and
obligations of the holders of, and the nature and extent of the security
for, any other Equipment Notes executed and delivered under the Trust
Indenture, as well as for a statement of the terms and conditions of the
Trust created by the Trust Indenture, to all of which terms and conditions
in the Trust Indenture and the Participation Agreement each holder hereof
agrees by its acceptance of this Equipment Note.

          As provided in the Trust Indenture and subject to certain
limitations therein set forth, this Equipment Note is exchangeable for a
like aggregate Original Amount of Equipment Notes of different authorized
denominations, as requested by the holder surrendering the same.

          Prior to due presentment for registration of transfer of this
Equipment Note, the Owner and the Mortgagee shall treat the person in whose
name this Equipment Note is registered as the owner hereof for all
purposes, whether or not this Equipment Note be overdue, and neither the
Owner nor the Mortgagee shall be affected by notice to the contrary.

          This Equipment Note is subject to redemption as provided in
Sections 2.10, 2.11 and 2.12 of the Trust Indenture but not otherwise. In
addition, this Equipment Note may be accelerated as provided in Section
5.02 of the Trust Indenture.

          [The indebtedness evidenced by this Equipment Note is, to the

<PAGE>

extent and in the manner provided in the Trust Indenture, subordinate and
subject in right of payment to the prior payment in full of the Secured
Obligations (as defined in the Trust Indenture) in respect of Series G
Equipment Notes and this Equipment Note is issued subject to such
provisions. The Note Holder of this Equipment Note, by accepting the same,
(a) agrees to and shall be bound by such provisions, (b) authorizes and
directs the Mortgagee on his behalf to take such action as may be necessary
or appropriate to effectuate the subordination as provided in the Trust
Indenture and (c) appoints the Mortgagee his attorney-in-fact for such
purpose.]

          Unless the certificate of authentication hereon has been executed
by or on behalf of the Mortgagee by manual signature, this Equipment Note
shall not be entitled to any benefit under the Trust Indenture or be valid
or obligatory for any purpose.

          THIS EQUIPMENT NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

                                   * * *

          IN WITNESS WHEREOF, the Owner has caused this Equipment Note to
be executed in its corporate name by its officer thereunto duly authorized
on the date hereof.

                            AMERICAN TRANS AIR, INC.

                            By:___________________________
                               Name:
                               Title:

<PAGE>

                 MORTGAGEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Equipment Notes referred to in the
within-mentioned Trust Indenture.

WILMINGTON TRUST COMPANY, as Mortgagee

By:_____________________
         Name:
         Title:

                                 SCHEDULE I
                        EQUIPMENT NOTE AMORTIZATION

Payment Date                 Percentage of Original Amount to Be Paid

                     [SEE SCHEDULE I TO TRUST INDENTURE
                      WHICH IS INSERTED UPON ISSUANCE]

                                   * * *

<PAGE>

          SECTION 2.02. Issuance and Terms of Equipment Notes

          The Equipment Notes shall be dated the date of issuance thereof,
shall be issued in two separate series consisting of Series G and Series C
and in the maturities and principal amounts and shall bear interest as
specified in Schedule I hereto. On the date thereof, each Equipment Note
shall be issued to the Subordination Agent on behalf of the Pass Through
Trustee under the Pass Through Trust Agreements. The Equipment Notes shall
be issued in registered form only. The Equipment Notes shall be issued in
denominations of $1,000 and integral multiples thereof, except that one
Equipment Note of each Series may be in an amount that is not an integral
multiple of $1,000.

          Each Equipment Note shall bear interest at the Debt Rate for the
applicable Series of such Equipment Note (calculated on the basis of a year
of 360 days comprised of twelve 30- day months) on the unpaid Original
Amount thereof from time to time outstanding, payable in arrears on _____
__, ____, and on each January 15, April 15, July 15 and October 15
thereafter until maturity. The Original Amount of each Equipment Note shall
be payable on the dates and in the installments equal to the corresponding
percentage of the Original Amount as set forth in Schedule I hereto which
shall be attached as Schedule I to the Equipment Notes. Notwithstanding the
foregoing, the final payment made under each Equipment Note shall be in an
amount sufficient to discharge in full the unpaid Original Amount and all
accrued and unpaid interest on, and any other amounts due under, such
Equipment Note. Each Equipment Note shall bear interest at the Past Due
Rate (calculated on the basis of a year of 360 days comprised of twelve
30-day months) on any part of the Original Amount, Make-Whole Amount, if
any, and, to the extent permitted by applicable Law, interest and any other
amounts payable thereunder not paid when due for any period during which
the same shall be overdue, in each case for the period the same is overdue.
Amounts shall be overdue if not paid when due (whether at stated maturity,
by acceleration or otherwise). Notwithstanding anything to the contrary
contained herein, whenever the date scheduled for any payment to be made
hereunder or under any Equipment Note shall not be a Business Day, then
such payment shall not be due on such scheduled date but shall be due on
the next succeeding Business Day with the same effect as if paid on the
originally scheduled due date. The interest rate borne by the Equipment
Notes shall be subject to adjustments to the extent, and under the
circumstances, specified by the Registration Rights Agreement.

          The Owner agrees to pay to the Mortgagee for distribution in
accordance with Section 3.04 hereof all Expenses, Transaction Expenses, and
all other amounts, liabilities, indemnities, and obligations (including any
Make-Whole Amount) that Owner assumes or becomes obligated to pay or agrees
to pay under any Operative Agreement to or on behalf of Mortgagee or any
other Person including indemnity payments under Section 7 of the
Participation Agreement, but excluding any amount as to which Owner is
obligated to pay a pro rata share pursuant to clause (5) of this
definition, (2)(a) to the extent not payable (whether or not in fact paid)
under Section 6(a) or Section 6(b), as applicable, of the Note Purchase
Agreement (as originally in effect or amended with Mortgagee's consent),
the fees payable to (x) Liquidity Provider under Section 2.3 of each
Liquidity Facility, multiplied by a fraction the numerator of which is the
then-outstanding aggregate principal amount of all the series of Equipment
Notes, and the denominator of which is the then-outstanding aggregate principal
amount of all "Series G Equipment Notes" and "Series C Equipment Notes"
(each as defined in

<PAGE>

the Note Purchase Agreement) and (y) the Policy Provider under Section
3.2(d)(i) of the Policy Provider Agreement and the related Policy Fee
Letter (as defined in the Policy Provider Agreement) multiplied by a
fraction the numerator of which shall be the then outstanding aggregate
principal amount of the Series G Equipment Notes and the denominator of
which shall be the then outstanding aggregate principal amount of all
"Series G Equipment Notes" (as defined in the Note Purchase Agreement); (b)
(x) the amount equal to interest on any Downgrade Advance (other than any
Applied Downgrade Advance) payable under Section 3.7 of each Liquidity
Facility minus Investment Earnings from such Downgrade Advance, multiplied
by (y) the fraction specified in the foregoing clause (a); (c) (x) the
amount equal to interest on any Non-Extension Advance (other than any
Applied Non-Extension Advance) payable under Section 3.7 of each Liquidity
Facility, multiplied by (y) the fraction specified in the forgoing clause
(a); (d) if any payment default exists with respect to interest on any
series of Equipment Notes, (x) an amount equal to interest on any Unpaid
Advance, Applied Downgrade Advance, or Applied Non-Extension Advance
payable under Section 3.7 of each Liquidity Facility (or if the Policy
Provider has made a payment in respect of such Advance to the Liquidity
Provider or, in the case of the Series G Equipment Notes, if the Policy
Provider has made a payment equivalent to such an Advance, as would have
been payable under Section 3.7 of the Liquidity Facility in respect of the
Class G Certificates had such Advance been made) plus any interest at the
Past-Due Rate actually payable (whether or not in fact paid) by Owner in
respect of the overdue scheduled interest on the Equipment Notes in respect
of which such Unpaid Advance, Applied Downgrade Advance, or Applied
Non-Extension Advance was made by the applicable Liquidity Provider (or, in
the case of the Series G Equipment Notes, an equivalent payment was made by
the Policy Provider) multiplied by (y) a fraction the numerator of which is
the sum of all then-overdue interest on the Equipment Notes (other than
interest becoming due and payable solely as a result of acceleration of any
Equipment Notes), and the denominator of which shall be the sum of all
then-overdue interest on all "Series G Equipment Notes" and "Series C
Equipment Notes" (each as defined in the Note Purchase Agreement) (other
than interest becoming due and payable solely as a result of acceleration
of any such "Equipment Notes"); and (e) Owner's pro rata share of any other
amounts owed to Liquidity Provider by Subordination Agent as borrower under
each Liquidity Facility (other than amounts due as repayment of advances
thereunder or as interest on such advances), except to the extent payable
pursuant to clause (a), (b), (c), or (d) above, (3) Owner's pro rata share
of all compensation and reimbursement of expenses, disbursements, and
advances payable by Owner under the Pass-Through Trust Agreements, (4)
Owner's pro rata share of all compensation and reimbursement of expenses
and disbursements (including payments of indemnities) payable either (a) to
Subordination Agent under the Intercreditor Agreement, except with respect
to any income or franchise taxes incurred by Subordination Agent in
connection with the transactions contemplated by the Intercreditor
Agreement, or (b) by the Owner to the Policy Provider under the Policy
Provider Agreement, (5) Owner's pro rata share of any amount payable under
Section 7.1 (and, if attributable thereto, Section 7.5) of the
Participation Agreement to any Pass-Through Indemnitee to the extent such
amount relates to, results from, or arises out of or in connection with (a)
the Pass-Through Agreements or the enforcement of any of the terms of any
of the Pass-Through Agreements, (b) the offer, sale, or delivery of the
Pass- Through Certificates or any interest therein or represented thereby,
or (c) any breach of or failure to perform or observe, or any other
noncompliance with, any covenant or agreement or other obligation to be
performed by Owner under any Pass-Through Agreement, or the falsity of any
representation or warranty of Owner in any Pass-Through Agreement, and (6)
if Owner requests any amendment to any Operative Agreement or Pass-Through
Agreement, Owner's pro rata share of all

<PAGE>

reasonable fees and expenses (including fees and disbursements of counsel)
of Escrow Agents and Paying Agents in connection therewith payable by
Pass-Through Trustees under the Escrow Agreements. As used herein, (1)
"Owner's pro rata share" means as of any time a fraction, the numerator of
which is the then-outstanding principal balance of Equipment Notes, and the
denominator of which is the aggregate then-outstanding principal balance of
all "Equipment Notes" (as each such term is defined in each of the
Operative Indentures), "(2) "Policy" means the Certificate Guaranty
Insurance Policy (including the endorsement attached thereto and
constituting a part thereof) issued by the Policy Provider pursuant to the
Policy Provider Agreement, and (3) "Policy Provider Agreement" means the
Insurance and Indemnity Agreement dated as of the Policy issuance date
among the Owner, the Subordination Agent, and the Policy Provider. For
purposes of this definition, "Applied Downgrade Advance", "Applied
Non-Extension Advance", "Cash Collateral Account", "Downgrade Advance",
"Final Advance", "Investment Earnings", "Non-Extension Advance", and
"Unpaid Advance" have the same meanings as in each Liquidity Facility.

          The Equipment Notes shall be executed on behalf of the Owner by
its President or one of its Vice Presidents, Assistant Vice Presidents or
Assistant Secretaries or other authorized officer. Equipment Notes bearing
the signatures of individuals who were at any time the proper officers of
the Owner shall bind the Owner, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication
and delivery of such Equipment Notes or did not hold such offices at the
respective dates of such Equipment Notes. The Owner may from time to time
execute and deliver Equipment Notes with respect to the Aircraft to the
Mortgagee for authentication upon original issue and such Equipment Notes
shall thereupon be authenticated and delivered by the Mortgagee upon the
written request of the Owner signed by a Vice President or Assistant Vice
President or other authorized officer of the Owner; provided, however, that
each such request shall specify the aggregate Original Amount of all
Equipment Notes to be authenticated hereunder on original issue with
respect to the Aircraft. No Equipment Note shall be secured by or entitled
to any benefit under this Trust Indenture or be valid or obligatory for any
purposes, unless there appears on such Equipment Note a certificate of
authentication in the form provided for herein executed by the Mortgagee by
the manual signature of one of its authorized officers and such certificate
upon any Equipment Notes be conclusive evidence, and the only evidence,
that such Equipment Note has been duly authenticated and delivered
hereunder.

          The aggregate Original Amount of the Equipment Notes issued
hereunder shall not exceed _________________.

          SECTION 2.03. [Intentionally Omitted]

          SECTION 2.04. Method of Payment

          (a) The Original Amount of, interest on, Make-Whole Amount, if
any, and other amounts due under each Equipment Note or hereunder will be
payable in Dollars by wire transfer of immediately available funds not
later than 11:00 a.m., New York City time, on the due date of payment to
the Mortgagee at the Corporate Trust Office for distribution among the Note
Holders in the manner provided herein. The Owner shall not have any
responsibility for the distribution of such payment to any Note Holder.
Notwithstanding the foregoing or any provision in any Equipment Note to the
contrary, the Mortgagee will use reasonable efforts to

<PAGE>

pay or cause to be paid, if so directed in writing by any Note Holder (with
a copy to the Owner), all amounts paid by the Owner hereunder and under
such holder's Equipment Note or Equipment Notes to such holder or a nominee
therefor (including all amounts distributed pursuant to Article III of this
Trust Indenture) by transferring, or causing to be transferred, by wire
transfer of immediately available funds in Dollars, prior to 2:00 p.m., New
York City time, on the due date of payment, to an account maintained by
such holder with a bank located in the continental United States the amount
to be distributed to such holder, for credit to the account of such holder
maintained at such bank. If the Mortgagee shall fail to make any such
payment as provided in the immediately foregoing sentence after its receipt
of funds at the place and prior to the time specified above, the Mortgagee,
in its individual capacity and not as trustee, agrees to compensate such
holders for loss of use of funds at Debt Rate until such payment is made
and the Mortgagee shall be entitled to any interest earned on such funds
until such payment is made. Any payment made hereunder shall be made
without any presentment or surrender of any Equipment Note, except that, in
the case of the final payment in respect of any Equipment Note, such
Equipment Note shall be surrendered to the Mortgagee for cancellation
promptly after such payment. Notwithstanding any other provision of this
Trust Indenture to the contrary, the Mortgagee shall not be required to
make, or cause to be made, wire transfers as aforesaid prior to the first
Business Day on which it is practicable for the Mortgagee to do so in view
of the time of day when the funds to be so transferred were received by it
if such funds were received after 12:00 noon, New York City time, at the
place of payment. Prior to the due presentment for registration of transfer
of any Equipment Note, the Owner and the Mortgagee shall deem and treat the
Person in whose name any Equipment Note is registered on the Equipment Note
Register as the absolute owner and holder of such Equipment Note for the
purpose of receiving payment of all amounts payable with respect to such
Equipment Note and for all other purposes, and none of the Owner or the
Mortgagee shall be affected by any notice to the contrary. So long as any
signatory to the Participation Agreement or nominee thereof shall be a
registered Note Holder, all payments to it shall be made to the account of
such Note Holder specified in Schedule I thereto and otherwise in the
manner provided in or pursuant to the Participation Agreement unless it
shall have specified some other account or manner of payment by notice to
the Mortgagee consistent with this Section 2.04.

          (b) The Mortgagee, as agent for the Owner, shall exclude and
withhold at the appropriate rate from each payment of Original Amount of,
interest on, Make-Whole Amount, if any, and other amounts due hereunder or
under each Equipment Note (and such exclusion and withholding shall
constitute payment in respect of such Equipment Note) any and all United
States withholding taxes applicable thereto as required by Law. The
Mortgagee agrees to act as such withholding agent and, in connection
therewith, whenever any present or future United States taxes or similar
charges are required to be withheld with respect to any amounts payable
hereunder or in respect of the Equipment Notes, to withhold such amounts
(and such withholding shall constitute payment in respect of such Equipment
Note) and timely pay the same to the appropriate authority in the name of
and on behalf of the Note Holders, that it will file any necessary United
States withholding tax returns or statements when due, and that as promptly
as possible after the payment thereof it will deliver to each Note Holder
(with a copy to the Owner) appropriate receipts showing the payment
thereof, together with such additional documentary evidence as any such
Note Holder may reasonably request from time to time.

<PAGE>

          If a Note Holder which is a Non-U.S. Person has furnished to the
Mortgagee a properly completed, accurate and currently effective U.S.
Internal Revenue Service Form W-8BEN (or such successor form or forms as
may be required by the United States Treasury Department) during the
calendar year in which the payment hereunder or under the Equipment Note(s)
held by such holder is made (but prior to the making of such payment), or
in either of the two preceding calendar years, and has not notified the
Mortgagee of the withdrawal or inaccuracy of such form prior to the date of
such payment (and the Mortgagee has no reason to believe that any
information set forth in such form is inaccurate), the Mortgagee shall
withhold only the amount, if any, required by Law (after taking into
account any applicable exemptions properly claimed by the Note Holder) to
be withheld from payments hereunder or under the Equipment Notes held by
such holder in respect of United States federal income tax (and such
withholding shall constitute payment in respect of such Equipment Note). If
a Note Holder (x) which is a Non-U.S. Person has furnished to the Mortgagee
a properly completed, accurate and currently effective U.S. Internal
Revenue Service Form W-8ECI in duplicate (or such successor certificate,
form or forms as may be required by the United States Treasury Department
as necessary in order to properly avoid withholding of United States
federal income tax), for each calendar year in which a payment is made (but
prior to the making of any payment for such year), and has not notified the
Mortgagee of the withdrawal or inaccuracy of such certificate or form prior
to the date of such payment (and the Mortgagee has no reason to believe
that any information set forth in such form is inaccurate) or (y) which is
a U.S. Person has furnished to the Mortgagee a properly completed, accurate
and currently effective U.S. Internal Revenue Service Form W-9, if
applicable, prior to a payment hereunder or under the Equipment Notes held
by such holder, no amount shall be withheld from payments in respect of
United States federal income tax. If any Note Holder has notified the
Mortgagee that any of the foregoing forms or certificates is withdrawn or
inaccurate, or if such holder has not filed a form claiming an exemption
from United States withholding tax or if the Code or the regulations
thereunder or the administrative interpretation thereof is at any time
after the date hereof amended to require such withholding of United States
federal income taxes from payments under the Equipment Notes held by such
holder, the Mortgagee agrees to withhold from each payment due to the
relevant Note Holder withholding taxes at the appropriate rate under Law
and will, on a timely basis as more fully provided above, deposit such
amounts with an authorized depository and make such returns, statements,
receipts and other documentary evidence in connection therewith as required
by Law.

          Owner shall not have any liability for the failure of the
Mortgagee to withhold taxes in the manner provided for herein or for any
false, inaccurate or untrue evidence provided by any Note Holder hereunder.

          SECTION 2.05. Application of Payments

          In the case of each Equipment Note, each payment of Original
Amount, Make- Whole Amount, if any, and interest due thereon shall be
applied:

          First: to the payment of accrued interest on such Equipment Note
     (as well as any interest on any overdue Original Amount, any overdue
     Make-Whole Amount, if any, and to the extent permitted by Law, any
     overdue interest and any other overdue amounts thereunder) to the date
     of such payment;

<PAGE>

          Second: to the payment of the Original Amount of such Equipment
     Note (or a portion thereof) then due thereunder;

          Third: to the payment of Make-Whole Amount, if any, and any other
     amount due hereunder or under such Equipment Note; and

          Fourth: the balance, if any, remaining thereafter, to the payment
     of the Original Amount of such Equipment Note remaining unpaid
     (provided that such Equipment Note shall not be subject to redemption
     except as provided in Sections 2.10, 2.11 and 2.12 hereof).

The amounts paid pursuant to clause "Fourth" above shall be applied to the
installments of Original Amount of such Equipment Note in the inverse order
of their normal maturity.

          SECTION 2.06. Termination of Interest in Collateral

          No Note Holder or any other Mortgage Indemnitee shall, as such,
have any further interest in, or other right with respect to, the
Collateral when and if the Original Amount of, Make-Whole Amount, if any,
and interest on and other amounts due under all Equipment Notes held by
such Note Holder and all other sums then due and payable to such Note
Holder, such Mortgage Indemnitee or the Mortgagee hereunder (including,
without limitation, under the third paragraph of Section 2.02 hereof) and
under the other Operative Agreements by the Owner (collectively, the
"Secured Obligations") shall have been paid in full.

          SECTION 2.07. Registration Transfer and Exchange of Equipment
Notes

          The Mortgagee shall keep a register (the "Equipment Note
Register") in which the Mortgagee shall provide for the registration of
Equipment Notes and the registration of transfers of Equipment Notes. No
such transfer shall be given effect unless and until registration hereunder
shall have occurred. The Equipment Note Register shall be kept at the
Corporate Trust Office of the Mortgagee. The Mortgagee is hereby appointed
"Equipment Note Registrar" for the purpose of registering Equipment Notes
and transfers of Equipment Notes as herein provided. A holder of any
Equipment Note intending to exchange such Equipment Note shall surrender
such Equipment Note to the Mortgagee at the Corporate Trust Office,
together with a written request from the registered holder thereof for the
issuance of a new Equipment Note, specifying, in the case of a surrender
for transfer, the name and address of the new holder or holders. Upon
surrender for registration of transfer of any Equipment Note, the Owner
shall execute, and the Mortgagee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Equipment
Notes of a like aggregate Original Amount and of the same Series. At the
option of the Note Holder, Equipment Notes may be exchanged for other
Equipment Notes of any authorized denominations of a like aggregate
Original Amount and of the same Series, upon surrender of the Equipment
Notes to be exchanged to the Mortgagee at the Corporate Trust Office.
Whenever any Equipment Notes are so surrendered for exchange, the Owner
shall execute, and the Mortgagee shall authenticate and deliver, the
Equipment Notes which the Note Holder making the exchange is entitled to
receive. All Equipment Notes issued upon any registration of transfer or
exchange of Equipment Notes (whether under this Section 2.07 or under
Section 2.08 hereof or otherwise under this Trust Indenture) shall be the
valid obligations of the Owner evidencing the same respective obligations,
and entitled to the same security and benefits under this Trust Indenture,
as the

<PAGE>

Equipment Notes surendered upon such registration of transfer or exchange.
Every Equipment Note presented or surrendered for registration of transfer,
shall (if so required by the Mortgagee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Mortgagee
duly executed by the Note Holder or such holder's attorney duly authorized
in writing, and the Mortgagee shall require evidence satisfactory to it as
to the compliance of any such transfer with the Securities Act, and the
securities Laws of any applicable state. The Mortgagee shall make a
notation on each new Equipment Note of the amount of all payments of
Original Amount previously made on the old Equipment Note or Equipment
Notes with respect to which such new Equipment Note is issued and the date
to which interest on such old Equipment Note or Equipment Notes has been
paid. Interest shall be deemed to have been paid on such new Equipment Note
to the date on which interest shall have been paid on such old Equipment
Note, and all payments of the Original Amount marked on such new Equipment
Note, as provided above, shall be deemed to have been made thereon. The
Owner shall not be required to exchange any surrendered Equipment Notes as
provided above during the ten-day period preceding the due date of any
payment on such Equipment Note. The Owner shall in all cases deem the
Person in whose name any Equipment Note shall have been issued and
registered as the absolute owner and holder of such Equipment Note for the
purpose of receiving payment of all amounts payable by the Owner with
respect to such Equipment Note and for all purposes until a notice stating
otherwise is received from the Mortgagee and such change is reflected on
the Equipment Note Register. The Mortgagee will promptly notify the Owner
of each registration of a transfer of an Equipment Note. Any such
transferee of an Equipment Note, by its acceptance of an Equipment Note,
agrees to the provisions of this Indenture and the Participation Agreement
applicable to Note Holders, including Sections 5.3, 5.4 and 8.1 thereof and
shall be deemed to have covenanted to the parties to the Participation
Agreement as to the matters covenanted by the original Note Holder in the
Participation Agreement. Subject to compliance by the Note Holder and its
transferee (if any) of the requirements set forth in this Section 2.07,
Mortgagee and Owner shall use all reasonable efforts to issue new Equipment
Notes upon transfer or exchange within ten Business Days of the date an
Equipment Note is surrendered for transfer or exchange.

          SECTION 2.08. Mutilated, Destroyed, Lost or Stolen Equipment
Notes

          If any Equipment Note shall become mutilated, destroyed, lost or
stolen, the Owner shall, upon the written request of the holder of such
Equipment Note, execute and the Mortgagee shall authenticate and deliver in
replacement thereof a new Equipment Note of the same Series payable in the
same Original Amount dated the same date and captioned as issued in
connection with the Aircraft. If the Equipment Note being replaced has
become mutilated, such Equipment Note shall be surrendered to the Mortgagee
and a photocopy thereof shall be furnished to the Owner. If the Equipment
Note being replaced has been destroyed, lost or stolen, the holder of such
Equipment Note shall furnish to the Owner and the Mortgagee such security
or indemnity as may be required by them to save the Owner and the Mortgagee
harmless and evidence satisfactory to the Owner and the Mortgagee of the
destruction, loss or theft of such Equipment Note and of the ownership
thereof. If a "qualified institutional buyer" of the type referred to in
paragraph (a)(1)(i)(A), (B), (D) or (E) of Rule 144A under the Securities
Act (a "QIB") is the holder of any such destroyed, lost or stolen Equipment
Note, then the written indemnity of such QIB, signed by an authorized
officer thereof, in favor of, delivered to and in form reasonably
satisfactory Owner and the Mortgagee shall be accepted as satisfactory
indemnity and security and no further indemnity or security shall be
required as a condition to

<PAGE>

the execution and delivery of such new Equipment Note. Subject to
compliance by the Note Holder with the requirements set forth in this
Section 2.08, Mortgagee and Owner shall use all reasonable efforts to issue
new Equipment Notes within ten Business Days of the date of the written
request therefor from the Note Holder.

          SECTION 2.09. Payment of Expenses on Transfer; Cancellation

          (a) No service charge shall be made to a Note Holder for any
registration of transfer or exchange of Equipment Notes, but the Mortgagee,
as Equipment Note Registrar, may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Equipment
Notes.

          (b) The Mortgagee shall cancel all Equipment Notes surrendered
for replacement, redemption, transfer, exchange, payment or cancellation
and shall destroy the canceled Equipment Notes.

          SECTION 2.10. Mandatory Redemptions of Equipment Notes

          On the date on which the Owner is required pursuant to Section
4.05 hereof to make payment for an Event of Loss with respect to the
Airframe, all of the Equipment Notes shall be redeemed in whole at a
redemption price equal to 100% of the unpaid Original Amount thereof,
together with all accrued interest thereon to the date of redemption and
all other Secured Obligations owed or then due and payable to the Note
Holders but without Make-Whole Amount.

          SECTION 2.11. Voluntary Redemptions of Equipment Notes

          All (but not less than all) of the Equipment Notes may be
redeemed by the Owner upon at least 30 days' revocable prior written notice
to the Mortgagee and the Note Holders, and the Equipment Notes shall be
redeemed in whole at a redemption price equal to 100% of the unpaid
Original Amount thereof, together with accrued interest thereon to the date
of redemption and all other Secured Obligations owed or then due and
payable to the Note Holders plus Make- Whole Amount, if any.

          SECTION 2.12. Redemptions; Notice of Redemption

          (a) No redemption of any Equipment Note may be made except to the
extent and in the manner expressly permitted by this Trust Indenture. No
purchase of any Equipment Note may be made by the Mortgagee.

