Document:

EMB-140LR

                          PURCHASE AGREEMENT DCT-043/01

                                     Between

                          EMBRAER - EMPRESA BRASILEIRA

                               DE AERONAUTICA S.A.

                                       And

                              ASTRAL AVIATION, INC.

<PAGE>
                                      INDEX

          ARTICLE                                                         PAGE

1.    DEFINITIONS.............................................................2
2.    SUBJECT.................................................................4
3.    PRICE...................................................................5
4.    PAYMENT.................................................................5
5.    DELIVERY................................................................6
6.    CERTIFICATION...........................................................6
7.    ACCEPTANCE AND TRANSFER OF OWNERSHIP....................................7
8.    STORAGE CHARGE..........................................................9
9.    DELAYS IN DELIVERY.....................................................10
10    INSPECTION AND QUALITY CONTROL.........................................12
11.   CHANGES................................................................12
12.   WARRANTY...............................................................14
13.   PRODUCT SUPPORT PACKAGE................................................14
14.   ASSIGNMENT.............................................................14
15.   RESTRICTIONS AND PATENT INDEMNITY......................................15
16.   MARKETING PROMOTIONAL RIGHTS...........................................16
17.   TAXES..................................................................16
18.   APPLICABLE LAW.........................................................16
19.   JURISDICTION...........................................................16
20.   TERMINATION............................................................17
21.   OPTION FOR THE PURCHASE OF ADDITIONAL AIRCRAFT.........................19
22.   INDEMNITY..............................................................20
23.   NOTICES................................................................20
24.   CONFIDENTIALITY........................................................21
25.   SEVERABILITY...........................................................21
26.   NON-WAIVER.............................................................22
27.   INTEGRATED AGREEMENT...................................................22
28.   NEGOTIATED AGREEMENT...................................................22
29.   COUNTERPARTS...........................................................22
30.   ENTIRE AGREEMENT.......................................................22
31.   LANGUAGE...............................................................22
32.   CURRENCY...............................................................22

                                   ATTACHMENTS

"A"      AIRCRAFT SPECIFIC CONFIGURATION, FINISHING AND REGISTRATION MARKS
"B"      FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
"C"      WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP
"D"      PRICE ESCALATION FORMULA
"E"      *
"F"      *
"G"      PERFORMANCE GUARANTEE

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>
                          PURCHASE AGREEMENT DCT-043/01

THIS AGREEMENT IS ENTERED INTO THIS 13th DAY OF AUGUST, 2001, BY AND BETWEEN
EMBRAER - EMPRESA BRASILEIRA DE AERONAUTICA S.A. AND ASTRAL AVIATION, INC. FOR
THE PURCHASE AND SALE OF EMBRAER AIRCRAFT.

THE SALE COVERED BY THIS AGREEMENT SHALL BE GOVERNED SOLELY BY THE TERMS AND
CONDITIONS HEREIN SET FORTH, AND IN THE DOCUMENTS INCORPORATED HEREIN BY
REFERENCE, AS WELL AS BY THE PROVISIONS SET FORTH IN THE ATTACHMENTS HERETO.

THIS AGREEMENT SHALL NOT BE EFFECTIVE UNLESS AND UNTIL IT IS SIGNED BY AN
AUTHORIZED OFFICER OF ASTRAL AVIATION, INC. AND EXECUTED BY TWO AUTHORIZED
OFFICERS OF EMBRAER - EMPRESA BRASILEIRA DE AERONAUTICA S.A.

1.     DEFINITIONS

       For the purpose of this Agreement, the following definitions are hereby
       adopted by the Parties and, unless otherwise expressly provided, the
       singular includes the plural, the masculine includes the feminine and
       neutral genders:

       1.1    "Actual Delivery Date" shall mean, with respect to each Aircraft,
              the date on which Buyer obtains title to that Aircraft in
              accordance with Article 7 hereof.

       1.2    "AD's" shall mean Airworthiness Directives issued by either the
              CTA or the Air Authority, in connection with and with respect to
              the Aircraft.

       1.3    "Agreement" or "Purchase Agreement" shall mean this purchase
              agreement.

       1.4    "Air Authority" shall mean the Federal Aviation Administration -
              FAA, or such other agency of the federal government of the United
              States of America from time to time charged with the
              administration of civil aviation.

       1.5    "Aircraft Basic Price" shall mean the Aircraft price, as defined
              in Article 3.1.

       1.6    "Aircraft Purchase Price" shall mean the Aircraft price, effective
              on the relevant Aircraft Contractual Delivery Date, resulting from
              the application of the Escalation Formula to the Aircraft Basic
              Price as set forth in Article 3.3.

       1.7    "Aircraft" shall mean the EMB--145, model EMB135KL aircraft,
              (commercially known as an ERJ-140LR) manufactured by Embraer
              according to the Technical Description TD-

<PAGE>

              140/003, dated June 2001 (which, although not attached hereto, is
              incorporated herein by reference) and the Aircraft Specific
              Configuration, Finishing and Registration Marks described in the
              Attachment "A", for sale to Buyer pursuant to this Agreement,
              equipped with two (02), AE3007A1/3 engines manufactured by Rolls
              Royce Allison (or, where there is more than one of such aircraft,
              each of such aircraft).

       1.8    "Buyer" shall mean Astral Aviation, Inc., a company with its
              principal place of business at 1190, West Rawson Ave., Oak Creek,
              Wisconsin, 53154-1453, USA.

       1.9    "Business Day(s)" shall mean a day on which banks are open for
              business in Sao Jose dos Campos, Sao Paulo, Rio de Janeiro, and
              New York.

       1.10   "Contractual Delivery Date" shall mean the delivery date referred
              to in Article 5 of this Agreement.

       1.11   "CTA" shall mean the Aerospace Technical Center of the Brazilian
              Ministry of Aeronautics.

       1.12   "Day(s)" shall mean calendar days.

       1.13   "Embraer" shall mean Embraer - Empresa Brasileira de Aeronautica
              S.A., a Brazilian corporation with its principal place of business
              at Av. Brigadeiro Faria Lima, 2170 - Putim, Sao Jose dos Campos,
              Sao Paulo, Brazil.

       1.14   "Escalation Formula" shall mean the escalation formula contained
              in Attachment "D" hereto.

       1.15   "F.A.F. " shall mean that the Aircraft is delivered to Buyer at
              Embraer facilities in Sao Jose dos Campos, Sao Paulo, Brazil, in
              accordance with the terms of this Agreement.

       1.16   "Firm Aircraft" shall mean the twenty (20) Aircraft that Buyer has
              committed to buy from Embraer, and Embraer committed to sell to
              Buyer, subject to the terms of this Agreement.

       1.17   "Major Changes" shall mean the changes to the design of the
              Aircraft, as defined in Article 11.2.2 hereof.

       1.18   "Mandatory Service Bulletins" shall mean the service bulletins
              applicable to the Aircraft, which are issued by Embraer to
              implement the AD's referred to under Article 11.4 herein.

       1.19   "Minor Changes" shall mean the changes to the design of the
              Aircraft defined as per the terms and conditions of Article 11.2.1
              hereof.
<PAGE>

       1.20   "Option Aircraft Basic Price" shall mean the unit price of the
              Option Aircraft, as per the terms and conditions of Article 21.2
              hereof.

       1.21   "Option Aircraft Contractual Delivery Date" shall mean the
              delivery schedule of the Option Aircraft referred to in Article 21
              hereof.

       1.22   "Option Aircraft Initial Deposit" shall mean the initial deposit
              referred to under Article 21.1 of this Agreement.

       1.23   "Option Aircraft Purchase Price" shall mean the escalated price of
              the Option Aircraft, as per the terms and conditions of Article
              21.3 hereunder.

       1.24   "Option Aircraft" shall be the up to twenty (20) additional
              ERJ-140 LR Aircraft that Buyer shall have the option to purchase
              as per the terms of Article 21 hereof.

       1.25   "Parties" shall mean Embraer and Buyer.

       1.26   "Product Support Package" shall mean the products, Technical
              Publications and Services to be provided by Embraer as per Article
              13 herein.

       1.27   "Proposal"  *

       1.28   "Scheduled Inspection Date" shall mean the date on which a certain
              Aircraft hereunder is available for inspection and acceptance by
              and subsequent delivery to Buyer, as per the terms and conditions
              of Article 7.1 hereof.

       1.29   "Services" shall mean the familiarization and on-site support for
              the Aircraft, part of the Product Support Package, as specified in
              Attachment "B".

       1.30   "Technical Publications" shall mean the technical documentation
              pertaining and related to the Aircraft as listed in Exhibit 1 to
              Attachment "B".

       1.31   "USD" or "US$" shall mean the legal currency of the United States
              of America.

       1.32   "Working Day(s)" shall mean a day, other than Saturday, Sunday or
              holiday, on which Embraer in Sao Jose dos Campos, SP, Brazil is
              open for business.

2.     SUBJECT

       Subject to the terms and conditions of this Agreement:

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.
<PAGE>

       2.1    Embraer shall sell and deliver and Buyer shall purchase and take
              delivery of twenty (20) Firm Aircraft;

       2.2    Embraer shall provide to Buyer the Services and the Product
              Support Package; and

       2.3    Buyer shall have the option to purchase up to twenty (20) Option
              Aircraft, in accordance with Article 21 hereof.

3.     PRICE

       3.1    Buyer agrees to pay Embraer, in United States dollars, the total
              Aircraft Basic Price of *, at a unit Aircraft
              Basic Price of *, * economic condition.

       3.2    The Services and Technical Publications are to be provided to
              Buyer * as well as other services shall be billed to Buyer in
              accordance with Embraer's rates prevailing at the time Buyer
              places a purchase order for such additional technical publications
              or other services.

       3.3    The Aircraft Basic Price shall be escalated according to the
              Escalation Formula. Such price as escalated shall be the Aircraft
              Purchase Price and it will be provided to Buyer * prior to each
              Aircraft Contractual Delivery Date.

4.     PAYMENT

       4.1.1  *

       4.1.2  The Aircraft Purchase Price of each Aircraft shall become due and
              payable upon acceptance of each relevant Aircraft by Buyer, and
              shall be paid by Buyer *.

4.2    Net payments:

       4.2.1  All payments to be made by Buyer under this Agreement shall be
              made without set-off or withholding whatsoever. If Buyer is
              obliged by law to make any deduction or withholding from any such
              payment, the amount due from Buyer in respect of such payment
              shall be increased to the extent necessary to ensure that, after
              the making of such deduction or withholding, Embraer receives a
              net amount equal to the amount Embraer would have received had no
              such deduction or withholding been required to be made.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

4.3    Initial Deposits:

       4.3.1  The Initial Deposits shall *, and shall be held by
              Embraer *.

5.     DELIVERY

       Subject to payment in accordance with Article 4 hereof and the provisions
       of Articles 7 and 9 hereof, the Aircraft shall be offered by Embraer to
       Buyer, by means of a written notice, for inspection, acceptance and
       subsequent delivery in F.A.F. condition, at Sao Jose dos Campos, State of
       Sao Paulo, Brazil, according to the following schedule:
<TABLE>
<CAPTION>
      -------------------------------------------------------------------------------------------------------
            AIRCRAFT        CONTRACTUAL DELIVERY DATE           AIRCRAFT          CONTRACTUAL DELIVERY DATE
      -------------------------------------------------------------------------------------------------------
<S>                               <C>                              <C>                  <C>
               01                     *   2002                     11                     *
      -------------------------------------------------------------------------------------------------------
               02                     *                            12                     *
      -------------------------------------------------------------------------------------------------------
               03                     *                            13                     *
      -------------------------------------------------------------------------------------------------------
               04                     *                            14                     *
      -------------------------------------------------------------------------------------------------------
               05                     *                            15                     *
      -------------------------------------------------------------------------------------------------------
               06                     *                            16                     *
      -------------------------------------------------------------------------------------------------------
               07                     *                            17                     *
      -------------------------------------------------------------------------------------------------------
               08                     *                            18                     *
      -------------------------------------------------------------------------------------------------------
               09                     *                            19                     *
      -------------------------------------------------------------------------------------------------------
               10                     *                            20                     *  2005
     -------------------------------------------------------------------------------------------------------
</TABLE>

6.     CERTIFICATION

       6.1    The Aircraft is Type certified according to FAR 25 amendment 84,
              as well as to the requirements of the Air Authority for the
              operation of the aircraft by Buyer under FAR 121 except for the
              items that are under Buyer/operator's regulatory responsibility
              pursuant to the FARs and are not otherwise required to be provided
              by Embraer under this Agreement.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       6.2    The Aircraft shall be delivered to Buyer with an export
              certificate of airworthiness issued by CTA complying with the type
              certificate. The condition of the Aircraft on delivery and the
              documentation delivered with the Aircraft, including the above
              mentioned export certificate of airworthiness, shall * Buyer
              to obtain a certificate of airworthiness for the Aircraft with the
              Air Authority. Subject to the above, it shall be Buyer's
              responsibility to obtain such certificate of airworthiness for and
              the registration of the Aircraft, at Buyer's sole expense.

       6.3    *.

7.     ACCEPTANCE AND TRANSFER OF OWNERSHIP

       7.1    The Aircraft shall be delivered in accordance with the provisions
              and schedules specified in Article 5 herein. Each Aircraft shall
              be offered to Buyer for inspection, acceptance and subsequent
              delivery by means of written notices issued by Embraer as follows:

       7.1.1. A first notice shall be issued * prior to
              the relevant Aircraft Contractual Delivery Date informing Buyer of
              the *;

       7.1.2. A second notice shall be issued * prior to the
              relevant Aircraft Contractual Delivery Date informing Buyer of the
              *; and

       7.1.3. A third notice shall be issued to Buyer upon *, with confirmation
              of the Scheduled Inspection Date, on which date Buyer shall
              promptly start inspecting such Aircraft. Embraer shall issue the
              notice informing the Buyer of the Scheduled Inspection Date at
              least * prior to such Scheduled Inspection Date.

       7.1.4. *

       7.1.5. *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       7.2    Buyer shall be allowed a reasonable period of time but in no event
              greater than * starting on the Scheduled Inspection Date to
              inspect and conduct an acceptance flight of each Aircraft prior to
              its delivery. *.

       7.3    If *, Buyer shall promptly make the due payments according to
              Article 4 hereof and accept delivery of such Aircraft, whereupon
              the necessary title and risk transfer documents shall be executed
              in order to effect title transfer.

       7.4    Buyer may decline to accept an Aircraft that does not *.

       7.5    If Buyer declines to accept an Aircraft, Buyer shall promptly give
              Embraer written notice of all specific reasons for such refusal
              and Embraer shall have *, commencing on the first Day after *, to
              take * all necessary actions in order to resubmit the Aircraft to
              Buyer for re-inspection.

       7.6    Buyer shall be allowed * to re-inspect the Aircraft, starting
              immediately upon * from Embraer that all necessary actions were
              taken. The period required for re-inspection as well as the period
              mentioned in item 7.5 during which Embraer is taking actions in
              order to resubmit the Aircraft above shall not be considered as
              part of the * grace period provided for in item 9.2.1 hereof. *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       7.7    Should Buyer fail to perform the acceptance and transfer of title
              to the Aircraft within the periods provided for and in accordance
              with this Article 7,and such failure is not due to the
              non-compliance of the Aircraft as described in Article 7.4,
              Embraer shall be entitled, at its reasonable discretion, to *.
              Embraer rights to * shall only become effective if Buyer has not *
              within * after the Schedule Inspection Date *.

       7.8    Notwithstanding the provisions of Article 7.7 above and in
              addition to Embraer's rights pursuant to Article 20.3, should
              Buyer fail to perform the acceptance and transfer of title to the
              Aircraft within the time period specified in Articles 7.2, 7.5 and
              7.6 above, as applicable, *, interest will accrue at the rate of *
              over the unpaid balance of the relevant Aircraft Purchase Price,
              prorated from the date on which Buyer should have *, until the
              date in which transfer of title occurs or until the date Embraer *
              pursuant to Article 7.7 above, whichever occurs first. Without
              prejudice to Embraer's rights set forth in Article 7.7 above,
              interest accrued will be invoiced by Embraer on a monthly basis,
              beginning one month after the date on which *, and payment thereof
              shall be made by Buyer in accordance with the instructions
              contained therein.

8.     STORAGE CHARGE

       8.1    Subject to Article 8.2, a storage charge equal to * shall be
              charged by Embraer to Buyer commencing *:

       8.1.1  Buyer's failure to perform inspection or re-inspection of an
              Aircraft, per the date or time period specified in writing by
              Embraer, according to Articles 5 and/or 7 hereof, as applicable.

       8.1.2  Buyer's acceptance of an Aircraft when Buyer defaults in *.

       8.1.3  Buyer's failure to remove an Aircraft from Embraer's facilities
              after *.

       8.2    In the event that an Aircraft Contractual Delivery Date must be
              extended by Embraer from that which is designated in Article 5
              hereof, due to Buyer's failure to perform any action or provide
              any information contemplated by this Agreement other than the ones
              specified Articles 8.1.1, 8.1.2, 8.1.3, the storage charge shall
              commence * after the Contractual Delivery Date relative to such
              Aircraft.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       8.3    Buyer shall pay the storage charge as set forth in Articles 8.1.
              or 8.2. hereinbefore, as applicable, in United States dollars, per
              each month of delay or prorated for part thereof, within * after *
              of each invoice by Embraer.

9.     DELAYS IN DELIVERY

       9.1    Excusable Delays:

       9.1.1  Embraer shall not be held liable or be found in default for any
              delays in the delivery of an Aircraft or in the performance of any
              act to be performed by Embraer under this Agreement, to the extent
              resulting from the following events or occurrences (hereinafter
              referred to as "Excusable Delays"): (a) force majeure *, (b) *, c)
              any delay resulting from any failure by Buyer to perform any
              action or provide any information contemplated by this Agreement
              or, (d) delays resulting from any other cause to the extent it is
              beyond Embraer's control *.

       9.1.2  * after the occurrence of any of the above mentioned events which
              constitute * causes of Excusable Delay in delivery of an Aircraft
              or in the performance of any act to be performed by Embraer under
              this Agreement, Embraer shall send a written notice to Buyer
              including a description of details involved and an estimate of the
              effects expected upon the timing of the performance of its
              contractual obligations.

       9.1.3  Any Excusable Delays shall extend the time for delivery of an
              Aircraft *, subject to Article 9.1.4. Embraer undertakes to use *
              to avoid or remove any such cause of delay and to minimize its
              effect on the Contractual Delivery Date of an Aircraft.

       9.1.4  If the cause of such Excusable Delay is such as to last longer
              than *, then the Parties shall *; failing which, either Party may
              terminate this Agreement with regards to the affected Aircraft as
              provided for in Article 20.2.

       9.2    Non-Excusable Delays:

       9.2.1  If the delivery of an Aircraft is delayed by Embraer for any
              reason other than an Excusable Delay, for more than *, Buyer
              shall be entitled to *,

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

              * up to *. If the Aircraft is delayed by Embraer for any reasons
              other than an Excusable Delay for *.

       9.2.2  If the delivery of an Aircraft is delayed by Embraer for any
              reason other than an Excusable Delay *, for more than * then up to
              *.

       9.2.3  It is hereby understood that any and all * by Embraer pursuant to
              this Purchase Agreement will not, in any event, *. Embraer and
              Buyer acknowledge that the * as set forth herein and in Items
              9.2.1 and 9.2.2 are *. * pursuant to this Article 9.2. shall be *
              after Buyer pays to Embraer the Aircraft Purchase Price for the
              Aircraft in question.

       9.2.4  Upon the occurrence of any event which *, Embraer shall * send a
              written notice to Buyer, *.

       9.2.5  It is agreed between the Parties that if, with respect to a
              delayed Aircraft, Embraer does not receive a * as mentioned in
              Article 9.2.1 above, from Buyer, within * after *, Buyer shall be
              deemed to have fully waived its right to *.

       9.3    Delay Due to Loss or Structural Damage of the Aircraft:

              Should any Aircraft be destroyed or damaged before acceptance to
              the extent that it becomes commercially useless, Buyer may *
              either take a replacement Aircraft at a later delivery date to be
              agreed by the Parties, or terminate this Agreement with respect to
              such Aircraft by notice to Embraer, given in accordance with
              Article 23 hereof, without any liability to either Party *.
              Embraer agrees to use * to offer Buyer a replacement Aircraft *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

              *.

10     INSPECTION AND QUALITY CONTROL

       10.1   Buyer is hereby allowed to have one authorized representative at
              Embraer's facilities * to assure * according to the applicable
              quality control standards.

              Buyer shall communicate to Embraer the name of such
              representative, by means of written notice, at least thirty (30)
              days prior to the date of the representative's arrival. The
              presence of such representative shall not unduly disturb the
              normal activities of Embraer.

       10.2   Buyer is hereby allowed to have * of authorized representatives at
              Embraer's facilities in order to perform the inspection and
              acceptance tests on the Aircraft and Spares. Buyer shall
              communicate to Embraer the names of such representatives, by means
              of written notice, at least * prior to the relevant Aircraft
              Scheduled Inspection Date.

       10.3   One or more of the representatives referred to in Article 10.2
              above, or other representatives duly appointed by Buyer, shall be
              authorized to sign the appropriate acceptance and risk documents
              and take delivery of the Aircraft and Spares pursuant to Article
              7.

       10.4   For the purposes hereof, Embraer shall provide, at no charge to
              Buyer, room space with communication facilities (telephone and
              facsimile) for Buyer's authorized representatives, as well as the
              necessary tools, measuring devices, test equipment and technical
              assistance as may be necessary to perform acceptance tests.