          (b) Notice of redemption with respect to the Equipment Notes
shall be given by the Mortgagee by first-class mail, postage prepaid,
mailed not less than 25 nor more than 60 days prior to the applicable
redemption date, to each Note Holder of such Equipment Notes to be
redeemed, at such Note Holder's address appearing in the Equipment Note
Register; provided that such notice shall be revocable by written notice
from the Owner to Mortgagee given not later than three days prior to the
redemption date. All notices of redemption shall state: (1) the redemption
date, (2) the applicable basis for determining the redemption price, (3)
that on the redemption date, the redemption price will become due and
payable upon each such Equipment Note, and that, if any such Equipment
Notes are then outstanding, interest on such Equipment

<PAGE>

Notes shall cease to accrue on and after such redemption date, and (4) the
place or places where such Equipment Notes are to be surrendered for
payment of the redemption price.

          (c) On or before the redemption date, the Owner (or any person on
behalf of the Owner) shall, to the extent an amount equal to the redemption
price for the Equipment Notes to be redeemed on the redemption date shall
not then be held by the Mortgagee, deposit or cause to be deposited with
the Mortgagee by 12:30 p.m. New York City time on the redemption date in
immediately available funds the redemption price of the Equipment Notes to
be redeemed.

          (d) Notice of redemption having been given and not revoked as
aforesaid, the Equipment Notes to be redeemed shall, on the redemption
date, become due and payable at the Corporate Trust Office of the Mortgagee
or at any office or agency maintained for such purposes pursuant to Section
2.07, and from and after such redemption date (unless there shall be a
default in the payment of the redemption price) any such Equipment Notes
then outstanding shall cease to bear interest. Upon surrender of any such
Equipment Note for redemption in accordance with said notice, such
Equipment Note shall be redeemed at the redemption price. If any Equipment
Note called for redemption shall not be so paid upon surrender thereof for
redemption, the principal amount thereof shall, until paid, continue to
bear interest from the applicable redemption date at the interest rate in
effect for such Equipment Note as of such redemption date.

          SECTION 2.13. Subordination

          (a) The Owner and, by acceptance of its Equipment Notes of any
Series, each Note Holder of such Series, hereby agree that no payment or
distribution shall be made on or in respect of the Secured Obligations owed
to such Note Holder of such Series, including any payment or distribution
of cash, property or securities after the commencement of a proceeding of
the type referred to in Section 5.01(vi) hereof, except as expressly
provided in Article III hereof.

          (b) By the acceptance of its Equipment Notes of any Series (other
than Series G), each Note Holder of such Series agrees that in the event
that such Note Holder, in its capacity as a Note Holder, shall receive any
payment or distribution on any Secured Obligations in respect of such
Series which it is not entitled to receive under this Section 2.13 or
Article III hereof, it will hold any amount so received in trust for the
Senior Holder (as defined in Section 2.13(c) hereof) and will forthwith
turn over such payment to the Mortgagee in the form received to be applied
as provided in Article III hereof.

          (c) As used in this Section 2.13, the term "Senior Holder" shall
mean, (i) the Note Holders of Series G until the Secured Obligations in
respect of Series G Equipment Notes have been paid in full and (ii) after
the Secured Obligations in respect of Series G Equipment Notes have been
paid in full, the Note Holders of Series C until the Secured Obligations in
respect of Series C Equipment Notes have been paid in full.

<PAGE>

                                ARTICLE III

             RECEIPT, DISTRIBUTION AND APPLICATION OF PAYMENTS

          SECTION 3.01. Basic Distributions

          Except as otherwise provided in Section 3.03 hereof, each
periodic payment of principal or interest on the Equipment Notes received
by the Mortgagee shall be promptly distributed in the following order of
priority:

               (i) so much of such payment as shall be required to pay in
          full the aggregate amount of the payment or payments of Original
          Amount and interest (as well as any interest on any overdue
          Original Amount and, to the extent permitted by Law, on any
          overdue interest) then due under all Series G Equipment Notes
          shall be distributed to the Note Holders of Series G ratably,
          without priority of one over the other, in the proportion that
          the amount of such payment or payments then due under each Series
          G Equipment Note bears to the aggregate amount of the payments
          then due under all Series G Equipment Notes; and

               (ii) after giving effect to paragraph (i) above, so much of
          such payment remaining as shall be required to pay in full the
          aggregate amount of the payment or payments of Original Amount
          and interest (as well as any interest on any overdue Original
          Amount and, to the extent permitted by Law, on any overdue
          interest) then due under all Series C Equipment Notes shall be
          distributed to the Note Holders of Series C ratably, without
          priority of one over the other, in the proportion that the amount
          of such payment or payments then due under each Series C
          Equipment Note bears to the aggregate amount of the payments then
          due under all Series C Equipment Notes.

          SECTION 3.02. Event of Loss; Replacement; Optional Redemption

          Except as otherwise provided in Section 3.03 hereof, any payments
received by the Mortgagee (i) with respect to the Airframe or the Airframe
and one or more Engines as the result of an Event of Loss or (ii) pursuant
to an optional redemption of the Equipment Notes pursuant to Section 2.11
hereof shall be applied to redemption of the Equipment Notes and to all
other Secured Obligations by applying such funds in the following order of
priority:

First,         (a) to reimburse the Mortgagee and the Note Holders for any
               reasonable costs or expenses incurred in connection with
               such redemption for which they are entitled to
               reimbursement, or indemnity by Owner, under the Operative
               Agreements and then (b) to pay any other amounts then due
               (except as provided in clause "Second" below) to the
               Mortgagee, the Note Holders and the other Mortgage
               Indemnitees under this Trust Indenture (other than the
               amounts specified in clause "Second" below), the
               Participation Agreement or the Equipment Notes;

Second,   (i)  to pay the amounts specified in paragraph (i) of clause "Third"
               of Section 3.03 hereof plus Make-Whole Amount, if any, then due
               and payable in respect of the Series G Equipment Notes; and

          (ii) after giving effect to paragraph (i) above, to pay the

<PAGE>

                    amounts specified in paragraph (ii) of clause "Third"
                    of Section 3.03 hereof plus Make-Whole Amount, if any,
                    then due and payable in respect of the Series C
                    Equipment Notes; and

Third,         as provided in clause "Fourth" of Section 3.03 hereof;

          provided, however, that if a Replacement Airframe or Replacement
Engine shall be substituted for the Airframe or Engine subject to such
Event of Loss as provided in Section 4.05 hereof, any insurance,
condemnation or similar proceeds which result from such Event of Loss and
are paid over to the Mortgagee shall be held by the Mortgagee as permitted
by Section 7.04 hereof (provided that such moneys shall be invested as
provided in Section 6.06 hereof) as additional security for the obligations
of Owner under Operative Agreements and such proceeds (and such investment
earnings), to the extent not theretofore applied as provided herein, shall
be released to the Owner at the Owner's written request upon the release of
such Airframe or Engine and the replacement thereof as provided herein;
provided, further, that no Make-Whole Amount shall be payable in connection
with a redemption resulting from an Event of Loss.

          SECTION 3.03. Payments After Event of Default

          Except as otherwise provided in Section 3.04 hereof, all payments
received and amounts held or realized by the Mortgagee (including any
amounts realized by the Mortgagee from the exercise of any remedies
pursuant to Article V hereof) after an Event of Default shall have occurred
and be continuing and after the declaration specified in Section 5.02(b)
hereof, as well as all payments or amounts then held by the Mortgagee as
part of the Collateral, shall be promptly distributed by the Mortgagee in
the following order of priority:

First,         so much of such payments or amounts as shall be required to
               (i) reimburse the Mortgagee or WTC for any tax, expense or
               other loss (including, without limitation, all amounts to be
               expended at the expense of, or charged upon the rents,
               revenues, issues, products and profits of, the property
               included in the Collateral (all such property being herein
               called the "Mortgaged Property") ------------------ pursuant
               to Section 5.03(b) hereof) incurred by the Mortgagee or WTC
               (to the extent not previously reimbursed), the expenses of
               any sale, or other proceeding, reasonable attorneys' fees
               and expenses, court costs, and any other expenditures
               incurred or expenditures or advances made by the Mortgagee,
               WTC or the Note Holders in the protection, exercise or
               enforcement of any right, power or remedy or any damages
               sustained by the Mortgagee, WTC or any Note Holder,
               liquidated or otherwise, upon such Event of Default shall be
               applied by the Mortgagee as between itself, WTC and the Note
               Holders in reimbursement of such expenses and any other
               expenses for which the Mortgagee, WTC or the Note Holders
               are

               entitled to reimbursement under any Operative Agreement and
               (ii) all amounts payable to the other Mortgage Indemnitees
               hereunder and under the Participation Agreement; and in the
               case the aggregate amount to be so distributed is
               insufficient to pay as aforesaid in clauses (i) and (ii),
               then ratably, without priority of one over the other, in
               proportion to the amounts owed each hereunder;

Second,        so much of such payments or amounts remaining as shall be
               required to reimburse the then existing or prior Note
               Holders for payments made pursuant to Section 6.03 hereof
               (to the extent not previously reimbursed) shall be
               distributed to such then existing or prior Note Holders
               ratably, without priority of one over the other, in
               accordance with the amount of the payment or payments made
               by each such then existing or prior Note Holder pursuant to
               said Section 6.03 hereof;

Third,  (i)    so much of such payments or amounts remaining as shall be
               required to pay in full the aggregate unpaid Original Amount
               of all Series G Equipment Notes, and the accrued but unpaid
               interest and other amounts due thereon (other than Make-
               Whole Amount which shall not be due and payable) and all
               other Secured Obligations in respect of the Series G
               Equipment Notes (other than Make-Whole Amount) to the date
               of distribution, shall be distributed to the Note Holders of
               Series G, and in case the aggregate amount so to be
               distributed shall be insufficient to pay in full as
               aforesaid, then ratably, without priority of one over the
               other, in the proportion that the aggregate unpaid Original
               Amount of all Series G Equipment Notes held by each holder
               plus the accrued but unpaid interest and other amounts due
               hereunder or thereunder (other than Make-Whole Amount, if
               any) to the date of distribution, bears to the aggregate
               unpaid Original Amount of all Series G Equipment Notes held
               by all such holders plus the accrued but unpaid interest and
               other amounts due thereon (other than Make-Whole Amount) to
               the date of distribution; and

        (ii)   after giving effect to paragraph (i) above, so much of such
               payments or amounts remaining as shall be required to pay in
               full the aggregate unpaid Original Amount of all Series C
               Equipment Notes, and the accrued but unpaid interest and
               other amounts due thereon (other than Make-Whole Amount
               which shall not be due and payable) and all other Secured
               Obligations in respect of the Series C Equipment Notes
               (other than Make-Whole Amount) to the date of distribution,
               shall be distributed to the Note Holders of Series C, and in
               case the aggregate amount so to be distributed shall be
               insufficient to pay in full as aforesaid, then ratably,
               without priority of one over the other, in the proportion
               that the aggregate unpaid Original Amount of all Series C
               Equipment Notes held by each holder plus the accrued but
               unpaid interest and other amounts due hereunder or
               thereunder (other than the Make-Whole Amount, if any) to the
               date of distribution, bears to the aggregate unpaid Original
               Amount of all Series C Equipment Notes held by all such
               holders plus the accrued but unpaid interest and other
               amounts due thereon (other than the Make-Whole Amount) to
               the date of distribution; and

Fourth,        the balance, if any, of such payments or amounts remaining
               thereafter shall be distributed to the Owner.

          No Make-Whole Amount shall be due and payable on the Equipment
Notes as a consequence of the acceleration of the Equipment Notes as a
result of an Event of Default.

          SECTION 3.04. Certain Payments

          (a) Any payments received by the Mortgagee for which no provision
as to the application thereof is made in this Trust Indenture and for which
such provision is made in any

<PAGE>

other Operative Agreement shall be applied forthwith to the purpose for
which such payment was made in accordance with the terms of such other
Operative Agreement, as the case may be.

          (b) Notwithstanding anything to the contrary contained in this
Article III, the Mortgagee will distribute promptly upon receipt any
indemnity payment received by it from the Owner in respect of the Mortgagee
in its individual capacity, any Note Holder or any other Mortgage
Indemnitee, in each case whether pursuant to Section 7 of the Participation
Agreement or otherwise, directly to the Person entitled thereto. Any
payment received by the Mortgagee under the third paragraph of Section 2.02
shall be distributed to the Subordination Agent to be distributed in
accordance with the terms of the Intercreditor Agreement.

          SECTION 3.05. Other Payments

          Any payments received by the Mortgagee for which no provision as
to the application thereof is made elsewhere in this Trust Indenture or in
any other Operative Agreement shall be distributed by the Mortgagee to the
extent received or realized at any time, in the order of priority specified
in Section 3.01 hereof, and after payment in full of all amounts then due
in accordance with Section 3.01 in the manner provided in clause "Fourth"
of Section 3.03 hereof.

          SECTION 3.06. Application of Payments Under Guarantee

          All payments received by the Mortgagee pursuant to the Guarantee
shall be distributed forthwith by the Mortgagee in the same order of
priority, and in the same manner, as it would have distributed the payment
in respect of which such payment under the Guarantee was received.

                                 ARTICLE IV

                           COVENANTS OF THE OWNER

          SECTION 4.01. Liens

          The Owner will not directly or indirectly create, incur, assume
or suffer to exist any Lien or with respect to the Aircraft, the Airframe
or any Engine or any Part, title to any of the foregoing or any interest of
Owner therein, except Permitted Liens. The Owner shall promptly, at its own
expense, take (or cause to be taken) such action as may be necessary to
duly discharge (by bonding or otherwise) any Lien other than a Permitted
Lien arising at any time in respect of the Aircraft, the Airframe, any
Engine or any Part.

          SECTION 4.02. Possession, Operation and Use, Registration and
Markings

          (a) General. Except as otherwise expressly provided herein, the
Owner shall be entitled to operate, use, locate, employ or otherwise
utilize or not utilize the Airframe, any Engine or any Parts in any lawful
manner or place in accordance with the Owner's business judgment.

          (b) Possession. The Owner, without the prior consent of
Mortgagee, shall not lease or otherwise in any manner deliver, transfer or
relinquish possession of the Aircraft, the

<PAGE>

Airframe or any Engine or install any Engine, or permit any Engine to be
installed, on any airframe other than the Airframe; except that so long as
no Event of Default shall have occurred and be continuing at the time of
such lease, delivery, transfer or relinquishment, the Owner may, without
such prior written consent of Mortgagee:

          (i) Subject or permit any Permitted Lessee to subject (aa) the
     Airframe to normal interchange agreements, or (bb) any Engine to
     normal interchange agreements or pooling agreements or arrangements,
     in each case customary in the commercial airline industry and entered
     into by Owner or such Permitted Lessee, as the case may be, in the
     ordinary course of business; provided, however, that if Owner's title
     to any such Engine is divested under any such agreement or
     arrangement, then such Engine shall be deemed to have suffered an
     Event of Loss as of the date of such divestiture, and Owner shall
     comply with Section 4.04(e) in respect thereof;

          (ii) Deliver or permit any Permitted Lessee to deliver possession
     of the Aircraft, Airframe, any Engine or any Part (x) to the
     manufacturer thereof or to any third- party maintenance provider for
     testing, service, repair, maintenance or overhaul work on the
     Aircraft, Airframe, any Engine or any Part, or, to the extent required
     or permitted by Section 4.04, for alterations or modifications in or
     additions to the Aircraft, Airframe or any Engine or (y) to any Person
     for the purpose of transport to a Person referred to in the preceding
     clause (x);

          (iii) Install or permit any Permitted Lessee to install an Engine
     on an airframe owned by Owner or such Permitted Lessee, as the case
     may be, free and clear of all Liens, except (x) Permitted Liens and
     those that do not apply to the Engines, and (y) the rights of third
     parties under normal interchange or pooling agreements and
     arrangements of the type that would be permitted under Section
     4.02(b)(i);

          (iv) Install or permit any Permitted Lessee to install an Engine
     on an airframe leased to Owner or such Permitted Lessee, or purchased
     by Owner or such Permitted Lessee subject to a mortgage, security
     agreement, conditional sale or other secured financing arrangement,
     but only if (x) such airframe is free and clear of all Liens, except
     (A) the rights of the parties to such lease, or any such secured
     financing arrangement, covering such airframe and (B) Liens of the
     type permitted by clause (iii) above and (y) Owner or Permitted
     Lessee, as the case may be, shall have received from the lessor,
     mortgagee, secured party or conditional seller, in respect of such
     airframe, a written agreement (which may be a copy of the lease,
     mortgage, security agreement, conditional sale or other agreement
     covering such airframe), whereby such Person agrees that it will not
     acquire or claim any right, title or interest in, or Lien on, such
     Engine by reason of such Engine being installed on such airframe at
     any time while such Engine is subject to the Lien of this Trust
     Indenture;

          (v) Install or permit any Permitted Lessee to install an Engine
     on an airframe owned by Owner or such Permitted Lessee, leased to
     Owner or such Permitted Lessee, or purchased by Owner or such
     Permitted Lessee subject to a conditional sale or other security
     agreement under circumstances where neither clause (iii) or (iv) above
     is applicable; provided, however, that any such installation shall be
     deemed an Event of Loss with respect to such Engine, and Owner shall
     comply with Section 4.04(e) hereof in

<PAGE>

     respect thereof;

          (vi) Transfer or permit any Permitted Lessee to transfer
     possession of the Aircraft, Airframe or any Engine to the U.S.
     Government, in which event Owner shall promptly notify Mortgagee in
     writing of any such transfer of possession and, in the case of any
     transfer pursuant to CRAF, in such notification shall identify by
     name, address and telephone numbers the Contracting Office
     Representative or Representatives for the Military Airlift Command of
     the United States Air Force to whom notices must be given and to whom
     requests or claims must be made to the extent applicable under CRAF;

          (vii) Enter into a charter or Wet Lease or other similar
     arrangement with respect to the Aircraft or any other aircraft on
     which any Engine may be installed (which shall not be considered a
     transfer of possession hereunder); provided that the Owner's
     obligations hereunder shall continue in full force and effect
     notwithstanding any such charter or Wet Lease or other similar
     arrangement;

          (viii) So long as no Event of Default shall have occurred and be
     continuing, and subject to the provisions of the immediately following
     paragraph, enter into a lease with respect to the Aircraft, Airframe
     or any Engine with any Permitted Air Carrier that is not the subject
     to any bankruptcy, insolvency, liquidation, reorganization,
     dissolution or similar proceeding and shall not have substantially all
     of its property in the possession of any liquidator, trustee, receiver
     or similar person; provided that, in the case only of a lease to a
     Permitted Foreign Air Carrier, (A) the United States maintains
     diplomatic relations with the country of domicile of such Permitted
     Foreign Air Carrier (or, in the case of Taiwan, diplomatic relations
     at least as good as those in effect on the Closing Date) and (B) Owner
     shall have furnished Mortgagee a favorable opinion of counsel,
     reasonably satisfactory to Mortgagee, in the country of domicile of
     such Permitted Foreign Air Carrier, that (v) the terms of such lease
     are the legal, valid and binding obligations of the parties thereto
     enforceable under the laws of such jurisdiction (subject to customary
     exceptions), (w) it is not necessary for Mortgagee to register or
     qualify to do business in such jurisdiction, if not already so
     registered or qualified, as a result, in whole or in part, of the
     proposed lease, (x) Mortgagee's Lien in respect of, the Aircraft,
     Airframe and Engines will be recognized in such jurisdiction, (y) the
     Laws of such jurisdiction of domicile require fair compensation by the
     government of such jurisdiction, payable in a currency freely
     convertible into Dollars, for the loss of title to the Aircraft,
     Airframe or Engines in the event of the requisition by such government
     of such title (unless Owner shall provide insurance in the amounts
     required with respect to hull insurance under this Trust Indenture
     covering the requisition of title to the Aircraft, Airframe or Engines
     by the government of such jurisdiction so long as the Aircraft,
     Airframe or Engines are subject to such lease) and (z) the agreement
     of such Permitted Air Carrier that its rights under the lease are
     subject and subordinate to all the terms of this Trust Indenture is
     enforceable against such Permitted Air Carrier under applicable law
     (subject to customary exceptions);

provided that (1) the rights of any transferee who receives possession by
reason of a transfer permitted by this Section 4.02(b) (other than by a
transfer of an Engine which is deemed an Event of Loss) shall be subject
and subordinate to all the terms of this Trust Indenture, (2) the Owner
shall remain primarily liable for the performance of all of the terms of
this Trust

<PAGE>

Indenture and all the terms and conditions of this Trust Indenture and the
other Operative Agreements shall remain in effect and (3) Owner shall
ensure that no lease or transfer of possession otherwise in compliance with
this Section 4.02(b) shall (x) adversely affect the United States
registration of the Aircraft, unless the Aircraft is subject to
reregistration in accordance with the provisions of Section 4.02(d) or the
maintenance, operation or use thereof except in compliance with Sections
4.02(c) and 4.04(a) or (y) permit any action not permitted to the Owner
hereunder.

          In the case of any lease permitted under this Section 4.02(b),
the Owner will include in such lease appropriate provisions which (t) make
such lease expressly subject and subordinate to all of the terms of this
Trust Indenture, including the rights of the Mortgagee to avoid such lease
in the exercise of its rights to repossession of the Airframe and Engines
hereunder; (u) require the Permitted Lessee to comply with the terms of
Section 4.06; and (v) require that the Airframe or any Engine subject
thereto be used in accordance with the limitations applicable to the
Owner's possession and use provided in this Trust Indenture and provisions
for the maintenance and inspection of the Aircraft that are the same in all
material respects as are contained herein. No lease permitted under this
Section 4.02(b) shall be entered into unless (w) Owner shall provide
written notice to Mortgagee, Standard & Poor's and Moody's (such notice in
the event of a lease to a U.S. Air Carrier to be given promptly after
entering into any such lease or, in the case of a lease to any other
Permitted Air Carrier, at least 10 days in advance of entering into such
lease); (x) Owner shall furnish to Mortgagee evidence reasonably
satisfactory to Mortgagee that the insurance required by Section 4.06
remains in effect; (y) all necessary documents shall have been duly filed,
registered or recorded in such public offices as may be required fully to
preserve the first priority security interest (subject to Permitted Liens)
of Mortgagee in the Aircraft, Airframe and Engines; and (z) Owner shall
reimburse Mortgagee for all of its reasonable out-of-pocket fees and
expenses, including, without limitation, reasonable fees and disbursements
of counsel, incurred by Mortgagee in connection with any such lease, and
any such lease for a term of more than a year shall be assigned to
Mortgagee to secure Owner's obligations hereunder. Except as otherwise
provided herein and without in any way relieving the Owner from its primary
obligation for the performance of its obligations under this Trust
Indenture, the Owner may in its sole discretion permit a lessee to exercise
any or all rights which the Owner would be entitled to exercise under
Sections 4.02 and 4.04, and may cause a lessee to perform any or all of the
Owner's obligations under Article IV, and the Mortgagee agrees to accept
actual and full performance thereof by a lessee in lieu of performance by
the Owner.

          Mortgagee hereby agrees, and each Note Holder by acceptance of an
Equipment Note agrees, for the benefit of each lessor, conditional seller,
indenture trustee or secured party of any engine leased to, or purchased
by, Owner or any Permitted Lessee subject to a lease, conditional sale,
trust indenture or other security agreement that Mortgagee, each Note
Holder and their respective successors and assigns will not acquire or
claim, as against such lessor, conditional seller, indenture trustee or
secured party, any right, title or interest in any engine as the result of
such engine being installed on the Airframe at any time while such engine
is subject to such lease, conditional sale, trust indenture or other
security agreement and owned by such lessor or conditional seller or
subject to a trust indenture or security interest in favor of such
indenture trustee or secured party.

          (c) Operation and Use. So long as the Aircraft, Airframe or any
Engine is

<PAGE>

subject to the Lien of this Trust Indenture, the Owner shall not operate,
use or locate the Aircraft, Airframe or any Engine, or allow the Aircraft,
Airframe or any Engine to be operated, used or located, (i) in any area
excluded from coverage by any insurance required by the terms of Section
4.06, except in the case of a requisition by the U.S. Government where the
Owner obtains indemnity in lieu of such insurance from the U.S. Government,
or insurance from the U.S. Government covering such area in accordance with
Section 4.06(c), or (ii) in any recognized area of hostilities unless
covered in accordance with Annex B by War Risk Insurance as required by the
terms of Section 4.06 (including, without limitation, Section 4.06(c)),
unless in any case referred to in this Section 4.02(c) the Aircraft, the
Airframe or any Engine is only temporarily operated, used or located in
such area as a result of an emergency, equipment malfunction, navigational
error, hijacking, weather condition or other similar unforeseen
circumstance, so long as Owner diligently and in good faith proceeds to
remove the Aircraft from such area. So long as the Aircraft, the Airframe
or any Engine is subject to the Lien of this Trust Indenture, the Owner
shall not permit such Aircraft, Airframe or any Engine, as the case may be,
to be used, operated, maintained, serviced, repaired or overhauled (x) in
violation of any Law binding on or applicable to such Aircraft, Airframe or
Engine or (y) in violation of any airworthiness certificate, license or
registration of any Government Entity relating to the Aircraft, the
Airframe or any Engine, except (i) immaterial or non-recurring violations
with respect to which corrective measures are taken promptly by Owner or
Permitted Lessee, as the case may be, upon discovery thereof, or (ii) to
the extent the validity or application of any such Law or requirement
relating to any such certificate, license or registration is being
contested in good faith by Owner or Permitted Lessee in any reasonable
manner which does not involve any material risk of the sale, forfeiture or
loss of the Aircraft, Airframe or any Engine or materially and adversely
affect the interest of any Note Holder therein, any material risk of
criminal liability against Mortgagee or impair the Mortgagee's security
interest in the Aircraft, Airframe or any Engine.

          (d) Maintenance and Repair. So long as the Aircraft, Airframe or
any Engine is subject to the Lien of this Trust Indenture, the Owner shall
cause the Aircraft, Airframe and each Engine to be maintained, serviced,
repaired and overhauled in accordance with (i) maintenance standards
required by or substantially equivalent to those required by the FAA or the
central aviation authority of Canada, Japan, or the Joint Aviation
Authority (being the central aviation authority of France, Germany, Japan,
the Netherlands, and the United Kingdom, inter alia) for the Aircraft,
Airframe and Engines (the "Maintenance Program"), so as to (A) keep the
Aircraft, the Airframe and each Engine in as good operating condition as on
the Closing Date, ordinary wear and tear excepted, (B) keep the Aircraft in
such operating condition as may be necessary to enable the applicable
airworthiness certification of such Aircraft to be maintained under the
regulations of the FAA or other Aviation Authority then having jurisdiction
over the operation of the Aircraft, except during (x) temporary periods of
storage in accordance with applicable regulations, (y) maintenance and
modification permitted hereunder or (z) periods when the FAA or such other
Aviation Authority has revoked or suspended the airworthiness certificates
for Similar Aircraft; and (ii) except during periods when a Permitted Lease
is in effect, the same standards as Owner uses with respect to similar
aircraft of similar size in its fleet operated by Owner in similar
circumstances and, during any period in which a Permitted Lease is in
effect, the same standards used by the Permitted Lessee with respect to
similar aircraft of similar size in its fleet and operated by the Permitted
Lessee in similar circumstances. Owner further agrees that the Aircraft,
Airframe and Engines will be maintained, used, serviced, repaired,
overhauled or inspected in compliance with applicable Laws with respect to
the

<PAGE>

maintenance of the Aircraft and in compliance with each applicable
airworthiness certificate, license and registration relating to the
Aircraft, Airframe or any Engine issued by the Aviation Authority, other
than minor or nonrecurring violations with respect to which corrective
measures are taken upon discovery thereof and except to the extent Owner or
Permitted Lessee is contesting in good faith the validity or application of
any such Law or requirement relating to any such certificate, license or
registration in any reasonable manner which does not create a material risk
of sale, loss or forfeiture of the Aircraft, the Airframe or any Engine or
the interest of Mortgagee therein, or any materialrisk of criminal
liability or material civil penalty against Mortgagee. The Owner shall
maintain or cause to be maintained the Aircraft Documents in the English
language.