       10.5   Buyer's authorized representatives shall observe Embraer's
              administrative rules and instructions while at Embraer's
              facilities.

       10.6   Buyer's authorized representative shall be allowed exclusively in
              those areas related to the subject matter hereof and Buyer agrees
              to hold harmless Embraer from and against all and any kind of to
              the extent attributable to negligence, gross negligence or willful
              misconduct of such authorized representatives while at Embraer's
              facilities.

11.    CHANGES

       11.1   Each Aircraft will comply with the standards defined in Attachment
              "A" hereto and shall incorporate all modifications which are
              classified as AD's mandatory by CTA or the Air Authority as
              provided in Article 11.4, or those agreed upon by Buyer and
              Embraer in accordance with this Article.

       11.2   The Parties hereby agree that changes can be made by Embraer in
              the design of the Aircraft, the definition of which and its
              respective classification shall be in compliance to the Aircraft
              type specification, as follows:

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       11.2.1 Minor Changes: defined as those modifications which shall not
              adversely affect the Aircraft in any of the following
              characteristics: *

       11.2.2 Major Changes: defined as those modifications that affect at least
              one of the topics mentioned in Article 11.2.1.

       11.3   Embraer shall have the right, but not the obligation, to
              incorporate Minor Changes in the Aircraft still in the production
              line at its own cost, without the prior consent of Buyer *.

       11.4   Embraer shall convey those Major Changes that are classified as
              AD's by means of service bulletins approved by the Air Authority
              and/or CTA, as appropriate. Service bulletins that implement such
              AD's shall be referred to as Mandatory Service Bulletins. Embraer
              shall notify Buyer in writing of all Mandatory Service Bulletins
              and shall incorporate Mandatory Service Bulletins as follows:

       11.4.1 Compliance required before Contractual Delivery Date: Embraer
              shall incorporate Mandatory Service Bulletins in undelivered
              Aircraft at Embraer's expense prior to the Contractual Delivery
              Date if the compliance time for such Mandatory Service Bulletins
              is before the Aircraft's Contractual Delivery Date. Embraer shall
              not be liable for any delays resulting from incorporation of
              Mandatory Service Bulletins when the Aircraft has already passed
              the specific production stage affected by the incorporation of
              said change *. Embraer shall use * to incorporate such Mandatory
              Service Bulletins as promptly as possible.

       11.4.2 Compliance required after Contractual Delivery Date: During the *,
              Embraer shall * for Mandatory Service Bulletins that are issued
              either (i) before the relevant Aircraft's Contractual Delivery
              Date but with a compliance time after such date or (ii) after the
              relevant Aircraft's Contractual Delivery Date. *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

              *. Embraer shall not be liable for any downtime of delivered
              Aircraft that may be necessary for the incorporation of any
              changes. When flight safety is affected, such changes shall be
              incorporated *. If * is not available or applicable *, the
              provisions of Article 11.5 shall apply.

       11.5   Major changes, (other than those which are AD's mandatory per
              Article 11.4), any change developed by Embraer as product
              improvement and any change required by Buyer, including those
              changes required by Buyer's country authorities as a consequence
              of *, shall be considered as optional and, pursuant to Buyer's
              request, the corresponding cost proposals shall be submitted by
              Embraer to Buyer for consideration and approval. Should Buyer not
              approve any such change, it shall not be incorporated in the
              Aircraft.

       11.6   Any Major Change to the Aircraft, made in accordance with the
              foregoing paragraphs that affect the provisions of Attachment "A"
              hereto, shall be incorporated in said Attachment "A" by means of
              an amendment.

       11.7   Except as far as it relates to *, each Aircraft shall, on its
              Scheduled Inspection Date, comply with all of the applicable terms
              and conditions of Attachment "A" as from time to time amended
              pursuant to Article 11.6 above. Determination of such compliance
              shall be *.

12.    WARRANTY

       The Aircraft subject to this Agreement, will be warranted in accordance
       with the terms and conditions specified in Attachment "C" hereto. Except
       when Article 14 applies, if Buyer intends to *, it is Buyer's
       responsibility to obtain *, as well as to provide Embraer written notice
       * of any changes *.

13.    PRODUCT SUPPORT PACKAGE

       Embraer shall supply to Buyer the Product Support Package described in
       Article 2 of Attachment "B" hereto, which includes Embraer's spare parts
       policy, the Technical Publications and the Services.

14.    ASSIGNMENT

       Except with regards to the guarantees granted by Embraer for the
       exclusive benefit of Buyer pursuant to Attachments E, F and G, Buyer's
       rights and obligations hereunder may be assigned: (a) to * with Embraer's
       consent *, (b) to subsidiaries and affiliates which are *; 14.1 (c) to
       any lender, owner, or other financing party (or any trustee for any of
       the foregoing) in connection with

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       any Aircraft financing on behalf of Buyer; and which results in Buyer's
       operation of the relevant Aircraft, and (d) in connection with Buyer's
       consolidation with or merger *.

       14.2   Notwithstanding anything to the contrary contained herein:

       14.2.1 no such assignment shall *;

       14.2.2 any assignee or transferee shall represent, to the benefit of
              Embraer, its express agreement and consent to be bound by the
              terms and conditions of this Agreement as assigned when exercising
              rights thereunder;

       14.2.3 Embraer shall be notified by Buyer of any such assignment or
              transfer at least *.

       14.2.4 in no instance shall such assignment or transfer be made to or for
              the benefit of any transferee or assignee which is a * of *. For
              the purposes hereof * shall mean *.

       14.2.5 any assignee or transferee of Buyer shall be invested with the
              requisite power and authority to carry out the transactions
              contemplated under this Agreement.

15.    RESTRICTIONS AND PATENT INDEMNITY

       This sale does not include the transfer of designs, copyrights, patents,
       and other similar rights to Buyer. Subject to Buyer's duty to promptly
       advise Embraer of any alleged copyright or patent infringement of which
       Buyer becomes aware, Embraer shall defend, indemnify and hold harmless
       Buyer and its affiliates, successors, directors, officers, employees and
       agents from an against all claims, suits, losses, liabilities and
       reasonable expenses (including without limitation reasonable attorneys'
       fees and legal expenses) arising out of any actual or alleged
       infringement of any patent, trademark, trade secret, copyright, or other
       intellectual property right through *. In addition, if any action use of
       any Aircraft, * enjoined by reason of infringement, Embraer shall, at its
       sole expense and Embraer's option, either (i) procure for Buyer the right
       to continue using the infringing items; (ii) modify the items * to render
       them non-infringing; (iii) replace the infringing items with
       non-infringing items *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

16.    MARKETING PROMOTIONAL RIGHTS

       Provided *, and provided that *, Embraer shall have the right to show for
       marketing purposes, free of any charge, the image of Buyer's Aircraft,
       painted with Buyer's colors and emblems, affixed in photographs,
       drawings, films, slides, audiovisual works, models or any other medium of
       expression (pictorial, graphic, and sculptural works), through all mass
       communications media such as billboards, magazines, newspaper,
       television, movie, theaters, as well as in posters, catalogues, models
       and all other kinds of promotional material. Buyer shall be entitled to
       *, provided however *.

17.    TAXES

       Embraer shall be responsible for and pay all taxes, fees, charges,
       imposts and duties arising out of or in connection with the performance
       of this Agreement, or the sale, delivery or transfer of any Aircraft or
       other things furnished under this Agreement that may imposed under
       Brazilian laws, *. All other taxes, imposts, fees, withholding taxes,
       stamp taxes, documentary taxes and any other similar or dissimilar taxes,
       as well as any *, as may be imposed on the sale subject of this Agreement
       shall be borne by Buyer.

18.    APPLICABLE LAW

       This Purchase Agreement, and the rights and obligations of the Parties
       hereunder, shall be governed by and construed and interpreted in
       accordance with the laws of the State of New York, USA.

19.    JURISDICTION

       All disputes arising in connection with this Purchase Agreement shall be
       finally settled in the United States District Court for the Southern
       District of New York located in the county of New York, provided that if
       such court lacks jurisdiction, disputes shall be resolved in the state
       courts for the state of New York. The Parties hereby waive any other
       court of Jurisdiction that may be competent for settlement of disputes
       arising from this Agreement.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>
20.    TERMINATION

20.1   Should either Party fail to comply partially or completely with its
       obligations hereunder, the other Party shall be entitled to give notice
       of such failure and to require that such failure be remedied within the
       period specified in that notice, which period shall not be less than *.
       Should such failure not be remedied within the period so specified, the
       Party who gave notice of such failure shall be entitled * this Agreement.
       Should termination occur in accordance with the foregoing, the defaulting
       Party shall *. The foregoing provision shall not apply in any
       circumstance where a specific right of termination is made available
       hereunder or will be made available hereunder upon the expiration of a
       specific period of time. Except as otherwise provided for herein, neither
       Party shall * under of any term, condition, covenant, warranty, or
       provision of this Agreement, and which either Party would *.

       *

20.2   Upon the occurrence of any Excusable Delay of * after the Aircraft
       Contractual Delivery Date, Buyer shall have the right to *. If Buyer does
       not elect to terminate * after *, Embraer shall *. Termination by either
       Party shall be exercised by means of written notice to such effect, to be
       issued within the above referred to time periods.

20.3   Buyer shall have the right to terminate * upon the occurrence of any
       non-Excusable Delay of * after the Aircraft Contractual Delivery Date,
       and if Buyer does not exercise its right to terminate, Embraer may
       terminate * after the relevant Aircraft Contractual Delivery Date.
       Termination by either Party shall be exercised by means of written notice
       to such effect, to be issued in the case of Buyer not more than * after
       the Contractual Delivery Date of the Relevant Aircraft, and in the case
       of Embraer not more than * after the Contractual Delivery Date of the
       Relevant Aircraft.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

20.4   Buyer shall be entitled to terminate * after final refusal of acceptance
       in accordance with the terms of Article 7.6. If Buyer has not terminated
       * within * following final refusal of acceptance, Embraer *.

20.5   *

20.6   Upon receipt of a notice of termination by Buyer or Embraer, as the case
       may be, pursuant to Articles 20.2, 20.3, 20.4 or 20.5 *, it being hereby
       agreed by the Parties that no other *.

20.7   If Buyer terminates * before an Aircraft Actual Delivery Date (except
       when such termination is for * or, if Embraer terminates *, pursuant to
       Articles 4.1 or 7.7 hereof, Buyer shall * provided that if such
       termination occurs *. Embraer and Buyer acknowledge that the *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       *. For these purposes Embraer may, in its sole discretion, * resulting
       from such default on *.

20.8   If Buyer terminates * pursuant to Article 7.6 hereof, Embraer, upon
       Buyer's request, *.

21.    OPTION FOR THE PURCHASE OF ADDITIONAL AIRCRAFT Buyer shall have the
       option to purchase up to twenty (20) Option Aircraft provided however
       that the Option Aircraft shall be exercised *.

       21.1   Each Option Aircraft shall be configured as per Attachment "A" and
              shall be available to Buyer at the Firm Aircraft Basic Price and
              on the *. Any additional Buyer selected optional equipment and/or
              specific interior configuration changes will affect the Aircraft
              Basic Price for each applicable Option Aircraft accordingly. The
              Option Aircraft Basic Price is subject to the Escalation Formula.

       21.2   Buyer shall exercise options in *. If Buyer fewer than * Option
              Aircraft *, Buyer's right to purchase that number of Option
              Aircraft equal to *. For example, if Buyer exercises *, Buyer
              shall be deemed to have waived *.

       21.3   There shall be a minimum of * between the exercise of *.

       21.4   In order to exercise its option, Buyer shall inform Embraer of its
              decision to acquire each relevant Option Group by means of a
              written notice to Embraer, return receipt requested.

       21.5   Upon receipt of such notice Embraer shall inform Buyer, *.

       21.6   If Buyer *, Buyer shall promptly * to Embraer.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

       21.7   If Buyer and Embraer cannot *, the right of Buyer to * be
              terminated *.

       21.8   The product support package to be applied to the Option Aircraft
              is described in Article 2.3.1 of Attachment "B".

22.    INDEMNITY

       22.1   Buyer agrees to indemnify and hold harmless Embraer and Embraer's
              officers, agents, employees and assignees from and against all
              liabilities, damages, losses, judgments, claims and suits,
              including costs and expenses incident thereto, which may be
              suffered by, accrued against, be charged to or recoverable from
              Embraer and/or Embraer's officers, agents, employees and assignees
              by reason of loss or damage to property or by reason of injury or
              death of any person (excluding any employees, agents directors and
              officers of Embraer) resulting from or in any way connected with
              the performance of Services by employees, representatives or
              agents of Embraer for or on behalf of Buyer related to Aircraft
              delivered by Embraer to Buyer, while on the premises of Embraer or
              Buyer, while in flight on Buyer-owned Aircraft or while performing
              any other service, at any place, in conjunction with the Aircraft
              operations of Buyer *.

       22.2   *

23.    NOTICES

       All notices, invoices or other correspondence permitted or required
       hereunder shall be in writing in the English language and sent, by
       recognized international courier or facsimile, to the attention of the
       Director of Contracts as to Embraer and of the President of Astral as to
       Buyer, to the addresses indicated below or to such other address as
       either Party may, by written notice, designate to the other. Notices,
       invoices or other correspondence shall be deemed to be received when the
       sending facsimile machine issues a delivery receipt for the facsimile of
       such notice, invoice or other correspondence, and when such notice,
       invoices or other correspondence are sent by * , such notices, invoices
       or other correspondence shall be *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

23.1   EMBRAER:
       EMBRAER - Empresa Brasileira de Aeronautica S.A.
       Av. Brigadeiro Faria Lima, 2170
       12.227-901 Sao Jose dos Campos - SP
       Brasil
       Telephone: (+55-12) 3945-1410
       Facsimile: (+55-12) 3945-1257

23.2   BUYER:

       Astral Aviation, Inc.
       1190 West Rawson Avenue
       Oak Creek, WI 53154
       Tel: (414) 570-2301
       Fax: (414) 570-1447
       Attn: President
       With a copy to: General Counsel

24.    CONFIDENTIALITY

       Buyer and Embraer agree not to disclose any portion of this Purchase
       Agreement or its attachments or amendments or any other supplement or any
       information submitted in connection herewith to any third party without
       the other Party's written consent, except as required by law, regulation
       or court order. Without limiting the foregoing, in the event either Party
       is legally required to disclose the terms of this Purchase Agreement,
       such Party agrees to * to obtain confidential treatment of the clauses
       and conditions of this Purchase Agreement as designated by the other
       Party. The provisions of this Article supersede any prior agreement
       between the parties related to the use and disclosure of information
       exchanged between the Parties. This Article 24 shall not prohibit the
       parties from disclosing the terms of this Agreement and all related
       documents to their respective legal counsel, accountants and auditors. In
       connection with any financing associated with Buyer's financing of the
       Aircraft, * to the financing institution which will provide financing,
       provided *.

25.    SEVERABILITY

       If any provision or part of a provision of this Agreement or any of the
       Attachments shall be, or be found by any authority or court of competent
       jurisdiction to be, invalid or unenforceable, such invalidity or
       unenforceability shall not affect the other provisions or parts of such
       provisions of this Agreement, all of which shall remain in full force and
       effect.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>

26.    NON-WAIVER

       Except as otherwise specifically provided to the contrary in this
       Agreement, any Party's refraining from exercising any claim or remedy
       provided for herein shall not be deemed a waiver of such claim or remedy,
       and shall not relieve the other Party from the performance of such
       obligation at any subsequent time or from the performance of any of its
       other obligations hereunder.

27.    INTEGRATED AGREEMENT

       All Attachments referred to in this Agreement and/or attached hereto are,
       by such reference or attachment, incorporated in this Agreement.

28.    NEGOTIATED AGREEMENT

       Buyer and Embraer agree that this Agreement, including all of its
       Attachments, has been the subject of discussion and negotiation and is
       fully understood by the Parties, and that the rights, obligations and
       other mutual agreements of the Parties contained in this Agreement are
       the result of such complete discussion and negotiation between the
       Parties.

29.    COUNTERPARTS

       This Agreement may be signed by the Parties hereto in any number of
       separate counterparts with the same effect as if the signatures thereto
       and hereto were upon the same instrument and all of which when taken
       together shall constitute one and the same instrument.

30.    ENTIRE AGREEMENT

       This Agreement constitutes the entire agreement between the Parties,
       superseding all prior oral or written agreements, understandings,
       representations, proposals and negotiations on the subject matter hereof;
       and there are no conditions affecting this Agreement that are not
       expressed herein. This Agreement may not be altered, amended or
       supplemented except by a written instrument executed by the Parties.

31.    LANGUAGE

       All the correspondence, documents, specifications and other materials to
       be provided to Buyer, whether in tangible or electronic form and whether
       provided by Embraer or other vendors, must be provided in the English
       language

32.    CURRENCY

       Unless otherwise agreed in writing, all payments to be made by the
       Parties hereunder shall be made in United States dollars

<PAGE>

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed
and delivered by their proper and duly authorized officers and to be effective
as of the day and year first above written.

EMBRAER - Empresa Brasileira                ASTRAL AVIATION, INC.
           de Aeronautica S.A.

By:  /s/ Frederico Fleury Curado            By: /s/ James P. Rankin
   ------------------------------              ---------------------------------
Name: Frederico Fleury Curado               Name:  James P. Rankin
Title: Vice President                       Title: President & CEO

By: /s/ Flavio Rimoli
   --------------------------
Name:  Flavio Rimoli
Title: Director of Contracts

Date:  August 13, 2001                      Date:  August 15, 2001
Place: Sao Jose dos Campos, SP              Place: Oak Creek, WI  U.S.A.
       Brazil

Witnesses:

/s/ Albert Y. Close                         /s/ Charles W. Parks II
---------------------------                 -----------------------------
Name: Albert Y. Close                       Name:  Charles W. Parks II
ID:   8895361-0 SSP/SP                      ID:
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "A"
        AIRCRAFT SPECIFIC CONFIGURATION, FINISHING AND REGISTRATION MARKS
--------------------------------------------------------------------------------

1.     STANDARD AIRCRAFT

       The Aircraft shall be manufactured according to the standard
       configuration specified in the Technical Description TD-140/003, dated
       June 2001 and the optional equipment described in item 2.

2.     OPTIONAL EQUIPMENT

       2.1    OPTIONS TO STANDARD AVIONICS CONFIGURATION
              *

       2.2    OPTIONAL SYSTEM/OTHER EQUIPMENT
              *

       2.3    INTERIOR OPTIONAL ITEMS
              *

       2.4    *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 2
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "A"
        AIRCRAFT SPECIFIC CONFIGURATION, FINISHING AND REGISTRATION MARKS
--------------------------------------------------------------------------------

3.     FINISHING

       3.1.   EXTERIOR FINISHING:

              The fuselage of the Aircraft shall be painted according to Buyer's
              color and paint scheme that shall be supplied to Embraer by Buyer
              on or before * prior to the relevant Aircraft Contractual Delivery
              Date, *. The wings and the horizontal stabilizer shall be supplied
              in the standard colors, i.e., gray BAC707.

       3.2.   INTERIOR FINISHING:

              Buyer shall inform Embraer on or before * prior to the relevant
              Aircraft Contractual Delivery Date of its choice of materials and
              colors of all and any item of interior finishing such as seat
              covers, carpet, floor lining on galley areas, side walls and
              overhead lining, galley lining and curtain. The above-mentioned
              schedule for definition of interior finishing shall only be
              applicable if Buyer selects its materials from the choices offered
              by and available at Embraer. In case Buyer opts to use different
              materials and or patterns, Buyer shall *.

4.     REGISTRATION MARKS AND TRANSPONDER CODE

       The Aircraft shall be delivered to Buyer with the registration marks
       painted on them. Buyer shall supply the registration marks and the
       transponder code to Embraer no later than * before each relevant Aircraft
       Contractual Delivery Date.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT
BETWEEN THE TERMS OF THIS ATTACHMENT "A" AND THE TERMS OF THE TECHNICAL
DESCRIPTION TD-140/005 DATED JUNE 2001, THE TERMS OF THIS ATTACHMENT "A" SHALL
PREVAIL.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 2
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

1.     FERRY EQUIPMENT AND ASSISTANCE

1.1    If it is necessary for any ferry equipment to be installed by Embraer for
       the ferry flight between Brazil and the United States of America, Embraer
       will make available a standard ferry equipment to Buyer (hereinafter the
       "Kit"), at no charge to Buyer, except as set forth below. In this case,
       Buyer shall immediately upon its arrival in Ft. Lauderdale, FL, USA,
       remove the Kit from the Aircraft and return it to Embraer in Brazil at
       Buyer's own expense, including the necessary insurance.

       If Embraer provides the Kit to Buyer and *, Buyer shall pay *.

       In such case, the original Kit shall *, and
       the above-mentioned payment shall be made to Embraer by Buyer upon
       presentation of a sight draft by Embraer.

1.2    Embraer shall make a representative available on board of the Aircraft
       during * in order to *. Such representative shall remain on board of the
       Aircraft until *. Any other arrangement shall be requested * prior to the
       relevant Aircraft Contractual Delivery Date and shall be contingent upon
       *.

2.     PRODUCT SUPPORT PACKAGE

2.1    SPARES

2.1.1. SPARES POLICY

       Embraer guarantees the supply of spare parts, lines replaceable units and
       ground support equipment, except engines and its accessories, hereinafter
       referred to as "Spare(s)", for the Aircraft for a period of * after
       production of the last aircraft of the same type. Such Spares shall be
       supplied according to the prevailing availability, sale conditions,
       delivery schedule and effective price on the date of acceptance by
       Embraer of the purchase order. The Spares may be supplied either by
       Embraer in Brazil or through it subsidiaries or branch offices. Embraer
       shall also assist Buyer as required to * spare parts in *.