          (e) Registration. The Owner on or prior to the date of the
Closing shall cause the Aircraft to be duly registered with the FAA in its
name under the Act and except as otherwise permitted by this Section
4.02(e) at all times thereafter shall cause the Aircraft to remain so
registered. So long as no Special Default or Event of Default shall have
occurred and be continuing, Owner may, by written notice to Mortgagee,
request to change the country of registration of the Aircraft. Any such
change in registration shall be effected only in compliance with, and
subject to all of the conditions set forth in, Section 5.4.5 of the
Participation Agreement. Unless the Trust Indenture has been discharged,
Owner shall also cause the Trust Indenture to be duly recorded and at all
times maintained of record as a first-priority perfected mortgage (subject
to Permitted Liens) on the Aircraft, the Airframe and each of the Engines
(except to the extent such perfection or priority cannot be maintained
solely as a result of the failure by Mortgagee to execute and deliver any
necessary documents).

          (f) Markings. If permitted by applicable Law, on or reasonably
promptly after the Closing Date, Owner will cause to be affixed to, and
maintained in, the cockpit of the Airframe and on each Engine, in each
case, in a clearly visible location, a placard of a reasonable size and
shape bearing the legend: "Subject to a security interest in favor of
Wilmington Trust Company, not in its individual capacity but solely as
Mortgagee." Such placards may be /removed temporarily, if necessary, in the
course of maintenance of the Airframe or Engines. If any such placard is
damaged or becomes illegible, Owner shall promptly replace it with a
placard complying with the requirements of this Section 4.02(e).

          SECTION 4.03. Inspection

          (a) At all reasonable times and upon reasonable advance notice
(taking into consideration the availability of the Aircraft and Owner (or
Permitted Lessee) personnel), so long as the Aircraft is subject to the
Lien of this Trust Indenture, Mortgagee and its authorized representatives
(the "Inspecting Parties") may (not more than once every 12 months unless
an Event of Default has occurred and is continuing then such inspection
right shall not be so limited) inspect the Aircraft, Airframe and Engines
(including without limitation, the Aircraft Documents) and any such
Inspecting Party may make copies of such Aircraft Documents not reasonably
deemed confidential by Owner or such Permitted Lessee.

          (b) Any inspection of the Aircraft hereunder shall be limited to
a visual, walk- around inspection and shall not include the opening of any
panels, bays or other components of the Aircraft, and no such inspection
shall interfere with Owner's or any Permitted Lessee's maintenance and
operation of the Aircraft, Airframe and Engines.

<PAGE>

          (c) With respect to such rights of inspection, Mortgagee shall
not have any duty or liability to make, or any duty or liability by reason
of not making, any such visit, inspection or survey.

          (d) Each Inspecting Party shall bear its own expenses in
connection with any such inspection (including the cost of any copies made
in accordance with Section 4.03(a)).

          SECTION 4.04. Replacement and Pooling of Parts, Alterations,
Modifications and Additions; Substitution of Engines

          (a) Replacement of Parts. Except as otherwise provided herein, so
long as the Airframe or Engine is subject to the Lien of this Trust
Indenture, Owner, at its own cost and expense, will, or will cause a
Permitted Lessee to, at its own cost and expense, promptly replace (or
cause to be replaced) all Parts which may from time to time be incorporated
or installed in or attached to the Aircraft, Airframe or any Engine and
which may from time to time become worn out, lost, stolen, destroyed,
seized, confiscated, damaged beyond repair or permanently rendered unfit
for use for any reason whatsoever. In addition, Owner may, at its own cost
and expense, or may permit a Permitted Lessee at its own cost and expense
to, remove (or cause to be removed) in the ordinary course of maintenance,
service, repair, overhaul or testing any Parts, whether or not worn out,
lost, stolen, destroyed, seized, confiscated, damaged beyond repair or
permanently rendered unfit for use; provided, however, that Owner, except
as otherwise provided herein, at its own cost and expense, will, or will
cause a Permitted Lessee at its own cost and expense to, replace such Parts
as promptly as practicable. All replacement Parts shall be free and clear
of all Liens, except for Permitted Liens and pooling arrangements to the
extent permitted by Section 4.04(c) below (and except in the case of
replacement property temporarily installed on an emergency basis) and shall
be in good operating condition and have a value and utility not less than
the value and utility of the Parts replaced (assuming such replaced Parts
were in the condition required hereunder).

          (b) Parts. Except as otherwise provided herein, any Part at any
time removed from the Airframe or any Engine shall remain subject to the
Lien of this Trust Indenture, no matter where located, until such time as
such Part shall be replaced by a Part that has been incorporated or
installed in or attached to such Airframe or any Engine and that meets the
requirements for replacement Parts specified above. Immediately upon any
replacement Part becoming incorporated or installed in or attached to such
Airframe or any Engine as provided in Section 4.04(a), without further act,
(i) the replaced Part shall thereupon be free and clear of all rights of
the Mortgagee and shall no longer be deemed a Part hereunder, and (ii) such
replacement Part shall become subject to this Trust Indenture and be deemed
part of such Airframe or any Engine, as the case may be, for all purposes
hereof to the same extent as the Parts originally incorporated or installed
in or attached to such Airframe or any Engine.

          (c) Pooling of Parts. Any Part removed from the Aircraft,
Airframe or an Engine may be subjected by the Owner or a Permitted Lessee
to a normal pooling arrangement customary in the airline industry and
entered into in the ordinary course of business of Owner or Permitted
Lessee, provided that the part replacing such removed Part shall be
incorporated or installed in or attached to such Airframe or any Engine in
accordance with Sections 4.04(a) and 4.04(b) as promptly as practicable
after the removal of such removed Part. In addition, any replacement part
when incorporated or installed in or attached to the Airframe or any Engine

<PAGE>

may be owned by any third party, subject to a normal pooling arrangement,
so long as the Owner or a Permitted Lessee, at its own cost and expense, as
promptly thereafter as reasonably possible, either (i) causes such
replacement part to become subject to the Lien of this Trust Indenture,
free and clear of all Liens except Permitted Liens, at which time such
replacement part shall become a Part or (ii) replaces (or causes to be
replaced) such replacement part by incorporating or installing in or
attaching to the Aircraft, Airframe or any Engine a further replacement
Part owned by the Owner free and clear of all Liens except Permitted Liens
and which shall become subject to the Lien of this Trust Indenture in
accordance with Section 4.04(b).

          (d) Alterations, Modifications and Additions. The Owner shall, or
shall cause a Permitted Lessee to, make (or cause to be made) alterations
and modifications in and additions to the Aircraft, Airframe and each
Engine as may be required to be made from time to time to meet the
applicable standards of the FAA or other Aviation Authority having
jurisdiction over the operation of the Aircraft, to the extent made
mandatory in respect of the Aircraft (a "Mandatory Modification"); provided
however, that the Owner or a Permitted Lessee may, in good faith and by
appropriate procedure, contest the validity or application of any law,
rule, regulation or order in any reasonable manner which does not
materially adversely affect Mortgagee's interest in the Aircraft and does
not involve any material risk of sale, forfeiture or loss of the Aircraft
or the interest of Mortgagee therein, or any material risk of material
civil penalty or any material risk of criminal liability being imposed on
Mortgagee or the holder of any Equipment Note. In addition, the Owner, at
its own expense, may, or may permit a Permitted Lessee at its own cost and
expense to, from time to time make or cause to be made such alterations and
modifications in and additions to the Airframe or any Engine (each an
"Optional Modification") as the Owner or such Permitted Lessee may deem
desirable in the proper conduct of its business including, without
limitation, removal of Parts which Owner deems are obsolete or no longer
suitable or appropriate for use in the Aircraft, Airframe or such Engine;
provided, however, that no such Optional Modification shall (i) materially
diminish the fair market value, utility, or useful life of the Aircraft or
any Engine below its fair market value, utility or useful life immediately
prior to such Optional Modification (assuming the Aircraft or such Engine
was in the condition required by the Trust Indenture immediately prior to
such Optional Modification) or (ii) cause the Aircraft to cease to have the
applicable standard certificate of airworthiness. All Parts incorporated or
installed in or attached to any Airframe or any Engine as the result of any
alteration, modification or addition effected by the Owner shall be free
and clear of any Liens except Permitted Liens and become subject to the
Lien of this Trust Indenture; provided that the Owner or any Permitted
Lessee may, at any time so long as the Airframe or any Engine is subject to
the Lien of this Trust Indenture, remove any such Part (such Part being
referred to herein as a "Removable Part") from such Airframe or an Engine
if (i) such Part is in addition to, and not in replacement of or in
substitution for, any Part originally incorporated or installed in or
attached to such Airframe or any Engine at the time of delivery thereof
hereunder or any Part in replacement of, or in substitution for, any such
original Part, (ii) such Part is not required to be incorporated or
installed in or attached or added to such Airframe or any Engine pursuant
to the terms of Section 4.02(d) or the first sentence of this Section
4.04(d) and (iii) such Part can be removed from such Airframe or any Engine
without materially diminishing the fair market value, utility or remaining
useful life which such Airframe or any Engine would have had at the time of
removal had such removal not been effected by the Owner, assuming the
Aircraft was otherwise maintained in the condition required by this Trust
Indenture and such Removable Part had not been incorporated or installed in
or attached to the

<PAGE>

Aircraft, Airframe or such Engine. Upon the removal by the Owner of any
such Part as above provided, title thereto shall, without further act, be
free and clear of all rights of the Mortgagee and such Part shall no longer
be deemed a Part hereunder. Removable Parts may be leased from or financed
by third parties other than Mortgagee.

          (e) Substitution of Engines. Upon the occurrence of an Event of
Loss with respect to an Engine under circumstances in which an Event of
Loss with respect to the Airframe has not occurred, Owner shall promptly
(and in any event within 15 days after such occurrence) give the Mortgagee
written notice of such Event of Loss. The Owner shall have the right at its
option at any time, on at least five Business Days' prior notice to the
Mortgagee, to substitute, and if an Event of Loss shall have occurred with
respect to an Engine under circumstances in which an Event of Loss with
respect to the Airframe has not occurred, shall within 60 days of the
occurrence of such Event of Loss substitute, a Replacement Engine for any
Engine. In such event, immediately upon the effectiveness of such
substitution and without further act, (i) the replaced Engine shall
thereupon be free and clear of all rights of the Mortgagee and the Lien of
this Trust Indenture and shall no longer be deemed an Engine hereunder and
(ii) such Replacement Engine shall become subject to this Trust Indenture
and be deemed part of the Aircraft for all purposes hereof to the same
extent as the replaced Engine. Such Replacement Engine shall be an engine
manufactured by Engine Manufacturer that is the same model as the Engine to
be replaced thereby, or an improved model, and that is suitable for
installation and use on the Airframe, and that has a value, utility and
remaining useful life (without regard to hours and cycles remaining until
overhaul) at least equal to the Engine to be replaced thereby (assuming
that such Engine had been maintained in accordance with this Trust
Indenture). The Owner's right to make a replacement hereunder shall be
subject to the fulfillment (which may be simultaneous with such
replacement) of the applicable conditions precedent set forth in Section
4.05(c) at the Owner's sole cost and expense, and the Mortgagee agrees to
cooperate with the Owner to the extent necessary to enable it to timely
satisfy such conditions.

          SECTION 4.05. Loss, Destruction or Requisition

          (a) Event of Loss With Respect to the Airframe.

          Upon the occurrence of an Event of Loss with respect to the
Airframe, the Owner shall promptly (and in any event within 15 days after
such occurrence) give the Mortgagee written notice of such Event of Loss.
The Owner shall, within 45 days after such occurrence, give the Mortgagee
written notice of Owner's election to either replace the Airframe as
provided under Section 4.05(a)(i) or to make payment in respect of such
Event of Loss as provided under Section 4.05(a)(ii) (it being agreed that
if Owner shall not have given the Mortgagee such notice of such election
within the above specified time period, the Owner shall be deemed to have
elected to make payment in respect of such Event of Loss as provided under
Section 4.05(a)(ii)):

          (i) if Owner elects to replace the Airframe, Owner shall, subject
     to the satisfaction of the conditions contained in Section 4.05(c), as
     promptly as possible and in any event within 120 days after the
     occurrence of such Event of Loss, cause to be subjected to the Lien of
     this Trust Indenture, in replacement of the Airframe with respect to
     which the Event of Loss occurred, a Replacement Airframe and, if any
     Engine shall have been installed on the Airframe when it suffered the
     Event of Loss, a Replacement Engine therefor, such Replacement
     Airframe and Replacement Engines to be free and

<PAGE>

     clear of all Liens except Permitted Liens and to have a value, utility
     and remaining useful life (without regard to hours or cycles remaining
     until the next regular maintenance check) at least equal to the
     Airframe or Engine, as the case may be, to be replaced thereby
     (assuming that such Airframe or Engine had been maintained in
     accordance with this Trust Indenture); provided that if the Owner
     shall not perform its obligation to effect such replacement under this
     clause (i) during the 120-day period of time provided herein, it shall
     pay the amounts required to be paid pursuant to and within the time
     frame specified in clause (ii) below; or

          (ii) if Owner elects to make a payment in respect of such Event
     of Loss of the Airframe, Owner shall make a payment to the Mortgagee
     for purposes of redeeming Equipment Notes in accordance with Section
     2.10 hereof on a date on or before the Business Day next following the
     earlier of (x) the 120th day following the date of the occurrence of
     such Event of Loss with respect to an Airframe or within 60 days of
     such Event of Loss with respect to any Engine, and (y) the fourth
     Business Day following the receipt of insurance proceeds with respect
     to such Event of Loss (but in any event not earlier than the date of
     Owner's election under Section 4.05(a) to make payment under this
     Section 4.05 (a)(ii)); and upon such payment and payment of all other
     Secured Obligations then due and payable, the Mortgagee shall, at the
     cost and expense of the Owner, release from the Lien of this Trust
     Indenture the Airframe and the Engines, by executing and delivering to
     the Owner all documents and instruments as the Owner may reasonably
     request to evidence such release.

          (b) Effect of Replacement. Should the Owner have provided a
Replacement Airframe and Replacement Engines, if any, as provided for in
Section 4.05(a)(i), (i) the Lien of this Trust Indenture shall continue
with respect to such Replacement Airframe and Replacement Engines, if any,
as though no Event of Loss had occurred; (ii) the Mortgagee shall, at the
cost and expense of the Owner, release from the Lien of this Trust
Indenture the replaced Airframe and Engines, if any, by executing and
delivering to the Owner such documents and instruments as the Owner may
reasonably request to evidence such release; and (iii) in the case of a
replacement upon an Event of Loss, the Mortgagee shall assign to the Owner
(or if directed by the Owner, the insurers having made payment in respect
of the applicable Event of Loss) all claims the Mortgagee may have against
any other Person arising from the Event of Loss and the Owner shall receive
all insurance proceeds (other than those reserved to others under Section
4.06(b)) and proceeds from any award in respect of condemnation,
confiscation, seizure or requisition, including any investment interest
thereon, to the extent not previously applied to the purchase price of the
Replacement Airframe and Replacement Engines, if any, as provided in
Sections 4.05(d).

          (c) Conditions to Airframe and Engine Replacement. The Owner's
right to substitute a Replacement Airframe and Replacement Engines, if any,
as provided in Section 4.04(e) or 4.05(a)(i), as the case may be, shall be
subject to the fulfillment, at the Owner's sole cost and expense, in
addition to the conditions contained in such Section 4.04(e) or 4.05(a)(i),
as the case may be, of the following conditions precedent:

          (i) on the date when the Replacement Airframe and Replacement
     Engines, if any, is subjected to the Lien of this Trust Indenture
     (such date being referred to in this Section 4.05 as the "Replacement
     Closing Date"), an executed counterpart of each of the

<PAGE>

     following documents (or, in the case of the FAA Bill of Sale and full
     warranty bill of sale referred to below, a photocopy thereof) shall
     have been delivered to the Mortgagee:

               (A) a Mortgage Supplement covering the Replacement Airframe
          and Replacement Engines, if any, which shall have been duly filed
          for recordation pursuant to the Act or such other applicable law
          of such jurisdiction other than the United States in which the
          Replacement Airframe and Replacement Engines, if any, are to be
          registered in accordance with Section 4.02(d), as the case may
          be;

               (B) an FAA Bill of Sale (or a comparable document, if any,
          of another Aviation Authority, if applicable) covering the
          Replacement Airframe and Replacement Engines, if any, executed by
          the former owner thereof in favor of the Owner;

               (C) a full warranty (as to title) bill of sale, covering the
          Replacement Airframe and Replacement Engines, if any, executed by
          the former owner thereof in favor of the Owner (or, at the
          Owner's option, other evidence of the Owner's ownership of such
          Replacement Airframe and Replacement Engines, if any, reasonably
          satisfactory to the Mortgagee); and

               (D) Uniform Commercial Code financing statements (or any
          similar statements or other documents required to be filed or
          delivered pursuant to the laws of the jurisdiction in which the
          Replacement Airframe and Replacement Engines, if any, may be
          registered in accordance with Section 4.02(d)) as are deemed
          necessary or desirable by counsel for the Mortgagee to protect
          the security interests of the Mortgagee in the Replacement
          Airframe and Replacement Engines, if any;

          (ii) the Replacement Airframe and Replacement Engines, if any,
     shall be of the same model as the Airframe or Engines, as the case may
     be, or an improved model of such aircraft or engines of the
     manufacturer thereof, shall have a value and utility (without regard
     to hours or cycles remaining until the next regular maintenance check)
     at least equal to, and be in as good operating condition and repair
     as, the Airframe and any Engines replaced (assuming such Airframe and
     Engines had been maintained in accordance with this Trust Indenture);

          (iii) the Mortgagee (acting directly or by authorization to its
     special counsel) shall have received satisfactory evidence as to the
     compliance with Section 4.06 with respect to the Replacement Airframe
     and Replacement Engines, if any;

          (iv) on the Replacement Closing Date, (A) the Owner shall cause
     the Replacement Airframe and Replacement Engines, if any, to be
     subject to the Lien of this Trust Indenture free and clear of Liens
     (other than Permitted Liens), (B) the Replacement Airframe shall have
     been duly certified by the FAA or other applicable Aviation Authority
     as to type and airworthiness in accordance with the terms of this
     Trust Indenture and (C) application for registration of the
     Replacement Airframe in accordance with Section 4.02(e) shall have
     been duly made with the FAA or other applicable Aviation Authority and
     the Owner shall have authority to operate the Replacement Airframe;

<PAGE>

          (v) the Mortgagee at the expense of the Owner, shall have
     received (acting directly or by authorization to its special counsel)
     (A) an opinion of counsel, addressed to the Mortgagee, to the effect
     that (1) the Replacement Airframe and Replacement Engine, if any, has
     or have duly been made subject to the Lien of this Trust Indenture,
     and Mortgagee will be entitled to the benefits of Section 1110 with
     respect to the Replacement Airframe, provided that such opinion with
     respect to Section 1110 need not be delivered to the extent that
     immediately prior to such replacement the benefits of Section 1110
     were not, solely by reason of a change in law or court interpretation
     thereof, available to Mortgagee, and (2) the FAA Bills of Sale
     constitutes an effective instrument for the conveyance of title to the
     Replacement Airframe or Replacement Engine, and (B) an opinion of
     Owner's aviation law counsel reasonably satisfactory to and addressed
     to Mortgagee as to the due registration of any such Replacement
     Airframe and the due filing for recordation of each Mortgage
     Supplement with respect to such Replacement Airframe or Replacement
     Engine under the Act or such other applicable law of the jurisdiction
     other than the United States in which the Replacement Airframe is to
     be registered in accordance with Section 4.02(e), as the case may be;
     and

          (vi) the Owner shall have furnished to the Mortgagee a
     certificate of a qualified aircraft engineer (who may be an employee
     of Owner) certifying that the Replacement Airframe and Replacement
     Engines, if any, have a value and utility and remaining useful life
     (without regard to hours and cycles remaining until overhaul) at least
     equal to the Airframe and any Engines so replaced (assuming that such
     Airframe and Engines had been maintained in accordance with this Trust
     Indenture).

          Owner and Mortgagee understand and agree that if, at the time of
any replacement of the Airframe or any Engine(s) as contemplated in this
Section 4.05, the Airframe was registered in a jurisdiction other than the
United States, then the requirements set forth above in this Section 4.05
relating to compliance with the requirements of the Transportation Code or
the FAA shall be deemed to refer to the comparable applicable Law of, and
the Aviation Authority of, such other jurisdiction.

          (d) Non-Insurance Payments Received on Account of an Event of
Loss. Any amounts, other than insurance proceeds in respect of damage or
loss not constituting an Event of Loss (the application of which is
provided for in Annex B), received at any time by Mortgagee or Owner from
any Government Entity or any other Person in respect of any Event of Loss
will be applied as follows:

          (i) If such amounts are received with respect to the Airframe,
     and any Engine installed thereon at the time of such Event of Loss,
     upon compliance by Owner with the applicable terms of Section 4.05(c)
     with respect to the Event of Loss for which such amounts are received,
     such amounts shall be paid over to, or retained by, Owner;

          (ii) If such amounts are received with respect to an Engine
     (other than an Engine installed on the Airframe at the time such
     Airframe suffers an Event of Loss), upon compliance by Owner with the
     applicable terms of Section 4.04(e) with respect to the Event of Loss
     for which such amounts are received, such amounts shall be paid over
     to, or retained by, Owner;

          (iii) If such amounts are received, in whole or in part, with
     respect to the

<PAGE>

     Airframe, and Owner makes, has made or is deemed to have made the
     election set forth in Section 4.05(a)(ii), such amounts shall be
     applied as follows:

               first, if the sum described in Section 4.05(a)(ii) has not
          then been paid in full by Owner, such amounts shall be paid to
          Mortgagee to the extent necessary to pay in full such sum; and

               second, the remainder, if any, shall be paid to Owner.

          (e) Requisition for Use. In the event of a requisition for use by
any Government Entity of the Airframe and the Engines, if any, or engines
installed on such Airframe while such Airframe is subject to the Lien of
this Trust Indenture, the Owner shall promptly notify the Mortgagee of such
requisition and all of the Owner's obligations under this Trust Indenture
shall continue to the same extent as if such requisition had not occurred.
Any payments received by the Mortgagee or the Owner or Permitted Lessee
from such Government Entity with respect to such requisition of use shall
be paid over to, or retained by, the Owner. In the event of the requisition
for use by a Government Entity of such Engine (but not the Airframe), the
Owner will replace such Engine hereunder by complying with the terms of
Section 4.04(e) to the same extent as if an Event of Loss in respect of
such Engine had occurred and any payments received by the Mortgagee or the
Owner from such Government Entity with respect to such requisition shall be
paid over to, or retained by, the Owner.

          (f) Certain Payments to be Held As Security. Any amount referred
to in this Section 4.05 or Section 4.06 which is payable or creditable to,
or retainable by, the Owner shall not be paid or credited to, or retained
by the Owner if at the time of such payment, credit or retention a Special
Default shall have occurred and be continuing, but shall be paid to and
held by the Mortgagee as security for the obligations of the Owner under
this Trust Indenture and the Operative Agreements, and at such time as
there shall not be continuing any such Special Default such amount and any
gain realized as a result of investments required to be made pursuant to
Section 6.06 shall to the extent not theretofore applied as provided
herein, be paid over to the Owner.

          SECTION 4.06. Insurance

          (a) Owner's Obligation to Insure. Owner shall comply with, or
cause to be complied with, each of the provisions of Annex B, which
provisions are hereby incorporated by this reference as if set forth in
full herein.

          (b) Insurance for Own Account. Nothing in Section 4.06 shall
limit or prohibit (a) Owner from maintaining the policies of insurance
required under Annex B with higher limits than those specified in Annex B,
or (b) Mortgagee from obtaining insurance for its own account (and any
proceeds payable under such separate insurance shall be payable as provided
in the policy relating thereto); provided, however, that no insurance may
be obtained or maintained that would limit or otherwise adversely affect
the coverage of any insurance required to be obtained or maintained by
Owner pursuant to this Section 4.06 and Annex B.

          (c) Indemnification by Government in Lieu of Insurance. Mortgagee
agrees to accept, in lieu of insurance against any risk with respect to the
Aircraft described in Annex B, indemnification from, or insurance provided
by, the U.S. Government, or upon the written

<PAGE>

consent of Mortgagee, other Government Entity, against such risk in an
amount that, when added to the amount of insurance (including permitted
self-insurance), if any, against such risk that Owner (or any Permitted
Lessee) may continue to maintain, in accordance with this Section 4.06,
during the period of such requisition or transfer, shall be at least equal
to the amount of insurance against such risk otherwise required by this
Section 4.06.

          (d) Application of Insurance Proceeds. As between Owner and
Mortgagee, all insurance proceeds received as a result of the occurrence of
an Event of Loss with respect to the Aircraft or any Engine under policies
required to be maintained by Owner pursuant to this Section 4.06 will be
applied in accordance with Section 4.05(d). All proceeds of insurance
required to be maintained by Owner, in accordance with Section 4.06 and
Section B of Annex B, in respect of any property damage or loss not
constituting an Event of Loss with respect to the Aircraft, Airframe or any
Engine will be applied in payment (or to reimburse Owner or any Permitted
Lessee) for repairs or for replacement property, and any balance remaining
after such repairs or replacement with respect to such damage or loss shall
be paid over to, or retained by, Owner (or as Owner shall direct).

          SECTION 4.07. Merger of Owner

          (a) In General.

          Owner shall not consolidate with or merge into any other person
under circumstances in which Owner is not the surviving corporation, or
convey, transfer or lease in one or more transactions all or substantially
all of its assets to any other person, unless:

               (i) such person is organized, existing and in good standing
          under the Laws of the United States, any State of the United
          States or the District of Columbia and, upon consummation of such
          transaction, such person will be a U.S. Air Carrier;

               (ii) such person executes and delivers to Mortgagee a duly
          authorized, legal, valid, binding and enforceable agreement,
          reasonably satisfactory in form and substance to Mortgagee,
          containing an effective assumption by such person of the due and
          punctual performance and observance of each covenant, agreement
          and condition in the Operative Agreements to be performed or
          observed by Owner;

               (iii) if the Aircraft is, at the time, registered with the
          FAA, such person makes such filings and recordings with the FAA
          pursuant to the Act as shall be necessary to evidence such
          consolidation or merger or, if the Aircraft is, at the time, not
          registered with the FAA, such person makes such filings and
          recordings with the Aviation Authority as shall be necessary to
          evidence such consolidation or merger; and

               (iv) Owner furnishes Mortgagee an opinion of counsel
          reasonably satisfactory to Mortgagee (and, while the Policy is in
          effect, reasonably satisfactory to Policy Provider) to the effect
          that such consolidation or merger has satisfied at the closing of
          such consolidation or merger items (i), (ii) and (iii) above; and

               (v) immediately after giving effect to such consolidation or
          merger no Event of Default shall have occurred and be continuing.

<PAGE>

          (b) Effect of Merger.