2.1.2. INITIAL PROVISIONING

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 1 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

       Upon Buyer's request, Embraer shall present to Buyer a list containing
       Embraer's suggestion for an initial provisioning of Spares for purchase
       by Buyer.

       The objective of the initial provisioning list (IPL) is to provide Buyer
       with accurate technical data supplied by Embraer, in order to enable an
       adequate selection of Spares, aiming to support initial scheduled
       maintenance, based upon operational parameters established by Buyer.
       Buyer may elect to acquire the items contained in the IPL *. In the event
       that Buyer elects to purchase all items contained in the IPL * (the "IP
       Spares"), in order to have the necessary IP Spares available by the time
       of the first Aircraft Contractual Delivery Date, Buyer must place a
       purchase order at Embraer for the acquisition of the IP Spares on or
       before * prior to the first Aircraft Contractual Delivery Date. The
       delivery schedule of such IP Spares shall be agreed upon by the Parties
       at the time of *. Should Buyer not inform Embraer of IP Spares items
       selected by Buyer within the schedule set forth above, *.

2.1.3. PRE-PROVISIONING CONFERENCE

       Embraer will, without charge, provide a qualified team to attend
       pre-provisioning conferences as necessary to discuss Buyer requirements
       and all points of the IPL. Such meeting shall be held as soon as
       practicable following execution of the Purchase Agreement in *.

2.1.4. DATA

       Initial provisioning data will be supplied to Buyer upon request.

       a.     INITIAL PROVISIONING DATA: Embraer will supply initial
              provisioning data within a time period to be mutually agreed upon
              by both Parties.

       b.     PROVISIONING DATA REVISIONS: As requested, the IPL will have the
              data updated by incorporating engineering and price changes.
              Embraer will maintain a master copy of the IPL updated until
              *.

2.1.5. SPARES RECOMMENDATIONS (other than IP Spares)

       Embraer will provide, if requested, a breakdown of recommended Spares to
       support the components used during the Aircraft operation (inventory
       reprovisioning).

2.1.6. DELIVERY OF SPARES

       Except for those Spares referred to in item 2.1.4. above, IP Spares are
       normally in inventory and available for delivery on the Aircraft
       Contractual

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 2 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

       Delivery Date. Nevertheless, delivery dates shall be *. Replenishment of
       Embraer made parts will be in accordance with * and *. Embraer will
       deliver Spares or IP Spares in FCA (Free Carrier - INCOTERMS 1990)
       condition, at Sao Jose dos Campos, State of Sao Paulo, Brazil, or at any
       other port of clearance that may be chosen by Embraer and informed to
       Buyer.

2.1.7. EMERGENCY SPARES SERVICE

       Embraer will maintain an emergency Spares service. Such service consists
       of AOG desk accessible through toll-free calling numbers and trained
       spare-parts specialists available, twenty four (24) hours a day, seven
       (7) days a week.  *.

2.1.8. CREDIT FOR SURPLUS IP SPARES

       Embraer offers to Buyer a program for certain surplus IP Spares
       manufactured by Embraer and which were * limited to the quantities, part
       numbers and serial numbers (if applicable) identified in the relevant
       invoices. Such program will provide terms no less favorable than the
       following:

       a.     Credit Program: During the period commencing * and ending *,
              Embraer will, *, offer a credit for new and unused IP Spares
              manufactured by Embraer *. Such credit may be used toward the
              purchase of *.

              e.1    EXCEPTIONS: Embraer will not issue credits for IP Spares
                     which * and for
                     IP Spares which *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 3 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

                     e.2    CREDIT VALUES: The credit for each IP Spare to be
                            issued by Embraer will be: (i) an amount equal to *
                            or (ii) an amount equal to *.

                     e.3    DELIVERY OF SURPLUS IP SPARES: IP Spares for which a
                            credit has been requested shall be delivered by
                            Buyer, *. All returned IP Spares are subject to
                            Embraer's quality control inspection and acceptance.
                            All IP Spares which are rejected by Embraer's
                            quality control and/or are included in the
                            exceptions set forth in paragraph a.1 hereinabove,
                            will be returned to Buyer at Buyer's expense, no
                            credit being due in this case.

                     e.4    Credit Issue: After Embraer's acceptance of those IP
                            Spares suitable for the credit program, under the
                            terms of this Agreement, Embraer will notify the
                            available credit amount to Buyer and provide all
                            relevant information as to credit utilization.

2.2    AIRCRAFT TECHNICAL PUBLICATIONS:

2.2.1. AIRCRAFT PUBLICATIONS

       Embraer shall supply, *, copies of operational and maintenance
       publications applicable thereto, in the English language and in the
       quantities as specified in Exhibit "1" to this Attachment "B". Such
       publications are issued under the applicable specification and are
       available in hard copies, *. Such publications will be delivered together
       with the Aircraft, proportionally to the number of Aircraft purchased, up
       to the maximum quantity described in Exhibit "1" to this Attachment "B".

2.2.2. VENDOR ITEMS PUBLICATIONS

       With respect to vendor items installed in the Aircraft which have their
       own publications, Buyer will receive them in the quantity specified in
       Exhibit "1" to this Attachment "B", in their original content and printed
       form, directly from the suppliers, which are also responsible to keep
       them continuously updated through a direct communication system with
       Buyer.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 4 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

2.2.3  *

2.2.4  The Parties further understand and agree that in the event Buyer elects
       not to take all or any one of the publications above mentioned, or
       revisions thereof, *.

2.3    SERVICES

       Embraer shall provide or cause to be provided, familiarization programs
       and * support for the Aircraft (the "Services") in accordance with the
       terms and conditions described below:

2.3.1  Familiarization Programs:

       a.     Familiarization program specified below is being offered at no
              charge to Buyer, except for *, as well as, *. The familiarization
              programs shall be conducted by FlightSafety International in
              accordance with the customer-training program and with all
              applicable regulations and requirements of the FAA and shall
              include all required manuals and course material.

       b.     Notwithstanding the eventual use of the term "training" in this
              paragraph 2.3.1, the intent of this program is solely to
              familiarize Buyer's pilots, mechanics, employees or
              representatives, duly qualified per the governing body in the
              country of Buyer's operation, with the operation and maintenance
              of the Aircraft. It is not the intent of Embraer to provide basic
              training ("ab-initio") to any representatives of Buyer.

       c.     The familiarization program, as applicable, shall occur prior to
              *. Buyer must give written notification to Embraer * in advance of
              Buyer's expected training schedule. Should Buyer not take all or
              any portion of the familiarization program for an Aircraft on or
              before *, Buyer shall be deemed to have fully waived its rights to
              such service, no refund or indemnity being due by Embraer to Buyer
              in this case.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 5 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

       d.     All familiarization programs shall be provided by FlightSafety
              International in *.

       e.     The familiarization program referred to above covers:

              e.1    Pilot Familiarization Program for up to * including (i)
                     ground familiarization as regards Aircraft systems, weight
                     and balance, performance and normal/emergency procedures
                     and, (ii) flight simulator training in a * in accordance
                     with flight operations training program of Buyer duly
                     approved by the Air Authority.

              e.2    Maintenance Familiarization Course for up to *. This course
                     shall consist of classroom familiarization with Aircraft
                     systems and structures and shall be in accordance with ATA
                     specification 104, level III.

              e.3    Flight Attendant Familiarization Course for up to *. This
                     course shall consist of classroom familiarization,
                     including a general description of Aircraft and systems to
                     be used by flight attendants.

       f.     Buyer shall be responsible for submitting its training programs to
              the Air Authority for approval; Embraer shall *.

       g.     The Parties further understand and agree that in the event Buyer
              does not * Buyer will *. Embraer shall *:

       h.     *. Any other additional services requested by Buyer shall depend
              on mutual agreement between the Parties and shall be charged by
              Embraer accordingly.

       i.     The presence of Buyer's authorized trainees shall be allowed
              exclusively in those areas related to the subject matter hereof
              and Buyer agrees to hold harmless Embraer from and against all and

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 6 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

              any kind *.

       Any other service will be subject to a specific agreement to be
       negotiated by the Parties and will be charged by Embraer accordingly.

2.3.2  * support:

       If and to the extent that Buyer so desire:

       a.     Embraer shall indicate at its sole discretion, and provide at no
              cost to Buyer, *.

       b.     *

       c.     At no charge to Embraer, Buyer shall provide such * with
              communication facilities (telephone, facsimile) as well as work
              space and facilities at Buyer's main maintenance base, and Buyer
              shall also *, to permit the accomplishment of the services
              mentioned in this item 2.3.2, in due time. *. Buyer agrees to
              assist Embraer and the employees of Embraer * in obtaining *.

       d.     During the *, Buyer shall permit access to the maintenance and
              operation facilities as well as to the data and files of Buyer's
              Aircraft fleet. It is hereby agreed and understood that Buyer
              shall make available *, one (1) set of updated Technical
              Publications as referred to in Article 2.2 above, it being Buyer's
              responsibility to perform the revision services in order to
              maintain such publications updated within the *.

       e.     Buyer shall bear all expenses related to the transportation, board
              & lodging of * when *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 7 of 8
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "B"

                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE
--------------------------------------------------------------------------------

       f.     Without a previous written authorization from Embraer, * shall
              not participate in test flights or flight demonstrations. In case
              Buyer obtains such previous authorization, Buyer shall include the
              * in Buyer's insurance policy. Embraer reserves the right to
              halt the services mentioned in this item 2.3.2, should any of the
              following situations occur at Buyer's base: a) there is a labor
              dispute or work stoppage in progress; b) war or war like
              operations, riots or insurrections; c) any conditions which is
              dangerous to the safety or health of Embraer's employee; or d) the
              government of Buyer's country refuses permission to Embraer's
              employee to enter the country.

       g.     The Parties further understand and agree that in the event Buyer
              elects not to take all or any portion of the *. Any other
              additional * support shall depend on mutual agreement between the
              Parties and shall be charged by Embraer accordingly.

       h.     The presence of * shall be allowed exclusively in those areas
              related to the subject matter hereof and Embraer agrees to hold
              harmless Buyer from and against all and any kind of liabilities in
              respect of such FSR *.

2.3.3  *

*      Indicates that material has been omitted and confidential treatment has
       been requested therefor. All such omitted material has been filed
       separately with the SEC pursuant to Rule 24b-2. A portion of this page
       and two additional pages were redacted.

                                                                    Page 8 of 8
<PAGE>
--------------------------------------------------------------------------------
           EXHIBIT 1 TO ATTACHMENT B - LIST OF TECHNICAL PUBLICATIONS
--------------------------------------------------------------------------------

The quantity of technical publications covering Aircraft operation and
maintenance shall be delivered to Buyer in accordance with the following list:

QUANTITES OF SETS TO BE SUPPLIED FOR BUYER UNDER THIS CONTRACT

OPERATIONAL SET

      Title                                                        Qty (copies)

1.    Airplane Flight Manual (AFM)                                         +
2.    Weight & Balance Manual (WB)                                         +
3.    Operations Manual (OM)                                               +
4.    Quick Reference Handbook (QRH)                                       +
5.    Dispatch Deviation Procedures Manual (DDPM)                          +
6.    Supplementary Performance Manual (SPM)                               +
7.    Operational Bulletins Set (OB)                                       +

MAINTENANCE SET

      Title                                                        Qty (copies)

8.    Aircraft Maintenance Manual (AMM)                                    +
9.    Illustrated Parts Catalog (IPC)                                      +
10.   Fault Isolation Manual (FIM)                                         +
11.   Non Destructive Manual (NDI)                                         +
12.   Scheduled Maintenance Requirements Document (SMRD)                   +
13.   Wiring Manual (WM)                                                   +
14.   Structural Repair Manual (SRM)                                       +
15.   Service & Information Bulletins Set (SB/IB)                          +
16.   Service Newsletters (SNL)                                            +
17.   System Schematic Manual (SSM)                                        +
18.   Instructions for Ground Fire Extinguishing and Rescue
      (IGFER)                                                              +
19.   Airport Planning Manual (APM)                                        +
20.   Illustrated Tool & Equipment Manual (ITEM)                           +
21.   Task Card Manual (TCM)                                               +
22.   Ramp Maintenance Manual (RMM)                                        +
23.   Powerplant Build-up Manual (PPBM)                                    +
24.   Auxiliary Power Unit Build up Manual (APUBM)                         +
25.   Corrosion Prevention Manual (CPM)                                    +
26.   Vendor Service Publications Set (*)                                  +

      (*)     To be delivered by the suppliers directly to Buyer.

+   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

Exhibit 1 to Attachment B                                            Page 1 of 2
<PAGE>
--------------------------------------------------------------------------------
           EXHIBIT 1 TO ATTACHMENT B - LIST OF TECHNICAL PUBLICATIONS
--------------------------------------------------------------------------------

        QUANTITES OF EXTRA SETS TO BE PROVIDED ON BOARD OF EACH AIRCRAFT

      OPERATIONAL SET

      Title                                                        Qty (copies)

27.   Airplane Flight Manual (AFM)                                         +
28.   Weight & Balance Manual (WB)                                         +
29.   Operations Manual (OM)                                               +
30.   Quick Reference Handbook (QRH)                                       +
31.   Dispatch Deviation Procedures Manual (DDPM)                          +
32.   Supplementary Performance Manual (SPM)                               +

+   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

Exhibit 1 to Attachment B                                            Page 2 of 2
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "C"

             EMB-140 WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP
--------------------------------------------------------------------------------

1.     Embraer, subject to the conditions and limitations hereby expressed,
       warrants all Aircraft subject of the Purchase Agreement to which this is
       an Attachment, as follows:

       a.     For a period of * from the date of delivery to the Buyer, the
              Aircraft will be free from:

              o      Defects in materials, workmanship and manufacturing
                     processes in relation to parts manufactured by Embraer or
                     by its subcontractors holding an Embraer part number;

              o      Defects inherent to the design of the Aircraft and its
                     parts designed or manufactured by Embraer or by its
                     subcontractors holding an Embraer part number.

       b.     For a period of * from the date of delivery to the Buyer, the
              aircraft will be free from:

              o      Defects in operation of vendor (Embraer's supplier)
                     manufactured parts, not including the Engines, Engine
                     accessories, as identified in Exhibit 1 hereto
                     ("Accessories"), and the Auxiliary Power Unit (APU) and its
                     accessories ("Vendor Parts"), as well as failures of
                     mentioned parts due to incorrect installation or
                     installation not complying with the instructions issued or
                     approved by their respective manufacturers.

              o      Defects due to non-conformity of Vendor Parts to the
                     technical specification referred to in the Purchase
                     Agreement of the aircraft.

       Once the above-mentioned periods have expired, Embraer will transfer to
       Buyer the original Warranty issued by the vendors, if it still exists.

2.     Embraer, subject to the conditions and limitations hereby expressed,
       warrants that:

       a.     All spare parts or ground support equipment, not including
              Engines, APU and their Accessories, which have been manufactured
              by Embraer or by its subcontractors holding an Embraer part
              number, which will permit their particular identification and
              which have been sold by Embraer or its representatives will, for a
              period of *, be free from defects of
              material, workmanship, manufacturing processes and defects
              inherent to the design of the above mentioned parts or ground
              support equipment.

       b.     All spare parts or ground support equipment, which have been
              designed and manufactured by vendors, not including Engines, APU
              and their related accessories, and stamped with a serial number
              which will permit their particular identification and which have
              been sold by Embraer or its representatives will, for a period of
              *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 3
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "C"

             EMB-140 WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP
--------------------------------------------------------------------------------

              *, be free from malfunction, defect of material and manufacture.

3.     The obligations of Embraer as expressed in this Warranty are limited to
       replace or repair, depending solely upon its own judgment, the parts that
       are returned to Embraer or its representatives *, at Buyer's own expense
       (including but not limited to, freight, insurance, customs duties),
       adequately packed, provided that such components are actually defective
       and that the defect has occurred within the periods stipulated in this
       certificate. Should the defect not be reported to Embraer in writing
       prior to returning the defective part to Embraer or the defective part
       not be returned to Embraer *, Embraer may have the right, at its sole
       discretion, to deny the warranty claim. *.

       Parts supplied to Buyer as replacement for defective parts are warranted
       for the balance of the warranty period still available from the original
       warranty of the exchanged parts. *.

4.     Embraer will accept no warranty claims arising in any of the following
       circumstances:

       a.     When the Aircraft has been used in an attempt to break records, or
              subjected to experimental flights, or in any other way not in
              conformity with the flight manual or the airworthiness
              certificate, or subjected to any manner of use in contravention of
              the applicable aerial navigation or other regulations and rules,
              issued or recommended by government authorities of whatever
              country in which the aircraft is operated, when accepted and
              recommended by I.C.A.O.;

       b.     When the Aircraft or any of its parts have been altered or
              modified by Buyer, without prior approval from Embraer or from the
              manufacturer of the parts through a service bulletin;

       c.     Whenever the Aircraft or any of its parts have been involved in an
              accident, or when parts either defective or not complying to
              manufacturer's design or specification have been used;

       d.     Whenever parts have had their identification marks, designation,
              seal or serial number altered or removed;

       e.     In the event of negligence, misuse or maintenance services done on
              the aircraft, or any of its parts not in accordance with the
              respective maintenance manual;

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 3
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "C"

             EMB-140 WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP
--------------------------------------------------------------------------------

       f.     In cases of deterioration, wear, breakage, damage or any other
              defect resulting from the use of inadequate packing methods when
              returning items to Embraer or its representatives.

5.     This Warranty does not apply to defects presented by expendable items *.

6.     The Warranty hereby expressed is established between Embraer and the
       first Buyer, and it cannot be transferred or assigned to others, unless
       by written consent of Embraer, according to Article 14 of the Purchase
       Agreement of which this is an Attachment.

7.     THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF EMBRAER AND REMEDIES OF
       BUYER SET FORTH IN THIS WARRANTY CERTIFICATE ARE EXCLUSIVE AND IN
       SUBSTITUTION FOR, AND BUYER HEREBY WAIVES, RELEASES AND RENOUNCES, ALL
       OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF EMBRAER AND ANY ASSIGNEE
       OF EMBRAER AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF BUYER AGAINST
       EMBRAER OR ANY ASSIGNEE OF EMBRAER, EXPRESS OR IMPLIED, ARISING BY LAW OR
       OTHERWISE, WITH RESPECT TO ANY NON-CONFORMANCE OR DEFECT OR FAILURE OR
       ANY OTHER REASON IN ANY AIRCRAFT OR OTHER THING DELIVERED UNDER THE
       PURCHASE AGREEMENT OF WHICH THIS IS AN ATTACHMENT, INCLUDING DATA,
       DOCUMENT, INFORMATION OR SERVICE, INCLUDING BUT NOT LIMITED TO:

       a.     ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

       b.     ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
              DEALING OR USAGE OF TRADE;

       c.     ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER
              OR NOT ARISING FROM THE NEGLIGENCE OR OTHER RELATED CAUSES OF
              EMBRAER OR ANY ASSIGNEE OF EMBRAER, WHETHER ACTIVE, PASSIVE OR
              IMPUTED; AND

       d.     ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR
              DAMAGE TO ANY AIRCRAFT, FOR LOSS OF USE, REVENUE OR PROFIT WITH
              RESPECT TO ANY AIRCRAFT OR FOR ANY OTHER DIRECT, INCIDENTAL OR
              CONSEQUENTIAL DAMAGES.

8.     No representative or employee of Embraer is authorized to establish any
       other warranty than the one hereby expressed, nor to assume any
       additional obligation, relative to the matter, in the name of Embraer and
       therefore any such statements eventually made by, or in the name of
       Embraer, shall be void and without effect.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 3 of 3
<PAGE>
--------------------------------------------------------------------------------
                           EXHIBIT 1 TO ATTACHMENT "C"

                                        *
--------------------------------------------------------------------------------

*

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

Exhibit 1 to Attachment "C" to PA DCT - 043/01                       Page 1 of 1
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "D"

                               ESCALATION FORMULA
--------------------------------------------------------------------------------

*

*      Indicates that material has been omitted and confidential treatment has
       been requested therefor. All such omitted material has been filed
       separately with the SEC pursuant to Rule 24b-2. Three pages (including
       this page) were redacted.

                                                                     Page 1 of 3
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "E"
                                        *
--------------------------------------------------------------------------------

*

*      Indicates that material has been omitted and confidential treatment has
       been requested therefor. All such omitted material has been filed
       separately with the SEC pursuant to Rule 24b-2. Two pages (including this
       page) were redacted.

                                                                     Page 1 of 2
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "F"

                                        *
--------------------------------------------------------------------------------

*

*      Indicates that material has been omitted and confidential treatment has
       been requested therefor. All such omitted material has been filed
       separately with the SEC pursuant to Rule 24b-2. Nine pages (including
       this page) were redacted.

                                                                     Page 1 of 9
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

1.     GUARANTEES

       Embraer, subject to the conditions and limitations hereby expressed, and
       considering the Aircraft EMB-140 LR equipped with Embraer furnished Rolls
       Royce Allison AE3007A1/3 engines, guarantees that each Aircraft on the
       relevant Actual Delivery Date shall comply with the following
       performance:

       1.1    TAKE-OFF

              The FAA approved take-off field length at a gross weight at the
              start of the ground roll of *, on a standard day (ISA), at a sea
              level altitude, zero wind, no obstacles, dry runway, using TO
              Mode, with Flap 9 deg, shall not be more than the guarantee value:

              Guarantee: *

              The Aircraft will meet FAA approved minimum climb gradient for one
              engine inoperative climb, after takeoff at sea level, at a
              temperature of ISA+23(Degree)C, using TO Mode, with Flap 9 deg and
              increased V2, and with takeoff weight not less than the guarantee
              value:

              Guarantee: *

       1.2    LANDING

              The FAA approved landing field length at a gross weight of * and
              at a sea level altitude shall not be more than the guarantee
              value:

              Guarantee: *

       1.3    CRUISE SPECIFIC AIR RANGE

              The cruise specific air range at a gross weight of * in a standard
              day (ISA), at an altitude of 35,000 ft, at 440 KTAS using not more
              than maximum cruise thrust, shall not be less than the guarantee
              value:

              Nominal:  *

              Tolerance:  *

              Guarantee:   *

       1.4    SPEED

              The level flight speed at a gross weight of *, in a standard day
              (ISA), at an altitude of 35,000 ft and using not more than maximum
              cruise thrust, shall not be less than the guarantee value:

              Nominal: *

              Guarantee: *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 7
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

       1.5    *

       1.6.   OPERATIONAL EMPTY WEIGHT

              The operational empty weight (OEW) for Customer configuration is
              *.

--------------------------------------------------------------------------------
         ITEMS                                            Weight        Weight
--------------------------------------------------------- (kg)          (lb)
I) STANDARD AIRCRAFT CONFIGURATION                         *             *
--------------------------------------------------------------------------------
II) CUSTOMER OPTIONS
--------------------------------------------------------------------------------
A)       OPTIONS TO STD AVIONIC CONFIGURATION

*
         -----------------------------------------------------------------------
B)       OPTIONAL SYSTEM / OTHER EQUIPMENT

*

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 7
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

C)       INTERIOR OPTIONAL ITEMS

*
         -----------------------------------------------------------------------
                                  SUB-TOTAL  (Options )     *              *
--------------------------------------------------------------------------------
                                  SUB-TOTAL   (M.E.W) (*)   *              *
--------------------------------------------------------------------------------
D)       OPERATING ITEMS - *

*
         -----------------------------------------------------------------------
                             SUB-TOTAL (Fixed Allowance)  *           *
--------------------------------------------------------------------------------
                                    TOTAL (O.E.W)         *           *
--------------------------------------------------------------------------------

       *

1.7    *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 3 of 7
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

2.     EMB-140 LR AIRCRAFT CONFIGURATION

       2.1    The guarantees stated above are based on the Aircraft
              configuration as defined in the Technical Description TD-140/003
              dated June 2001, plus specific Buyer configuration options as
              defined at Attachment "A" to the Purchase Agreement, (hereinafter
              adjustment to this Aircraft Performance Guarantees shall be made
              for changes in such Detail Specification (including but not
              limited to Buyer requests for changes, Proposal of Major Changes
              or any other changes mutually agreed upon between the Buyer and
              Embraer) approved in writing by the Buyer and Embraer. Such
              adjustments shall be accounted for by Embraer in its evidence of
              compliance with the guarantees. In the event a change is made to
              any law, governmental regulation or requirement, or in the
              interpretation of any such law, governmental regulation or
              requirement that affects the certification basis for the Aircraft,
              and as a result thereof, a change is made to the configuration
              and/or the performance of the Aircraft in order to obtain
              certification, the guarantees set forth in this Aircraft
              Performance Guarantee shall be appropriately modified to reflect
              any such change.

       2.2    The performance guarantees of * shall be adjusted by Embraer for
              the following in its evidence of compliance with such guarantees:

              a.     Changes to the Detail Specification including Change
                     Requests, Master Changes, Change Orders or any other
                     changes mutually agreed upon between the Buyer and Embraer.

              b.     The difference between the component weight allowances
                     given in the appropriate section of the Detail
                     Specification and the actual weights.

3.     GUARANTEE CONDITIONS

       3.1    All guaranteed performance data are based on the ICAO
              International Standard Atmosphere (ISA) unless otherwise
              specified. Altitudes are pressure altitudes.

       3.2    The FAA Regulations referred to in this Attachment are, unless
              otherwise specified, the Certification Basis regulations specified
              in the Aircraft Type Certificate Data Sheet.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 4 of 7
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

       3.3    The takeoff and landing guarantees are based on hard surface,
              level and dry runways with no wind or obstacles, no clearway or
              stopway, and with automatic anti-skid operative unless otherwise
              specified. The takeoff performance is based on no engine bleed for
              air conditioning or thermal anti-icing and the Auxiliary Power
              Unit (APU) turned off unless otherwise specified. The improved
              climb performance procedure will be used for takeoff as required.
              The landing data is based on the use of automatic spoilers.

       3.4    The cruise specific air range, speed and the climb, cruise and
              descent portions of the mission guarantees include allowances for
              normal electrical power extraction and normal operation of the air
              conditioning system. Normal power extraction shall be defined as
              not less than a 37 kW total electrical and hydraulic loads. Normal
              operation of the air conditioning system shall be defined as
              operation in the automatic mode, with the temperature control set
              to maintain a nominal cabin temperature of 75 (Degree)F, and all
              air conditioning systems operating normally. This operation
              nominally allows a sea level cabin altitude to be maintained up to
              19,500ft and a maximum cabin pressure differential of 7.8 pounds
              per square inch at higher altitudes, with a nominal Aircraft cabin
              ventilation rate of 1,100 cu.ft per min at 35,000 ft including
              passenger cabin recirculation (nominal recirculation is 42 % not
              considering gasper flow). The APU is turned off unless otherwise
              specified.

       3.5    The cruise specific air range, speed and the climb, cruise, and
              descent portions of the mission guarantees are based on an
              Aircraft center of gravity location of 15% of the mean aerodynamic
              chord.

       3.6    Performance, where applicable, is based on a fuel Lower Heating
              Value (LHV) of 18,580 BTU per pound and a fuel density of 6.70
              pounds per U.S. gallon.

4.     PARTIES' OBLIGATIONS ACCORDING TO THIS GUARANTEE

       4.1    During the Aircraft acceptance to be performed by Buyer in
              accordance with Article 7 of the Purchase Agreement, Buyer shall
              check the Aircraft performance specified in Article 1 of this
              Attachment, by using the Aircraft Flight Manual (AFM) and by
              comparing the flight test data, at the atmospheric conditions
              prevailing during the flight, with the information presented in
              the Supplementary Performance Manual (SPM). All the performance
              guarantee under this Attachment are in accordance with both
              manuals above mentioned, taking into consideration the established
              tolerances.

       4.2    Embraer's obligations in respect to the guarantees stated in
              Article 1 of this Attachment, are limited to Buyer's right to
              *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 5 of 7
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

       4.3    In case during the above mentioned acceptance procedure, it is
              proven that the Aircraft performance does not comply with the
              performances specified in Article 1 of this Attachment, *.

       4.4    Upon acceptance of the Aircraft by Buyer, *.

5.     GUARANTEE COMPLIANCE

       5.1    Compliance with the guarantees * shall be based on the conditions
              specified in that sections, the Aircraft configuration contained
              in Attachment "A" to the Purchase Agreement and the guarantee
              conditions of Section 3 above.

       5.2    Compliance with the takeoff and landing performance guarantees
              shall be based on the FAA approved Airplane Flight Manual for the
              Aircraft.

       5.3    Compliance with the cruise specific air range, speed, and the
              climb, cruise and descent portions of the mission guarantees shall
              be established by calculations based on the comparison mentioned
              in Section 4.1 above.

       5.4    The data derived from tests shall be adjusted as required by
              conventional methods of correction, interpolation or extrapolation
              in accordance with established engineering practices to show
              compliance with the performance guarantee.

       5.5    *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 6 of 7
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "G"

                             PERFORMANCE * GUARANTEE
--------------------------------------------------------------------------------

6.     EXCLUSIVE GUARANTEES

       6.1    The only performance guarantees applicable to the Aircraft are
              those set forth in this document. The performance guarantees set
              forth herein are established between Buyer and Embraer and may not
              be transferred or assigned to others, unless by previous written
              consent of Embraer.

       6.2    THE GUARANTEES, OBLIGATIONS AND LIABILITIES OF Embraer, AND
              REMEDIES OF Buyer SET FORTH IN THIS PERFORMANCE GUARANTEE ARE
              EXCLUSIVE AND IN SUBSTITUTION FOR, AND Buyer HEREBY WAIVES,
              RELEASES AND RENOUNCES, ALL OTHER RIGHTS, CLAIMS, DAMAGES AND
              REMEDIES OF Buyer AGAINST Embraer OR ANY ASSIGNED OF Embraer,
              EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO
              ANY ACHIEVED PERFORMANCE.

       6.3    The terms and conditions of this performance guarantee do not
              alter, modify or impair, in any way, the terms and conditions of
              Attachment "C" (Aircraft Warranty Certificate) to the Purchase
              Agreement.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 7 of 7
<PAGE>
                          Letter Agreement DCT-044/01

This Letter Agreement DCT-044/01 (the "Letter Agreement") is entered into this
13th day of August, 2001, by and between Embraer - Empresa Brasileira de
Aeronautica S.A. ("Seller"), and Astral Aviation, Inc. ("Buyer"), collectively
known as the "Parties", and relates to Purchase Agreement DCT-043/01 dated as of
the13th of August, 2001 (the "Agreement").

This Letter Agreement constitutes an amendment, supplement and modification to
the Agreement as it sets forth additional agreements of the Parties with respect
to the matters set forth therein. All terms defined in the Agreement, except as
otherwise required or expressly determined hereunder, shall have the same
meaning when used herein and in case of any conflict between this Letter
Agreement and the Agreement, this Letter Agreement shall prevail.

WHEREAS:

a.     The Parties have entered into the Agreement, pursuant to, and subject to
       the terms and conditions of, which Buyer shall buy and Seller shall sell
       twenty (20) firm EMB140 LR Aircraft (the "Aircraft") and Buyer shall have
       the option to purchase up to twenty (20) additional Aircraft.

b.     The Parties wish to set forth the additional agreements of the Parties
       with respect to certain matters related to the purchase of the above
       referenced Aircraft.

NOW, THEREFORE, for and in consideration of the foregoing and other good and
valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

1.     Simulator Data Package

       In the event Buyer elects to acquire its own flight simulator or flight
       training device, then Embraer will provide its proprietary ERJ140
       simulator data package (the "Sim Data Package") for one Buyer simulator
       or flight training device. The data package shall be available *. In
       the event Buyer exercises its rights to convert the ERJ 140 to ERJ 135 or
       ERJ 145, Embraer shall provide the complementary simulator data package
       for the ERJ 135 or the ERJ 145, as may be elected by Buyer. All simulator
       data packages shall be provided *.

       It is understood that the Sim Data Package shall be used exclusively *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 1 of 10
<PAGE>

       The supply of the Sim Data Package is subject to the Parties entering
       into a data license agreement that shall define all terms and conditions
       for the utilization of the Sim Data Package, including without limitation
       the *.

2.     Spares Parts Credit

       Embraer will provide Buyer a spare parts and ground support equipment
       credit of * up to a maximum of *. This credit shall be available *.

       This credit shall be used for the purchase of spare parts and ground
       support equipment (except engines, engine related parts and APU) from the
       Embraer-Brazil spare parts facility.

       All spare part credits granted to Buyer in connection with the Purchase
       Agreement shall only be applied against Buyer's purchase from
       Embraer-Brazil of spare parts (except engines, engine related parts and
       APU) and ground support equipment (GSE). Spare parts credits made
       available to Buyer will expire, *. Buyer shall not be entitled to apply
       spare parts credits *. When using credits for the purchase of the items
       listed above, Buyer shall clearly indicate such condition in the relevant
       purchase order or request for quotation.

3.     Spare Parts Consignment

       A consignment of spare parts, up to a maximum value of * will be provided
       *. This total amount of * shall be accomplished during *. The consignment
       stock shall be placed at a single location chosen *.

       The consignment period shall begin at the time of delivery of the first
       Firm Aircraft and end *. Upon expiration, Buyer shall either return
       unused parts or purchase the remaining stock. * carrying charge on the
       value of the spare parts on consignment will apply.

       Details as to the execution of this consignment and the final consignment
       parts

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 2 of 10
<PAGE>

       list are to be * and shall be documented in a Consignment Agreement to be
       executed by Buyer and Embraer.

4.     *

5.     *

6.     Ground Support Equipment *

       Embraer shall provide to Buyer the then existing * of ground support
       equipment related to the operation of the Aircraft. Such * shall be used
       *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 3 of 10
<PAGE>

7.     *

8.     *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 4 of 10
<PAGE>

       9.     Financing

       The terms and conditions pursuant to which Embraer shall * to * financing
       support for * Firm Aircraft to be acquired by Buyer in accordance the
       Purchase Agreement are outlined in Attachment 2 hereto, and are subject
       to *.

       10.    Aircraft Conversion

       Conversion Allowance: Buyer shall be allowed to convert one or more of
       the Firm Aircraft, starting *, and any one or more of the Option Aircraft
       to an ERJ 135 LR or ERJ 145 LR aircraft (the "Conversion Aircraft"), as
       the case may be, provided that Buyer *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 5 of 10
<PAGE>

       Whenever Buyer converts an Aircraft to an ERJ 135 LR aircraft, the ERJ
       135 LR Conversion Aircraft shall thereafter be an "Aircraft" for all
       purposes of the Agreement, except that in this case the definition of the
       term "Aircraft" shall mean the ERJ-135 LR aircraft manufactured by
       Embraer according to Technical Description TD-135/005, dated June 2001
       (the "135 Technical Description", which, although not attached to the
       Agreement, will be incorporated therein by reference) and the Aircraft
       Specific Configuration, Finishing and Registration Marks as described in
       Attachment 1 to this Letter Agreement, for sale to Buyer pursuant to the
       Agreement, equipped with two (02), AE3007A1/3 engines manufactured by
       Rolls Royce Corporation (or, where there is more than one of such
       aircraft, each of such Aircraft), and that all references in the
       Agreement to the "Technical Description" shall, with respect to said ERJ
       135 LR Conversion Aircraft, be deemed to refer to the 135 Technical
       Description. Whenever Buyer converts an Aircraft to an ERJ 145 LR
       aircraft, the ERJ 145 LR Conversion Aircraft shall thereafter be an
       "Aircraft" for all purposes of the Agreement, except that in this case
       the definition of the term "Aircraft" shall mean the ERJ-145 LR aircraft
       manufactured by Embraer according to Technical Description TD-145/017,
       dated December 2000 (the "145 Technical Description", which, although not
       attached to the Agreement, will be incorporated therein by reference) and
       the Aircraft Specific Configuration, Finishing and Registration Marks as
       described in Attachment 1 to this Letter Agreement, for sale to Buyer
       pursuant to the Agreement, equipped with two (02), AE3007A1 engines
       manufactured by Rolls Royce Corporation (or, where there is more than one
       of such aircraft, each of such Aircraft), and that all references in the
       Agreement to the "Technical Description" shall, with respect to said ERJ
       145 LR Conversion Aircraft, be deemed to refer to the 145 Technical
       Description.

       Conversion ERJ 135 LR Aircraft Pricing: The ERJ 135 LR Conversion
       Aircraft basic price (the "ERJ 135 LR Basic Price") in * economic
       conditions, as specified in Attachment "1" for each ERJ 135 LR aircraft
       as specified in Attachment "1" is *.

       Conversion ERJ 145 LR Aircraft Pricing: The ERJ 145 LR Conversion
       Aircraft basic price (the "ERJ 145 LR Basic Price") in * economic
       conditions, as specified in Attachment "1" for each ERJ 145 LR aircraft
       as specified in Attachment."1" is *.

       For any Conversion Aircraft, any additional Buyer selected optional
       equipment and/or specific interior configuration changes will affect the
       ERJ 145 LR Basic Price, which will be adjusted accordingly upon agreement
       of the Parties.

       Basic Price Escalation: With respect to each ERJ 135 LR Conversion
       Aircraft, the ERJ 135 LR Basic Price shall be the "Aircraft Basic Price"
       for such Conversion Aircraft for purposes of the Agreement, and it shall
       be subject to escalation by application of the Escalation Formula as set
       forth in Article 3.3 of the Agreement. With respect to each ERJ 145 LR
       Conversion Aircraft, the ERJ 145 LR Basic Price shall be the "Aircraft
       Basic Price" for such Conversion

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 6 of 10
<PAGE>

       Aircraft for purposes of the Agreement, and it shall be subject to
       escalation by application of the Escalation Formula as set forth in
       Article 3.3 of the Agreement.

       Conversion Aircraft Progress Payments: *.

11.    ER Version and Decrease of MTOW/MLW/ZFW

       Buyer shall be entitled to convert any or all the ERJ 140 LR, ERJ 135 LR
       or ERJ 145 LR Aircraft into the corresponding ER models, including the
       decrease of MTOW/MLW/ZFW subject, however, to *. Buyer's execise of the
       conversion allowance shall not affect *.

12.    * Parts

       Embraer, subject to the conditions and limitations expressed in the
       Warranty Certificate subject of Attachment C to the Purchase Agreement,
       represents to the benefit of Buyer that all parts installed in or on the
       Aircraft at the time of delivery thereof to Buyer will *. For the
       purpose hereof, * shall mean *.

13.    Representations And Warranties

       Embraer and Buyer, respectively, represent and warrant the following to
       each other:

       a.     Effective as of the date of this Agreement and as of the Actual
              Delivery of each Aircraft, Embraer represents and warrants that:

              1.     Embraer is a corporation duly organized, validly existing
                     and in good standing under the laws of Brazil and has all
                     necessary corporate power and authority to conduct the
                     business in which it is currently engaged and to enter into
                     and perform its obligations under this Agreement.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 7 of 10
<PAGE>

              2.     Embraer has taken, or caused to be taken, all necessary
                     corporate action to authorize the execution and delivery of
                     this Agreement and the performance of its obligations
                     hereunder.

              3.     The execution and delivery by Embraer of this Agreement,
                     the performance by Embraer of its obligations hereunder and
                     the consummation by Embraer of the transactions
                     contemplated hereby, do not and will not (A) violate or
                     conflict with any provision of the constitutional documents
                     of Embraer, (B) violate or conflict with any law, rule, or
                     regulation applicable to or binding on Embraer or (C)
                     violate or constitute any breach or default (other than a
                     breach or default that would not (x) result in a material
                     adverse change to Embraer or (y) adversely affect Embraer's
                     ability to perform any of its obligations hereunder) under
                     any agreement, instrument or document to which Embraer is a
                     party or by which Embraer or any of its properties is or
                     may be bound or affected.

              4.     The execution and delivery by Embraer of this Agreement,
                     the performance by Embraer of its obligations hereunder and
                     the consummation by Embraer of the transactions
                     contemplated hereby do not and will not require the
                     consent, approval or authorization of, or the giving of
                     notice to, or the registration with, or the recording or
                     filing of any documents with, or the taking of any other
                     action in respect of, (A) any trustee or other holder of
                     any indebtedness or obligation of Embraer, (B) any
                     national, state or municipal government regulatory,
                     judicial, or administrative entity of competent
                     jurisdiction, or (C) any other party.

              5.     This Agreement has been duly authorized, executed and
                     delivered by Embraer and, assuming the due authorization,
                     execution and delivery hereof by the other Party
                     constitutes the legal, valid and binding obligation of
                     Embraer enforceable against Embraer in accordance with the
                     terms hereof, except as such enforceability may be limited
                     by bankruptcy, insolvency, reorganization, receivership,
                     moratorium and other similar laws affecting the rights of
                     creditors generally and general principles of equity,
                     whether considered in a proceeding at law or in equity.

              6.     Each of the foregoing representations and warranties shall
                     survive the execution and delivery of this Agreement and
                     any termination hereof.

       b.     Effective as of the date of this Agreement and as of the Actual
              Delivery of each Aircraft, Buyer represents and warrants that:

              1.     Buyer is a corporation duly organized, validly existing and
                     in good standing under the laws of the State of Delaware
                     and has all necessary corporate power and authority to
                     conduct the business in which it is currently engaged and
                     to enter into and perform its obligations under this
                     Agreement.

                                                                    Page 8 of 10
<PAGE>

              2.     Buyer has taken, or caused to be taken, all necessary
                     corporate action to authorize the execution and delivery of
                     this Agreement and the performance of its obligations
                     hereunder.

              3.     The execution and delivery by Buyer of this Agreement, the
                     performance by Buyer of its obligations hereunder and the
                     consummation by Buyer of the transactions contemplated
                     hereby, do not and will not (A) violate or conflict with
                     any provision of the constitutional documents of Buyer, (B)
                     violate or conflict with any law, rule, or regulation
                     applicable to or binding on Buyer or (C) violate or
                     constitute any breach or default (other than a breach or
                     default that would not (x) result in a material adverse
                     change to Buyer or (y) adversely affect Buyer's ability to
                     perform any of its obligations hereunder) under any
                     agreement, instrument or document to which Buyer is a party
                     or by which Buyer or any of its properties is or may be
                     bound or affected.

              4.     The execution and delivery by Buyer of this Agreement, the
                     performance by Buyer of its obligations hereunder and the
                     consummation by Buyer of the transactions contemplated
                     hereby do not and will not require the consent, approval or
                     authorization of, or the giving of notice to, or the
                     registration with, or the recording or filing of any
                     documents with, or the taking of any other action in
                     respect of, (A) any trustee or other holder of any
                     indebtedness or obligation of Buyer, (B) any national,
                     federal, state or local government regulatory, judicial, or
                     administrative entity of competent jurisdiction, or (C) any
                     other party.

              5.     This Agreement has been duly authorized, executed and
                     delivered by Buyer and, assuming the due authorization,
                     execution and delivery hereof by the other Party
                     constitutes the legal, valid and binding obligation of
                     Buyer enforceable against Buyer in accordance with the
                     terms hereof, except as such enforceability may be limited
                     by bankruptcy, insolvency, reorganization, receivership,
                     moratorium and other similar laws affecting the rights of
                     creditors generally and general principles of equity,
                     whether considered in a proceeding at law or in equity.