          Upon any such consolidation or merger of Owner with or into, or
the conveyance, transfer or lease by Owner of all or substantially all of
its assets to, any Person in accordance with this Section 4.07, such Person
will succeed to, and be substituted for, and may exercise every right and
power of, Owner under the Operative Agreements with the same effect as if
such person had been named as "Owner" therein. No such consolidation or
merger, or conveyance, transfer or lease, shall have the effect of
releasing Owner or such Person from any of the obligations, liabilities,
covenants or undertakings of Owner under the Trust Indenture.

                                 ARTICLE V

                  EVENTS OF DEFAULT; REMEDIES OF MORTGAGEE

          SECTION 5.01. Event of Default

          "Event of Default" means any of the following events (whatever
the reason for such Event of Default and whether such event shall be
voluntary or involuntary or come about or be effected by operation of Law
or pursuant to or in compliance with any judgment, decree or order of any
court or any order, rule or regulation of any administrative or
Governmental Entity):

          (i) the failure of the Owner or Guarantor to pay (i) principal
     of, interest on or Make-Whole Amount, if any, under any Equipment Note
     when due, and such failure shall continue unremedied for a period of
     ten Business Days, or (ii) any other amount payable by it to the Note
     Holders or any Mortgage Indemnitee under this Trust Indenture or the
     Participation Agreement when due, and such failure shall continue for
     a period in excess of 10 days after Owner has received written notice
     from Mortgagee of the failure to make such payment when due;

          (ii) Owner or Guarantor shall fail to carry and maintain, or
     cause to be carried and maintained, insurance on and in respect of the
     Aircraft, Airframe and Engines in accordance with the provisions of
     Section 4.06;

          (iii) Owner or Guarantor shall fail to observe or perform (or
     caused to be observed and performed) in any material respect any other
     covenant, agreement or obligation set forth herein or in any other
     Operative Agreement to which it is a party and such failure shall
     continue unremedied for a period of 30 days from and after the date of
     written notice thereof to Owner or Guarantor, as the case may be, from
     Mortgagee, unless such failure is capable of being corrected and Owner
     or Guarantor shall be diligently proceeding to correct such failure,
     in which case there shall be no Event of Default unless and until such
     failure shall continue unremedied for a period of 270 days after
     receipt of such notice;

          (iv) any representation or warranty made by Owner or Guarantor
     herein, in the Participation Agreement or in any other Operative
     Agreement to which it is a party (a) shall prove to have been untrue
     or inaccurate in any material respect as of the date made, (b) is
     material at the time in question, and (c) remains uncured (to the
     extent of the adverse impact of such incorrectness on the interest of
     the Mortgagee) for a period

<PAGE>

     in excess of 30 days from and after the date of written notice thereof
     from Mortgagee to Owner or Guarantor;

          (v) the Owner or Guarantor shall consent to the appointment of or
     taking possession by a receiver, trustee or liquidator of itself or of
     a substantial part of its property, or the Owner or Guarantor shall
     admit in writing its inability to pay its debts generally as they come
     due or shall make a general assignment for the benefit of its
     creditors, or the Owner or Guarantor shall file a voluntary petition
     in bankruptcy or a voluntary petition or an answer seeking
     reorganization, liquidation or other relief under any bankruptcy laws
     or insolvency laws (as in effect at such time), or an answer admitting
     the material allegations of a petition filed against it in any such
     case, or the Owner or Guarantor shall seek relief by voluntary
     petition, answer or consent, under the provisions of any other
     bankruptcy or similar law providing for the reorganization or
     winding-up of corporations (as in effect at such time), or the Owner
     or Guarantor shall seek an agreement, composition, extension or
     adjustment with its creditors under such laws;

          (vi) an order, judgment or decree shall be entered by any court
     of competent jurisdiction appointing, without the consent of the
     Owner, a receiver, trustee or liquidator of the Owner or of any
     substantial part of its property, or any substantial part of the
     property of the Owner shall be sequestered, or granting any other
     relief in respect of the Owner as a debtor under any bankruptcy laws
     or other insolvency laws (as in effect at such time), and any such
     order, judgment, decree, or decree of appointment or sequestration
     shall remain in force undismissed, unstayed or unvacated for a period
     of 90 days after the date of entry thereof;

          (vii) a petition against the Owner in a proceeding under any
     bankruptcy laws or other insolvency laws (as in effect at such time)
     is filed and not withdrawn or dismissed within 90 days thereafter, or
     if, under the provisions of any law providing for reorganization or
     winding-up of corporations which may apply to the Owner, any court of
     competent jurisdiction shall assume jurisdiction, custody or control
     of the Owner of any substantial part of its property and such
     jurisdiction, custody or control shall remain in force unrelinquished,
     unstayed or unterminated for a period of 90 days; or

          (viii) the Guarantee shall for any reason whatsoever cease to be
     in full force and effect or Guarantor shall, in writing, repudiate the
     Guarantee or deny that its obligations thereunder are valid, binding
     and enforceable.

          SECTION 5.02. Remedies

          (a) If an Event of Default shall have occurred and be continuing
and so long as the same shall continue unremedied, then and in every such
case the Mortgagee may exercise any or all of the rights and powers and
pursue any and all of the remedies pursuant to this Article V and shall
have and may exercise all of the rights and remedies of a secured party
under the Uniform Commercial Code and may take possession of all or any
part of the properties covered or intended to be covered by the Lien
created hereby or pursuant hereto and may exclude the Owner and all persons
claiming under it wholly or partly therefrom; provided, that the Mortgagee
shall give the Owner fifteen days' prior written notice of its intention to
sell the

<PAGE>

Aircraft. Without limiting any of the foregoing, it is understood and
agreed that the Mortgagee may exercise any right of sale of the Aircraft
available to it, even though it shall not have taken possession of the
Aircraft and shall not have possession thereof at the time of such sale.

          (b) If an Event of Default shall have occurred and be continuing,
then and in every such case the Mortgagee may (and shall, upon receipt of a
written demand therefor from a Majority in Interest of Note Holders), at
any time, by delivery of written notice or notices to the Owner, declare
all the Equipment Notes to be due and payable, whereupon the unpaid
Original Amount of all Equipment Notes then outstanding, together with
accrued but unpaid interest thereon (without Make-Whole Amount) and other
amounts due thereunder or otherwise payable hereunder, shall immediately
become due and payable without presentment, demand, protest or notice, all
of which are hereby waived; provided that if an Event of Default referred
to in clause (v), (vi) or (vii) of Section 5.01 hereof shall have occurred,
then and in every such case the unpaid Original Amount then outstanding,
together with accrued but unpaid interest (without Make-Whole Amount) and
all other amounts due hereunder and under the Equipment Notes shall
immediately and without further act become due and payable without
presentment, demand, protest or notice, all of which are hereby waived.

          This Section 5.02(b), however, is subject to the condition that,
if at any time after the Original Amount of the Equipment Notes shall have
become so due and payable, and before any judgment or decree for the
payment of the money so due, or any thereof, shall be entered, all overdue
payments of interest upon the Equipment Notes and all other amounts payable
hereunder or under the Equipment Notes (except the Original Amount of the
Equipment Notes which by such declaration shall have become payable) shall
have been duly paid, and every other Default and Event of Default with
respect to any covenant or provision of this Trust Indenture shall have
been cured, then and in every such case a Majority in Interest of Note
Holders may (but shall not be obligated to), by written instrument filed
with the Mortgagee, rescind and annul the Mortgagee's declaration (or such
automatic acceleration) and its consequences; but no such rescission or
annulment shall extend to or affect any subsequent Default or Event of
Default or impair any right consequent thereon.

          (c) The Note Holders shall be entitled, at any sale pursuant to
this Section 5.02, to credit against any purchase price bid at such sale by
such holder all or any part of the unpaid obligations owing to such Note
Holder and secured by the Lien of this Trust Indenture (only to the extent
that such purchase price would have been paid to such Note Holder pursuant
to Article III hereof if such purchase price were paid in cash and the
foregoing provisions of this subsection (c) were not given effect).

          (d) In the event of any sale of the Collateral, or any part
thereof, pursuant to any judgment or decree of any court or otherwise in
connection with the enforcement of any of the terms of this Trust
Indenture, the unpaid Original Amount of all Equipment Notes then
outstanding, together with accrued interest thereon (without Make-Whole
Amount), and other amounts due thereunder, shall immediately become due and
payable without presentment, demand, protest or notice, all of which are
hereby waived.

          (e) Notwithstanding anything contained herein, so long as the
Pass Through Trustee under any Pass Through Trust Agreement (or its
designee) is a Note Holder, the Mortgagee will not be authorized or
empowered to acquire title to any Collateral or take any

<PAGE>

action with respect to any Collateral so acquired by it if such acquisition
or action would cause any Trust to fail to qualify as a "grantor trust" for
federal income tax purposes.

          SECTION 5.03. Return of Aircraft, Etc.

          (a) If an Event of Default shall have occurred and be continuing
and the Equipment Notes have been accelerated, at the request of the
Mortgagee, the Owner shall promptly execute and deliver to the Mortgagee
such instruments of title and other documents as the Mortgagee may deem
necessary or advisable to enable the Mortgagee or an agent or
representative designated by the Mortgagee, at such time or times and place
or places as the Mortgagee may specify, to obtain possession of all or any
part of the Collateral to which the Mortgagee shall at the time be entitled
hereunder. If the Owner shall for any reason fail to execute and deliver
such instruments and documents after such request by the Mortgagee, the
Mortgagee may (i) obtain a judgment conferring on the Mortgagee the right
to immediate possession and requiring the Owner to execute and deliver such
instruments and documents to the Mortgagee, to the entry of which judgment
the Owner hereby specifically consents to the fullest extent permitted by
Law, and (ii) pursue all or part of such Collateral wherever it may be
found and may enter any of the premises of Owner wherever such Collateral
may be or be supposed to be and search for such Collateral and take
possession of and remove such Collateral. All expenses of obtaining such
judgment or of pursuing, searching for and taking such property shall,
until paid, be secured by the Lien of this Trust Indenture.

          (b) Upon every such taking of possession, the Mortgagee may, from
time to time, at the expense of the Collateral, make all such expenditures
for maintenance, use, operation, storage, insurance, leasing, control,
management, disposition, modifications or alterations to and of the
Collateral, as it may deem proper. In each such case, the Mortgagee shall
have the right to maintain, use, operate, store, insure, lease, control,
manage, dispose of, modify or alter the Collateral and to exercise all
rights and powers of the Owner relating to the Collateral, as the Mortgagee
shall deem best, including the right to enter into any and all such
agreements with respect to the maintenance, use, operation, storage,
insurance, leasing, control, management, disposition, modification or
alteration of the Collateral or any part thereof as the Mortgagee may
determine, and the Mortgagee shall be entitled to collect and receive
directly all rents, revenues and other proceeds of the Collateral and every
part thereof, without prejudice, however, to the right of the Mortgagee
under any provision of this Trust Indenture to collect and receive all cash
held by, or required to be deposited with, the Mortgagee hereunder. Such
rents, revenues and other proceeds shall be applied to pay the expenses of
the maintenance, use, operation, storage, insurance, leasing, control,
management, disposition, improvement, modification or alteration of the
Collateral and of conducting the business thereof, and to make all payments
which the Mortgagee may be required or may elect to make, if any, for
taxes, assessments, insurance or other proper charges upon the Collateral
or any part thereof (including the employment of engineers and accountants
to examine, inspect and make reports upon the properties and books and
records of the Owner), and all other payments which the Mortgagee may be
required or authorized to make under any provision of this Trust Indenture,
as well as just and reasonable compensation for the services of the
Mortgagee, and of all persons poperly engaged and employed by the Mortgagee
with respect hereto.

<PAGE>

          SECTION 5.04. Remedies Cumulative

          Each and every right, power and remedy given to the Mortgagee
specifically or otherwise in this Trust Indenture shall be cumulative and
shall be in addition to every other right, power and remedy herein
specifically given or now or hereafter existing at Law, in equity or by
statute, and each and every right, power and remedy whether specifically
herein given or otherwise existing may be exercised from time to time and
as often and in such order as may be deemed expedient by the Mortgagee, and
the exercise or the beginning of the exercise of any power or remedy shall
not be construed to be a waiver of the right to exercise at the same time
or thereafter any other right, power or remedy. No delay or omission by the
Mortgagee in the exercise of any right, remedy or power or in the pursuance
of any remedy shall impair any such right, power or remedy or be construed
to be a waiver of any default on the part of the Owner or to be an
acquiescence therein.

          SECTION 5.05. Discontinuance of Proceedings

          In case the Mortgagee shall have instituted any proceeding to
enforce any right, power or remedy under this Trust Indenture by
foreclosure, entry or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason or shall have been determined
adversely to the Mortgagee, then and in every such case the Owner and the
Mortgagee shall, subject to any determination in such proceedings, be
restored to their former positions and rights hereunder with respect to the
Collateral, and all rights, remedies and powers of the Owner or the
Mortgagee shall continue as if no such proceedings had been instituted.

          SECTION 5.06. Waiver of Past Defaults

          Upon written instruction from a Majority in Interest of Note
Holders, the Mortgagee shall waive any past Default hereunder and its
consequences and upon any such waiver such Default shall cease to exist and
any Event of Default arising therefrom shall be deemed to have been cured
for every purpose of this Trust Indenture, but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon;
provided, that in the absence of written instructions from all the Note
Holders, the Mortgagee shall not waive any Default (i) in the payment of
the Original Amount, Make-Whole Amount, if any, and interest and other
amounts due under any Equipment Note then outstanding, or (ii) in respect
of a covenant or provision hereof which, under Article X hereof, cannot be
modified or amended without the consent of each Note Holder.

          SECTION 5.07. Appointment of Receiver

          The Mortgagee shall, as a matter of right, be entitled to the
appointment of a receiver (who may be the Mortgagee or any successor or
nominee thereof) for all or any part of the Collateral, whether such
receivership be incidental to a proposed sale of the Collateral or the
taking of possession thereof or otherwise, and the Owner hereby consents to
the appointment of such a receiver and will not oppose any such
appointment. Any receiver appointed for all or any part of the Collateral
shall be entitled to exercise all the rights and powers of the Mortgagee
with respect to the Collateral.

<PAGE>

          SECTION 5.08. Mortgagee Authorized to Execute Bills of Sale, Etc.

          The Owner irrevocably appoints, while an Event of Default has
occurred and is continuing, the Mortgagee, effective during the continuance
of any Event of Default, the true and lawful attorney-in-fact of the Owner
(which appointment is coupled with an interest) in its name and stead and
on its behalf, for the purpose of effectuating any sale, assignment,
transfer or delivery for the enforcement of the Lien of this Trust
Indenture, whether pursuant to foreclosure or power of sale, assignments
and other instruments as may be necessary or appropriate, with full power
of substitution, the Owner hereby ratifying and confirming all that such
attorney or any substitute shall do by virtue hereof in accordance with
applicable law. Nevertheless, if so requested by the Mortgagee or any
purchaser, the Owner shall ratify and confirm any such sale, assignment,
transfer or delivery, by executing and delivering to the Mortgagee or such
purchaser all bills of sale, assignments, releases and other proper
instruments to effect such ratification and confirmation as may be
designated in any such request.

          SECTION 5.09. Rights of Note Holders to Receive Payment

          Notwithstanding any other provision of this Trust Indenture, the
right of any Note Holder to receive payment of principal of, and premium,
if any, and interest on an Equipment Note on or after the respective due
dates expressed in such Equipment Note, or to bring suit for the
enforcement of any such payment on or after such respective dates in
accordance with the terms hereof, shall not be impaired or affected without
the consent of such Note Holder.

                                 ARTICLE VI

                          DUTIES OF THE MORTGAGEE

          SECTION 6.01. Notice of Event of Default

          If the Mortgagee shall have Actual Knowledge of an Event of
Default or of a Default arising from a failure to pay any installment of
principal and interest on any Equipment Note, the Mortgagee shall give
prompt written notice thereof to each Note Holder. Subject to the terms of
Sections 5.06, 6.02 and 6.03 hereof, the Mortgagee shall take such action,
or refrain from taking such action, with respect to such Event of Default
or Default (including with respect to the exercise of any rights or
remedies hereunder) as the Mortgagee shall be instructed in writing by a
Majority in Interest of Note Holders. Subject to the provisions of Section
6.03, if the Mortgagee shall not have received instructions as above
provided within 20 days after mailing notice of such Event of Default to
the Note Holders, the Mortgagee may, subject to instructions thereafter
received pursuant to the preceding provisions of this Section 6.01, take
such action, or refrain from taking such action, but shall be under no duty
to take or refrain from taking any action, with respect to such Event of
Default or Default as it shall determine advisable in the best interests of
the Note Holders; provided, however, that the Mortgagee may not sell the
Aircraft or any Engine without the consent of a Majority in Interest of
Note Holders. For all purposes of this Trust Indenture, in the absence of
Actual Knowledge on the part of the Mortgagee, the Mortgagee shall not be
deemed to have knowledge of a Default or an Event of Default (except, the
failure of Owner to pay any installment of principal or interest within one
Business Day after the same shall become due, which failure shall
constitute knowledge of a Default) unless notified in writing by the Owner
or one or more Note Holders.

<PAGE>

          SECTION 6.02. Action Upon Instructions; Certain Rights and
Limitations

          Subject to the terms of Sections 5.02(a), 5.06, 6.01 and 6.03
hereof, upon the written instructions at any time and from time to time of
a Majority in Interest of Note Holders, the Mortgagee shall, subject to the
terms of this Section 6.02, take such of the following actions as may be
specified in such instructions: (i) give such notice or direction or
exercise such right, remedy or power hereunder as shall be specified in
such instructions and (ii) give such notice or direction or exercise such
right, remedy or power hereunder with respect to any part of the Collateral
as shall be specified in such instructions; it being understood that
without the written instructions of a Majority in Interest of Note Holders,
the Mortgagee shall not, except as provided in Section 6.01, approve any
such matter as satisfactory to the Mortgagee.

          The Mortgagee will execute and the Owner will file such
continuation statements with respect to financing statements relating to
the security interest created hereunder in the Collateral as may be
specified from time to time in written instructions of a Majority in
Interest of Note Holders (which instructions shall be accompanied by the
form of such continuation statement so to be filed). The Mortgagee will
furnish to each Note Holder, promptly upon receipt thereof, duplicates or
copies of all reports, notices, requests, demands, certificates and other
instruments furnished to the Mortgagee hereunder

          SECTION 6.03. Indemnification

          The Mortgagee shall not be required to take any action or refrain
from taking any action under Section 6.01 (other than the first sentence
thereof), 6.02 or Article V hereof unless the Mortgagee shall have been
indemnified to its reasonable satisfaction against any liability, cost or
expense (including counsel fees) which may be incurred in connection
therewith pursuant to a written agreement with one or more Note Holders.
The Mortgagee agrees that it shall look solely to the Note Holders for the
satisfaction of any indemnity (except expenses for foreclosure of the type
referred to in clause "First" of Section 3.03 hereof) owed to it pursuant
to this Section 6.03. The Mortgagee shall not be under any obligation to
take any action under this Trust Indenture or any other Operative Agreement
and nothing herein or therein shall require the Mortgagee to expend or risk
its own funds or otherwise incur the risk of any financial liability in the
performance of any of its rights or powers if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it (the written
indemnity of any Note Holder who is a QIB, signed by an authorized officer
thereof, in favor of, delivered to and in form reasonably satisfactory to
the Mortgagee shall be accepted as reasonable assurance of adequate
indemnity). The Mortgagee shall not be required to take any action under
Section 6.01 (other than the first sentence thereof) or 6.02 or Article V
hereof, nor shall any other provision of this Trust Indenture or any other
Operative Agreement be deemed to impose a duty on the Mortgagee to take any
action, if the Mortgagee shall have been advised by counsel that such
action is contrary to the terms hereof or is otherwise contrary to Law.

          SECTION 6.04. No Duties Except as Specified in Trust Indenture or
Instructions

          The Mortgagee shall not have any duty or obligation to use,
operate, store, lease, control, manage, sell, dispose of or otherwise deal
with the Aircraft or any other part of the

<PAGE>

Collateral, or to otherwise take or refrain from taking any action under,
or in connection with, this Trust Indenture or any part of the Collateral,
except as expressly provided by the terms of this Trust Indenture or as
expressly provided in written instructions from Note Holders as provided in
this Trust Indenture; and no implied duties or obligations shall be read
into this Trust Indenture against the Mortgagee. The Mortgagee agrees that
it will in its individual capacity and at its own cost and expense (but
without any right of indemnity in respect of any such cost or expense under
Section 8.01 hereof), promptly take such action as may be necessary duly to
discharge all liens and encumbrances on any part of the Collateral which
result from claims against it in its individual capacity not related to the
ownership of the Aircraft or the administration of the Collateral or any
other transaction pursuant to this Trust Indenture or any document included
in the Collateral.

          SECTION 6.05. No Action Except Under Trust Indenture or
Instructions

          The Mortgagee will not use, operate, store, lease, control,
manage, sell, dispose of or otherwise deal with the Aircraft or any other
part of the Collateral except in accordance with the powers granted to, or
the authority conferred upon the Mortgagee pursuant to this Trust Indenture
and in accordance with the express terms hereof.

          SECTION 6.06. Investment of Amounts Held by Mortgagee

          Any amounts held by the Mortgagee pursuant to the proviso to the
first sentence of Section 3.01, pursuant to Section 3.02, or pursuant to
any provision of any other Operative Agreement providing for amounts to be
held by the Mortgagee which are not distributed pursuant to the other
provisions of Article III hereof shall be invested by the Mortgagee from
time to time in Cash Equivalents as directed by the Owner so long as the
Mortgagee may acquire the same using its best efforts. All Cash Equivalents
held by the Mortgagee pursuant to this Section 6.06 shall either be (a)
registered in the name of, payable to the order of, or specially endorsed
to, the Mortgagee, or (b) held in an Eligible Account. Unless otherwise
expressly provided in this Trust Indenture, any income realized as a result
of any such investment, net of the Mortgagee's reasonable fees and expenses
in making such investment, shall be held and applied by the Mortgagee in
the same manner as the principal amount of such investment is to be applied
and any losses, net of earnings and such reasonable fees and expenses,
shall be charged against the principal amount invested. The Mortgagee shall
not be liable for any loss resulting from any investment required to be
made by it under this Trust Indenture other than by reason of its willful
misconduct or gross negligence or negligence in the handling of funds, and
any such investment may be sold (without regard to its maturity) by the
Mortgagee without instructions whenever such sale is necessary to make a
distribution required by this Trust Indenture.

                                ARTICLE VII

                               THE MORTGAGEE

          SECTION 7.01. Acceptance of Trusts and Duties

          The Mortgagee accepts the duties hereby created and applicable to
it and agrees to perform the same but only upon the terms of this Trust
Indenture and agrees to receive and disburse all monies constituting part
of the Trust Indenture Estate in accordance with the terms hereof. The
Mortgagee, in its individual capacity, shall not be answerable or
accountable under

<PAGE>

any circumstances, except (i) for its own willful misconduct or gross
negligence (other than for the handling of funds, for which the standard of
accountability shall be willful misconduct or negligence), (ii) as provided
in the fourth sentence of Section 2.04(a) hereof and the last sentence of
Section 6.04 hereof, and (iii) from the inaccuracy of any representation or
warranty of the Mortgagee (in its individual capacity) in the Participation
Agreement or expressly made hereunder.

          SECTION 7.02. Absence of Duties

          Except in accordance with written instructions furnished pursuant
to Section 6.01 or 6.02 hereof, and except as provided in, and without
limiting the generality of, Sections 6.03, 6.04 and 7.07 hereof the
Mortgagee shall have no duty (i) to see to any registration of the Aircraft
or any recording or filing of this Trust Indenture or any other document,
or to see to the maintenance of any such registration, recording or filing,
(ii) to see to any insurance on the Aircraft or to effect or maintain any
such insurance, whether or not Owner shall be in default with respect
thereto, (iii) to see to the payment or discharge of any lien or
encumbrance of any kind against any part of the Collateral, (iv) to
confirm, verify or inquire into the failure to receive any financial
statements from Owner, or (v) to inspect the Aircraft at any time or
ascertain or inquire as to the performance or observance of any of Owner's
covenants herein or any Permitted Lessee's covenants under any assigned
Permitted Lease with respect to the Aircraft.

          SECTION 7.03. No Representations or Warranties as to Aircraft or
Documents

          THE MORTGAGEE IN ITS INDIVIDUAL OR TRUST CAPACITY DOES NOT MAKE
AND SHALL NOT BE DEEMED TO HAVE MADE AND HEREBY EXPRESSLY DISCLAIMS ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE TITLE,
AIRWORTHINESS, VALUE, COMPLIANCE WITH SPECIFICATIONS, CONDITION, DESIGN,
QUALITY, DURABILITY, OPERATION, MERCHANTABILITY OR FITNESS FOR USE FOR A
PARTICULAR PURPOSE OF THE AIRCRAFT OR ANY ENGINE, AS TO THE ABSENCE OF
LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, AS TO THE ABSENCE OF
ANY INFRINGEMENT OF ANY PATENT, TRADEMARK OR COPYRIGHT, AS TO THE ABSENCE
OF OBLIGATIONS BASED ON STRICT LIABILITY IN TORT OR ANY OTHER
REPRESENTATION OR WARRANTY WHATSOEVER. The Mortgagee, in its individual or
trust capacities, does not make or shall not be deemed to have made any
representation or warranty as to the validity, legality or enforceability
of this Trust Indenture, the Participation Agreement, the Equipment Notes,
or the Purchase Agreement or the Guarantee, or as to the correctness of any
statement contained in any thereof, except for the representations and
warranties of the Owner made in its individual capacity and the
representations and warranties of the Mortgagee in its individual capacity,
in each case expressly made in this Trust Indenture or in the Participation
Agreement. The Note Holders make no representation or warranty hereunder
whatsoever.

          SECTION 7.04. No Segregation of Monies; No Interest

          Any monies paid to or retained by the Mortgagee pursuant to any
provision

<PAGE>

hereof and not then required to be distributed to the Note Holders, or the
Owner as provided in Article III hereof need not be segregated in any
manner except to the extent required by Law or Section 6.06 hereof, and may
be deposited under such general conditions as may be prescribed by Law, and
the Mortgagee shall not be liable for any interest thereon (except that the
Mortgagee shall invest all monies held as directed by Owner so long as no
Event of Default or Default has occurred and is continuing (or in the
absence of such direction, by the Majority In Interest of Note Holders) in
Cash Equivalents either registered in the name of the Mortgagee or credited
to an Eligible Account of the type described in clause (a) of the
definition thereof; provided, however, that any payments received, or
applied hereunder, by the Mortgagee shall be accounted for by the Mortgagee
so that any portion thereof paid or applied pursuant hereto shall be
identifiable as to the source thereof.

          SECTION 7.05. Reliance; Agreements; Advice of Counsel

          The Mortgagee shall not incur any liability to anyone in acting
upon any signature, instrument, notice, resolution, request, consent,
order, certificate, report, opinion, bond or other document or paper
believed by it to be genuine and believed by it to be signed by the proper
party or parties. The Mortgagee may accept a copy of a resolution of the
Board of Directors (or Executive Committee thereof) of the Owner, certified
by the Secretary or an Assistant Secretary thereof as duly adopted and in
full force and effect, as conclusive evidence that such resolution has been
duly adopted and that the same is in full force and effect. As to the
aggregate unpaid Original Amount of Equipment Notes outstanding as of any
date, the Owner may for all purposes hereof rely on a certificate signed by
any Vice President or other authorized corporate trust officer of the
Mortgagee. As to any fact or matter relating to the Owner the manner of
which is not specifically described herein, the Mortgagee may for all
purposes hereof rely on a certificate, signed by a duly authorized officer
of the Owner, as to such fact or matter, and such certificate shall
constitute full protection to the Mortgagee for any action taken or omitted
to be taken by it in good faith in reliance thereon. In the administration
of the trusts hereunder, the Mortgagee may execute any of the trusts or
powers hereof and perform its powers and duties hereunder directly or
through agents or attorneys and may, at the expense of the Collateral,
advise with counsel, accountants and other skilled persons to be selected
and retained by it, and the Mortgagee shall not be liable for anything
done, suffered or omitted in good faith by it in accordance with the
written advice or written opinion of any such counsel, accountants or other
skilled persons.

          SECTION 7.06. Compensation

          (a) The Mortgagee shall be entitled to reasonable compensation
for all services rendered hereunder and shall, on and subsequent to an
Event of Default hereunder, have a priority claim on the Collateral for the
payment of such compensation (and for expenses and disbursements, including
the reasonable fees and expenses of counsel), to the extent that such
compensation shall not be paid by Owner, and shall have the right, on and
subsequent to an Event of Default hereunder, to use or apply any monies
held by it hereunder in the Collateral toward such payments. The Mortgagee
agrees that it shall have no right against the Note Holders for any fee as
compensation for its services as trustee under this Trust Indenture.

          (b) The Owner agrees to indemnify the Mortgagee against any taxes
imposed upon it relating to, or arising out of the performance of its
responsibilities hereunder other than

<PAGE>

taxes, fees or charges based on, or measured by any fees or compensation
received by the Mortgagee for services rendered in connection with the
Transaction.

          SECTION 7.07. Instructions from Note Holders

          In the administration of the trusts created hereunder, the
Mortgagee shall have the right to seek instructions from a Majority in
Interest of Note Holders should any provision of this Trust Indenture
appear to conflict with any other provision herein or should the
Mortgagee's duties or obligations hereunder be unclear, and the Mortgagee
shall incur no liability in refraining from acting until it receives such
instructions. The Mortgagee shall be fully protected for acting in
accordance with any instructions received under this Section 7.07.

                                ARTICLE VIII

                              INDEMNIFICATION

          SECTION 8.01. Scope of Indemnification

          The Mortgagee shall be indemnified by the Owner to the extent and
in the manner provided in Section 7 of the Participation Agreement.

                                 ARTICLE IX

                      SUCCESSOR AND SEPARATE TRUSTEES

          SECTION 9.01. Resignation of Mortgagee; Appointment of Successor

          (a) The Mortgagee or any successor thereto may resign at any time
without cause by giving at least 30 days' prior written notice to the Owner
and each Note Holder, such resignation to be effective upon the acceptance
of the trusteeship by a successor Mortgagee. In addition, a Majority in
Interest of Note Holders may at any time (but only with the consent of
Owner, which consent shall not be unreasonably withheld, except that such
consent shall not be necessary if an Event of Default is continuing) remove
the Mortgagee without cause by an instrument in writing delivered to the
Owner and the Mortgagee, and the Mortgagee shall promptly notify each Note
Holder thereof in writing, such removal to be effective upon the acceptance
of the trusteeship by a successor Mortgagee. In the case of the resignation
or removal of the Mortgagee, a Majority in Interest of Note Holders may
appoint a successor Mortgagee by an instrument signed by such holders,
which successor, so long as no Event of Default shall have occurred and be
continuing, shall be subject to Owner's reasonable approval. If a successor
Mortgagee shall not have been appointed within 30 days after such notice of
resignation or removal, the Mortgagee, the Owner or any Note Holder may
apply to any court of competent jurisdiction to appoint a successor
Mortgagee to act until such time, if any, as a successor shall have been
appointed as above provided. The successor Mortgagee so appointed by such
court shall immediately and without further act be superseded by any
successor Mortgagee appointed as above provided.

          (b) Any successor Mortgagee, however appointed, shall execute and
deliver to the Owner and the predecessor Mortgagee an instrument acceptingsuch
appointment and assuming the obligations of the Mortgagee arising from and
after the time

<PAGE>

of such appointment, and thereupon such successor Mortgagee, without
further act, shall become vested with all the estates, properties, rights,
powers and duties of the predecessor Mortgagee hereunder in the trust
hereunder applicable to it with like effect as if originally named the
Mortgagee herein; but nevertheless upon the written request of such
successor Mortgagee, such predecessor Mortgagee shall execute and deliver
an instrument transferring to such successor Mortgagee, upon the trusts
herein expressed applicable to it, all the estates, properties, rights and
powers of such predecessor Mortgagee, and such predecessor Mortgagee shall
duly assign, transfer, deliver and pay over to such successor Mortgagee all
monies or other property then held by such predecessor Mortgagee hereunder.

          (c) Any successor Mortgagee, however appointed, shall be a bank
or trust company having its principal place of business in the Borough of
Manhattan, City and State of New York; Chicago, Illinois; Hartford,
Connecticut; Wilmington, Delaware; or Salt Lake City, Utah; and having (or
whose obligations under the Operative Agreements are guaranteed by an
affiliated entity having) a combined capital and surplus of at least
$100,000,000, if there be such an institution willing, able and legally
qualified to perform the duties of the Mortgagee hereunder upon reasonable
or customary terms.

          (d) Any corporation into which the Mortgagee 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
Mortgagee shall be a party, or any corporation to which substantially all
the corporate trust business of the Mortgagee may be transferred, shall,
subject to the terms of paragraph (c) of this Section 9.01, be a successor
Mortgagee and the Mortgagee under this Trust Indenture without further act.

          SECTION 9.02. Appointment of Additional and Separate Trustees

          (a) Whenever (i) the Mortgagee shall deem it necessary or
desirable in order to conform to any Law of any jurisdiction in which all
or any part of the Collateral shall be situated or to make any claim or
bring any suit with respect to or in connection with the Collateral this
Trust Indenture, any other Indenture Agreement, the Equipment Notes or any
of the transactions contemplated by the Participation Agreement, (ii) the
Mortgagee shall be advised by counsel satisfactory to it that it is so
necessary or prudent in the interests of the Note Holders (and the
Mortgagee shall so advise the Owner), or (iii) the Mortgagee shall have
been requested to do so by a Majority in Interest of Note Holders, then in
any such case, the Mortgagee and, upon the written request of the
Mortgagee, the Owner, shall execute and deliver an indenture supplemental
hereto and such other instruments as may from time to time be necessary or
advisable either (1) to constitute one or more bank or trust companies or
one or more persons approved by the Mortgagee, either to act jointly with
the Mortgagee as additional trustee or trustees of all or any part of the
Collateral, or to act as separate trustee or trustees of all or any part of
the Collateral, in each case with such rights, powers, duties and
obligations consistent with this Trust Indenture as may be provided in such
supplemental indenture or other instruments as the Mortgagee or a Majority
in Interest of Note Holders may deem necessary or advisable, or (2) to
clarify, add to or subtract from the rights, powers, duties and obligations
theretofore granted any such additional or separate trustee, subject in
each case to the remaining provisions of this Section 9.02. If the Owner
shall not have taken any action requested of it under this Section 9.02(a)
that is permitted or required by its terms within 15 days after the receipt
of a written request from the Mortgagee so to do, or if an Event of Default
shall have

<PAGE>

occurred and be continuing, the Mortgagee may act under the foregoing
provisions f this Section 9.02(a) without the concurrence of the Owner, and
the Owner hereby irrevocably appoints (which appointment is coupled with an
interest) the Mortgagee, its agent and attorney-in-fact to act for it under
the foregoing provisions of this Section 9.02(a) in either of such
contingencies. The Mortgagee may, in such capacity, execute, deliver and
perform any such supplemental indenture, or any such instrument, as may be
required for the appointment of any such additional or separate trustee or
for the clarification of, addition to or subtraction from the rights,
powers, duties or obligations theretofore granted to any such additional or
separate trustee. In case any additional or separate trustee appointed
under this Section 9.02(a) shall die, become incapable of acting, resign or
be moved, all the assets, property, rights, powers, trusts, duties and
obligations of such additional or separate trustee shall revert to the
Mortgagee until a successor additional or separate trustee is appointed as
provided in this Section 9.02(a).

          (b) No additional or separate trustee shall be entitled to
exercise any of the rights, powers, duties and obligations conferred upon
the Mortgagee in respect of the custody, investment and payment of monies
and all monies received by any such additional or separate trustee from or
constituting part of the Collateral or otherwise payable under any
Operative Agreement to the Mortgagee shall be promptly paid over by it to
the Mortgagee. All other rights, powers, duties and obligations conferred
or imposed upon any additional or separate trustee shall be exercised or
performed by the Mortgagee and such additional or separate trustee jointly
except to the extent that applicable Law of any jurisdiction in which any
particular act is to be performed renders the Mortgagee incompetent or
unqualified to perform such act, in which event such rights, powers, duties
and obligations (including the holding of title to all or part of the
Collateral in any such jurisdiction) shall be exercised and performed by
such additional or separate trustee. No additional or separate trustee
shall take any discretionary action except on the instructions of the
Mortgagee or a Majority in Interest of Note Holders. No trustee hereunder
shall be personally liable by reason of any act or omission of any other
trustee hereunder, except that the Mortgagee shall be liable for the
consequences of its lack of reasonable care in selecting, and the
Mortgagee's own actions in acting with, any additional or separate trustee.
Each additional or separate trustee appointed pursuant to this Section 9.02
shall be subject to, and shall have the benefit of Articles V through IX
and Article XI hereof insofar as they apply to the Mortgagee. The powers of
any additional or separate trustee appointed pursuant to this Section 9.02
shall not in any case exceed those of the Mortgagee hereunder.

          (c) If at any time the Mortgagee shall deem it no longer
necessary or in order to conform to any such Law or take any such action or
shall be advised by such counsel that it is no longer so necessary or
desirable in the interest of the Note Holders, or in the event that the
Mortgagee shall have been requested to do so in writing by a Majority in
Interest of Note Holders, the Mortgagee and, upon the written request of
the Mortgagee, the Owner, shall execute and deliver an indenture
supplemental hereto and all other instruments and agreements necessary or
proper to remove any additional or separate trustee. The Mortgagee may act
on behalf of the Owner under this Section 9.02(c) when and to the extent it
could so act under Section 9.02(a) hereof.

<PAGE>

                                 ARTICLE X

             SUPPLEMENTS AND AMENDMENTS TO THIS TRUST INDENTURE
                            AND OTHER DOCUMENTS

          SECTION 10.01. Instructions of Majority; Limitations

          (a) The Mortgagee agrees with the Note Holders that it shall not
enter into any amendment, waiver or modification of, supplement or consent
to this Trust Indenture, or any other Operative Agreement to which it is a
party, unless such supplement, amendment, waiver, modification or consent
is consented to in writing by a Majority in Interest of Note Holders, but
upon the written request of a Majority in Interest of Note Holders, the
Mortgagee shall from time to time enter into any such supplement or
amendment, or execute and deliver any such waiver, modification or consent,
as may be specified in such request and as may be (in the case of any such
amendment, supplement or modification), to the extent such agreement is
required, agreed to by the Owner, as may be appropriate, the Airframe
Manufacturer or the Engine Manufacturer; provided, however, that, without
the consent of each holder of an affected Equipment Note then outstanding
and of the Liquidity Provider and Policy Provider, no such amendment,
waiver or modification of the terms of, or consent under, any thereof,
shall (i) modify any of the provisions of this Section 10.01, or of Article
II or III or Section 5.01, 5.02(c), 5.02(d), 6.01 or 6.02 hereof, the
definitions of "Event of Default," "Default," "Majority in Interest of Note
Holders," "Make- Whole Amount" or "Note Holder," or the percentage of Note
Holders required to take or approve any action hereunder, (ii) reduce the
amount, or change the time of payment or method of calculation of any
amount, of Original Amount, Make-Whole Amount, if any, or interest with
respect to any Equipment Note, (iii) reduce, modify or amend any
indemnities in favor of the Mortgagee or the Note Holders (except that the
Mortgagee may consent to any waiver or reduction of an indemnity payable to
it), or (iv) permit the creation of any Lien on the Trust Indenture Estate
or any part thereof other than Permitted Liens or deprive any Note Holder
of the benefit of the Lien of this Trust Indenture on the Collateral,
except as provided in connection with the exercise of remedies under
Article V hereof.

          (b) The Owner and the Mortgagee may enter into one or more
agreements supplemental hereto without the consent of any Note Holder for
any of the following purposes: (i) (a) to cure any defect or inconsistency
herein or in the Equipment Notes, or to make any change not inconsistent
with the provisions hereof (provided that such change does not adversely
affect the interests of any Note Holder in its capacity solely as Note
Holder) or (b) to cure any ambiguity or correct any mistake; (ii) to
evidence the succession of another party as the Owner in accordance with
the terms hereof or to evidence the succession of a new trustee hereunder
pursuant hereto, the removal of the trustee hereunder or the appointment of
any co-trustee or co- trustees or any separate or additional trustee or
trustees; (iii) to convey, transfer, assign, mortgage or pledge any
property to or with the Mortgagee or to make any other provisions with
respect to matters or questions arising hereunder so long as such action
shall not adversely affect the interests of the Note Holders in its
capacity solely as Note Holder; (iv) to correct or amplify the description
of any property at any time subject to the Lien of this Trust Indenture or
better to assure, convey and confirm unto the Mortgagee any property
subject or required to be subject to the Lien of this Trust Indenture, the
Airframe or Engines or any Replacement Airframe or Replacement Engine; (v)
to add to the covenants of the Owner for the benefit of the Note

<PAGE>

Holders, or to surrender any rights or power herein conferred upon the
Owner; (vi) to add to the rights of the Note Holders; (vii) to include on
the Equipment Notes any legend as may be required by Law; and (viii)
subject to the provisions of Section 8.3 of the Participation Agreement and
Section 1 (j) of the Note Purchase Agreement, to give effect to a
sale-leaseback transaction.

          SECTION 10.02. Mortgagee Protected

          If, in the opinion of the institution acting as Mortgagee
hereunder, any document required to be executed by it pursuant to the terms
of Section 10.01 hereof affects any right, duty, immunity or indemnity with
respect to such institution under this Trust Indenture, such institution
may in its discretion decline to execute such document.

          SECTION 10.03. Documents Mailed to Note Holders

          Promptly after the execution by the Owner or the Mortgagee of any
document entered into pursuant to Section 10.01 hereof, the Mortgagee shall
mail, by first class mail, postage prepaid, a copy thereof to Owner (if not
a party thereto) and to each Note Holder at its address last set forth in
the Equipment Note Register, but the failure of the Mortgagee to mail such
copies shall not impair or affect the validity of such document.

          SECTION 10.04. No Request Necessary for Mortgage Supplement

          No written request or consent of the Note Holders pursuant to
Section 10.01 hereof shall be required to enable the Mortgagee to execute
and deliver a Mortgage Supplement specifically required by the terms
hereof.

          SECTION 10.05. Notices to Liquidity Provider and Policy Provider.
Any request made to any Note Holder for consent to any amendment or
supplement to this Trust Indenture or the Equipment Notes pursuant to this
Article X shall be promptly furnished by the Loan Trustee to each Liquidity
Provider and the Policy Provider.

                                 ARTICLE XI

                               MISCELLANEOUS

          SECTION 11.01. Termination of Trust Indenture

          Upon (or at any time after) payment in full of the Original
Amount of, Make- Whole Amount, if any, and interest on and all other
amounts due under all Equipment Notes and provided that there shall then be
no other Secured Obligations due to the Mortgage Indemnitees, the Note
Holders and the Mortgagee hereunder or under the Participation Agreement or
other Operative Agreement, the Owner shall direct the Mortgagee to execute
and deliver to or as directed in writing by the Owner an appropriate
instrument releasing the Aircraft and the Engines and all other Collateral
from the Lien of the Trust Indenture and the Mortgagee shall execute and
deliver such instrument as aforesaid; provided, however, that this Trust
Indenture

<PAGE>

and the trusts created hereby shall earlier terminate and this Trust
Indenture shall be of no further force or effect upon any sale or other
final disposition by the Mortgagee of all property constituting part of the
Collateral and the final distribution by the Mortgagee of all monies or
other property or proceeds constituting part of the Collateral in
accordance with the terms hereof. Except as aforesaid otherwise provided,
this Trust Indenture and the trusts created hereby shall continue in full
force and effect in accordance with the terms hereof.

          SECTION 11.02. No Legal Title to Collateral in Note Holders

          No holder of an Equipment Note shall have legal title to any part
of the Collateral. No transfer, by operation of law or otherwise, of any
Equipment Note or other right, title and interest of any Note Holder in and
to the Collateral or hereunder shall operate to terminate this Trust
Indenture or entitle such holder or any successor or transferee of such
holder to an accounting or to the transfer to it of any legal title to any
part of the Collateral.

          SECTION 11.03. Sale of Aircraft by Mortgagee Is Binding

          Any sale or other conveyance of the Collateral, or any part
thereof (including any part thereof or interest therein), by the Mortgagee
made pursuant to the terms of this Trust Indenture shall bind the Note
Holders and shall be effective to transfer or convey all right, title and
interest of the Mortgagee, the Owner and such holders in and to such
Collateral or part thereof. No purchaser or other grantee shall be required
to inquire as to the authorization, necessity, expediency or regularity of
such sale or conveyance or as to the application of any sale or other
proceeds with respect thereto by the Mortgagee.

          SECTION 11.04. Trust Indenture for Benefit of Owner, Mortgagee,
Note Holders and the other Mortgage Indemnitees

          Nothing in this Trust Indenture, whether express or implied,
shall be construed to give any person other than the Owner, the Mortgagee,
the Note Holders and the other Mortgage Indemnitees, any legal or equitable
right, remedy or claim under or in respect of this Trust Indenture, except
that the persons referred to in the last paragraph of Section 4.02(b) shall
be third party beneficiaries of such paragraph.

          SECTION 11.05. Notices

          Unless otherwise expressly specified or permitted by the terms
hereof, all notices, requests, demands, authorizations, directions,
consents, waivers or documents provided or permitted by this Trust
Indenture to be made, given, furnished or filed shall be in writing,
personally delivered or mailed by certified mail, postage prepaid, or by
facsimile or confirmed telex, and (i) if to the Owner, addressed to it at
Indianapolis International Airport, 7337 West Washington Street,
Indianapolis, Indiana 46231, Attention: Executive Vice President and Chief
Financial Officer, facsimile number (317) 240-7091, (ii) if to Mortgagee,
addressed to it at its office at Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890, Attention: Corporate Trust
Administration, facsimile number (302) 651-8882, (iii) if to any Note
Holder or any Indenture Indemnitee, addressed to such party at such address
as such party shall have furnished by notice to the Owner and the
Mortgagee, or, until an address is so furnished, addressed to the address
of such party (if any) set forth on Schedule 1 to the Participation
Agreement or in the Equipment Note Register. Whenever any notice in writing
is required to be

<PAGE>

given by the Owner or the Mortgagee or any Note Holder to any of the other
of them, such notice shall be deemed given and such requirement satisfied
when such notice is received, or if made, given, furnished or filed by
facsimile or telecommunication transmission, when received unless received
outside of business hours, in which case on the next open of business on a
Business Day. Any party hereto may change the address to which notices to
such party will be sent by giving notice of such change to the other
parties to this Trust Indenture.

          SECTION 11.06. Severability

          Any provision of this Trust Indenture which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any such prohibition or
unenforceability in any particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

          SECTION 11.07. No Oral Modification or Continuing Waivers

          No term or provision of this Trust Indenture or the Equipment
Notes may be changed, waived, discharged or terminated orally, but only by
an instrument in writing signed by the Owner and the Mortgagee, in
compliance with Section 10.01 hereof. Any waiver of the terms hereof or of
any Equipment Note shall be effective only in the specific instance and for
the specific purpose given.

          SECTION 11.08. Successors and Assigns

          All covenants and agreements contained herein shall be binding
upon, and inure to the benefit of, each of the parties hereto and the
permitted successors and assigns of each, all as herein provided. Any
request, notice, direction, consent, waiver or other instrument or action
by any Note Holder shall bind the successors and assigns of such holder.
Each Note Holder by its acceptance of an Equipment Note agrees to be bound
by this Trust Indenture and all provisions of the Operative Agreements
applicable to a Note Holder.

          SECTION 11.09. Headings

          The headings of the various Articles and sections herein and in
the table of contents hereto are for convenience of reference only and
shall not define or limit any of the terms or provisions hereof.

          SECTION 11.10. Normal Commercial Relations

          Anything contained in this Trust Indenture to the contrary
notwithstanding. Owner and Mortgagee may conduct any banking or other
financial transactions, and have banking or other commercial relationships,
with Owner, fully to the same extent as if this Trust Indenture were not in
effect, including without limitation the making of loans or other
extensions of credit to Owner for any purpose whatsoever, whether related
to any of the transactions contemplated hereby or otherwise.

<PAGE>

          SECTION 11.11 Governing Law; Counterpart Form

          THIS TRUST INDENTURE SHALL IN ALL RESPECTS BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING
ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. THIS TRUST INDENTURE
IS BEING DELIVERED IN THE STATE OF NEW YORK. This Trust Indenture may be
executed by the parties hereto in separate counterparts (or upon separate
signature pages bound together into one or more counterparts), each of
which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

          SECTION 11.12. Voting By Note Holders

          All votes of the Note Holders shall be governed by a vote of a
Majority in Interest of Note Holders, except as otherwise provided herein.

          SECTION 11.13. Bankruptcy

          It is the intention of the parties that the Mortgagee shall be
entitled to the benefits of Section 1110 with respect to the right to take
possession of the Aircraft. Airframe, Engines and Parts as provided herein
in the event of a case under Chapter 11 of the Bankruptcy Code in which
Owner is a debtor, and in any instance where more than one construction is
possible of the terms and conditions hereof or any other pertinent
Operative Agreement, each such party agrees that a construction which would
preserve such benefits shall control over any construction which would not
preserve such benefits.

          SECTION 11.14. Payments With Respect to Insured Obligations.

          Anything in this Trust Indenture or the Equipment Notes to the
contrary notwithstanding, any payment with respect to the Insured Obligations
(as defined in the Policy) that is made with funds received pursuant to the
terms of the Policy shall not be considered payment on the Equipment Notes by
the Owner, shall not discharge any obligations of the Owner to make such
payment and shall not result in the payment of (or the provisions for the
payment of) any Insured Obligations for the purposes of Section 2.05.

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

                             AMERICAN TRANS AIR, INC.

                             By:___________________________________
                                      Name:
                                      Title:

                             WILMINGTON TRUST COMPANY,
                                      as Mortgagee

                             By:___________________________________
                                      Name:
                                      Title:

<PAGE>

                                  ANNEX A

                                DEFINITIONS

                       [From Participation Agreement]

<PAGE>

                                  ANNEX B

                                 INSURANCE

          Capitalized terms used but not defined herein shall have the
respective meanings set forth or incorporated by reference in Annex A to
the Trust Indenture.

A.       Liability Insurance

          1. Except as provided in Section A.2 below, Owner will carry or
cause to be carried at all times, at no expense to Mortgagee, comprehensive
airline legal liability (including, but not limited to passenger liability,
property damage, and contractual liability insurance) with respect to the
Aircraft, the Airframe and the Engines, which is (i) in an amount not less
than the greater of (x) the amount of comprehensive airline legal liability
insurance from time to time applicable to aircraft owned or leased and
operated by Owner of the same type and operating on similar routes as the
Aircraft and (y) the Minimum Liability Insurance Amount per occurrence;(ii)
of the type and covering the same risks as from time to time applicable to
aircraft operated by Owner of the same type as the Aircraft; and (iii)
maintained in effect with insurers of nationally or internationally
recognized responsibility (such insurers being referred to herein as
"Approved Insurers").

          2. During any period that the Aircraft is on the ground and not
in operation, Owner may carry or cause to be carried, in lieu of the
insurance required by Section A.1 above, insurance otherwise conforming
with the provisions of said Section A.1 except that (i) the amounts of
coverage shall not be required to exceed the amounts of public liability
and property damage insurance from time to time applicable to aircraft
owned or operated by Owner of the same type as the Aircraft which are on
the ground and not in operation and (ii) the scope of the risks covered and
the type of insurance shall be the same as from time to time shall be
applicable to aircraft owned or operated by Owner of the same type which
are on the ground and not in operation.

B.       Hull Insurance

          1. Except as provided in Section B.2 below, Owner will carry or
cause to be carried at all times, at no expense to Mortgagee, with Approved
Insurers "all-risk" ground and flight aircraft hull insurance covering each
Aircraft (including the Engines when they are installed on the Airframe or
any other airframe) which is of the type as from time to time applicable to
aircraft owned by Owner of the same type as the Aircraft for an amount
denominated in United States Dollars not less than the unpaid Original
Amount together with six months of interest accrued thereon (the "Debt
Balance").

          Any policies of insurance carried in accordance with this Section
B.1 covering the Aircraft and any policies taken out in substitution or
replacement for any such policies (i) shall name Mortgagee as exclusive
loss payee for any proceeds to be paid under such policies up to an amount
equal to the Debt Balance and (ii) shall provide that (A) in the event of a
loss involving proceeds in excess of the Threshold Amount, the proceeds in
respect of such loss up to an

                                     1

<PAGE>

amount equal to the Debt Balance shall be payable to the Mortgagee, except
in the case of a loss with respect to an Engine installed on an airframe
other than the Airframe, in which case Owner (or any Permitted Lessee)
shall endeavor to arrange for any payment of insurance proceeds in respect
of such loss to be held for the account of the Mortgagee whether such
payment is made to Owner (or any Permitted Lessee) or any third party, it
being understood and agreed that in the case of any payment to Mortgagee
otherwise than in respect of an Event of Loss, the Mortgagee shall, upon
receipt of evidence satisfactory to it that the damage giving rise to such
payment shall have been repaired or that such payment shall then be
required to pay for repairs then being made, pay the amount of such payment
to Owner or its order, and (B) the entire amount of any loss involving
proceeds of the Threshold Amount or less or the amount of any proceeds of
any loss in excess of the Debt Balance shall be paid to Owner or its order
unless an Event of Default shall have occurred and be continuing and the
insurers have been notified thereof by the Mortgagee. In the case of a loss
with respect to an engine (other than an Engine) installed on the Airframe,
Mortgagee shall hold any payment to it of any insurance proceeds in respect
of such loss for the account of Owner or any other third party that is
entitled to receive such proceeds.

          2. During any period that the Aircraft is on the ground and not
in operation, Owner may carry or cause to be carried, in lieu of the
insurance required by Section B.1 above, insurance otherwise conforming
with the provisions of said Section B.1 except that the scope of the risks
and the type of insurance shall be the same as from time to time applicable
to aircraft owned by Owner of the same type similarly on the ground and not
in operation, provided that Owner shall maintain insurance against risk of
loss or damage to the Aircraft in an amount equal to the Debt Balance
during such period that the Aircraft is on the ground and not in operation.

C.       War-Risk, Hijacking and Allied Perils Insurance

          If Owner (or any Permitted Lessee) shall at any time operate or
propose to operate the Aircraft, Airframe or any Engine (i) in any area of
recognized hostilities or (ii) on international routes and war-risk,
hijacking or allied perils insurance is maintained by Owner (or any
Permitted Lessee) with respect to other aircraft owned or operated by Owner
(or any Permitted Lessee) on such routes or in such areas, Owner shall
maintain or cause to be maintained war-risk, hijacking and allied perils
insurance of substantially the same type carried by similar United States
commercial air carriers operating the same or comparable models of aircraft
on similar routes or in such areas and in no event in an amount less than
the unpaid Original Amount.