              6.     Each of the foregoing representations and warranties shall
                     survive the execution and delivery of this Agreement and
                     any termination hereof.

       IN WITNESS WHEREOF, the Parties have caused this Letter Agreement to be
       duly executed and delivered by their proper and duly authorized officers
       on the day and year first above written.

                                                                    Page 9 of 10
<PAGE>

Astral Aviation, Inc.

By:  /s/ James P. Rankin
    -------------------------
Name:  James P. Rankin
Title: President and CEO

Date and place: 8-15-01
                Oak Creek, WI  U.S.A.

EMBRAER - Empresa Brasileira de Aeronautica S.A.

By: /s/ Frederico Fleury Curado            By: /s/ Flavio Rimoli
   --------------------------------           --------------------------
Name:   Frederico Fleury Curado            Name:   Flavio Rimoli
Title:  Vice President                     Title:  Director of Contracts

Date and place: August 13, 2001
                Sao Jose dos Campos, SP
                Brazil

                                                                   Page 10 of 10
<PAGE>
--------------------------------------------------------------------------------
                                  ATTACHMENT 1
                   CONVERSION AIRCRAFT SPECIFIC CONFIGURATION,
                        FINISHING AND REGISTRATION MARKS
--------------------------------------------------------------------------------

1.     STANDARD AIRCRAFT

       The Aircraft shall be manufactured according to the standard
       configuration specified in Embraer's Technical Description as follows:

       a) ERJ 135 LR     - TD-135/005 dated June 2001
       b) ERJ 145 LR     - TD 145/017 dated December 2000

2.     OPTIONAL EQUIPMENT

       The following optional equipment is included in Buyer's Aircraft
       specification:

       2.1    OPTIONS TO STANDARD AVIONICS CONFIGURATION
               *

       2.2    OPTIONAL SYSTEM/OTHER EQUIPMENT
               *

       2.3    ENGINES
               *

       2.4    INTERIOR OPTION - INCLUDING 3 OVENS
               *

       2.5    ADDITIONAL INTERIOR OPTIONAL ITEMS
               *

       2.6    *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 2
<PAGE>
--------------------------------------------------------------------------------
                                  ATTACHMENT 1
                   CONVERSION AIRCRAFT SPECIFIC CONFIGURATION,
                        FINISHING AND REGISTRATION MARKS
--------------------------------------------------------------------------------

3.     FINISHING

       3.1    EXTERIOR FINISHING:

              The fuselage of the Conversion Aircraft shall be painted according
              to Buyer's color and paint scheme that shall be supplied to
              Embraer by Buyer on or before * prior to the relevant Conversion
              Aircraft Contractual Delivery Date. The wings and the horizontal
              stabilizer shall be supplied in the standard colors, i.e., gray
              BAC707.

       3.2    INTERIOR FINISHING:

              Buyer shall inform Embraer on or before * prior to the relevant
              Conversion Aircraft Contractual Delivery Date of its choice of
              materials and colors of all and any item of interior finishing
              such as seat covers, carpet, floor lining on galley areas, side
              walls and overhead lining, galley lining and curtain. The
              above-mentioned schedule for definition of interior finishing
              shall only be applicable if Buyer selects its materials from the
              choices offered by and available at Embraer. In case Buyer opts to
              use different materials and or patterns, Buyer shall provide
              Embraer at least 6 (six) months prior written notice.

4.     REGISTRATION MARKS AND TRANSPONDER CODE

              The Conversion Aircraft shall be delivered to Buyer with the
              registration marks painted on them. Buyer shall supply the
              registration marks and the transponder code to Embraer no later
              than * before each relevant Conversion Aircraft Contractual
              Delivery Date.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT
BETWEEN THE TERMS OF THIS "ATTACHMENT 1" AND THE TERMS OF THE TECHNICAL
DESCRIPTIONS TD135/005 DATED JUNE 2001 AND TD-145/017 DATED DECEMBER 2000, THE
TERMS OF THIS "ATTACHMENT 1" SHALL PREVAIL.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 2
<PAGE>
--------------------------------------------------------------------------------
                                 ATTACHMENT "D"
                              FINANCING TERM SHEET
--------------------------------------------------------------------------------

Aircraft:     Twenty (20) firm ERJ-140ER Jet Aircraft (the "Firm Aircraft") as
              defined in Article 2 of the proposal between Embraer and Midwest
              Express Holdings, Inc. (the "Guarantor") dated as of April 4, 2001
              (the "Proposal"). Astral Aviation, Inc. (the "Purchaser") is a
              wholly-owned subsidiary of Midwest Express Airlines, Inc. (the
              "Parent"), which is wholly-owned by the Guarantor. The Purchaser,
              the Parent and the Guarantor shall be referred to collectively as
              the "Purchaser Parties".

Aircraft      Offer Price: The Aircraft Offer Price is defined in Article 3 of
              the Proposal and is subject to Embraer's standard escalation
              formula based on * economic conditions until delivery,
              as provided in the purchase agreement to be executed between
              Embraer and the Purchaser. The escalated Aircraft Offer Price is
              the "Net Aircraft Purchase Price".

Financing     Transaction: Financing of the * Firm Aircraft will be
              arranged by Purchaser working in close coordination with and
              supported by Embraer to best optimize the Embraer Support
              Commitment (as defined below).

              Financing of these Aircraft is anticipated to be achieved by way
              of *. In addition, Embraer will arrange for *, at the option of
              the Purchaser, for up *. (If * agrees to provide * will provide *.

Embraer
 Support
 Commitment:  (A)    * For the Firm Aircraft

                     Embraer shall provide or shall cause to be provided:

                     (1)    *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 8
<PAGE>

                     (2)    *. Embraer and Purchaser shall agree upon *
                            following execution of this financing term sheet.
                            There will be *.

                     (3)    *. The debt structure shall have no other
                            constraints on the amortization profile, which shall
                            be an optimized U.S. lease debt repayment profile.
                            The debt shall bear a fixed interest rate equal to
                            the *, on terms (or, to the extent not *, and as to
                            applicable matters not dealt with *, terms *.

                            Alternatively, * notice *, at Purchaser's option,
                            the * may be used in *, with the * (or, to the
                            extent herein provided, *) of Net Aircraft Purchase
                            Price and * funding the balance. Any such * shall be
                            * at * option, and may be converted *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 8
<PAGE>

                            (in which case * shall, for the avoidance of doubt,
                            provide an * as provided herein, *).

                     (4)    Embraer shall negotiate the terms of each * with *.
                            To the extent that * do not *, Embraer will *, and,
                            if there is *, then the *. Any such negotiations
                            shall be conducted *. To the extent that any *
                            provision affects * rights or obligations under *,
                            such * provisions shall *. Embraer shall negotiate
                            in good faith * as to other terms requested by *.

              (B)    * Financing Option For Up To * Firm Aircraft

                     (1) If Purchaser exercises the * Financing Option, *.
                     Payments by Purchaser will be *. The terms of any such *
                     financing shall be * (or, to the extent not more *, terms
                     *, and as to applicable matters not dealt with in *, terms
                     *.

                     (2) For informational purposes, based on *, the average *
                     would be *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 3 of 8
<PAGE>

                     For each of the * and the * Option, * may arrange to have *
                     provided by *, or through *, which may require the
                     utilization of special purpose corporation(s) and/or trust
                     arrangements, *. Under any * option other * will * and set
                     on a date * option not earlier * and * not later than *.

              (C)    * Financing

                     * financing for * aircraft with a * of Net Aircraft
                     Purchase Price, *, with * payments monthly in arrears, and
                     * upon at least * notice, on terms *; provided that if *
                     shall be provided for that term.

Conditions
 Precedent:          (1)    Absence of any material adverse change in the
                            financial condition of Guarantor * (in this regard,
                            Guarantor commits to deliver to Embraer its latest
                            audited financial statements), including without
                            limitation:  *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 4 of 8
<PAGE>

                     (2)    All * must be up to date at the time of financing.

Debt *:              Any debt support to be funded by or arranged *
                     shall be *.

Additional
   Agreements:       (1)    The Purchaser Parties shall * any financing party or
                            any other participant in the financing structure and
                            shall provide routine financial and other
                            information of the type customarily provided
                            aircraft financiers.

                     (2)    All invoices and financial obligations relative to
                            pertinent lender and lessor must be up to date at
                            the time of financing.

                     (3)    The Purchaser Parties and Embraer waive trial by
                            jury in respect of any claim based upon or arising
                            out of financings and resulting transactions.

                     (4)    All payments to be made by the Purchaser Parties in
                            favor of the financing parties shall be *

                     (5)    Each of Embraer and the Purchaser Parties shall be
                            responsible *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 5 of 8
<PAGE>

                     (6)    All reasonable Iegal fees and disbursements, and
                            out-of-pocket expenses of Embraer (including, with
                            respect to Embraer travel to the extent approved or
                            requested by the Purchaser), any trustee, or any
                            financing party, in each case associated solely with
                            the financing documentation of any Aircraft
                            delivery, including but not limited to registration
                            fees/expenses that are customary in aircraft
                            transactions, shall be for the account of the
                            Purchaser and shall be paid or caused to be paid by
                            Purchaser on closing of such Aircraft financings.

                     (7)    Embraer Board approval, which * April 16, 2001.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 6 of 8
<PAGE>

                     (8)    In the event of a material adverse change or
                            disruption in the financial/lease markets *.

Spares *:            Embraer will issue for each Aircraft a spare parts * for
                     Embraer-supplied spare parts as follows:

                     *

                     This difference represents *.

                     *
Validity:            The terms and conditions of this Financing Term Sheet
                     remain valid through the delivery of the * Aircraft.

Effect on Purchase
 Agreement:          As to any Aircraft, if * fails to arrange or provide
                     the financing support described under this Financing Term
                     Sheet, as a result of *.

* Agreement:         If a Purchaser Party enters into an * and the Purchaser *,
                     shall have no *.

Guarantee:           The Guarantor shall unconditionally guarantee the payment
                     and performance of all of the Purchaser's obligations *.

This Financing Term Sheet is *. The terms and conditions of this Financing Term
Sheet are subject to *.

It is the responsibility of Purchaser and Embraer to treat any and all
information related to the form and

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 7 of 8
<PAGE>

amount of any support which may be provided by Embraer and the execution of this
Financing Term Sheet in a confidential manner and not to provide to any third
party such information without the express written consent of the other party
and then only subject to the third party agreeing to Embraer's or Purchaser's
confidentiality agreement. It is acknowledged that Babcock & Brown is acting as
advisor to the Purchaser *. The above does not apply where Purchaser or the
applicable third party is required to disclose such information by law or
compelled by court order to do so.

If Purchaser and Embraer do not enter into a purchase agreement on or before May
30, 2001, or such other date as Embraer and the Purchaser may agree upon in
writing, all obligations under this Financing Term Sheet shall be deemed
terminated, and all obligations of Embraer and the Purchaser fulfilled.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 8 of 8
<PAGE>
--------------------------------------------------------------------------------

                 AMENDMENT No. 01 TO LETTER AGREEMENT DCT-044/01

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

This Amendment No. 01 ("Amendment 01") dated as of September __, 2001 by and
between Embraer - Empresa Brasileira de Aeronautica S.A. ("Embraer") and Astral
Aviation, Inc. ("Buyer"), and relates to Letter Agreement No. DCT-044/01 dated
August 13, 2001 (the "Letter Agreement").

All terms defined in the Letter Agreement shall have the same meaning when used
herein, and in case of any conflict between this Amendment 01 and the Letter
Agreement, this Amendment shall control.

This Amendment 01 sets forth the further agreement between Embraer and the
"Buyer" relative to certain changes requested by the "Buyer" in the Aircraft
configuration described in Attachment "1" to the Letter Agreement.

NOW, THEREFORE, in consideration of the foregoing, Embraer and the "Buyer" do
hereby agree as follows:

1.     Each of the ERJ 135 LR Conversion Aircraft and ERJ 145 LR Conversion
       Aircraft shall have the following modifications:

       (a)    * shall be excluded from the Aircraft configuration;

       (b)    * shall be included in the Aircraft configuration.

       Due to such changes, the net weight of the ERJ 135 LR Conversion Aircraft
       and ERJ 145 LR Conversion Aircraft shall be *, which shall be considered
       in all performance guarantees *, and the Conversion Aircraft Basic Price
       shall be *.

2.     As a result of the ERJ 135 LR Conversion Aircraft and ERJ 145 LR
       Conversion Aircraft configuration changes as specified above, the Parties
       agree that notwithstanding the provisions of the Letter Agreement the
       Conversion Aircraft Basic Price for each of the ERJ 135 LR Conversion
       Aircraft and ERJ 145 LR Conversion Aircraft shall be *. Therefore, the
       ERJ 135 LR Conversion Aircraft Basic Price shall be * and

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 2
<PAGE>
       the ERJ 145 LR Conversion Aircraft Basic Price shall be *.

3.     All other provisions and conditions of the Letter Agreement, as well as
       its Attachment, which are not specifically amended by this Amendment 01,
       shall remain in full force and effect without any change.

IN WITNESS WHEREOF, Embraer and Buyer by their duly authorized officers, have
entered into and executed this Amendment No. 01 to the Letter Agreement to be
effective as of the date first written above.

EMBRAER - EMPRESA BRASILEIRA                ASTRAL AVIATION, INC.
DE AERONAUTICA S.A

By:  /s/ Frederico Fleury Curado            By: /s/ James P. Rankin
   ------------------------------              ---------------------------------
Name: Frederico Fleury Curado               Name:  James P. Rankin
Title: Executive Vice President             Title: President & CEO
       Airline Market

By: /s/ Flavio Rimoli
   --------------------------
Name:  Flavio Rimoli
Title: Director of Contracts

Date:  October 23, 2001                     Date:  10-19-01
Place: Sao Jose dos Campos, SP              Place: Oak Creek, WI  U.S.A.
       Brazil

Witnesses:

/s/ Carlos Martins Dutra                /s/ Patricia M. Oleniczak
---------------------------                 -----------------------------
Name: Carlos Martins Dutra              Name:  Patricia M. Oleniczak

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 2
<PAGE>
--------------------------------------------------------------------------------

                AMENDMENT No. 01 TO PURCHASE AGREEMENT DCT-043/01

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

This Amendment No. 01 ("Amendment 01") dated as of September __, 2001 by and
between Embraer - Empresa Brasileira de Aeronautica S.A. ("Embraer") and Astral
Aviation, Inc. ("Buyer"), and relates to Purchase Agreement No. DCT-043/01 dated
August 13, 2001 (the "Purchase Agreement").

All terms defined in the Purchase Agreement shall have the same meaning when
used herein, and in case of any conflict between this Amendment 01 and the
Purchase Agreement, this Amendment shall control.

This Amendment 01 sets forth the further agreement between Embraer and the
"Buyer" relative to certain changes requested by Buyer in the Aircraft
configuration described in Attachment "A" to the Purchase Agreement.

NOW, THEREFORE, in consideration of the foregoing, Embraer and Buyer do hereby
agree as follows:

1.     Each of the Firm Aircraft and Option Aircraft shall have the following
       modifications:

       (a)    * shall be excluded from the Aircraft configuration;

       (b)    * shall be included in the Aircraft configuration.

       Due to such changes, the net weight of the Aircraft shall be *, which
       shall be considered in all performance guarantees *, and the Aircraft
       Basic Price shall be *.

2.     As a result of the Firm Aircraft and Option Aircraft configuration
       changes as specified above, the Parties agree that notwithstanding the
       provisions of the Purchase Agreement the Aircraft Basic Price for each of
       the Firm Aircraft and Option Aircraft shall be *. Therefore, the Aircraft
       Basic Price shall *.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 2
<PAGE>

3.     All other provisions and conditions of the Purchase Agreement, as well as
       its Attachments and Letter Agreement, which are not specifically amended
       by this Amendment 01, shall remain in full force and effect without any
       change.

IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have
entered into and executed this Amendment No. 01 to the Purchase Agreement to be
effective as of the date first written above.

EMBRAER - EMPRESA BRASILEIRA                ASTRAL AVIATION, INC.
DE AERONAUTICA S.A

By:  /s/ Frederico Fleury Curado            By: /s/ James P. Rankin
   ------------------------------              ---------------------------------
Name: Frederico Fleury Curado               Name:  James P. Rankin
Title: Executive Vice President             Title: President & CEO
       Airline Market

By: /s/ Flavio Rimoli
   --------------------------
Name:  Flavio Rimoli
Title: Director of Contracts

Date:  October 23, 2001                     Date:  October 19, 2001
Place: Sao Jose dos Campos, SP              Place: Oak Creek, WI  U.S.A.
       Brazil

Witnesses:

/s/ Carlos Martins Dutra                /s/ Patricia M. Oleniczak
---------------------------                 -----------------------------
Name: Carlos Martins Dutra              Name:  Patricia M. Oleniczak

                                                                     Page 2 of 2
<PAGE>
--------------------------------------------------------------------------------

                AMENDMENT No. 02 TO PURCHASE AGREEMENT DCT-043/01

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

This Amendment No. 02 ("Amendment 02") dated as of October __, 2001 by and
between Embraer - Empresa Brasileira de Aeronautica S.A. ("Embraer") and Astral
Aviation, Inc. ("Buyer"), and relates to Purchase Agreement No. DCT-043/01 dated
August 13, 2001 (the "Purchase Agreement").

All terms defined in the Purchase Agreement shall have the same meaning when
used herein, and in case of any conflict between this Amendment 02 and the
Purchase Agreement, this Amendment 02 shall control.

This Amendment 02 sets forth the further agreement between Embraer and the
"Buyer" relative to certain changes in the Firm Aircraft Contractual Delivery
Dates and in the period of time to exercise the Option for the Purchase of
Additional Aircraft.

NOW, THEREFORE, in consideration of the foregoing, Embraer and Buyer do hereby
agree as follows:

1.     The delivery Schedule in Section 5 of the Purchase Agreement is hereby
       deleted and replaced with the following schedule:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
  AIRCRAFT   CONTRACTUAL DELIVERY DATE     AIRCRAFT   CONTRACTUAL DELIVERY DATE
--------------------------------------------------------------------------------
<S>                <C>                        <C>           <C>
     01               *     2003              11             *
--------------------------------------------------------------------------------
     02               *                       12             *
--------------------------------------------------------------------------------
     03               *                       13             *
--------------------------------------------------------------------------------
     04               *                       14             *
--------------------------------------------------------------------------------
     05               *                       15             *
--------------------------------------------------------------------------------
     06               *                       16             *
--------------------------------------------------------------------------------
     07               *                       17             *
--------------------------------------------------------------------------------
     08               *                       18             *
--------------------------------------------------------------------------------
     09               *                       19             *
--------------------------------------------------------------------------------
     10               *                       20             * 2006
--------------------------------------------------------------------------------
</TABLE>

2.     The first sentence of Article 21 is hereby deleted and replaced with the
       following text:

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 2
<PAGE>

       "Buyer shall have the option to purchase up to twenty (20) Option
       Aircraft provided however that the Option Aircraft shall be exercised
       *."

3.     All other provisions and conditions of the Purchase Agreement, as well as
       its Attachments, which are not specifically amended by this Amendment 02,
       shall remain in full force and effect without any change.

IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have
entered into and executed this Amendment No. 02 to the Purchase Agreement to be
effective as of the date first written above.

EMBRAER - EMPRESA BRASILEIRA                ASTRAL AVIATION, INC.
DE AERONAUTICA S.A

By:  /s/ Frederico Fleury Curado            By: /s/ James P. Rankin
   ------------------------------              ---------------------------------
Name: Frederico Fleury Curado               Name:  James P. Rankin
Title: Executive Vice President             Title: President & CEO
       Airline Market

By: /s/ Flavio Rimoli                       By: ___________________________
   --------------------------
Name:  Flavio Rimoli                        Name: _________________________
Title: Director of Contracts
                                            Title: ________________________
Date:  October 23, 2001
Place: Sao Jose dos Campos, SP
       Brazil                               Date: __________________________

Witnesses:                                  Place: _________________________

/s/ Carlos Martins Dutra
---------------------------                 By:_____________________________
Name: Carlos Martins Dutra
                                            Name: __________________________

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 2

<PAGE>
--------------------------------------------------------------------------------

                AMENDMENT No. 03 TO PURCHASE AGREEMENT DCT-043/01

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

This Amendment No. 03 ("Amendment 03") dated as of March 6, 2002 by and between
Embraer - Empresa Brasileira de Aeronautica S.A. ("Embraer") and Astral
Aviation, Inc. ("Buyer"), and relates to Purchase Agreement No. DCT-043/01 dated
August 13, 2001, as amended from time to time (the "Purchase Agreement").

All terms defined in the Purchase Agreement shall have the same meaning when
used herein, and in case of any conflict between this Amendment 03 and the
Purchase Agreement, this Amendment 03 shall control.

This Amendment 03 sets forth the further agreement between Embraer and the
"Buyer" relative to certain changes in the Firm Aircraft Contractual Delivery
Dates.