D.       General Provisions

          Any policies of insurance carried in accordance with Sections A,
B and C, including any policies taken out in substitution or replacement
for such policies:

               (i) shall name Mortgagee, each Note Holder, each Liquidity
          Provider and the Policy Provider as an additional insured
          (collectively, the "Additional Insureds"), as its interests may
          appear;

                                     2

<PAGE>

          (ii) shall apply worldwide and have no territorial restrictions
     or limitations (except only in the case of war, hijacking and allied
     perils insurance required under Section C, which shall apply to the
     fullest extent available in the international insurance market);

          (iii) shall provide that, in respect of the interests of the
     Additional Insureds in such policies, the insurance shall not be
     invalidated or impaired by any act or omission (including
     misrepresentation and nondisclosure) by Owner (or any Permitted
     Lessee) or any other Person (including, without limitation, use for
     illegal purposes of the Aircraft or any Engine) and shall insure the
     Additional Insureds regardless of any breach or violation of any
     representation, warranty, declaration, term or condition contained in
     such policies by Owner (or any Permitted Lessee);

          (iv) shall provide that, if the insurers cancel such insurance
     for any reason whatsoever, or if the same is allowed to lapse for
     nonpayment of premium, or if any material change is made in the
     insurance which adversely affects the interest of any of the
     Additional Insureds, such cancellation, lapse or change shall not be
     effective as to the Additional Insureds for 30 (seven days in the case
     of war risk, hijacking and allied perils insurance) days after receipt
     by the Additional Insureds of written notice by such insurers of such
     cancellation, lapse or change, provided that if any notice period
     specified above is not reasonably obtainable, such policies shall
     provide for as long a period of prior notice as shall then be
     reasonably obtainable;

          (v) shall waive any rights of recourse, subrogation, setoff
     (including for unpaid premiums), recoupment, counterclaim or other
     deduction, whether by attachment or otherwise, against each Additional
     Insured;

          (vi) shall be primary without right of contribution from any
     other insurance that may be available to any Additional Insured;

          (vii) shall provide that all of the liability insurance
     provisions thereof, except the limits of liability, shall operate in
     all respects as if a separate policy had been issued covering each
     party insured thereunder;

          (ix) shall provide that none of the Additional Insureds shall be
     liable for any insurance premium; and

          (x) shall contain a 50/50% Clause per Lloyd's Aviation
     Underwriters' Association Standard Policy Form AVS 103;

                                     3

<PAGE>

     provided, that any such endorsements may be subject to any limitations
     on endorsements generally prevailing in the airline insurance
     marketplace at the time (e.g. AVN67B).

E.       Reports and Certificates; Other Information

          On or prior to the Closing Date and on or prior to each renewal
date of the insurance policies required hereunder, Owner will furnish or
cause to be furnished to Mortgagee insurance certificates describing in
reasonable detail the insurance maintained by Owner hereunder and a report,
signed by Owner's or Permitted Lessee's regular independent insurance
broker (the "Insurance Broker"), stating the opinion of such Insurance
Broker that (a) all premiums in connection with the insurance then due have
been paid and (b) such insurance complies with the terms of this Annex B.
To the extent such agreement is reasonably obtainable Owner will also cause
the Insurance Broker to agree to notify Mortgagee in writing of any default
in the payment of any premium and of any other act or omission on the part
of Owner of which it has knowledge and which might invalidate or render
unenforceable, in whole or in part, any insurance on the Aircraft or
Engines or cause the cancellation or termination of such insurance, and to
notify Mortgagee in writing at least 30 days (seven days in the case of
war-risk and allied perils coverage or such shorter period as may be
available in the international insurance market, as the case may be) prior
to the cancellation, lapse or material adverse change of any insurance
maintained pursuant to this Annex B.

F.       Right to Pay Premiums

          Each Additional Insured shall have the rights but not the
obligations of an additional named insured. No Additional Insured shall
have any obligation to pay any premium, commission, assessment or call due
on any such insurance (including reinsurance). Notwithstanding the
foregoing, in the event of cancellation of any required insurance due to
the nonpayment of premium, Mortgagee shall have the option, in its sole
discretion, to pay any such premium in respect of the Aircraft that is due
in respect of the coverage pursuant to this Trust Indenture and to maintain
such coverage, as Mortgagee may require, until the scheduled expiry date of
such insurance and, in such event, Owner shall, upon demand, reimburse
Mortgagee for amounts so paid by them.

                                     4

<PAGE>

G.       Deductibles; Self-insurance

          Owner may self-insure by way of deductible, premium adjustment or
franchise provisions or otherwise (including, with respect to insurance
maintained pursuant to Section B, insuring for a maximum amount which is
less than the Debt Balance) in the insurance covering the risks required to
be insured against pursuant to Section 4.06 and this Annex B under a
program applicable to all aircraft in Owner's fleet, but in no case shall
the aggregate amount of self- insurance in regard to Section 11 and this
Annex B exceed during any policy year, with respect to all of the aircraft
in Owner's fleet (including, without limitation, the Aircraft), the lesser
of (a) 50% of the largest replacement value of any single aircraft in
Owner's fleet and (b) 1-1/2% of the average aggregate insurable value
(during the preceding policy year) of all aircraft (including, without
limitation, the Aircraft) on which Owner carries insurance, unless an
insurance broker of national standing shall certify that the standard among
all other major U.S. airlines is a higher level of self-insurance, in which
case Owner may self-insure to such higher level. In addition, Owner (and
any Permitted Lessee) may self-insure to the extent of any applicable
deductible per aircraft that does not exceed industry standards for major
U.S. airlines.

                                     5

<PAGE>

                                                                  EXHIBIT A
                                                                         TO
                                               TRUST INDENTURE AND MORTGAGE

              TRUST INDENTURE AND MORTGAGE [NXXXAW] SUPPLEMENT

          This TRUST INDENTURE AND MORTGAGE ATA 2000 SUPPLEMENT NO. 1,
dated ______________ ___, ____ (herein called this "Mortgage Supplement")
of AMERICAN TRANSAIR, INC., as Owner (the "Owner").

                            W I T N E S S E T H:

          WHEREAS, the Trust Indenture and Mortgage, dated as of
______________ __, ____ (as amended and supplemented to the date hereof,
the "Trust Indenture") between the Owner and Wilmington Trust Company, as
Mortgagee (the "Mortgagee"), provides for the execution and delivery of a
supplement thereto substantially in the form hereof, which shall
particularly describe the Aircraft, and shall specifically mortgage such
Aircraft to the Mortgagee; and

          WHEREAS, each of the Trust Agreement and Trust Indenture relates
to the Airframe and Engines described below, and a counterpart of the Trust
Indenture is attached hereto and made a part hereof and this Mortgage
Supplement, together with such counterpart of the Trust Indenture, is being
filed for recordation on the date hereof with the FAA as one document;

          NOW, THEREFORE, this Mortgage Supplement WITNESSETH that the
Owner hereby confirms that the Lien of the Trust Indenture on the
Collateral covers all of Owner's right, title and interest in and to the
following described property:

                                  AIRFRAME

One airframe identified as follows:

<TABLE>

<CAPTION>
<S>                <C>                 <C>                <C>
                              FAA Registration     Manufacturer's
Manufacturer       Model            Number         Serial Number

The Boeing Company

</TABLE>

together with all of the Owner's right, title and interest in and to all
Parts of whatever nature, whether now owned or hereinafter acquired and
which are from time to time incorporated or installed in or attached to
said airframe.

                                     1

<PAGE>

                              AIRCRAFT ENGINES

          Two aircraft engines, each such engine having 750 or more rated
take-off horsepower or the equivalent thereof, identified as follows:

<TABLE>

<CAPTION>
<S>                             <C>                       <C>
Manufacturer          Manufacturer's Model          Serial Number

</TABLE>

together with all of Owner's right, title and interest in and to all Parts
of whatever nature, whether now owned or hereafter acquired and which are
from time to time incorporated or installed in or attached to either of
such engines.

          Together with all of Owner's right, title and interest in and to
(a) all Parts of whatever nature, which from time to time are included
within the definition of "Airframe" or "Engine", whether now owned or
hereafter acquired, including all substitutions, renewals and replacements
of and additions, improvements, accessions and accumulations to the
Airframe and Engines (other than additions, improvements, accessions and
accumulations which constitute appliances, parts, instruments,
appurtenances, accessories, furnishings or other equipment excluded from
the definition of Parts) and (b) all Aircraft Documents.

          TO HAVE AND TO HOLD all and singular the aforesaid property unto
the Mortgagee, its successors and assigns, in trust for the equal and
proportionate benefit and security of the Note Holders and the Mortgage
Indemnitees, except as provided in Section 2.14 and Article III of the
Trust Indenture without any preference, distinction or priority of any one
Equipment Note over any other by reason of priority of time of issue, sale,
negotiation, date of maturity thereof or otherwise for any reason
whatsoever, and for the uses and purposes and subject to the terms and
provisions set forth in the Trust Indenture.

          This Mortgage Supplement shall be construed as supplemental to
the Trust Indenture and shall form a part thereof. The Trust Indenture is
each hereby incorporated by reference herein and is hereby ratified,
approved and confirmed.

          AND, FURTHER, the Owner hereby acknowledges that the Aircraft
referred to in this Mortgage Supplement has been delivered to the Owner and
is included in the property of the Owner subject to the pledge and mortgage
thereof under the Trust Indenture.

                                   * * *

                                     2

<PAGE>

          IN WITNESS WHEREOF, the Owner has caused this Mortgage Supplement
to be duly executed by one of its officers, thereunto duly authorized, on
the day and year first above written.

                                  AMERICAN TRANS AIR, INC.

                                  By:___________________________________
                                     Name:
                                     Title:

                                     3

<PAGE>

                                 SCHEDULE I

                          Original Amount            Interest Rate

Series G:

Series C:

                                     4

<PAGE>

                        Trust Indenture and Mortgage

                        Equipment Note Amortization

                                               Percentage of Original
           Payment Date                          Amount to be Paid

                                     5EXHIBIT 4.5

                                                                EXECUTION COPY

                                 AMTRAN, INC.

                           AMERICAN TRANS AIR, INC.

                                      and

                           WILMINGTON TRUST COMPANY

                                  as Trustee

                         PASS THROUGH TRUST AGREEMENT

                         Dated as of February 15, 2000

                American Trans Air 2000-1G-O Pass Through Trust
     8.039% Initial American Trans Air 2000-1G-O Pass Through Certificates

    8.039% Exchange American Trans Air 2000-1G-O Pass Through Certificates

<PAGE>

Reconciliation and tie between America Trans Air Pass Through Trust Agreement,
Series 2000-1G-O dated as of February 15, 2000, and the Trust Indenture Act of
1939. This reconciliation does not constitute part of the Pass Through Trust
Agreement.

Trust Indenture Act                               Pass Through Trust
of 1939 Section                                   Agreement Section
-------------------                               -----------------
310(a)(1)                                               7.08
      (a)(2)                                            7.08
312(a)                                                  3.05; 8.01; 8.02
313(a)                                                  7.06; 8.03
314(a)                                                  8.04(a),(c) & (d)
      (a)(4)                                            8.04(e)
      (c)(1)                                            1.02
      (c)(2)                                            1.02
      (d)(1)                                            7.13; 11.01
      (d)(2)                                            7.13; 11.01
      (d)(3)                                            2.01
      (e)                                               1.02
315(b)                                                  7.02
316(a)(last sentence)                                   1.04(c)
      (a)(1)(A)                                         6.04
      (a)(1)(B)                                         6.05
      (b)                                               6.06
      (c)                                               1.04(e)
317(a)(1)                                               6.03
      (b)                                               7.13
318(a)                                                  12.05

                                       i

<PAGE>

                               TABLE OF CONTENTS

                                                                          Page

ARTICLE I  DEFINITIONS....................................................   3
         Section 1.01. Definitions........................................   3
         Section 1.02. Compliance Certificates and Opinions...............  15
         Section 1.03. Form of Documents Delivered to Trustee.............  15
         Section 1.04. Directions of Certificateholders...................  16

ARTICLE II  ORIGINAL ISSUANCE OF CERTIFICATES;............................  17
         Section 2.01. Issuance of Certificates; Acquisition of
           Equipment Notes................................................  17
         Section 2.02. Withdrawal of Deposits.............................  18
         Section 2.03. Acceptance by Trustee..............................  19
         Section 2.04. Limitation of Powers...............................  19

ARTICLE III THE CERTIFICATES..............................................  19
         Section 3.01. Title, Form, Denomination and Execution of
           Certificates...................................................  19
         Section 3.02. Restrictive Legends................................  21
         Section 3.03. Authentication of Certificates.....................  23
         Section 3.04. Transfer and Exchange..............................  24
         Section 3.05. Book-Entry Provisions for U.S. Global Certificate
           and Offshore Global Certificates...............................  24
         Section 3.06. Special Transfer Provisions........................  26
         Section 3.07. Mutilated, Destroyed, Lost or Stolen Certificates..  28
         Section 3.08. Persons Deemed Owners..............................  29
         Section 3.09. Cancellation.......................................  29
         Section 3.10. Limitation of Liability for Payments...............  29
         Section 3.11. Temporary Certificates.............................  30

ARTICLE IV  DISTRIBUTIONS; STATEMENTS TO..................................  30
         Section 4.01. Certificate Account and Special Payments Account...  30
         Section 4.02. Distributions from Certificate Account and Special
           Payments Account...............................................  31
         Section 4.03. Statements to Certificateholders...................  32
         Section 4.04. Investment of Special Payment Moneys...............  34

ARTICLE V  THE COMPANY....................................................  34
         Section 5.01. Maintenance of Corporate Existence.................  34
         Section 5.02. Consolidation, Merger, Etc.........................  34
         Section 5.03. Rule 144A(d)(4) Information........................  35

ARTICLE VI  DEFAULT.......................................................  36
         Section 6.01. Events of Default..................................  36
         Section 6.02. Incidents of Sale of Equipment Notes...............  38
         Section 6.03. Judicial Proceedings Instituted by Trustee;
           Trustee May Bring Suit.........................................  39
         Section 6.04. Control by Certificateholders......................  39
         Section 6.05. Waiver of Past Defaults............................  39
         Section 6.06. Right of Certificateholders to Receive Payments
           Not to Be Impaired.............................................  40
         Section 6.07. Certificateholders May Not Bring Suit Except
           Under Certain Conditions.......................................  40

                                       i

<PAGE>

         Section 6.08. Remedies Cumulative................................  41
         Section 6.09. Undertaking for Costs..............................  41

ARTICLE VII  THE TRUSTEE..................................................  41
         Section 7.01. Notice of Defaults.................................  41
         Section 7.02. Certain Rights of Trustee..........................  42
         Section 7.03. Not Responsible for Recitals or Issuance of
           Certificates...................................................  43
         Section 7.04. May Hold Certificates..............................  43
         Section 7.05. Money Held in Trust................................  43
         Section 7.06. Compensation and Reimbursement.....................  44
         Section 7.07. Corporate Trustee Required, Eligibility............  45
         Section 7.08. Resignation and Removal: Appointment of Successor..  45
         Section 7.09. Acceptance of Appointment by Successor.............  47
         Section 7.10. Merger, Conversion, Consolidation or Succession to
           Business.......................................................  47
         Section 7.11. Maintenance of Agencies............................  48
         Section 7.12. Money for Certificate Payments to Be Held in Trust.  49
         Section 7.13. Registration of Equipment Notes in Name of
           Subordination Agent............................................  49
         Section 7.14. Representations and Warranties of Trustee..........  49
         Section 7.15. Withholding Taxes, Information Reporting...........  50
         Section 7.16. Trustee's Liens....................................  51
         Section 7.17. Preferential Collection of Claims..................  52

ARTICLE VIII  CERTIFICATEHOLDERS' LISTS AND REPORTS BY TRUSTEE............  52
         Section 8.01 The Company to Furnish Trustee with Names and
           Addresses of Certificateholders................................  52
         Section 8.02. Preservation of Information; Communications to
           Certificateholders.............................................  52
         Section 8.03. Reports by Trustee.................................  52
         Section 8.04. Reports by the Guarantor and Company...............  53

ARTICLE IX  SUPPLEMENTAL AGREEMENTS.......................................  54
         Section 9.01. Supplemental Agreements Without Consent of
           Certificateholders.............................................  54
         Section 9.02. Supplemental Agreements with Consent of
           Certificateholders.............................................  55
         Section 9.03. Documents Affecting Immunity or Indemnity..........  56
         Section 9.04. Execution of Supplemental Agreements...............  56
         Section 9.05. Effect of Supplemental Agreements..................  57
         Section 9.06. Conformity with Trust Indenture Act................  57
         Section 9.07. Reference in Certificates to Supplemental
           Agreements.....................................................  57

ARTICLE X  AMENDMENTS TO INDENTURES AND NOTE DOCUMENTS....................  57
         Section 10.01. Amendments and Supplements to Indentures and
           Other Note Documents...........................................  57

ARTICLE XI  TERMINATION OF TRUSTS.........................................  58
         Section 11.01. Termination of the Trust..........................  58

ARTICLE XII  MISCELLANEOUS PROVISIONS.....................................  61
         Section 12.01. Limitation on Rights of Certificateholders........  61
         Section 12.02. Liabilities of Certificateholders.................  61
         Section 12.03. Certificates Nonassessable and Fully Paid.........  61
         Section 12.04. Notices...........................................  61
         Section 12.05. Governing Law.....................................  62

                                      ii

<PAGE>

         Section 12.06. Severability of Provisions........................  62
         Section 12.07. Effect of Headings and Table of Contents..........  63
         Section 12.08. Successors and Assigns............................  63
         Section 12.09. Benefits of Agreement.............................  63
         Section 12.10. Legal Holidays....................................  63
         Section 12.11. Counterparts......................................  63
         Section 12.12. Communication by Certificateholders with Other
           Certificateholders.............................................  63
         Section 12.13. Intention of Parties..............................  63

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

                                      iii

<PAGE>

          This PASS THROUGH TRUST AGREEMENT, dated as of February 15, 2000,
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 2000-1G-O Pass Through Trust, and the
issuance of 8.039% American Trans Air 2000-1G-O 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, the Company intends to finance the acquisition of each such
Aircraft either (i) through separate leveraged lease transactions in which the
Company will lease such aircraft (collectively, the "Leased Aircraft") or (ii)
through separate secured loan transactions in which the Company will own such
Aircraft (collectively, the "Owned Aircraft");

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

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

          WHEREAS, the Trustee, upon execution and delivery of this Agreement,
hereby declares the creation of this Trust (the "2000-1G-O Trust") for the
benefit of the Certificateholders, and the initial Certificateholders, as the
grantors of the 2000-1G-O Trust, by their respective acceptances of the
Certificates, join in the creation of this 2000- 1G-O Trust with the Trustee;

          WHEREAS, except for those Certificates to which an Escrow Receipt
has been affixed, all Certificates to be 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 Escrow Agent and the Initial Purchasers have
contemporaneously herewith entered into an Escrow Agreement with the Escrow
Paying Agent pursuant to which the Initial Purchasers have delivered to the
Escrow Agent the proceeds from the sale of the Certificates and have
irrevocably instructed the Escrow Agent to withdraw and pay funds from such
proceeds upon request and proper certification by the Trustee to purchase
Equipment Notes at the times at which the Aircraft are delivered as
contemplated by the Note Purchase Agreement from time to time prior to the
Delivery Period Termination Date (other than the delivery of an Aircraft on
the Issuance Date, if applicable);

          WHEREAS, the Escrow Agent on behalf of the Certificateholders has
contemporaneously herewith entered into a Deposit Agreement with the
Depositary

<PAGE>

                                                                             2

under which the Deposits referred to therein will be made and from which the
Escrow Agent will withdraw funds to allow the Trustee to purchase Equipment
Notes from time to time prior to the Delivery Period Termination Date (other
than with respect to Equipment Notes relating to an Aircraft delivered on the
Issuance Date, if applicable);

          WHEREAS, pursuant to the terms and conditions of this Agreement and
the Note Purchase Agreement, upon or shortly following the delivery of an
Aircraft (other than delivery of an Aircraft on or prior to the Issuance Date,
if applicable), the Trustee on behalf of the Trust, using funds withdrawn
pursuant to the Escrow Agreement, shall (subject to certain conditions)
purchase an Equipment Note having the same interest rate as, and final
maturity date not later than the final Regular Distribution Date of, the
Certificates issued hereunder and shall hold such Equipment Note in trust for
the benefit of the Certificateholders;

          WHEREAS, pursuant to the terms and conditions of this Agreement and
the Note Purchase Agreement, upon the delivery of an Aircraft on the Issuance
Date, if applicable, the Trustee on behalf of the Trust, using funds from the
proceeds of the sale of the Certificates, shall (subject to certain
conditions) purchase an Equipment Note having the same interest rate as, and
final maturity date not later than the final Regular Distribution Date of, the
Certificates issued hereunder and shall hold such Equipment Note in trust for
the benefit of the Certificateholders;

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

          WHEREAS, to facilitate the sale of Equipment Notes to, and the
purchase of Equipment Notes by, the Trustee on behalf of the 2000-1G-O Trust,
(i) the Company has duly authorized the execution and delivery of this
Agreement 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 and delivery 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 issuance of the Exchange Certificates, if any, or the
effectiveness of the Shelf Registration Statement, this Agreement, as amended
or supplemented from time to time, will be subject to the provisions of the
Trust Indenture Act of 1939, and shall, to the extent applicable, be governed
by such provisions;

<PAGE>

                                                                             3

          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".

          Accountants: Has the meaning specified in Section 7.15(b).

          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.

          Ambac: Means Ambac Assurance Corporation, in its capacity as the
Policy Provider as specified in the Intercreditor Agreement.

          Applicable Delivery Date: Has the meaning specified in Section
2.01(b).

<PAGE>

                                                                             4

          Applicable Participation Agreement: Has the meaning specified in
Section 2.01(b).

          Assignment and Assumption Agreement: Means the assignment and
assumption agreement substantially in the form of Exhibit D hereto executed
and delivered in accordance with Section 11.01.

          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 or New York, New York and, so long as any such Certificate is
outstanding, the city and state in which the Trustee or any related Loan
Trustee maintains its Corporate Trust Office or receives and disburses funds.

          Certificate: Means any one of the Initial Certificates or Exchange
Certificates and any such Initial Certificates or Exchange Certificates issued
in exchange therefore or replacement thereof pursuant to this Agreement.

          Certificate Account: Means the account or accounts created and
maintained pursuant to Section 4.01(a).

          Certificateholder or Holder: Means the Person in whose name a
Certificate is registered in the Register.

          Class D Certificateholder: Means, at any time, any holder of one or
more pass through certificates issued by the American Trans Air Pass Through
Trust, Series 2000-1D, if and when established.

          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.

          Code: Means the Internal Revenue Code of 1986, as amended.

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

          Controlling Party: Has the meaning specified in the Intercreditor
Agreement.

<PAGE>

                                                                             5

          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.

          Cut-off Date: Means the earlier of (a) the Delivery Period
Termination Date and (b) the date on which a Triggering Event occurs.

          Delivery Date: Has the meaning specified in Annex A to the Note
Purchase Agreement.

          Delivery Notice: Has the meaning specified in Section 1(b) of the
Note Purchase Agreement.

          Delivery Period Termination Date: Has the meaning specified in Annex
A to the Note Purchase Agreement.

          Deposit Agreement: Means the Deposit Agreement (Class G) dated as of
February 15, 2000 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 Citibank, N.A., a national banking association.

          Deposits: Has the meaning specified in the Deposit Agreement.

          Direction: Has the meaning specified in Section 1.04(a).

          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
G) dated as of February 15, 2000 relating to the Certificates, among the
Escrow Agent, the Escrow Paying Agent, 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.

<PAGE>

                                                                             6

          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.

          Exchange Act: Has the meaning specified in Section 5.03.

          Exchange Certificates: Means the pass through certificates
substantially in the form of Exhibit A hereto issued in exchange for the
Initial Certificates pursuant to the Registration Rights Agreement and
authenticated hereunder.

          Exchange Offer: Means the exchange offer which may be made pursuant
to the Registration Rights Agreement to exchange Initial Certificates for
Exchange Certificates.

          Exchange Offer Registration Statement: Means the registration
statement that, pursuant to the Registration Rights Agreement, is filed by the
Company with the SEC with respect to the exchange of Initial Certificates for
Exchange Certificates.

          FAA: Has the meaning specified in Section 5.02(a).

          Final Withdrawal: Has the meaning specified in the Escrow Agreement.

          Final Withdrawal Date: Has the meaning specified in the Escrow
Agreement.

          Final Withdrawal Notice: Has the meaning specified in Section 2.03.

          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(d).

          Global Exchange Certificate: Has the meaning specified in Section
3.01(h).

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

          Indenture: Means each of the seven separate trust indenture and
mortgage 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).

<PAGE>

                                                                             7

          Initial Certificates: Means the certificates issued and
authenticated hereunder substantially in the form of Exhibit A hereto other
than the Exchange Certificates.

          Initial Purchasers: Means Salomon Smith Barney Inc., Morgan Stanley
& Co. Incorporated, Chase Securities Inc. and Banc One Capital Markets, Inc.

          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
February 15, 2000 among the Trustee, the Other Trustees, the Liquidity
Provider, the liquidity providers, if any, relating to the Certificates issued
under (and as defined in) the Other Pass Through Trust Agreements, the Policy
Provider 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 Initial
Certificates.

          Lease: Means, with respect to each Leased Aircraft, the 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,
supplemented or otherwise modified in accordance with its terms.

          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 Revolving Credit Agreement (2000-1G)
dated February 15, 2000 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, Citibank, N.A., 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, not in its individual capacity but
solely as trustee; and any successor to such Loan Trustee as such trustee; and
Loan Trustees means all of the Loan Trustees under the Indentures.

<PAGE>

                                                                             8

          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 February 15, 2000 among the Trustee, the Other Trustees, the Company, the
Escrow Agent, the Escrow Paying Agent and the Subordination Agent, providing
for, among other things, the purchase of Equipment Notes by the Trustee on
behalf of the Trust, as the same may be amended, supplemented or otherwise
modified from time to time, in accordance with its terms.

          Notice of Purchase Withdrawal: Has the meaning specified in the
Deposit Agreement.

          Offering Memorandum: Means the Offering Memorandum dated February 8,
2000 relating to the offering of the Certificates and the certificates issued
under the 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(d).

          Offshore Physical Certificates: Has the meaning assigned to such
term in Section 3.01(e).

          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 the American Trans Air
2000-1C-O Pass Through Trust Agreement relating to the American Trans Air
2000-1C- O Pass Through Trust, dated the date hereof.

          Other Trust: Means the American Trans Air 2000-1C-O Pass Through
Trust.

<PAGE>

                                                                             9

          Other Trustee: Means the trustee under the Other Pass Through Trust
Agreement, and any successor or other trustee appointed as provided therein.

          Outstanding: With respect to Certificates, means, as of the date of
determination, all Certificates theretofore authenticated and delivered under
this Agreement, except:

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

          (ii) Certificates for which money in the full amount required to
     make the final distribution with respect to such Certificates 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
     payment of such final distribution; 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 relating to a
Leased Aircraft, 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 Indentures.

          Participation Agreement: Means each Participation Agreement to be
entered into by the Trustee and the 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 after the acquisition thereof or such lesser time as is
required for the distribution of any Special Payments on a Special
Distribution Date.