NOW, THEREFORE, in consideration of the foregoing, Embraer and Buyer do hereby
agree as follows:

1.     FIRM AIRCRAFT

Article 5 of the Purchase Agreement is hereby deleted and replaced by the
following:

       "5.    DELIVERY

       5.1    Subject to payment in accordance with Article 4 hereof and the
              provisions of Articles 7 and 9 hereof, the Aircraft shall be
              offered by Embraer to Buyer, by means of a written notice, for
              inspection, acceptance and subsequent delivery in F.A.F.
              condition, at Sao Jose dos Campos, State of Sao Paulo, Brazil,
              according to the following schedule:

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

  AIRCRAFT   CONTRACTUAL DELIVERY DATE     AIRCRAFT    CONTRACTUAL DELIVERY DATE
--------------------------------------------------------------------------------
     01                 *  2004               11                   *
--------------------------------------------------------------------------------
     02                 *                     12                   *
--------------------------------------------------------------------------------
     03                 *                     13                   *
--------------------------------------------------------------------------------
     04                 *                     14                   *
--------------------------------------------------------------------------------
     05                 *                     15                   *
--------------------------------------------------------------------------------
     06                 *                     16                   *
--------------------------------------------------------------------------------
     07                 *                     17                   *
--------------------------------------------------------------------------------
     08                 *                     18                   *
--------------------------------------------------------------------------------
     09                 *                     19                   *
--------------------------------------------------------------------------------
     10                 *                     20                   *  2007
--------------------------------------------------------------------------------

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 1 of 3
<PAGE>

       5.2    *

2.     MISCELLANEOUS

All other provisions and conditions of the Purchase Agreement, as well as its
Attachments, which are not specifically amended by this Amendment 03, shall
remain in full force and effect without any change.

              [REMAINDER OF THIS HAS BEEN LEFT BLANK INTENTIONALLY]

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                     Page 2 of 3
<PAGE>

IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have
entered into and executed this Amendment No. 03 to the Purchase Agreement to be
effective as of the date first written above.

EMBRAER - EMPRESA BRASILEIRA                ASTRAL AVIATION, INC.
DE AERONAUTICA S.A

By:  /s/ Frederico Fleury Curado            By: /s/ James P. Rankin
   ------------------------------              ---------------------------------
Name: Frederico Fleury Curado               Name:  James P. Rankin
Title: Executive Vice President             Title: President & CEO
       Airline Market

By: /s/ Satoshi Yokota                     By: ___________________________
   ----------------------------
Name: Satoshi Yokota                       Name: _________________________

Title: Executive Vice President            Title: ________________________
       Industrial

Date: March 7, 2002                        Date: 3-6-02

Place: Sao Jose Dos Compos, SP             Place: Oak Creek, WI
       Brazil

WITNESS:

/s/ Carlos Martins Dutra                   By: ___________________________
---------------------------
Name: Carlos Martins Dutra                 Name:__________________________

                                                                     Page 3 of 3GENERAL TERMS AGREEMENT

                                     BETWEEN

                       ROLLS-ROYCE DEUTSCHLAND LTD & CO KG

                                       AND

                         MIDWEST EXPRESS AIRLINES, INC.

                                                                    Page 1 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

TABLE OF CONTENTS

CLAUSE 1.   Definitions.......................................................4

CLAUSE 2.   Scope of Agreement................................................6

CLAUSE 3.   Purchase Orders...................................................7

CLAUSE 4.   Delivery..........................................................8

CLAUSE 5.   Prices............................................................9

CLAUSE 6.   Payment..........................................................10

CLAUSE 7.   Taxes and Other Charges..........................................11

CLAUSE 8.   Delay............................................................12

CLAUSE 9.   Events of Default and Termination................................14

CLAUSE 10.  Non-disclosure...................................................15

CLAUSE 11.  Intellectual Property............................................16

CLAUSE 12.  Grant of Warranty and Limitation of Liability....................17

CLAUSE 13.  Indemnification..................................................18

CLAUSE 14.  General..........................................................19

CLAUSE 15.  Export/Import Shipment (Not Applicable)..........................23

Exhibit A - Aircraft Delivery Schedule.......................................25

Exhibit B - Operating Assumptions............................................26

Exhibit C - Warranties.......................................................27

EXHIBIT D - OPERATOR SERVICES................................................36

EXHIBIT E - FLEET PROVISIONING SUPPORT.......................................39

EXHIBIT F - FLEET GUARANTEES.................................................47

Exhibit G - TOTAL SUPPORT PACKAGE............................................55

Exhibit H - CONTRACT SPECIFICATION...........................................69

                                                                    Page 2 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

THIS AGREEMENT is made this ______ day of April 2002.

BETWEEN

Rolls-Royce Deutschland Ltd & Co KG      Whose registered office is at Eschenweg
                                         11, 15827 Dahlewitz, Germany,
                                         (hereinafter called "Rolls-Royce") of
                                         the first part, and

Midwest Express Airlines, Inc.           Whose registered office is at 6744
                                         South Howell Avenue, Oak Creek,
                                         Wisconsin, U.S.A. 53154 (hereinafter
                                         called "Operator"), of the second part

Operator or Rolls-Royce may hereinafter be referred to as a "Party" or
collectively as the "Parties".

WHEREAS:

A.     Operator has entered into an agreement for the purchase from McDonnell
       Douglas Corporation, a wholly-owned subsidiary of The Boeing Company, of
       new Rolls-Royce BR715 powered B717-200 aircraft.

B.     Operator and Rolls-Royce desire to enter into this Agreement for the sale
       and support by Rolls-Royce and the purchase by Operator from Rolls-Royce
       of Products and Services.

NOW THEREFORE IT IS AGREED AS FOLLOWS:-

                                                                    Page 3 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 1.  Definitions

The following words and phrases, when used in this Agreement, shall have the
meaning and definition set forth below. Should the definitions used in this
Agreement differ from the definitions contained in the Manuals, the definitions
used in this Agreement shall take precedence for the purpose of this Agreement.

Definitions specific to only one Exhibit to this Agreement are contained in the
relevant Exhibit.

"Agreement" shall mean this agreement, including all exhibits attached hereto.

"Aircraft" means the twenty-five (25) Firm B717-200 Aircraft and up to
twenty-five (25) Option B717-200 Aircraft (referred to separately as the "Firm
Aircraft" or "Option Aircraft", or collectively as the "Aircraft") powered by
Engines which are being purchased by Operator from Airframer (or, in the case of
the Option Aircraft, may be so purchased by Operator) for delivery in accordance
with the schedule set out in Exhibit A.

"Airframer" means McDonnell Douglas Corporation, a wholly-owned subsidiary of
The Boeing Company .

"Airworthiness Authority" means the FAA.

"ATA Specifications" means then current revisions of ATA specifications No's
100, 101, 102, 103, 200, 300, 400 and spec 2000 or equivalent.

"CAA" means the United Kingdom Civil Aviation Authority (Airworthiness
Division).

"Commercial Price List(s)" means Rolls-Royce's published price catalogues of
Parts, Tooling and other Products and Services as may be published from time to
time.

"Covered Components" shall mean the Parts and components of Qualified Equipment
that are identified in Schedule F to Exhibit G of this Agreement.

"Designated Part" means any Part listed in Schedule 1 to Exhibit C.

"Effective Date" means the date on which this Agreement has been duly executed
by its authorized representatives.

"EMP" means the Rolls-Royce Engine Management Program to be proposed by
Rolls-Royce and accepted by Operator after meaningful review and an opportunity
to provide input (such acceptance not to be unreasonably withheld) which, among
other things, specifies the Engine configuration and shop management
requirements for the Rework of Engines, as it may be amended by mutual agreement
between Rolls-Royce and Operator from time to time. Rolls-Royce shall ensure
that the EMP conforms to the requirements of the FAA; Operator shall ensure that
the EMP is included in the Aircraft Maintenance Plan which is approved by the
FAA.

"Engine(s)" means the Rolls-Royce BR715 turbofan engines acquired by Operator in
support of the Aircraft, and delivered either to Operator on Aircraft or as
spare Engines pursuant to Exhibit D, E, F or G hereto.

"FAA" means the United States Federal Aviation Administration.

"Failure" means, subject to the applicable warranty periods identified in
Exhibit C, the mandatory removal of a Part or the breakdown or deterioration of
a Part which necessitates the removal of the Engine or Module or Part from the
Aircraft or is discovered during the Rework performed in connection with such a
removal.

                                                                    Page 4 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

"Flight Cycle" means the operation of an Engine from the time an Aircraft leaves
the ground until it touches the ground at the end of a flight. A touch and go
landing shall also be considered as a Flight Cycle.

"Flight Hours" means the airborne hours in operation of each Engine computed
from the time an Aircraft leaves the ground until it touches the ground at the
end of a flight.

"FOD" means damage to an Engine resulting from the non-negligent ingestion of
material not resident within the Engine and where such damage requires removal
of the Engine, Module or Part from service.

"Information" means confidential or proprietary non-public information which is
disclosed by Rolls-Royce to Operator and confidential or proprietary non-public
information which is disclosed by Operator to Rolls-Royce, including but not
limited to all oral, electronic or written information, know how, data, reports,
drawings and specifications....

"Inspection" means an examination of an Engine or any Parts through disassembly
and/or other non-destructive means to determine its serviceability.

"JAA" means the Joint Airworthiness Authority.

"Lease Agreement" means Standard Terms of Business for Leasing reference MG751,
of even date herewith, between Rolls-Royce North America, Inc. and Operator.

"Life Limited Parts" means Engine Parts for which either Rolls-Royce or the
Airworthiness Authority has established a maximum period of operational Flight
Cycles with periodic Rework and/or restoration.

"Manuals" means the Rolls-Royce Engine series manuals as produced by Rolls
Royce.

"Module(s)" means the Rolls-Royce Engine sections purchased by Operator from
Rolls-Royce, or installed in Engines delivered to Operator on Aircraft, or
embodied by an Authorized Facility (as that term is defined in Exhibit G), as
detailed in Clause 1.2.1 of the Specification attached in Exhibit H to this
Agreement.

"Part" means any part including a Designated Part manufactured or supplied by
Rolls-Royce.

"Product(s)" means Engines, Modules, Parts, Covered Components and Tooling.

"QEC Kit" means a quick engine change kit manufactured by the relevant nacelle
supplier.

"Rework" means the repair, replacement, and/or refurbishment at an Authorized
Facility (including the provision of Parts) necessary to return Engines, Modules
or Parts to a serviceable condition in accordance with the applicable Manuals
and the EMP.

 "Services" means the services to be provided pursuant to Exhibits D, G and H
hereto.

"Spare Engine" means a spare Dressed Engine as detailed in Clause 1.2.2 of the
Specification in Exhibit H to this Agreement, but excluding the following:
P20/T20 measuring system; Engine Starter Motor; and Independent Overspeed
Protection (IOP).

"Tooling" means tools, jigs, fixtures and other products which are not for
installation in the Engine.

                                                                    Page 5 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 2.  Scope of Agreement

Rolls-Royce agrees to sell to Operator and Operator agrees to purchase Products
and Services from Rolls-Royce in accordance with the terms, conditions and
warranties contained in this Agreement in lieu of the general terms and
conditions on or attached to or otherwise forming part of any purchase order,
quotation, acknowledgment, invoice or other document issued by either Party
(provided that Operator's purchase orders shall contain quantities and the other
items described in Clause 3.1).

Clauses 1 to 15 of this Agreement set forth the general terms governing the
supply of Products and Services that are common across all such Products and
Services, while the Exhibits of this Agreement set forth the terms, conditions
and warranties that apply to specific Products and Services.

Subject to the provisions authorizing termination for cause in Clause 9 below,
Rolls-Royce hereby agrees that it will sell repair or replacement Parts,
Modules, Covered Components and Tooling to Operator on the terms set forth in
this Agreement from the Effective Date through and including the date that is
twenty (20) years after the date on which the last Aircraft purchased by
Operator is delivered to Operator.

The Total Support Program set out in Exhibit G is an option offered to Operator
whereby Rolls-Royce will take certain responsibilities for the repair and rework
of Engines. Operator will inform Rolls-Royce in writing three (3) months prior
to entry-into-service of the first Aircraft (i) whether it wishes to select the
Total Support Program, and (ii) if so, which options under such Total Support
Program, as contained in paragraphs 7.1.2, 7.1.3, 7.1.4 and 7.1.5 of Exhibit G
to this Agreement, it wishes to select.

                                                                    Page 6 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 3.  Purchase Orders

3.1      Products and Services purchased under the terms of this Agreement shall
         be ordered by means of purchase orders issued by Operator in an agreed
         format consistent with the requirements of ATA Specifications. The
         terms, conditions and warranties set forth in this Agreement shall
         apply to all purchase orders. Any purchase order issued hereunder,
         unless otherwise specified, shall contain at a minimum: description,
         quantity, delivery dates and the unit and extended price of the
         Products and Services, restatement of payment terms, container price
         and shipping instructions.

3.2      Rolls Royce shall provide written and/or electronic acknowledgment of
         its acceptance of purchase orders. Should Rolls-Royce be unable to meet
         any requirements under a purchase order, Rolls-Royce will so notify
         Operator and propose an alternative delivery schedule in a timely
         manner. Rolls-Royce undertakes that such alternative delivery schedule
         will not unduly disadvantage Operator relative to other purchasers of
         the same goods or services at such time.

                                                                    Page 7 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 4.  Delivery

4.1      Rolls-Royce shall deliver Products and, where applicable, Services Ex
         Works, Rolls-Royce Dahlewitz (Incoterms 2000). Upon request by
         Operator, Rolls-Royce will arrange for the transportation from
         Dahlewitz to the United States of America.

4.2      Shipping documents, invoices, packaging and marking of packaging for
         Products and Services shall be in accordance with ATA Specifications.

                                                                    Page 8 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 5.  Prices

5.1      Except for the spare Engines (the pricing of which is established in
         Exhibit E-1 and Schedules 1 and 2 to Exhibit E) and TSP Charges (the
         pricing of which is established in Exhibit G), all Products and
         Services shall be as described in the applicable Commercial Price List,
         or for those Products and Services not specified in such a listing,
         available from Rolls-Royce on a quotation basis. The Rolls-Royce Spare
         Parts Price Catalogue for the Engine, and such other Commercial Price
         Lists and any revisions and updates thereof shall be published by
         Rolls-Royce to all operators of the Engine, and shall not be specific
         to operators but shall generally apply to the purchase of such goods or
         services from Rolls-Royce during their respective period of validity.

5.2      All prices, and all amounts stated to be payable by Operator in this
         Agreement exclude value added tax, sales tax, goods and services tax,
         tax on turnover or tax on turnover or similar charges (but include any
         income taxes incurred by or imposed upon Rolls-Royce; Rolls-Royce shall
         be solely responsible for all such income taxes).

                                                                    Page 9 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 6   Payment

6.1      Immediately following or concurrent with supply of Products and
         Services, Rolls-Royce shall submit an invoice to Operator stating
         amounts due. Unless otherwise specified in this Agreement, payment
         shall be made by Operator in United States Dollars within thirty days
         after the later of (a) the delivery date of the Products or Services,
         or (b) the date of invoice.

6.2      Without prejudice to Rolls-Royce's other rights and remedies,
         Rolls-Royce shall be entitled to enforce a late payment amount
         calculated at a rate of (i) 0.05% (five hundredths of one percent) per
         day; or (ii) the highest interest rate permitted by applicable law,
         whichever is the lower, which shall be applied to any amounts not paid
         when due. In the case of payments for other Products or Services made
         by Operator in the form of a check pursuant to Clause 6.3 below, the
         late payment amounts described in this Clause 6.2 shall not be levied
         against any such payments made where the check is received at
         Rolls-Royce's registered office, clearly marked with the recipient
         "Treasury Department", no later than the due date for payment, provided
         that the subsequent presentation for payment of such check by
         Rolls-Royce to its bank results in cleared or good value funds being
         received by Rolls-Royce.

6.3      Unless agreed otherwise, all payments required under this Agreement
         shall be made in United States Dollars without any withholding for
         sales taxes imposed by any State of the United States of America on the
         basis of the purchase price of the Products or Services, by (in the
         case of payments for Spare Engines and TSP Charges, if applicable,
         purchased hereunder) wire transfer to Rolls-Royce's account as follows:

                  Bank:                     HSBC Trinkaus und Burkhardt KGaA
                  Account Number:           400 2372 016
                  Bankleitzahl:             300 308 80
                  Swift:                    TUBDDEDD

         or by (in the case of payments for other Products or Services) wire
         transfer to Rolls-Royce's above-identified account or check sent to
         Rolls-Royce's registered office clearly marked with the recipient
         "Treasury Department". For the purpose of this Clause 6.3 "Payment"
         shall only be deemed to have been made when cleared or good value funds
         are received in the numbered Rolls-Royce bank account specified above.

                                                                   Page 10 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 7.  Taxes and Other Charges

Operator in addition to the price of Products and Services, agrees to pay
Rolls-Royce upon demand, or furnish to Rolls-Royce evidence of exemption
therefrom, any taxes (including without limitation, sales, use, excise,
turnover, value added taxes or goods and services taxes), duties, fees, charges,
fines, penalties or assessments of any nature (but excluding any taxes in the
nature of income taxes), legally assessed or levied by any Governmental
authority against Rolls-Royce or its employees, its divisions or subsidiaries or
their employees, as a result of any sale, delivery, transfer, use, export,
import or possession of such Product or Service to or by Operator, or otherwise
in connection with this Agreement. If claim is made against Rolls-Royce for any
such taxes, duties, fees, charges, fines, penalties or assessments, Rolls-Royce
shall immediately notify Operator. If requested by Operator, Rolls-Royce shall
not pay except under protest, and if payment be made, shall use all reasonable
effort to obtain a refund thereof. If all or any part of any such taxes, duties,
fees, charges, fines, penalties or assessments be refunded, Rolls-Royce shall
repay to Operator such part which Operator had paid to Rolls-Royce. Operator
shall pay to Rolls-Royce upon demand, all costs (including penalties and
interest) incurred by Rolls-Royce in protesting payment and in endeavoring to
obtain such refund at the request of Operator.

                                                                   Page 11 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 8.  Delay

8.1      If and to the extent Rolls-Royce is prevented from manufacturing or
         delivering any Product within the time for delivery specified in this
         Agreement (as such time may be extended pursuant to the other
         provisions of this Agreement) by reason of:-

         war, insurrection, explosion, flood, fire, strike, act of government
         occurring after the date of this Agreement (but only to the extent said
         act becomes effective after the Effective Date) or act or omission of
         Operator in breach of this Agreement, then

         the time for scheduled delivery shall be extended by a period equal to
         the period for which manufacture or delivery shall have been so
         prevented and Rolls-Royce shall not be under any liability whatsoever
         in respect of such delay; provided, however, that Rolls-Royce will not
         be entitled to rely upon this provision unless it notifies Operator in
         writing of any such event within ten (10) calendar days after its
         occurrence, including in such notice details of the event and an
         estimate of its effects on the timing of delivery. Rolls-Royce shall
         use its commercially reasonable efforts to overcome the effects of any
         such event and resume performance as promptly as possible.

8.2      If delivery of any Product or Service is delayed beyond the time for
         delivery specified in this Agreement (as such time may be extended
         pursuant to the provisions of this Agreement) for any reason not
         contemplated in Clause 8.1 above, then the following shall appy:

         Should Rolls-Royce delay any agreed date of delivery of any Product or
         Service for reasons other than those set out in Clause 8.1 hereof then
         in respect of the first month of such delay Rolls-Royce shall not be
         under any liability. In respect of any further delay the damages
         recoverable by Operator from Rolls-Royce as Operator sole remedy shall
         not exceed 0.5 % (one half of one per cent) of the purchase price of
         the Product or Service so delayed in respect of each month of such
         further delay (and pro rata for any period of less than one month)
         subject to an overall maximum of * of the purchase price of the Product
         or Service so delayed.

8.3      Should Rolls-Royce delay any agreed date of delivery for any spare
         Engine for reasons other than those set out in Clause 8.1 hereof, and
         Operator has an urgent operational requirement for a spare Engine to
         avoid an "Aircraft on Ground" situation, then Operator may request that
         Rolls-Royce shall provide to Operator a lease engine in accordance with
         the Lease Agreement.

         Dependant under which maintenance support program the Operator operates
         its Engines, Operator shall pay charges in respect of such lease engine
         as follows:

          o    If Operator operates under the Total Support Package including
               Life Limited Parts then the charges shall be the applicable daily
               rental charge in accordance with the Standard Terms of Business
               for Leasing subject to a maximum amount per month equal to a then
               applicable monthly operating lease rate for a ten-year term at
               market rates, plus the then applicable Total Support Package
               charge limited to the Shop Visit Coverage and LLP elements and ;
               or

          o    If Operator operates under the Total Support Package excluding
               Life Limited Parts then the charges shall be the applicable daily
               rental charge in accordance with the Standard Terms of Business
               for Leasing subject to a maximum amount per month equal to a then
               applicable monthly operating lease rate for a ten-year term at
               market rates, plus the then applicable Total Support Package
               charge limited to the Shop Visit Coverage element , plus the then
               applicable cyclic charge in accordance with the Standard Terms of
               Business for Leasing ; or

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 12 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

          o    If Operator does not operate under the Total Support Package then
               the charges shall be the applicable daily rental charge in
               accordance with the Standard Terms of Business for Leasing
               subject to a maximum amount per month equal to a then applicable
               monthly operating lease rate for a ten-year term at market rates,
               plus the then applicable cyclic and hourly charge in accordance
               with the Standard Terms of Business for Leasing ; or

          o    If upon such request by Operator Rolls-Royce fails to provide
               such lease engine to Operator then in respect of the first day of
               the non-excusable delay Rolls-Royce shall not be under any
               liability, and in respect of any further non-excusable delay in
               excess of 1 (one) day Rolls-Royce as its sole obligation shall
               provide to Operator a credit note in the amount of the then
               current daily rental charge applicable to Engines in accordance
               with the Standard Terms of Business for Leasing in respect of
               each day of such delay beyond the first day of such delay.

         The total liability of Rolls-Royce under this Clause 8.3 in respect of
         each spare Engine shall not exceed an amount equal to the then current
         daily rental charge for a period of 180 (one hundred and eighty) days
         in accordance with the Standard Terms of Business for Leasing.

         The remedies available to Operator under this Clause 8.3 shall be in
         lieu of the remedies set out in Clause 8.2 above.

8.4      Should Rolls-Royce delay delivery of any Products or Services for a
         period of 12 (twelve) months then, in addition to the right of Operator
         under Clause 8.2 above, Operator shall be entitled to refuse to take
         delivery of such item on giving Rolls-Royce notice in writing within
         one month after the expiration of such period of 12 (twelve) months.
         Upon receipt of such notice Rolls-Royce shall be free from any further
         obligation in respect of such item of Supplies except that Rolls-Royce
         shall refund to Operator any deposits plus reasonable amount for
         interest made in respect of the purchase price of such Products or
         Services, if applicable

         The right of Operator to claim damages shall be conditional upon the
         submission of a written claim therefor within thirty days from the date
         of which Rolls-Royce notifies Operator that the Products or Services so
         delayed is ready for delivery or from the date on which Operator
         exercises the right of cancellation in respect of such item as set out
         below, whichever date shall first occur.

8.5      Rolls-Royce and Operator acknowledge that the liquidated damages
         calculated as set forth in Clause 8.2 and Clause 8.3 are reasonable
         damages in light of the anticipated harm that will be caused by such
         non-excused delay in delivery or failure to provide a warranty remedy
         (as the case may be), the difficulties of proof of loss, and the
         inconvenience or non-feasibility of Operator's otherwise obtaining an
         adequate remedy. Liquidated damages due pursuant to Clause 8.2 or
         Clause 8.3 shall be payable by Rolls-Royce to Operator on demand;
         provided, however, that Operator may, at its option, apply the amount
         of said liquidated damages as a credit against the purchase price of
         Products or Services obtained hereunder.

                                                                   Page 13 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 9.  Events of Default and Termination

9.1      If either party hereto makes any agreement with creditors generally
         compounding debts, enters liquidation whether compulsory or voluntary
         (except as a solvent company for the purpose of amalgamation or
         reconstruction), becomes insolvent or suffers a receiver of the whole
         or part of its assets to be appointed, then the other party shall have
         the right, without prejudice to its other rights or remedies, to
         terminate this Agreement. Such termination shall be effected by the
         party entitled to terminate issuing notice of termination in writing to
         the other party and such notice shall be effective twenty-four (24)
         hours after it is issued.

9.2      If Rolls-Royce terminates this Agreement in accordance with the
         provisions of Clause 9.1 above, Operator shall promptly pay to
         Rolls-Royce any amounts then due or owed for all Products and Services
         ordered and delivered at the time of the termination, and Rolls-Royce
         shall also be entitled to retain all amounts paid to Rolls-Royce under
         this Agreement.

9.3      Operator shall be in full compliance with the payment terms set forth
         in Clause 6 of this Agreement and all other material terms of this
         Agreement and any related agreement with Rolls-Royce or its affiliate
         companies with respect to the Aircraft, including spare Engine Lease
         agreements with Rolls-Royce & Partners Finance, if applicable, and any
         Standard Terms of Business for Leasing with Rolls-Royce North America,
         Inc., if applicable, and any Aircraft advance payment or long-term
         finance agreements with Rolls-Royce Capital, Inc., if applicable (for
         the purpose of this Clause collectively the "Agreements"). If Operator
         is in breach of any material obligation under these Agreements and such
         breach continues for a period exceeding (a) in the event of a payment
         breach, ten (10) days following receipt of Rolls-Royce's written
         notification of such breach, or (b) in the event of any other breach,
         thirty (30) days following receipt of Rolls-Royce's written
         notification of such breach or such longer period as is necessary to
         remedy such non-payment breach, then without prejudice to Rolls-Royce's
         other rights or remedies, Rolls-Royce may, without being obliged to,
         terminate this Agreement or exercise any one or more of the following
         rights:

         9.3.1  stop all work under this Agreement and refuse to deliver (or
                redeliver if applicable) any further Products and Services;

         9.3.2  divert affected Products and Services to other Operators or for
                its own purposes;

         9.3.3  treat all amounts then owing hereunder by Operator to be
                immediately due;

         9.3.4  exercise a mechanic's lien upon any engine which may from time
                to time be in the possession of Rolls-Royce or one of its
                authorized Rework facilities to secure any monies due to
                Rolls-Royce under this Agreement; and

         9.3.5  If any monies due to Rolls-Royce under this Agreement remain
                due and unpaid for more than three (3) months and Rolls-Royce
                has exercised any of its rights under Clause 9 above,
                Rolls-Royce may make a reasonable charge in respect of storage
                and insurance of Products or any items held in connection with
                such Products and transportation equipment held by Rolls-Royce
                and at any time after such period of three (3) months sell any
                such Products and apply the proceeds of such sale in
                satisfaction of such unpaid monies and any attorneys' fees
                incurred in association with such default.

                                                                   Page 14 of 78
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                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 10. Non-disclosure

10.1     Subject to Clause 10.2 below each Party agrees to hold in confidence
         any Information which it acquires directly or indirectly from the other
         Party or any of its subsidiaries and agrees not to disclose at any time
         the same to any third person without the written approval of other
         Party. These obligations shall continue for so long as this Agreement
         remains in effect, and for one (1) year thereafter.

10.2     Each Party shall be responsible for the observance of the provisions of
         Clause 10.1 above by its employees.

10.3     The provisions of Clause 10.1 above shall not apply to Information
         which is or becomes generally known in the aero engine industry nor
         shall the provisions of Clause 10.1 above prevent any necessary
         disclosure of Information to enable Operator itself to use, operate,
         maintain or overhaul Products and Services.

10.4     Notwithstanding Clause 10.1 above, each Party shall be entitled to
         disclose the other's Information if required to do so by law or the
         requirements of regulatory authorities (including without limitation
         the U.S. Securities and Exchange Commission), or for purposes of
         enforcing this Agreement or pursuant to or in the context of any
         dispute resolution process (including but not limited to arbitration
         proceedings), or to such Party's own lenders, financial advisors or
         attorneys (provided such lenders, advisors or attorneys are subject to
         an appropriate confidentiality agreement). Notwithstanding Clause 10.1
         above, both Parties shall be entitled to disclose financial information
         concerning business between Rolls-Royce and Operator to appointed
         auditors, and Rolls-Royce shall be entitled to disclose financial
         information concerning business between Rolls-Royce and Operator to
         Rolls-Royce's risk and revenue sharing partners and to Rolls-Royce
         affiliates for the purposes of fulfilling obligations hereunder.

                                                                   Page 15 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 11. Intellectual Property

11.1     Rolls-Royce shall, subject to the conditions set out in this Clause and
         as the sole liability of Rolls-Royce in respect of any claims for
         infringement of intellectual or industrial property rights, defend and
         indemnify Operator against any claim that the purchase or use of any of
         the Products or Services by Operator within any country to which at the
         date of such claim the benefits of Clause 27 of the Convention on
         International Civil Aviation of 7th December 1944 (The Chicago
         Convention) apply, infringes any patent, trademark, copyright, design,
         or model duly granted or registered; provided, however, that
         Rolls-Royce shall not be liable to Operator for any loss (whether
         direct or indirect):-

         11.1.1   of profit, agreements, revenue or goodwill; or

         11.1.2   of use of the Products and Services or of the Aircraft in
                  which the Products and Services may be incorporated arising as
                  a result directly or indirectly of any such claim.

11.2     Operator will give prompt notice in writing to Rolls-Royce of any such
         claim whereupon Rolls-Royce shall elect to either assume the defense of
         or dispose of or settle such claim, at its own expense and in its sole
         discretion, and Operator will give Rolls-Royce all reasonable
         assistance (at Rolls-Royce's expense) and will not by any act or
         omission do anything which may directly or indirectly prejudice
         Rolls-Royce in this connection. Rolls-Royce shall pay any settlement
         amounts or judgments arising out of any such claims.

11.3     If any of the Products and Services become subject to any claim, suit
         or proceeding for infringement, Rolls-Royce may (at its expense)
         substitute any allegedly infringing Product or Service with
         non-infringing Products and Services that are substantially equivalent
         to the items being replaced in terms of performance, functionality, and
         cost and ease of use and maintenance, or modify said Products and
         Services so as to be non-infringing (so long as the modification does
         not adversely affect their performance, functionality, or cost or ease
         of use or maintenance), or seek to obtain for Operator the perpetual
         right to use the item affected without charge to Operator. If in any
         claim, suit or proceeding use of any of the Products or Services is
         enjoined or otherwise restrained due to infringement, Rolls-Royce
         shall, at its expense, either (a) procure for Operator the perpetual
         right to continue using the infringing items, (b) modify the items (in
         such a way that does not adversely affect their performance,
         functionality, or cost or ease of use or maintenance) to render them
         non-infringing, or (c) replace the infringing items with non-infringing
         items that are substantially equivalent to or better than the items
         being replaced in terms of performance, functionality and cost and ease
         of use and maintenance.

11.4     The indemnity contained in Clause 11.1 above shall not apply to claims
         for infringement to the extent they are in respect of Products and
         Services manufactured to the specified design instructions of Operator,
         or the manner or method in which any of the Products and Services is
         installed in the Aircraft or any combination of any of the Products and
         Services with any item or items other than Products and Services.

                                                                   Page 16 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 12. Grant of Warranty and Limitation of Liability

Rolls-Royce grants to Operator the Warranties set out in Exhibit C and the
Guarantees set out in Exhibit F hereto and the Total Support Package set out in
Exhibit G hereto.

12.1     Operator ACCEPTS AND AGREES THAT THE WARRANTIES AND GUARANTEES AND
         SUPPORT PACKAGE GRANTED TO OPERATOR UNDER THIS AGREEMENT ARE EXCLUSIVE
         AND ARE EXPRESSLY IN LIEU OF AND OPERATOR HEREBY WAIVES, RELEASES AND
         DISCLAIMS (I) ALL OTHER CONDITIONS AND WARRANTIES, EXPRESS OR IMPLIED,
         INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY
         OR OF FITNESS, AND ANY IMPLIED WARRANTY ARISING FROM COURSE OF
         PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, (II) ALL OTHER
         OBLIGATIONS AND LIABILITIES WHATSOEVER OF ROLLS-ROYCE WHETHER IN
         CONTRACT, WARRANTY OR TORT (INCLUDING WITHOUT LIMITATION, NEGLIGENCE,
         ACTIVE, PASSIVE OR IMPUTED LIABILITY OR STRICT LIABILITY) OR BY STATUTE
         OR OTHERWISE FOR ANY NONCONFORMANCE, DEFECT, DEFICIENCY, FAILURE,
         MALFUNCTIONING, OR FAILURE TO FUNCTION OF ANY ITEM OF THE PRODUCTS AND
         SERVICES REFERRED TO IN THIS AGREEMENT, (III) STRICT LIABILITY OR
         PRODUCT LIABILITY, AND (IV) ALL DIRECT, INDIRECT, SPECIAL,
         CONSEQUENTIAL AND INCIDENTAL DAMAGES OF ANY NATURE WHATSOEVER, AND
         OPERATOR AGREES THAT ROLLS-ROYCE SHALL NOT BE LIABLE TO OPERATOR UPON
         ANY CLAIM THEREFOR OR UPON ANY CLAIM HOWSOEVER ARISING OUT OF THE
         MANUFACTURE OR SUPPLY OR INSPECTION BY ROLLS-ROYCE OR ANY OF ITS
         AFFILIATES OF ANY ITEM OF THE PRODUCTS AND SERVICES OF THIS AGREEMENT
         WHETHER IN CONTRACT, WARRANTY OR TORT (INCLUDING WITHOUT LIMITATION,
         NEGLIGENCE, ACTIVE, PASSIVE OR IMPUTED LIABILITY OR STRICT LIABILITY)
         OR BY STATUTE OR OTHERWISE EXCEPT AS EXPRESSLY PROVIDED IN THE
         WARRANTIES AND GUARANTEES AND SUPPORT PACKAGE, AND OPERATOR ASSUMES ALL
         RISK AND LIABILITY WHATSOEVER NOT EXPRESSLY ASSUMED BY ROLLS-ROYCE IN
         THE WARRANTIES.

12.2     ROLLS-ROYCE AND OPERATOR AGREE THAT THIS CLAUSE 12 HAS BEEN THE SUBJECT
         OF DISCUSSION AND NEGOTIATION, IS FULLY UNDERSTOOD BY THE PARTIES AND
         THE PRICE OF THE PRODUCTS AND SERVICES AND OTHER MUTUAL AGREEMENTS OF
         THE PARTIES SET FORTH IN THE AGREEMENT ARE ARRIVED AT HAVING DUE REGARD
         TO:

         12.2.1    THE EXPRESS WARRANTIES AND GUARANTEES AND SUPPORT PACKAGE OF
                   ROLLS-ROYCE AND OPERATOR'S RIGHTS THEREUNDER; AND

         12.2.2   THE EXCLUSIONS, WAIVERS AND LIMITATIONS SET FORTH IN CLAUSE
                  12.1 ABOVE.

12.3     IN CASE OF ANY CONFLICT BETWEEN THIS CLAUSE 12 AND ANY OTHER CLAUSE OF
         THIS AGREEMENT, THE PROVISIONS OF THIS CLAUSE 12 SHALL PREVAIL.

                                                                   Page 17 of 78
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                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 13. Indemnification

In the event either employees or agents of Rolls-Royce or Operator enter upon
the property occupied by or under the control of the other Party in the
performance of this Agreement, the Party entering the other Party's premises
assumes responsibility for and agrees to pay for any loss, cost, damage to
property, or for personal injury or death of any persons (other than employees
of the other Party covered by Workers' Compensation Insurance or other
comparable insurance) arising out of, as a result of, or in connection with the
actions or omissions of the Party entering the property occupied by or under the
control of the other Party. If a claim or demand is asserted against a Party by
reason of the act or omission of the other Party, then such other Party will be
offered the opportunity to participate at its own expense in the defense against
such claim or demand. Each Party also agrees that it will maintain public
liability and property damage insurance in reasonable limits consistent with
industry standards covering the obligations set forth above and will maintain
proper Workers' Compensation Insurance (or other comparable insurance) covering
all of its employees performing this Agreement.

                                                                   Page 18 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 14. General

14.1     Effective Date and Expiration

         This Agreement shall become effective immediately following the date
         first written here before (the "Effective Date") and shall remain in
         effect until it expires or is terminated by either Party. Unless sooner
         terminated, pursuant to other provisions hereof, or unless renewed and
         extended by the Parties hereto, this Agreement shall expire without
         further action or notice by either Party on the date that is twenty
         (20) years following the date the last Aircraft purchased by Operator
         is delivered to Operator.

14.2     Survival

         The provisions of Clauses 10 (Non-Disclosure), 11 (Patents), 12
         (Limitation of Liability), 13 (Indemnification), 14.9 (Applicable Law
         and Jurisdiction) and Exhibit C (Warranties) of this Agreement, and any
         other provision of this Agreement that by its express terms or nature
         is meant to survive termination or expiration hereof, shall survive and
         continue to have effect should this Agreement expire or be terminated
         for any reason or after this Agreement becomes impossible of
         performance or is otherwise frustrated.

14.3     Notices

         Any notice required to be given by either Party to the other under or
         in connection with this Agreement shall be in writing and delivered
         personally, by certified mail or by facsimile. Notices to Operator
         shall be directed to:

         Midwest Express Airlines, Inc.
         6744 South Howell Avenue
         Oak Creek, Wisconsin, U.S.A.  53154
         Attn:  Chief Financial Officer
         Facsimile:  (414) 570-9619

         with a copy to the ATTN:  General Counsel

         Notices to Rolls-Royce shall be directed to:

         Rolls-Royce Deutschland Ltd & Co KG

         Eschenweg 11
         15827 Dahlewitz
         Germany
         Attn: General Counsel
         Facsimile:  ++49 33708 63189

         or in each case to such other place of business as may be notified from
         time to time by the receiving party.

                                                                   Page 19 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

14.4     Assignment

         Neither Party may assign any of its rights or obligations hereunder
         without the written consent of the other Party (except that (a) either
         Party may assign its interest to any entity that results from any
         merger, reorganization or acquisition of or involving such Party, or
         that acquires all or substantially all of the assets of such Party; (b)
         as long as Operator operates the Aircraft, then Operator may assign its
         rights or obligations hereunder in connection with a sale and
         lease-back of one or more Aircraft for financing purposes); and (c)
         Rolls-Royce may assign its rights to receive money hereunder). Any
         assignment made in violation of this Clause 14.4 shall be null and
         void.

14.5     Amendment

         14.5.1   This Agreement shall not be amended in any way other than by
                  agreement in writing, entered into by the Parties hereto on or
                  after the date of this Agreement, which is expressly stated to
                  amend this Agreement.

         14.5.2   This Agreement shall not be amended or terminated orally.

14.6     Headings

         The Clause headings and the Index do not form a part of this Agreement
         and shall not govern or affect the interpretation of this Agreement.

14.7     Waiver

         Failure by either party at any time to enforce any of the provisions of
         this Agreement shall not be construed as a waiver by such party of such
         provisions or in any way affect the validity of this Agreement or any
         part thereof.

14.8     Severability

         If any provision of this Agreement is or becomes or is declared
         invalid, unenforceable or illegal by any court of competent
         jurisdiction or any other Competent Authority such invalidity,
         unenforceability or illegality shall not prejudice or affect the
         remaining provisions of this Agreement which shall continue in full
         force and effect notwithstanding such invalidity, unenforceability or
         illegality. 'Competent Authority' means any agency, authority,
         department, inspectorate, minister, ministry, official or public or
         statutory person (whether autonomous or not) of, or of the government
         of the United Kingdom or of the European Union.

         In addition, the parties shall in good faith endeavor to reach
         agreement on a provision to replace the invalid provision which, as
         nearly as possible, will reflect the intent of the original provision.

14.9     Applicable Law and Jurisdiction

         THIS AGREEMENT SHALL BE SUBJECT TO AND INTERPRETED AND CONSTRUED IN
         ACCORDANCE WITH THE LAWS OF THE STATE OF WASHINGTON EXCLUDING ITS
         CONFLICT OF LAW RULES AND EXCLUDING THE UNITED NATIONS CONVENTION FOR
         THE INTERNATIONAL SALE OF GOODS (CISG, 1980, "VIENNA CONVENTION").

                                                                   Page 20 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         14.9.1.  It is the intent of the Parties and the Airframer
                  (collectively, the "Contracting Parties") that any and all
                  disputes arising out of or relating to this Agreement, the
                  Aircraft, the Engines, the Products or the Services that
                  cannot be resolved through negotiation ("Disputes") and that
                  involve one or more Contracting Parties (whether or not a
                  particular such Dispute also involves disputants that are not
                  Contracting Parties) be resolved to the greatest extent
                  possible in a single, comprehensive, definitive litigation
                  proceeding. Accordingly, the Parties hereby agree that (a) any
                  Contracting Party that files or responds to a complaint or
                  other initial pleading (in any form and however denominated)
                  in connection with a Dispute shall notify the other
                  Contracting Parties of the same and provide copies of said
                  complaint or response to each of them; (b) any Contracting
                  Party which thereafter wishes to assert a claim or grievance
                  amounting to a Dispute against any other Contracting Party
                  shall do so by way of a claim, counterclaim, cross-claim or
                  third-party claim in the first complying litigation that is
                  the subject of a notification provided for in sub-clause (a)
                  above, unless the court refuses for procedural reasons to
                  entertain such claim as part of that litigation; and (c) in
                  the event that suits relating to Disputes are initiated in
                  more than one court, the parties to all such suits shall
                  promptly stipulate that all such suits may be consolidated
                  into a single case before the U.S. District Court for the
                  Eastern District of Wisconsin or, if such court lacks subject
                  matter jurisdiction, a state court of competent jurisdiction
                  within the geographic area included in that district (in
                  either case, the "Forum Court"), and may be heard and
                  determined in a single and integrated proceeding. Each Party
                  hereby consents to the exercise of personal jurisdiction over
                  it by the Forum Court for the purpose of resolving any
                  Dispute.

         14.9.2   Notwithstanding anything to the contrary herein, this
                  Agreement and each Party's respective rights and obligations
                  are expressly subject to all applicable laws and regulations.

         14.9.3   The official text of this Agreement is the English language.
                  If this Agreement is translated into another language for the
                  convenience of Operator or its personnel, the English text
                  shall govern any question with respect to interpretation.

14.10    Sole Agreement of Parties

         14.10.1  This Agreement contains the only provisions governing the sale
                  and purchase of Products and Services and shall apply to the
                  exclusion of any other provisions on or attached to or
                  otherwise forming part of any order form of Operator or any
                  acknowledgement or acceptance by Rolls-Royce or of any other
                  document which may be issued by either Party relating to the
                  sale and purchase of Products and Services.

         14.10.2  The Parties agree that neither of them has placed any reliance
                  whatsoever on any representations, agreements, statements or
                  understandings made prior to the signature of this Agreement
                  whether orally or in writing relating to the Products and
                  Services other than those expressly incorporated in this
                  Agreement, which has been negotiated on the basis that its
                  provisions represent their entire agreement relating to the
                  Products and Services and shall supersede all such
                  representations, agreements, statements and understandings.
                  The Parties further agree that neither of them shall place any
                  reliance whatsoever on any and all future representations
                  whatsoever in respect of the performance of this Agreement
                  unless such representations are expressly agreed by the
                  Parties hereto in writing to form a term of this Agreement.