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

<PAGE>

                                                                            10

          Physical Certificates: Has the meaning specified in Section 3.01(e).

          Policy: Has the meaning specified in the Intercreditor Agreement.

          Policy Provider Agreement: Has the meaning specified in the
Intercreditor Agreement.

          Policy Provider Default: Has the meaning specified in the
Intercreditor Agreement.

          Pool Balance: Means, as of any date, (i) the original aggregate face
amount of the Certificates 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. 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 the Final
Legal Distribution Date 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), a withdrawal or
withdrawals from a cash collateral account pursuant to Section 3.6(f) of the
Intercreditor Agreement or a Policy Drawing, with respect thereto in an amount
sufficient to pay such interest (or such Pool Balance, as the case may be) and
shall have distributed such amount to the Trustee entitled thereto).

          Purchase Agreement: Means the Purchase Agreement dated February 8,
2000 among the Initial Purchasers, the Company, the Guarantor 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

<PAGE>

                                                                            11

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.

          Registration Event: Means the declaration of the effectiveness by
the SEC of the Exchange Offer Registration Statement or the Shelf Registration
Statement.

          Registration Rights Agreement: Means the Exchange and Registration
Rights Agreement dated as of February 15, 2000, among the Initial Purchasers,
the Trustee, the Other Trustees and the Company, as amended, supplemented or
otherwise modified from time to time in accordance with its terms.

          Regular Distribution Date: With respect to distributions of
Scheduled Payments in respect of the Certificates, means each date designated
as a Regular Distribution Date in the Certificates issued pursuant to this
Agreement, until payment of all the Scheduled Payments to be made under the
Equipment Notes held in the Trust have 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: Means Regulation S under the Securities Act and any
successor regulation thereto.

          Regulation S Restricted Date: Means the date 40-days after the later
of the commencement of the initial offering of the Initial Certificates and
the date of initial issuance thereof.

          Related Pass Through Trust Agreement: Means the American Trans Air
2000-1G-S Pass Through Trust Agreement relating to the American Trans Air
2000-1G- S Pass Through Trust, dated the date hereof, entered into by the
Company and the institution acting as trustee thereunder, which agreement
becomes effective upon the execution and delivery of the Assignment and
Assumption Agreement pursuant to Section 11.01.

          Related Trust: Means the American Trans Air 2000-1G-S Pass Through
Trust, formed under the Related Pass Through Trust Agreement.

          Related Trustee: Means 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 Office 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

<PAGE>

                                                                            12

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 United States Securities Act
and any successor rule thereto.

          Scheduled Payment: With respect to any Equipment Note, means (i) any
payment of principal or interest on or in respect of 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 or
(ii) any payment of interest on the Certificates with funds drawn under the
Liquidity Facility or any payment of interest on or principal of the
Certificates with funds drawn under the Policy, which payment in any such case
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 United States Securities Exchange Act of
1934, as amended, 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.

          Shelf Registration Statement: Means the shelf registration statement
which may be required to be filed by the Company with the SEC pursuant to any
Registration Rights Agreement, other than an Exchange Offer Registration
Statement.

          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 Redemption Premium: Means the premium payable by the Company
in respect of the Final Withdrawal pursuant to the Note Purchase Agreement.

          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).

          Subordination Agent: Has the meaning specified therefor in the
Intercreditor Agreement.

<PAGE>

                                                                            13

          Substitute Aircraft: Has the meaning specified in Section 1(g) of
the Note Purchase Agreement.

          Transfer Date: Has the meaning specified in Section 11.01.

          Triggering Event: Has the meaning specified therefor in the
Intercreditor Agreement.

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

          Trust Indenture Act: Means the United States Trust Indenture Act of
1939, as amended from time to time.

          Trust Property: Means (i) the Equipment Notes held as the property
of the Trust and, subject to the Intercreditor Agreement, all monies at any
time paid thereon and all monies due and to become due thereunder, (ii) all
rights of the Trust and the Trustee, on behalf of the Trust, under the
Intercreditor Agreement, the Escrow Agreement, the Note Purchase Agreement,
the Policy and the Liquidity Facilities, including, without limitation, all
rights to receive certain payments thereunder, and all monies paid to the
Trustee on behalf of the Trust pursuant to the Intercreditor Agreement, the
Policy or the Liquidity Facilities, provided, that rights with respect to the
Deposits or under the Escrow Agreement, except for the right to direct
withdrawals for the purchase of Equipment Notes to be held herein, will not
constitute Trust Property, and (iii) the 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, not in its individual
capacity but solely as trustee, or its successor in interest, and any
successor trustee appointed as provided herein.

          Trustee's Lien: Has the meaning specified in section 7.16.

          U.S. Global Certificate: Has the meaning specified in Section
3.01(c).

          U.S. Physical Certificates: Has the meaning specified in Section
3.01(e).

          Section 1.02. Compliance Certificates and Opinions. Upon any
application or request (except with respect to matters set forth in Article
II) 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
(i) an Officer's 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 (ii) 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.

<PAGE>

                                                                            14

          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. Directions of Certificateholders.

          (a) Any direction, consent, request, demand, authorization, notice,
waiver or other action provided by this Agreement to be given or taken by
Certificateholders (a "Direction") 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 Directions of the Certificateholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent or proxy 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.

<PAGE>

                                                                            15

          (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 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 a Direction. 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 Direction 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 Direction, and for that purpose the Outstanding Certificates shall be
computed as of such record date; provided that no such Direction 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 by the Holder of any Certificate shall bind the
Holder of every Certificate issued upon the transfer thereof or in exchange
therefor or in lieu thereof, whether or not notation of such Direction 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.

<PAGE>

                                                                            16

          (g) For all purposes of this Agreement, all Initial Certificates and
all Exchange Certificates shall vote and take all actions of
Certificateholders together as one series of Certificates.

                                  ARTICLE II

                      ORIGINAL ISSUANCE OF CERTIFICATES;
                        ACQUISITION OF EQUIPMENT NOTES

          Section 2.01. Issuance of Certificates; Acquisition of Equipment
Notes.

          (a) The Trustee is hereby directed to (i) execute and deliver the
Intercreditor Agreement, the Registration Rights Agreement, the Escrow
Agreement and the Note Purchase Agreement on or prior to the Issuance Date,
each in the form delivered to the Trustee by the Company and (ii) subject to
the respective terms thereof, to perform its obligations thereunder. Upon the
request of the Company and the satisfaction or waiver of the closing
conditions specified in the Purchase Agreement, the Trustee shall, execute,
deliver, authenticate, issue and sell Certificates in authorized denominations
equaling in the aggregate the amount set forth, with respect to the Trust, in
Schedule A to the Purchase Agreement, and evidencing the entire ownership
interest in the Trust, which amount equals the maximum aggregate principal
amount of Equipment Notes which may be purchased by the Trustee pursuant to
the Note Purchase Agreement. Except as provided in Sections 3.04, 3.05, 3.06,
3.07 and 3.10 hereof, the Trustee shall not execute, authenticate or deliver
Certificates in excess of the aggregate amount specified in this paragraph.

          (b) On or after the Issuance Date, the Company may deliver from time
to time to the Trustee a Delivery Notice relating to one or more Equipment
Notes. After receipt of a Delivery Notice and in any case no later than one
Business Day prior to a Delivery Date as to which such Delivery Notice relates
(the "Applicable Delivery Date") (or, if the Issuance Date is an Applicable
Delivery Date, on the Issuance Date), the Trustee shall (as and when specified
in the Delivery Notice) instruct the Escrow Agent to provide a Notice of
Purchase Withdrawal to the Depositary requesting (i) the withdrawal of one or
more Deposits on the Applicable Delivery Date in accordance with and to the
extent permitted by the terms of the Escrow Agreement and the Deposit
Agreement and (ii) the payment of all, or a portion, of such Deposit or
Deposits, in an aggregate amount equal to the purchase price of the Equipment
Notes relating to the Aircraft to be delivered on such Applicable Delivery
Date, to or on behalf of the Owner Trustee or the Company, as the case may be,
issuing such Equipment Notes, all as shall be described in the Delivery
Notice; provided that, if the Issuance Date is an Applicable Delivery Date,
such purchase price shall be paid from a portion of the proceeds of the sale
of the Certificates. The Trustee shall (as and when specified in such Delivery
Notice), subject to the conditions set forth in Sections 1 and 2 of the Note
Purchase Agreement, enter into and perform its obligations under the
Participation Agreement specified in such Delivery Notice (the "Applicable
Participation Agreement") and cause such certificates, documents and legal
opinions relating to the Trustee to be duly delivered as required by the
Applicable Participation Agreement. If at any time prior to the Applicable
Delivery Date, the Trustee receives a notice of postponement pursuant to
Section 1(d) or 1(e) of the Note Purchase Agreement, then the Trustee shall
give the Depositary (with a copy to the Escrow Agent) a notice of cancellation
of such Notice of Purchase Withdrawal relating to such Deposit or Deposits on
such Applicable Delivery Date. Upon

<PAGE>

                                                                            17

satisfaction of the conditions specified in the Note Purchase Agreement and
the Applicable Participation Agreement, the Trustee shall purchase the
applicable Equipment Notes with the proceeds of the withdrawals of one or more
Deposits made on the Applicable Delivery Date in accordance with the terms of
the Deposit Agreement and the Escrow Agreement (or, if the Issuance Date is
the Applicable Delivery Date with respect to such Applicable Participation
Agreement, from a portion of the proceeds of the sale of the Certificates).
The purchase price of such Equipment Notes shall equal the principal amount of
such Equipment Notes. Amounts withdrawn from such Deposit or Deposits in
excess of the purchase price of the Equipment Notes or to the extent not
applied on the Applicable Delivery Date to the purchase price of the Equipment
Notes, shall be re- deposited by the Trustee with the Depositary on the
Applicable Delivery Date in accordance with the terms of the Deposit
Agreement.

          Section 2.02. Withdrawal of Deposits. If any Deposits remain
outstanding on the Business Day next succeeding the Cut-Off Date, (i) the
Trustee shall give the Escrow Agent notice that the Trustee's obligation to
purchase Equipment Notes under the Note Purchase Agreement has terminated and
instruct the Escrow Agent to provide a notice of Final Withdrawal to the
Depositary substantially in the form of Exhibit B to the Deposit Agreement
(the "Final Withdrawal Notice") and (ii) the Trustee will make a demand upon
the Company under the Note Purchase Agreement for an amount equal to the
Special Redemption Premium, if applicable, such payment to be made on the
Final Withdrawal Date.

          Section 2.03. Acceptance by Trustee. The Trustee, upon the execution
and delivery of this 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.
Subject to Section 7.13, the Trustee shall take all actions reasonably
necessary to effect the registration of all such Equipment Notes in the name
of the Subordination Agent. By its payment for and acceptance of each
Certificate issued to it under this Agreement, each initial Certificateholder
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 restriction
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.

<PAGE>

                                                                            18

          (a) The Initial Certificates shall be known as the "8.039% Initial
Pass Through Certificates, Series 2000-1G-O" and the Exchange Certificates
shall be known as the "8.039% 2000-1G-O Exchange Pass Through Certificates,
Series 2000-1G-O", in each case 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 hereto, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this 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 Trustee or the officers executing
such Certificates, as evidenced by the Trustee's or the officer's 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 each Certificate. 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 a Certificate acknowledges and accepts the
restrictions on transfer of the Escrow Receipt set forth herein and in the
Escrow Agreement.

          (b) The Initial Certificates shall be issued only in fully
registered form without coupons in minimum denominations of $1,000 or integral
multiples of $1,000 in excess thereof, except that one Certificate may be
issued in a denomination of less than $1,000. Each Certificate shall be dated
the date of its authentication. The aggregate Fractional Undivided Interest of
Certificates shall not at any time exceed $201,901,000.

          (c) The Initial 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 hereto with such applicable legends as are provided for in clauses (a) and
(b) of Section 3.02 (the "U.S. Global Certificate"), duly executed and
authenticated by the Trustee as hereinafter provided. 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 DTC or its nominee, as hereinafter provided.

          (d) The Initial 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 hereto with such applicable legends as are provided for in
clause (b) of Section 3.02 (the "Offshore Global Certificate") duly executed
and authenticated by the Trustee as hereinafter provided. The U.S. Global
Certificate and the Offshore Global Certificates are sometimes referred to as
the "Global Certificates".

          (e) The Initial 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 hereto with such applicable legends

<PAGE>

                                                                            19

as are provided for in clauses (a) and (b) of Section 3.02 hereto (the "U.S.
Physical Certificates"). Initial 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) Certificates offered and sold to any Institutional Accredited
Investor which is not a QIB in a transaction exempt from registration under
the Securities Act (and other than as described in Section 3.01(c)) shall be
issued substantially in the form set forth in Exhibit A (the "Restricted
Definitive Certificates") duly executed and authenticated by the Pass Through
Trustee as hereinafter provided. Certificates issued pursuant to Section
3.06(b) in exchange for interests in a U.S. Global Certificate shall be issued
in the form of a Restricted Definitive Certificate and Certificates issued
pursuant to Section 3.06(b) in exchange for an interest in a Offshore Global
Certificate shall be issued in definitive, fully registered form without
interest coupons (the "Regulation S Definitive Certificates"). The Restricted
Definitive Certificates and the Regulation S Definitive Certificates are
sometimes collectively referred to herein as the "Definitive Certificates".

          (g) The 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.

          (h) The Exchange Certificates shall be issued in the form of one or
more Global Certificates substantially in the form of Exhibit A hereto (each,
a "Global Exchange Certificate"), except that (i) the Private Placement Legend
(hereinafter defined) shall be omitted and (ii) such Exchange Certificates
shall contain such appropriate insertions, omissions, substitutions and other
variations from the form set forth in Exhibit A hereto relating to the nature
of the Exchange Certificates as the Responsible Officer of the Trustee
executing such Exchange Certificates on behalf of the Trust may determine, as
evidenced by such officer's execution on behalf of the Trust of such Exchange
Certificates. Such Global Exchange Certificates shall be in registered form
and be registered in the name of DTC and deposited with the Trustee, at its
Corporate Trust Office, as custodian for DTC. The aggregate principal amount
of any Global Exchange Certificate may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC for such Global Exchange Certificate, which adjustments shall be
conclusive as to the aggregate principal amount of any such Global Exchange
Certificate. Subject to clause (i) and (ii) of the first sentence of this
Section 3.01(g), the terms hereof applicable to U.S. Global Certificates
and/or Global Certificates shall apply to the Global Exchange Certificates
mutatis mutandis.

          Section 3.02. Restrictive Legends.

          (a) Subject to Section 3.01 and 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:

<PAGE>

                                                                            20

     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 IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (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

<PAGE>

                                                                            21

     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.

          (a) On the Issuance Date, the Trustee shall duly execute,
authenticate and deliver Certificates in authorized denominations equaling in
the aggregate the amount set forth, with respect to the Trust, in Schedule A
to the Purchase Agreement, and evidencing the entire ownership interest of the
Trust, which amount equals the maximum aggregate principal amount of Equipment
Notes to be purchased by the Trustee pursuant to the Note Purchase Agreement.

          (b) 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

<PAGE>

                                                                            22

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, in form satisfactory to the Trustee and the Registrar; provided that
no exchange of Initial Certificates for Exchange Certificates shall occur
until an Exchange Offer Registration Statement shall have been declared
effective by the SEC (notice of which shall be provided to the Trustee by the
Company). 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 thereof 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 to a
Certificateholder for any registration of transfer or exchange of the
Certificates, but the Trustee shall require payment of a sum sufficient to
cover any tax or similar governmental charge payable in connection therewith.
All Certificates surrendered for registration of transfer or exchange shall be
canceled and subsequently destroyed by the Trustee.

          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 delivered to all beneficial

<PAGE>

                                                                            23

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 Direction 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 another 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) 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.

          (e) 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.

          (f) 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).

          (g) 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. Unless and until (i) an
Initial Certificate is sold under an effective Shelf Registration Statement,
or (ii) an Initial Certificate is exchanged for an Exchange Certificate
pursuant to an effective Exchange

<PAGE>

                                                                            24

Offer Registration Statement, in each case pursuant to the terms of the
Registration Rights Agreement, the following provisions shall apply to the
Initial Certificates:

          (a) Transfers to Non-QIB Institutional Accredited Investors. The
following provisions shall apply with respect to the registration of any
proposed transfer of an Initial 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 Initial
     Certificate, whether or not such Initial 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 Initial 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 C hereto and the
     aggregate principal amount of the Initial 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 an Initial Certificate
to a QIB (excluding Non-U.S. Persons):

          (i) If the Initial 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 Initial 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 Initial 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

<PAGE>

                                                                            25

     applicable transfer restrictions relating to the Initial 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) 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.

          (d) Transfers to Non-U.S. Persons at Any Time. The following
provisions shall apply with respect to any registration of any transfer of an
Initial 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 B
     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.

          (e) 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

<PAGE>

                                                                            26

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.

          (f) 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 destroyed, lost or stolen Certificate has been acquired by a
protected purchaser, and provided that the requirements of Section 8-405 of
the Uniform Commercial Code in effect in any applicable jurisdiction are met,
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.

          The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Certificates.

<PAGE>

                                                                            27

          Section 3.08. Persons Deemed Owners. Prior to due presentment 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 of the day of determination) 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 for any payment or distribution due to such
Certificateholder pursuant to the terms of this Agreement and that it will not
have any recourse to the Company, the Trustee, the Loan Trustee, the Liquidity
Provider, the Policy Provider, the Owner Trustees or the Owner Participants,
except as otherwise expressly provided herein or in the Intercreditor
Agreement. The Company is a party to this Agreement solely for purposes of
meeting the requirements of the Trust Indenture Act.

          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.

<PAGE>

                                                                            28

                                  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 under the Intercreditor Agreement, 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 under the Intercreditor Agreement, 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 all or any part 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 Notes, the Trustee shall distribute out of the Special Payments
Account the entire amount

<PAGE>

                                                                            29

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 learning thereof, shall
cause notice thereof to be mailed to each Certificateholder at its address as
it appears on the Register.

<PAGE>

                                                                            30

          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 including any portion thereof paid by the
     Liquidity Provider and/or the Policy Provider;

          (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

<PAGE>

                                                                            31

Clearing Agency Participants to be available for forwarding by such Clearing
Agency Participants.

          (c) Promptly following (i) the Delivery Period Termination Date, if
there has been any change in the information set forth in clauses (x), (y) and
(z) below from that set forth on pages 86 and AIII-1 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 Delivery Period Termination
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 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.

<PAGE>

                                                                            32

          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 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 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.

<PAGE>

                                                                            33

          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 (as determined pursuant to
the Intercreditor Agreement), direct the exercise of remedies as provided in
the Intercreditor Agreement.

          (b) Purchase Rights of Certificateholders. By acceptance of its
Certificate, each Certificateholder agrees that at any time after the
occurrence and during the continuation of a Triggering Event:

          (i) each Class C Certificateholder shall have the right to purchase
     all, but not less than all, of the Certificates upon ten days' written
     notice to the Trustee and each other Class C Certificateholder, provided
     that (A) if prior to the end of such ten-day period any other Class C
     Certificateholder notifies such purchasing Class C Certificateholder that
     such other Class C Certificateholder wants to participate in such
     purchase, then such other Class C Certificateholder may join with the
     purchasing Class C Certificateholder to purchase all, but not less than
     all, of the Certificates pro rata based on the Fractional Undivided
     Interest in the Class C Trust held by each such Class C Certificateholder
     and (B) if prior to the end of such ten-day period any other Class C
     Certificateholder fails to notify the purchasing Class C
     Certificateholder of such other Class C Certificateholder's desire to
     participate in such a purchase, then such other Class C Certificateholder
     shall lose its right to purchase the Certificates pursuant to this
     Section 6.01(b);

          (ii) each Class D Certificateholder shall have the right (which
     shall not expire upon any purchase of the Certificates pursuant to clause
     (i) above) to purchase all, but not less than all, of the Certificates
     and the Class C Certificates upon ten days' written notice to the
     Trustee, the Class C Trustee and each other Class D Certificateholder,
     provided that (A) if prior to the end of such ten-day period any other
     Class D Certificateholder notifies such purchasing Class D
     Certificateholder that such other Class D Certificateholder wants to
     participate in such purchase, then such other Class D Certificateholder
     may join with the purchasing Class D Certificateholder to purchase all,
     but not less than all, of the Certificates and the Class C Certificates
     pro rata based on the Fractional

<PAGE>

                                                                            34

     Undivided Interest in the Class D Trust, taken as a whole, held by each
     such Class D Certificateholder and (B) if prior to the end of such
     ten-day period any other Class D Certificateholder fails to notify the
     purchasing Class D Certificateholder of such other Class D
     Certificateholder's desire to participate in such a purchase, then such
     other Class D Certificateholder shall lose its right to purchase the
     Certificates pursuant to this Section 6.01(b); and

          (iii) whether or not any Class C Certificateholder or Class D
     Certificateholder exercises their right to purchase pursuant to clause
     (i) or (ii) above, Ambac, if it is then the Controlling Party and 180
     days have since elapsed since the occurrence of a Triggering Event that
     is continuing, shall have the right (except in the event of a Policy
     Provider Default) to purchase all, but not less than all, of the
     Certificates upon ten days' written notice to the Trustee and the
     Certificateholders.

          The purchase price with respect to the Certificates shall be equal
to the Pool Balance of the Certificates, together with accrued and unpaid
interest thereon to the date of such purchase, without premium, but including
any other amounts then due and payable to the Certificateholders under this
Agreement, the Intercreditor Agreement, the Escrow Agreement, the Policy, the
Note Purchase Agreement or any Note Document or on or in respect of the
Certificates; provided, however, that (i) if such purchase occurs after the
Record Date with respect to the Final Withdrawal Date, such purchase price
shall be reduced by the aggregate amount of unused Deposits and interest to be
distributed under the Escrow Agreement (which deducted amounts shall remain
distributable to, and may be retained by, the Certificateholder as of such
Record Date) and (ii) if such purchase occurs after a Record Date but prior to
the Distribution Date relating to such Record Date, such purchase price shall
be reduced by the amount to be distributed hereunder on such related
Distribution Date (which deducted amounts shall remain distributable to, and
may be retained by, the Certificateholder as of such Record Date); provided,
further, that no such purchase of Certificates shall be effective unless the
purchaser shall certify to the Trustee that contemporaneously with such
purchase, such purchaser is purchasing, pursuant to the terms of this
Agreement and the Other Pass Through Trust Agreement, the Certificates, and
the Class C Certificates and the Class D Certificates which are senior to the
securities held by such purchaser. Each payment of the purchase price of the
Certificates referred to in the first sentence hereof shall be made to an
account or accounts designated by the Trustee and each such purchase shall be
subject to the terms of this Section. Each Certificateholder agrees by its
acceptance of its Certificate that it will, subject to Section 3.04 hereof,
upon payment from such Class C Certificateholder(s) or Class D
Certificateholder(s), as the case may be, of the purchase price set forth in
the first sentence of this paragraph, forthwith sell, assign, transfer and
convey to the purchaser thereof (without recourse, representation or warranty
of any kind except for its own acts), all of the right, title, interest and
obligation of such Certificateholder in, this Agreement, the Escrow Agreement,
the Deposit Agreement, the Intercreditor Agreement, the Liquidity Facility,
the Policy, the Note Documents, the Note Purchase Agreement and all
Certificates and Escrow Receipts held by such Certificateholder (excluding all
right, title and interest under any of the foregoing to the extent such right,
title or interest is with respect to an obligation not then due and payable as
respects any action or inaction or state of affairs occurring prior to such
sale) and the purchaser shall assume all of such Certificateholder's
obligations under this Agreement, the Escrow Agreement, the Deposit Agreement,
the Intercreditor Agreement, the Liquidity Facility, the Policy, the Note
Documents and the Note Purchase Agreement and

<PAGE>

                                                                            35

all such Certificates and Escrow Receipts. The Certificates will be deemed to
be purchased on the date payment of the purchase price is made notwithstanding
the failure of the Certificateholders 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 Certificates to the purchaser and
receive the purchase price for such Certificates and (ii) if the purchaser
shall so request such Certificateholder will comply with all of the provisions
of Section 3.04 hereof 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 C Certificate",
"Class C Certificateholder", "Class C Trust", "Class C Trustee", "Class D
Certificate", "Class D Trust" and "Class D 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 and the rights
of the Controlling Party thereunder, 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 to pay principal of, or premium, if any,
or interest on any Equipment Note or to pay Rent under any Lease in accordance
with 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

<PAGE>

                                                                            36

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 and the rights of the Controlling Party
thereunder, 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 and the rights of the Controlling Party thereunder, 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

<PAGE>

                                                                            37

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 such an
     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 shall have
     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 whatsoever 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 with respect 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.

<PAGE>

                                                                            38

          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 Officer's 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;

<PAGE>

                                                                            39

          (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
Registration Rights Agreement, the Note Purchase Agreement, the Escrow
Agreement and each Certificate will be, executed, authenticated and delivered
by one of its officers who is duly authorized to execute, authenticate and
deliver such document on its behalf.

<PAGE>

                                                                            40

          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
with respect to the trustee in its individual capacity:

          (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 actually receives reimbursement
     therefor pursuant to the next paragraph, provided that no indemnification
     shall be available with respect to any

<PAGE>

                                                                            41

     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.

<PAGE>

                                                                            42

          (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 Direction 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.

<PAGE>

                                                                            43

          (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 Direction 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

<PAGE>

                                                                            44

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.

<PAGE>

                                                                            45

          (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 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 corporate power, authority and legal right
     to execute, deliver and perform this Agreement, the Intercreditor
     Agreement, the Registration Rights Agreement, the Escrow Agreement, the
     Note Purchase Agreement and the Note Documents to which it is a party and
     has taken all necessary corporate action to authorize the execution,
     delivery and performance by it of this Agreement, the Intercreditor
     Agreement, the Registration Rights Agreement, the Escrow Agreement, the
     Note Purchase Agreement and the Note Documents to which it is a party;

          (c) the execution, delivery and performance by the Trustee of this
     Agreement, the Intercreditor Agreement, the Registration Rights
     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
     the law of the State of Delaware or 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, or (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,

<PAGE>

                                                                            46

     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 execution, delivery and performance by the Trustee of this
Agreement, the Intercreditor Agreement, the Registration Rights 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 State
of Delaware or the United States regulating the banking and corporate trust
activities of the Trustee; and

          (e) this Agreement, the Intercreditor Agreement, the Registration
Rights 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, regardless of
whether applied in a proceeding at equity or at law.

          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 federal United States 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. In the event that any withholding tax is imposed on a
payment to a Certificateholder, such tax shall reduce the amount otherwise
distributable to the Certificateholder in accordance with this Section.

          (b) Any Certificateholder which is organized under the laws of a
jurisdiction outside the United States shall, on or prior to the date such
Certificateholder becomes a Certificateholder, (a) so notify the Trustee,
(b)(i) provide the Trustee with Internal Revenue Service form W-8BEN, W-8ECI,
W-8IMY or W-8EXP, or any substitute or successor form, or (ii) notify the
Trustee that it is not entitled to an exemption from United States withholding
tax or a reduction in the rate thereof on payments of interest. Any such
Certificateholder agrees by its acceptance of a Trust Security, on an ongoing
basis, to provide like certification should any previously provided form
become invalid and to notify the Trustee should subsequent circumstances

<PAGE>

                                                                            47

arise affecting the information provided the Trustee in clauses (a) and (b)
above. The Trustee shall be fully protected in relying upon, and each
Certificateholder by its acceptance of a Security agrees to indemnify and hold
the Trustee harmless against all claims or liability of any kind arising in
connection with or related to the Trustee's reliance upon any documents, forms
or information provided by any Certificateholder to the Trustee. In addition,
if the Trustee has not withheld taxes on any payment made to any
Certificateholder, and the Trustee is subsequently required to remit to any
taxing authority any such amount not withheld, such Certificateholder shall
return such amount to the Trustee upon written demand by the Trustee. The
Trustee shall be liable only for direct (but not consequential) damages to any
Certificateholder due to the Trustee's violation of the Code and only to the
extent such liability is caused by the Trustee's gross negligence or willful
misconduct.

          (c) 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 the
Accountants in good faith and without gross negligence or with the prior
approval of or notice to the Company, the Trustee shall not have any liability
with respect to the default or misconduct of the Accountants.

          (d) The Trustee, at the request and instruction 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 Registration Rights
Agreement, the Intercreditor Agreement, the Participation Agreements, the Note
Purchase Agreement or the Note Documents, or (ii) in its individual capacity
and which arises out of acts or omissions of the Trustee in its individual
capacity 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

<PAGE>

                                                                            48

          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 issuance of the
Certificates, 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

<PAGE>

                                                                            49

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; and

          (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).

                                  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, the Registration Rights
Agreement, the Policy, the Policy Provider 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 the Company or the Guarantor is a
     party or of the Company's or the Guarantor's obligations under the Note
     Purchase Agreement, the Registration Rights Agreement, the Policy
     Provider Agreement or the Liquidity Facility; 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 Registration Rights
     Agreement, the Policy, the Policy Provider Agreement or the 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, Registration Rights Agreement, the
     Policy, the Policy Provider Agreement or the Liquidity Facility which may
     be defective or inconsistent with any other provision herein or therein
     or to cure any ambiguity or

<PAGE>

                                                                            50

     correct any mistake or to modify any other provision with respect to
     matters or questions arising under this Agreement, the Intercreditor
     Agreement, the Escrow Agreement, the Note Purchase Agreement, the Deposit
     Agreement, Registration Rights Agreement, the Policy, the Policy Provider
     Agreement or the Liquidity Facility, provided that any such action shall
     not materially 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 the Registration
     Rights Agreement to effectuate the Exchange Offer; 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;

          (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; or

          (8) to modify or eliminate provisions relating to the transfer or
     exchange of Exchange Certificates or the Initial Certificates upon
     consummation of the Exchange Offer (as defined in the Registration Rights
     Agreement) or effectiveness of the Shelf Registration Statement or the
     Exchange Offer Registration Statement;

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 in the Trust, by Direction of said
Certificateholders delivered to the Guarantor, the Company and the Trustee,
the Guarantor and the Company may (with the consent of the

<PAGE>

                                                                            51

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 Registration Rights Agreement, the Policy,
the Policy Provider 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, the Liquidity Facility, the Registration Rights
Agreement, the Policy, the Policy Provider Agreement, 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 or other Trust
     Property held in the Trust or on the Deposits or distributions that are
     required to be made herein on any Certificate, or change any date of
     payment on 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 Direction of Certificateholders
under this Section to approve the particular form of any proposed supplemental
agreement but it shall be sufficient if such Direction 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

<PAGE>

                                                                            52

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

<PAGE>

                                                                            53

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 Crtificateholders 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 TRUST

          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 earlier of (A) the completion of
the assignment, transfer and discharge described in the first sentence of the
immediately following paragraph and (B) 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.

          Upon the earlier of (i) the first Business Day following December
31, 2000, or, if later, the fifth Business Day following the Delivery Period
Termination Date and (ii) the fifth Business Day following the date on which a
Triggering Event occurs (such date, the "Transfer Date"), or, if later the
date on which all of the conditions set forth in the immediately following
sentence have been satisfied, the Trustee is hereby directed (subject only to
the immediately following sentence) to, and the Company shall direct the
institution that will serve as the Related Trustee under the Related Pass
Through Trust Agreement to, execute and deliver the Assignment and Assumption
Agreement, pursuant to which the Trustee shall assign, transfer and deliver
all of the Trustee's right, title and interest to the Trust Property to the
Related Trustee under the

<PAGE>

                                                                            54

Related Pass Through Trust Agreement. The Trustee and the Related Trustee
shall execute and deliver the Assignment and Assumption Agreement upon the
satisfaction of the following conditions:

          (i) The Trustee, the Related Trustee and each of the Rating Agencies
     (as defined in the Intercreditor Agreement) then rating the Certificates
     shall have received an Officer's Certificate and an Opinion of Counsel
     dated the date of the Assignment and Assumption Agreement and each
     satisfying the requirements of Section 1.02, which Opinion of Counsel
     shall be substantially to the effect set forth below and may be relied
     upon by the Beneficiaries (as defined in the Assignment and Assumption
     Agreement):

               (a) upon the execution and delivery thereof by the parties
          thereto in accordance with the terms of this Agreement and the
          Related Pass Through Trust Agreement, the Assignment and Assumption
          Agreement will constitute the valid and binding obligation of each
          of the parties thereto enforceable against each such party in
          accordance with its terms (subject to applicable bankruptcy,
          insolvency, reorganization, moratorium or similar laws affecting
          creditor's rights generally and to general principles of equity);

               (b) upon the execution and delivery of the Assignment and
          Assumption Agreement in accordance with the terms of this Agreement
          and the Related Pass Through Trust Agreement, each of the
          Certificates then Outstanding will be entitled to the benefits of
          the Related Pass Through Trust Agreement;

               (c) the Related Trust is not required to be registered as an
          investment company under the Investment Company Act of 1940, as
          amended;

               (d) the Related Pass Through Trust Agreement constitutes the
          valid and binding obligation of the Company enforceable against the
          Company in accordance with its terms (subject to applicable
          bankruptcy, insolvency, reorganization, moratorium or similar laws
          affecting creditor's rights generally and to general principles of
          equity); and

               (e) neither the execution and delivery of the Assignment and
          Assumption Agreement in accordance with the terms of this Agreement
          and the Related Pass Through Trust Agreement, nor the consummation
          by the parties thereto of the transactions contemplated to be
          consummated thereunder on the date thereof, will violate any law or
          governmental rule or regulation of the State of New York or the
          United States of America known to such counsel to be applicable to
          the transactions contemplated by the Assignment and Assumption
          Agreement.

          (ii) The Trustee and the Company shall have received (x) a copy of
     the articles of incorporation and bylaws of the Related

<PAGE>

                                                                            55

     Trustee certified as of the Transfer Date by the Secretary or Assistant
     Secretary of such institution and (y) a copy of the filing (including all
     attachments thereto) made by the institution serving as the Related
     Trustee with the Office of the Superintendent, State of New York Banking
     Department for the qualification of the Related Trustee under Section
     131(3) of the New York Banking Law.

Upon the execution of the Assignment and Assumption Agreement by the parties
thereto, the Trust shall be terminated, the Certificateholders shall receive
beneficial interests in the Related Trust in exchange for their interests in
the Trust equal to their respective beneficial interests in the Trust, and the
Outstanding Certificates representing Fractional Undivided Interests in the
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 Related Trust and its trust property. By acceptance
of its Certificate, each Certificateholder consents to such assignment,
transfer and delivery of the Trust Property to the trustee of the Related
Trust upon the execution and delivery of the Assignment and Assumption
Agreement.

          In connection with the occurrence of the event set forth in clause
(B) above, notice of such 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, upon
notice to the Trustee, 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 in accordance with such notice,
the Trustee shall cause to be distributed to Certificateholders amounts
distributable on such final payments.

          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

<PAGE>

                                                                            56

relating to such Loan Trustee and shall give written notice thereof to the
related Owner Trustees, Owner Participants 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. 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, telecopy (confirmed by telephone or in writing
in the case of notice by telecopy) or any other customary means of
communication, and any such notice shall be effective upon receipt, 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

<PAGE>

                                                                            57

                  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 12.05. Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN
THE STATE OF DELAWARE AND THIS AGREEMENT AND THE CERTIFICATES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          Section 12.06. 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

<PAGE>

                                                                            58

provisions of this Agreement or the Trust or of the Certificates or the
rights of the Certificateholders thereof.

          Section 12.07. 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 12.08. 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 12.09. 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 12.10. 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 12.11. 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 12.12. 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 benefited by
this Agreement shall have the protection afforded by Section 312(c) of the
Trust Indenture Act.

          Section 12.13. 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>

                                                                            59

          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 written above.

                                        AMTRAN, INC.

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

                                        AMERICAN TRANS AIR, INC.

                                        By:
                                            -------------------------------
                                            Chief Financial Officer

                                        By:
                                           WILMINGTON TRUST
                                           COMPANY,
                                           as Trustee

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

<PAGE>

                                                                     EXHIBIT A

                              FORM OF CERTIFICATE

REGISTERED
No.________

     [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 IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (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 THIS 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

<PAGE>

                                                                           A-2

     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.]1

     [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 .]2

--------

          [1] Not to be included on the face of the Offshore Global
     Certificate or any Offshore Physical Certificates.

          [2] To be included on the face of each Global Certificate.

<PAGE>

             AMERICAN TRANS AIR, INC. 2000-1G-O PASS THROUGH TRUST

                                 Pass Through
                         Certificate, Series 2000-1G-O

Issuance Date:  February 15, 2000

Final Legal Distribution Date:  July 15, 2017

      Evidencing a Fractional Undivided Interest in the 2000-1G-O Trust,
      the Property of Which Includes Certain Equipment Notes each secured
                by Aircraft leased to American Trans Air, Inc.

            $201,901,000 Fractional Undivided Interest representing
         0.00000495292% of the Trust per $1,000 of Reference Principal
                                    Amount

          THIS CERTIFIES THAT Cede & Co., for value received, is the
registered owner of a Fractional Undivided Interest in the amount of
$201,901,000 (Two hundred one million nine hundred one thousand dollars) (the
"Reference Principal Amount") in the American Trans Air 2000-1G-O Pass Through
Trust (the "Trust") pursuant to a Pass Through Trust Agreement dated as of
February 15, 2000 (the "Agreement"), among Wilmington Trust Company, not in
its individual capacity but solely as trustee (the "Trustee"), Amtran, Inc., a
corporation incorporated under Indiana law (the "Guarantor"), and American
Trans Air, Inc., a corporation incorporated under Indiana law (the "Company"),
a summary of certain of the pertinent provisions of which is set forth below.
To the extent not otherwise defined herein, the capitalized terms used herein
have the meanings assigned to them in the Agreement. This Certificate is one
of the duly authorized Certificates designated as "Pass Through Certificates,
Series 2000- 1G-O" (herein called the "Certificates"). This Certificate is
issued under and is subject to the terms, provisions, and conditions of the
Agreement and the Intercreditor Agreement, to which agreements the
Certificateholder of this Certificate by virtue of the acceptance hereof
assents and by which such Certificateholder is bound. The property of the
Trust includes certain Equipment Notes and all rights of the Trust to receive
any payments under the Intercreditor Agreement, the Policy and the Liquidity
Facility (the "Trust Property"). Each issue of the Equipment Notes is secured
by a security interest in The Aircraft leased to the Company.

          Each of the Certificates represents a fractional undivided interest
in the Trust and the Trust Property, and has no rights, benefits or interest
in respect of any assets or property other than the Trust Property. The
undivided percentage interest in the Trust represented by each of this
Certificate (as specified above) and the other Pass

<PAGE>

                                                                           A-2

Through Certificates, Series 2000-1G-O, was determined on the basis of (x) the
aggregate of the Reference Principal Amount of this Certificate (as specified
above) and of the other Pass Through Certificates, Series 2000-1G-O and (y)
the aggregate original principal amounts of the Equipment Notes constituting
the Trust Property.

          Subject to and in accordance with the terms of the Agreement and the
Intercreditor Agreement, from funds then available to the Trustee, there will
be distributed on each January 15, April 15, July 15 and October 15 (a
"Regular Distribution Date"), commencing April 15, 2000, to the Person in
whose name this Certificate is registered at the close of business on the 15th
day preceding the Regular Distribution Date, an amount in respect of the
Scheduled Payments on the Equipment Notes due on such Regular Distribution
Date, the receipt of which has been confirmed by the Trustee, equal to the
product of the percentage interest in the Trust evidenced by this Certificate
and an amount equal to the sum of such Scheduled Payments. Subject to and in
accordance with the terms of the Agreement and the Intercreditor Agreement, in
the event that Special Payments on the Equipment Notes are received by the
Trustee, from funds then available to the Trustee, there shall be distributed
on the applicable Special Distribution Date, to the Person in whose name this
Certificate is registered at the close of business on the 15th day preceding
the Special Distribution Date, an amount in respect of such Special Payments
on the Equipment Notes, the receipt of which has been confirmed by the
Trustee, equal to the product of the percentage interest in the Trust
evidenced by this Certificate and an amount equal to the sum of such Special
Payments so received. If a Regular Distribution Date or Special Distribution
Date is not a Business Day, distribution shall be made on the immediately
following 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. The Trustee shall mail notice of each
Special Payment and the Special Distribution Date therefor to the
Certificateholder of this Certificate.

          Distributions on this Certificate will be made by the Trustee by
check mailed to the Person entitled thereto, without the presentation or
surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Agreement and notwithstanding the above, the final
distribution on this Certificate will be made after notice mailed by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency of the Trustee specified
in such notice.

          The Certificates do not represent a direct obligation of, or an
obligation guaranteed by, or an interest in, the Guarantor, the Company or the
Trustee or any affiliate thereof. The Certificates are limited in right of
payment, all as more specifically set forth on the face hereof and in the
Agreement. All payments or distributions made to Certificateholders under the
Agreement 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 the Agreement.
Each Certificateholder of this Certificate, by its acceptance hereof, 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
the Agreement. This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced
hereby. A copy of the Agreement may be examined during normal

<PAGE>

                                                                        A-3

business hours at the principal office of the Trustee, and at such other
places, if any, designated by the Trustee, by any Certificateholder upon
request.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Certificateholders under the Agreement at any
time by the Guarantor, the Company and the Trustee with the consent of the
Certificateholders holding Certificates evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the Trust. Any
such consent by the Certificateholder of this Certificate shall be conclusive
and binding on such Certificateholder and upon all future Certificateholders
of this Certificate and of any Certificate issued upon the transfer hereof or
in exchange hereof or in lieu hereof whether or not notation of such consent
is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the
Certificateholders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations set
forth, the transfer of this Certificate is registrable in the Register upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in its capacity as Registrar, or by any
successor Registrar duly endorsed or accompanied by a written instrument of
transfer in form satisfactory to the Trustee and the Registrar, duly executed
by the Certificateholder hereof or such Certificateholder's attorney duly
authorized in writing, and thereupon one or more new Certificates of
authorized denominations evidencing the same aggregate Fractional Undivided
Interest in the Trust will be issued to the designated transferee or
transferees.

          [The Holder of this Certificate is entitled to the benefits of the
Exchange and Registration Rights Agreement, dated as of February 15, 2000,
among the Company, the Trustee and the Initial Purchasers named therein (the
"Registration Rights Agreement"). In the event that no Registration Event has
occurred on or prior to the 210th day after the date of the issuance of the
Certificates, the interest rate per annum payable in respect of the Equipment
Notes and the Deposits shall be increased by 0.50%, from and including the
210th day after the Issuance Date to but excluding the earlier of (i) the date
on which a Registration Event occurs and (ii) the date on which there cease to
be any Registrable Certificates (as defined in the Registration Rights
Agreement). In the event that the Shelf Registration Statement ceases to be
effective at any time during the period specified by Section 2(b)(B) of the
Registration Rights Agreement for more than 60 days, whether or not
consecutive, during any 12-month period, the interest rate per annum payable
in respect of the Equipment Notes and the Deposits shall be increased by 0.50%
from the 61st day of the applicable 12-month period such Shelf Registration
Statement ceases to be effective until such time as the Shelf Registration
Statement again becomes effective (or, if earlier, the end of the period
specified by Section 2(b)(B) of the Registration Rights Agreement).]*

          The Certificates are issuable only as registered Certificates
without coupons in minimum denominations of $1,000 Fractional Undivided
Interest and integral multiples of $1,000 in excess thereof, except that one
Certificate may be issued in a

--------

* To be included only on each Initial Certificate.

<PAGE>

                                                                           A-4

denomination of less than $1,000. As provided in the Agreement and subject to
certain limitations therein set forth, the Certificates are exchangeable for
new Certificates of authorized denominations evidencing the same aggregate
Fractional Undivided Interest in the Trust, as requested by the
Certificateholder surrendering the same.

          Any person acquiring or accepting this Certificate or an interest
herein will, by such acquisition or acceptance, be deemed to have represented
and warranted to and for the benefit of each Owner Participant and the Company
that either: (i) the assets of an employee benefit plan subject to Title I of
the Employment Retirement Income Security Act of 1974, as amended ("ERISA"),
or of a plan subject to Section 4975 of the Internal Revenue Code of 1986, as
amended (the "Code"), have not been used to purchase this Certificate or
interest herein are exempt from the prohibited transaction restrictions of
ERISA and the Code pursuant to one or more prohibited transaction or statutory
exemptions.

          Each Certificateholder or Investor that is not a United States
person within the meaning of Section 7701(a)(30) of the Internal Revenue Code,
as amended, by its acceptance of a Certificate or a beneficial interest
therein, agrees to indemnify and hold harmless the Trust and the Trustee from
and against any improper failure to withhold taxes from amounts payable to it
or for its benefit. Each Certificateholder and Investor, by its acceptance of
this Certificate or a beneficial interest herein, agrees to treat the Trust as
a grantor trust for all U.S. federal, state and local income tax purposes.

          Except as otherwise provided in the Agreement and notwithstanding
the above, the final distribution on this Certificate will be made after
notice mailed by the Trustee of the pendency of such distribution and only
upon presentation and surrender of this Certificate at the office or agency of
the Trustee specified in such notice.

          Under certain circumstances set forth in Section 11.01 of the
Agreement, all of the Trustee's right, title and interest to the Trust
Property may be assigned, transferred and delivered to the Related Trustee of
the Related Trust pursuant to the Assignment and Assumption Agreement. Upon
the effectiveness of such Assignment and Assumption Agreement (the
"Transfer"), the Trust shall be terminated, the Certificateholders shall
receive beneficial interests in the Related Trust in exchange for their
interests in the Trust equal to their respective beneficial interests in the
Trust, the Certificates representing Fractional Undivided Interests in the
Trust shall be deemed for all purposes of the Agreement and the Related Pass
Through Trust Agreement to be certificates representing the same fractional
undivided interests in the Related Trust and its trust property. Each
Certificateholder, by its acceptance of this Certificate or a beneficial
interest herein, agrees to be bound by the Assignment and Assumption Agreement
and subject to the terms of the Related Pass Through Trust Agreement as a
certificateholder thereunder. From and after the Transfer, unless and to the
extent the context otherwise requires, references herein to the Trust, the
Agreement and the Trustee shall constitute references to the Related Trust,
the Related Pass Through Trust Agreement and trustee of the Related Trust,
respectively.

          No service charge will be made for any such registration of transfer
or exchange, but the Trustee shall require payment by the Holder of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.

<PAGE>

                                                                           A-5

          The Trustee, the Registrar, and any agent of the Trustee or the
Registrar may treat the person in whose name this Certificate is registered as
the owner hereof for all purposes, and neither the Trustee, the Registrar, nor
any such agent shall be affected by any notice to the contrary.

          The obligations and responsibilities created by the Agreement and
the Trust created thereby shall terminate upon the distribution to
Certificateholders of all amounts required to be distributed to them pursuant
to the Agreement and the disposition of all property held as part of the Trust
Property.

          UNTIL THE TRANSFER, THE AGREEMENT AND THIS CERTIFICATE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. FROM AND AFTER THE TRANSFER, THE
AGREEMENT AND THIS CERTIFICATE SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

          Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to
any benefit under the Agreement or be valid for any purpose.

          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.

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.

Dated February 15, 2000

                                        AMERICAN TRANS AIR, INC.
                                        PASS THROUGH TRUST, SERIES 2000-
                                        1G-O

                                        By: WILMINGTON TRUST
                                            COMPANY, not in its individual
                                            capacity but solely as Trustee

                                            ---------------------------
                                            Title:

<PAGE>

                                                                           A-6

This is one of the Certificates referred
to in the within-mentioned Agreement.

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

By:
    -----------------------------------
              Authorized Officer

<PAGE>

                                                                           A-7

             [FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

                  This is one of the Certificates referred to
                      in the within-mentioned Agreement.

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

                                        By:
                                            ---------------------------
                                            Authorized Officer

<PAGE>

                                                                           A-8

                            FORM OF TRANSFER NOTICE

          FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto

[Insert Taxpayer Identification No.]

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

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

please print or typewrite name and address including zip code of assignee

-------------------------------------------------------------------------------
the within Certificate and all rights thereunder, hereby irrevocably constitut-
ing and appointing

attorney to transfer said Certificate on the books of the Trustee with full
power of substitution in the premises.

                    [THE FOLLOWING PROVISION TO BE INCLUDED
                      ON ALL U.S. PHYSICAL CERTIFICATES]

          In connection with any transfer of this Certificate occurring prior
to the date that is the earlier of the date of an effective Registration
Statement or [ ________ ], the undersigned confirms that without utilizing any
general solicitation or general advertising that:

                                  [Check One]

[          ] (a)  this Certificate is being transferred in compliance
                  with the exemption from registration under the Securities
                  Act of 1933, as amended, provided by Rule 144A thereunder.

                                      or

[          ] (b)  this Certificate is being transferred other than in
                  accordance with (a) above and documents are being furnished
                  that comply with the conditions of transfer set forth in
                  this Certificate and the Agreement.

If neither of the foregoing boxes is checked, the Trustee or other Registrar
shall not be obligated to register this Certificate in the name of any Person
other than the Holder

<PAGE>

                                                                           A-9

hereof unless and until the conditions to any such transfer of registration
set forth herein and in Section 3.06 of the Agreement shall have been
satisfied.

Date:                                     [Name of Transferor]
      ------------                        --------------------

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

Signature Guarantee:

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this
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.

                                          [Name of Transferee]

Dated:
      ------------

                                          ---------------------------
                                          NOTE:  To be executed by an executive
                                                   officer.

<PAGE>

                                                                     EXHIBIT B

               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 2000-1G-O Pass Through Trust (the "Trust"),
        8.039% American Trans Air Pass Through Certificates Series 2000-1G-O
        (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

<PAGE>

                                                                           B-2

          (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 C

                           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

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

                              AMERICAN TRANS AIR
              PASS-THROUGH TRUST, SERIES 2000-1G-S (the "Trust")
                  Pass Through Certificates, Series 2000-1G-S
                             (the "Certificates")

Ladies and Gentlemen:

          In connection with our proposed purchase of US$[ ] Fractional
Undivided Interest of 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 February 15, 2000 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 $1,000 and each account (if any) for which we are
     purchasing Certificates is purchasing Certificates having an aggregate
     principal amount of not less than $1,000.

          3. We understand that the Certificates have not been registered
     under the Securities Act, that the Certificates are being sold to us in a
     transaction that is

<PAGE>

                                                                           C-2

     exempt from the registration requirements of 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 within two years after the later of the original
     issuance of such certificate and the last date on which such Certificate
     is owned by the Company, the Trustee or any affiliate of any such
     persons, 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 Certificates 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 their investments.

          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 and not with a view to any distribution of the Certificates,
     subject, nevertheless to the understanding that the disposition of our
     property shall at all times be and remain within our control.

          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,

                                          By:
                                             ---------------------------------
                                                     [Name of Transferee]

<PAGE>

                                                                           C-3

                                          By:
                                             ---------------------------------
                                                   Authorized Signature

<PAGE>

                                                                     EXHIBIT D

                  FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
                 American Trans Air 2000-1G Pass Through Trust

          ASSIGNMENT AND ASSUMPTION AGREEMENT, dated [ ], 2000 (the
"Agreement"), between Wilmington Trust Company, a Delaware banking corporation
("WTC"), not in its individual capacity but solely as trustee under the Pass
Through Trust Agreement dated as of February 15, 2000 (as amended, modified or
otherwise supplemented from time to time, the "Pass Through Trust Agreement")
in respect of the American Trans Air 2000-1G-O Pass Through Trust (the
"Assignor"), and Wilmington Trust Company, a Delaware banking corporation, not
in its individual capacity but solely as trustee under the Pass Through Trust
Agreement dated as of February 15, 2000 (the "New Pass Through Trust
Agreement") in respect of the American Trans Air 2000-1G-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,

<PAGE>

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;

<PAGE>

                                                                           D-3

          (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.

          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.

          10. Limitation of Trustee Liability. It is expressly understood and
agreed by the parties hereto that (a) this Agreement is executed and delivered
by Wilmington Trust Company, not individually or personally but solely as
Trustee, in the exercise of the powers and authority conferred and vested in
it in such capacity, (b) each of the representations, undertakings and
agreements herein made on the part of the Trustee is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust
Company but is made for the purpose of binding only the Trustee and (c) under
no circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of the Trustee or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Trustee under this Agreement or any related documents.

<PAGE>

                                                                           D-4

          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 but solely as
                                          trustee under the Pass Through Trust
                                          Agreement in respect of the American
                                          Trans Air 2000-1G-O Pass Through
                                          Trust

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

                                          ASSIGNEE:

                                          WILMINGTON TRUST COMPANY, not in its
                                          individual capacity but solely as
                                          trustee under the Pass Through Trust
                                          Agreement in respect of the American
                                          Trans Air 2000-1G-S Pass Through
                                          Trust

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

<PAGE>

                                                                           D-1

                                                                    Schedule I

                        Schedule of Assigned Documents

(1)  Intercreditor Agreement dated as of February 15, 2000 among the Trustee,
     the Other Trustees, the Policy Provider, 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)  Registration Rights Agreement dated as of February 15, 2000 among the
     Initial Purchasers, the Trustee and the Company.

(3)  Escrow and Paying Agent Agreement (Class G) dated as of February 15, 2000
     among the Escrow Agent, the Initial Purchasers, the Trustee and the
     Paying Agent.

(4)  Note Purchase Agreement dated as of February 15, 2000 among the Company,
     the Trustee, the Other Trustees, the Depositary, the Escrow Agent, the
     Paying Agent and the Subordination Agent.

(5)  Deposit Agreement (Class G) dated as of February 15, 2000 between the
     Escrow Agent and the Depositary.

(6)  The Policy dated February 15, 2000, as defined in the Intercreditor
     Agreement.

(7)  The Policy Provider Agreement dated February 15, 2000, as defined in the
     Intercreditor Agreement.

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

<PAGE>

                                                                           D-1

                                                                   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

Citibank, N.A., as Liquidity Provider

Amtran, Inc.

American Trans Air, Inc.

Salomon Smith Barney, as Initial Purchaser

Morgan Stanley & Co. Incorporated, as Initial Purchaser

Chase Securities Inc., as Initial Purchaser

Banc One Capital Markets, Inc., as Initial Purchaser

First Security Bank, National Association, as Escrow Agent

Ambac Assurance Corporation, as Policy Provider

Each of the other parties to the Assigned Documents

<PAGE>

                                                                     EXHIBIT E

               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

                              AMERICAN TRANS AIR
              PASS-THROUGH TRUST, SERIES 2000-1G-S (the "Trust")
                  Pass Through Certificates, Series 2000-1G-S
                             (the "Certificates")

Ladies and Gentlemen:

         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:

<PAGE>

                                                                           E-4

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.

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