         14.10.3  The foregoing exclusions, waivers and limitations, however,
                  shall not in any way limit Rolls-Royce's liability arising
                  from its willful breach of contract or its failure to comply
                  with applicable laws, regulations, codes or ordinances, or
                  limit Rolls-Royce's liability under Clause 11 or Clause 13 of
                  this Agreement.

                                                                   Page 21 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

CLAUSE 15. Export/Import Shipment

Rolls-Royce shall be responsible for obtaining any required export license and
Operator shall be responsible for obtaining any other required authorization
such as import licenses, exchange permits or other required authorizations,
except as otherwise provided herein. Rolls-Royce and Operator shall assist each
other in every manner reasonably possible in securing and complying with such
authorizations as may be required.

Rolls-Royce shall restrict disclosure of all Information and data which is
disclosed by Operator and furnished to Rolls-Royce in accordance with Clause 10,
and shall ship the direct product of such Information and data so disclosed by
Operator and furnished to Rolls-Royce to only those destinations which are
authorized by the United States Government. At the request of Operator,
Rolls-Royce will provide Operator with a list of such authorized destinations,
and Operator shall assist Rolls-Royce in every manner reasonably possible in
compiling such list of authorized destinations. Rolls-Royce shall not be liable
if any authorization is delayed, denied, revoked, restricted or not renewed.

                                                                   Page 22 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be signed
on their behalf by the duly authorized representatives, the day and year first
written before.

Signed for and on behalf of:                Signed for and on behalf of:

ROLLS-ROYCE DEUTSCHLAND LTD & CO KG         MIDWEST EXPRESS AIRLINES, INC.

By       /s/ N.F. Ansell                    By:   /s/ Timothy E. Hoeksema
         --------------------------            ---------------------------------

Printed  N.F. Ansell                        Printed  Timothy E. Hoeksema
         --------------------------                 ----------------------------

Title:   Director                           Title:   Chairman of the Board,
         --------------------------                  President and Chief
                                                     Executive Officer

By       /s/ J.W.N. Boutell
         --------------------------

Printed  J.W.N. Boutell
         --------------------------

Title:   Director of Regional
         Programmes
         --------------------------

                                                                   Page 23 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

EXHIBIT A - AIRCRAFT DELIVERY SCHEDULE

Firm B717-200 Aircraft:

         2003                2004                      2005

         February          January                   January
         March             February                  February
         April             March
         May               April
         June              May
         July              June
         August            July
         September         August
         October           September
         November          October
         December          November
                           December

Option B717-200 Aircraft:    Up to twenty-five (25) Aircraft, subject to
                             Operator's purchase rights, for delivery prior to
                             12/31/09. Such total quantity of option Aircraft
                             shall, if Operator's purchase rights are not
                             exercised, decrease by a quantity of six (6)
                             Aircraft on 12/31/04, by a further quantity of six
                             (6) on 12/31/06, by a further quantity of six (6)
                             on 12/31/07 and by a final quantity of seven (7)
                             on 12/31/08.

Midwest Express has certain rights under certain circumstances to delay or
terminate all or part of the Aircraft deliveries under the Airframer contract.
As a consequence, the schedule reflected in this exhibit , may change.

                                                                   Page 24 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

EXHIBIT B - OPERATING ASSUMPTIONS

Aircraft maximum take-off weight of 110,000 lbs.;

Aircraft operating empty weight (OEW) of 70,000 lbs.;

Engines rated at 18,500 lbf. max. take-off thrust;

An average annual ambient daily maximum temperature of ISA -2 (0)C (Milwaukee)
at take-off;

Average take-off derate of 10%;

Average climb derate of 10%;

Aircraft will operate in a benign operational environment (not containing,
without limitation, abnormal levels of corrosive or abrasive pollutants),
Operator's current operation and route structure (2001) is deemed to be
considered as a `benign' operation;

An average stage length of 1.6 flight hours per cycle;

An average annual Aircraft utilization of 2,960 hours;

An average minimum annual Aircraft utilization of 2,500 hours;

Subject to all of Operator's rights and remedies under its contract with the
Airframer for the purchase of Aircraft, Operator will purchase and take delivery
of the Firm Aircraft and, in the event and to the extent it exercises its option
to purchase, the Option Aircraft, in accordance with the delivery schedule
contained in Exhibit A hereto and operate the purchased Aircraft in regular and
frequent commercial airline service;

Operator will acquire and retain for its operation the spare Engines subject to
the terms of Exhibit E and in accordance with the delivery schedule contained in
Exhibit E hereto;

Operator will procure and maintain a mutually-agreed upon level of spare
Modules, LRU's and Parts (including but not limited to initial provisioning and
maintain a mutually-acceptable level of line maintenance provisioning across its
route network.

Engines will be operated by Operator in accordance with Rolls-Royce's Operating
Instructions and maintained in accordance with the Aircraft Maintenance manual
and the EMP.

                                                                   Page 25 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

EXHIBIT C - WARRANTIES

1        DEFINITIONS

In addition to those words and phrases defined in the main body of the
Agreement, the following words and phrases when used in this Exhibit C,
Warranties, shall have the meaning and definition set forth below.

"Engine Time" means the total number of hours flown by an Engine since new.

"Module Time" means the total number of hours flown by a Module since all Parts
of the Module were new.

"Parts Time" means the total number of hours flown by a Part since new.

"Price" means the net selling price of a Part to Operator, last published prior
to the time when the Failure is discovered against which Operator purchases
Parts from Rolls-Royce or an affiliate Company.

"Resultant Damage" means the damage suffered by a Part, necessitating the
scrapping of that Part because that Part is beyond economic repair in accordance
with Maintenance schemes issued by Rolls-Royce, providing such damage is caused
by the Failure of another Part.

"Ultimate Flight Cycle" means the maximum permitted Flight Cycles imposed by
Rolls-Royce or the Airworthiness Authority.

"Warranted Life" means the warranted life for a Designated Part as described in
Schedule 1 to Exhibit C hereto.

"Warranty Labor Rate" means the then average direct hourly wages multiplied by a
factor of 1.5 paid by Operator to those of its employees and contractors that
provide Line Maintenance or other maintenance labor with respect to Engines.

2        NEW ENGINE WARRANTY

Rolls-Royce warrants new Engines against defect in design, material or and
workmanship which result in Failure or Resultant Damage as follows:

2.1      Warranty Period

         The period of this Clause 2 warranty shall be:

         2.1.1    the first * hours or cycles, whichever is first completed
                  ("First Engine Run"), and

         2.1.2    the * through * hours or cycles, whichever is first
                  completed ("Extended Engine Run").

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 26 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

2.2      Warranty Remedies

         2.2.1    First Engine Run

                  If an Engine suffers Failure or Resultant Damage during its
                  First Engine Run warranty period as defined in Clause 2.1.1,
                  then:

                  2.2.1.1  where such Failure or Resultant Damage necessitates
                           repair of the Engine, Rolls-Royce will arrange to
                           have such repair carried out promptly, correctly and
                           at no charge to Operator, or

                  2.2.1.2  where such Failure or Resultant Damage does not
                           necessitate repair of the Engine, Rolls-Royce will
                           provide a one hundred percent (100%) allowance on the
                           Price of the affected Engine Parts.

         2.2.2    Extended Engine Run

                  If an Engine suffers Failure or Resultant Damage during its
                  Extended Engine Run warranty period as defined in Clause
                  2.1.2, then

                  2.2.2.1  where such Failure or Resultant Damage necessitates
                           repair of the Engine, Rolls-Royce will arrange to
                           have such repair carried out promptly and correctly
                           and will accept repair charges for an amount equal to

                           (* - Engine Time) / * x invoiced repair
                           charges, or

                  2.2.2.2  where such Failure or Resultant Damage does not
                           necessitate repair of the Engine, Rolls-Royce will
                           provide an allowance in respect of the affected
                           Engine Parts for an amount equal to:

                           (* - Engine Time) / * x [Price of such Engine
                           Parts

2.3      BFE Exclusion

         The Boeing and BFGoodrich Furnished Equipment (hereinafter referred to
         as "MDFE") as set out in Section 3 of the Specification for the Engine
         (Exhibit H) shall not be warranted by Rolls-Royce and the benefits to
         Operator under any of the warranties contained in this Exhibit C shall
         not apply to such MDFE.

3        DESIGNATED PARTS WARRANTY

Rolls-Royce warrants Designated Parts as listed in Schedule 1 hereto

(i)      assembled into or attached to new Engines, or

(ii)     acquired by Operator as spare Parts

against defect in design, material and workmanship in the manufacture of the
Designated Part which result in Failure or Resultant Damage as set out in
Clauses 3.1 and 3.2 below:

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 27 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

3.1      Warranty Period

         The period of this Clause 3 warranty shall be:

         3.1.1    the first 3,000 hours or cycles of Parts Time, whichever is
                  first completed ("First Parts Run"), and

         3.1.2    the 3,001 through DPWL hours or cycles of Parts Time,
                  whichever is first completed ("Extended Parts Run"),

         where DPWL ("Designated Part Warranted Life") shall mean the warranted
         life of each Designated Part as set out in Schedule 1 hereto.

3.2      Warranty Remedies

         3.2.1    First Parts Run

                  If, during its First Parts Run warranty period as defined in
                  Clause 3.1.1, a Designated Part suffers either (a) a Failure,
                  or (b) Resultant Damage due to the Failure of another
                  Designated Part within that other Part's warranty period, then
                  Rolls-Royce will, at its option, either:

                  3.2.1.1  give a 100 percent (100%) allowance on the Price of
                           the affected Designated Part, or

                  3.2.1.2  repair or exchange such Designated Part promptly,
                           correctly and at no charge to Operator.

         3.2.2    Extended Parts Run

                  If, during its Extended Parts Run warranty period as defined
                  in Clause 3.1.2, a Designated Part suffers either (a) Failure,
                  or (b) Resultant Damage due to the Failure of another
                  Designated Part within that other Part's warranty period, then
                  Rolls-Royce will grant allowances on the Price of such Part as
                  set out in 3.2.1.1, but factored as follows:

                         DPWL-PartsTime
                  Factor --------------
                          DPWL-1,000

                                                                   Page 28 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

3.3      Other Engine spare Parts

         Rolls-Royce warrants new Engine spare Parts other than Designated Parts
         against defect in design, material or workmanship in the manufacture of
         such Engine spare Part which result in Failure as follows:

         3.3.1    Warranty Period

                  The period of this Clause 3.3 warranty shall be the first 500
                  hours of Parts Time, commencing with the original
                  incorporation of the Engine spare Part into an Engine.

         3.3.2    Warranty Remedies

                  If, during its warranty period as defined in Clause 3.3.1
                  above, such Engine spare Part suffers Failure then Rolls-Royce
                  will, at its option, either:

                  3.3.2.1  grant a one hundred percent (100%) allowance on the
                           Price of the affected Engine spare Part , or

                  3.3.2.2  repair or exchange such Engine spare Part promptly,
                           correctly and at no charge to Operator.

3.4      Used Parts Warranty

         Rolls-Royce warrants Used Parts against Failure as follows:

         3.4.1    Warranty Period

                  The period of warranty shall be the first * Flight Hours
                  of Used Parts Time, commencing with the original incorporation
                  of the Used Part into an Engine.

         3.4.2    Warranty Remedies

                  If, during its warranty period as defined in 3.4.1 above, such
                  Used Part suffers Failure then Rolls-Royce will, at its
                  option, either:

                  3.4.2.1  grant an allowance of one hundred percent 100% of the
                           Price of such Used Part, or

                  3.4.2.2  restore such Used Part to a serviceable condition at
                           no charge to Operator, or

                  3.4.2.3  replace such Used Part with another Used Part.

4        ULTIMATE LIFE WARRANTY

Ultimate Life Parts as listed in Schedule 2 to this Exhibit are warranted as
follows:

4.1      Warranty Period

         The period of warranty shall be the first 15,000 cycles of Parts Time.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 29 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

4.2      Warranty Remedies

         Rolls-Royce will grant to Operator an allowance against the Price of
         Ultimate Life Parts which are permanently removed from service because
         of attaining a life limitation imposed by Rolls-Royce or the
         Airworthiness Authorities or because of a defect. Such allowance shall
         be equal to:

         (15,000-PartsTime in cycles)
         (--------------------------) x Price of such Part
         (       15,000             )

5        VENDOR PARTS WARRANTY

5.1      Vendor Parts in New Engines

         Vendor Parts installed in new Engines shall be warranted in accordance
         with Clause 2 - New Engine Warranty hereof. Clause 11 of the Agreement
         shall also apply to said Vendor Parts.

         Rolls-Royce shall maintain a Vendor Parts support and control service,
         and upon Operator request will assist in Vendor warranty issues arising
         and resolve any such issues with the Vendor.

5.2      Vendor spare Parts

         All Vendor spare Parts purchased by Operator directly from Rolls-Royce
         shall be warranted in accordance with Clause 3 - Designated Parts
         Warranty hereof. Clause 11 of the Agreement shall also apply to said
         Vendor spare Parts purchased by Operator directly from Rolls-Royce

         All Vendor spare Parts purchased by Operator directly from the
         manufacturer shall be warranted in accordance with the warranty granted
         by the manufacturer of the Vendor spare Part. Rolls-Royce shall
         maintain a Vendor spare Parts support and control service, and upon
         Operator request will assist in Vendor warranty issues arising and
         resolve any such issues with the Vendor.

6        TOOLING AND GROUND SUPPORT EQUIPMENT WARRANTY

6.1      Warranty Period

         Any Tooling and Ground Support Equipment shall be warranted by
         Rolls-Royce against any defect in material, design and workmanship for
         a period of twelve (12) months from delivery to Operator.

6.2      Warranty Remedies

         In case of such defect Rolls-Royce at its discretion shall repair or
         replace the defective product promptly and correctly and free of charge
         to Operator.

                                                                   Page 30 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

7        CAMPAIGN WARRANTY

7.1      Where Rolls-Royce stipulates in writing that campaign action is to be
         taken in respect of a Designated Part such that Engines are to be
         removed from service prior to the next planned shop visit, Rolls-Royce
         will, to the exclusion of all other allowances, grant Operator an
         allowance of:

         7.1.1    One hundred percent (100%) of the Price of all such Designated
                  Parts which are at the time of such stipulation installed or
                  held by Operator as new or used serviceable stock when the
                  average parts time of such Designated Parts is less than *
                  EFH from new,

         7.1.2    Pro-rated from one hundred percent (100%) of the Price of all
                  such Designated Parts which are at the time of such
                  stipulation installed or held by Operator as used serviceable
                  stock when the average parts time of such Designated Parts is
                  * EFH from new to zero percent (0%) of the Price of all
                  such Designated Parts which are at the time of such
                  stipulation installed or held by Operator as used serviceable
                  stock when the average parts time of such Designated Parts is
                  twice the warranted life of the Parts as specified in Schedule
                  1.

7.2      The Campaign allowances granted under this Clause 7 are given on the
         basis that Operator will incorporate Parts as specified by the campaign
         as soon as practicable after receipt of the campaign Parts within the
         time period as may be specified by Rolls-Royce. Such allowances do not
         apply when parts are replaced on-wing, whereby under such circumstance
         the Warranty set out in Clause 3 of this Exhibit shall apply.

8        TECHNICAL PUBLICATIONS AND TECHNICAL SERVICES WARRANTY

8.1      Rolls-Royce warrants that all Information provided under this agreement
         are prepared in accordance with the state of the art at the date of
         their conception.

8.2      If any Information provided under this Agreement is shown to
         Rolls-Royce's reasonable satisfaction to be incorrect, Rolls-Royce
         will, in a timely manner, as appropriate and at its own cost, correct
         such information.

8.3      No warranty is given in respect of third party data interpreted by
         Rolls-Royce. Rolls-Royce assumes that all data supplied by Operator is
         accurate, and accepts no responsibility for errors and unreliable
         information contained in such data.

8.4      In respect of any work carried out by Rolls-Royce personnel under this
         Agreement, Rolls-Royce warrants that such work shall be carried out
         using due care and skill. Rolls-Royce's sole liability for
         Rolls-Royce's failure to perform such work using due care and skill
         shall be to re-perform such work using due care and skill, provided
         that such failure to perform has been brought to Rolls-Royce's
         attention within 90 days of performance of the work by Rolls-Royce.

8.5      Operator shall be responsible for making any modification to adapt for
         its use any data furnished by Rolls-Royce pursuant to this Agreement
         and the use to which the Information is put and the consequences
         thereof shall be the responsibility solely of Operator.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 31 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

9        WORKMANSHIP WARRANTY - ENGINE SHOP MAINTENANCE

Rolls-Royce warrants engine shop maintenance performed by or arranged by
Rolls-Royce against faulty workmanship as follows:

9.1      Warranty Period

         The period of this Clause 9 warranty shall be the shorter of:

         9.1.1    the first 1,000 Engine Flight Hours of the repaired Engine,
                  commencing with the date of installation of the engine in an
                  Aircraft; and

         9.1.2    a period of twelve (12) months from installation but no later
                  than * months from redelivery

         unless such period is less than the period remaining under the original
         warranty, in which case the period of the Clause 9 warranty shall be
         the period remaining under the original warranty.

9.2      Warranty Remedies

         If, during its warranty period as defined in 9.1 above, it is shown to
         the reasonable satisfaction of Rolls-Royce that, a defect, deficiency,
         failure, malfunction, or failure to function shall have become apparent
         in such Engine due to faulty workmanship in carrying out the shop
         maintenance, then Rolls-Royce warrants that it will either exchange or
         repair any such Engine suffering from such defect, deficiency, failure,
         malfunction or failure to function.

10       GENERAL WARRANTY CONDITIONS

10.1     The Warranties set out in this Exhibit C shall be subject to the
         provisions of Clause 12 of the Agreement and the following conditions:

10.2     Rolls-Royce shall have no obligation under this warranty if and to the
         extent in the reasonable opinion of Rolls-Royce any Engine or Part:

         10.2.1   has not been properly stored, installed, operated and
                  maintained in accordance with the recommendations of
                  Rolls-Royce as contained in its manuals, operating procedures
                  or other written instructions, including instructions on life
                  limitations, or

         10.2.2   has been repaired or altered in such a way as to impair its
                  safety, operation, efficiency or design features, or

         10.2.3   has been subject to mis-use, negligence, accident or acts of
                  God, or

         10.2.4   has suffered damage due to the ingestion of FOD, or

         10.2.5   has been subjected to acts of war, rebellion, seizure or any
                  other defect or cause not within the control of Rolls-Royce

10.3     In lieu of granting any Parts allowance under this Warranty Rolls-Royce
         may at its discretion repair or exchange or have repaired or exchanged
         any Part. Any Part so exchanged shall have no greater Parts Time than
         the Part returned by Operator (unless agreed with Operator).

10.4     The warranty on any Part provided under the New Engine Warranty, New
         Parts Warranty or Used Parts Warranty shall be the unexpired portion of
         the applicable Warranty.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 32 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

10.5     Except as otherwise provided in this Exhibit C or elsewhere in this
         Agreement, Rolls-Royce shall not be liable for any expenses or
         liabilities sustained in connection with the removal of an Engine,
         Module or Part from an aircraft or the replacement thereof in an
         aircraft, or in connection with the removal of any Module or Part from
         an Engine or the replacement thereof in an Engine, or for any expenses,
         taxes, duties or liabilities sustained in connection therewith or in
         connection with any shipment to or from an Authorized Facility.

10.6     Where Rolls-Royce requests Operator to hold a Part pending the
         development of a repair scheme, Operator shall hold such Part for a
         period of up to ninety (90) days following such request by Rolls-Royce.
         If at the end of such period a repair scheme has not been developed, or
         clearly will not be developed within a reasonable time thereafter,
         Operator shall have the right to raise a claim.

10.7     Operator shall present any claim under Warranties to Rolls-Royce within
         180 days after the date upon which the Failure was discovered and shall
         keep and disclose accurate records of Engine operation, including
         records of maintenance adequate to support such claims.

10.8     Operator shall keep accurate records of Engine, Module and Parts
         operation, maintenance and storage, and engine condition monitoring
         data and / or trend monitoring data (as applicable) adequate to support
         claims hereunder, and shall permit Rolls-Royce to inspect such records
         during normal business hours upon reasonable advance notice at a
         location selected by Operator.

10.9     Operator shall make available all Engines, parts and spare parts for
         inspection and for approval by Rolls-Royce of any claim by Operator
         relating thereto during normal business hours upon reasonable advance
         notice at a location selected by Operator.

10.10    Any Part for which any allowance other than for repair has been granted
         by Rolls-Royce hereunder or which has been exchanged by Rolls-Royce
         shall become the property of Rolls-Royce. Unless Rolls-Royce
         specifically requests the return of such Parts Operator will consider
         such Part its scrap.

10.11    Any allowance granted under this Warranty shall be made as a credit
         note usable against Rolls-Royce goods and services.

10.12    Under the New Engine Warranty, Designated Parts Warranty and Ultimate
         Life Warranty as of Clauses 2 to 4 above, only one allowance per Part
         shall be paid per occurrence of a Failure or Resultant Damage. Operator
         may claim under one only of the New Engine, Designated Part or Ultimate
         Life Warranty, whichever results in the greatest allowance.

10.13    All credits granted to Midwest Express in this Exhibit C are personal
         to Midwest Express, are (subject to Clause 14.4 of the Agreement)
         non-assignable, and are not convertible to cash.

11       ADDITIONAL WARRANTIES

In addition to the other warranties set forth in this Exhibit C, Rolls-Royce
warrants as follows: (a) the Spare Engines and all Products and Services shall
be delivered free and clear of all liens and encumbrances, good and merchantable
title thereto being in Rolls-Royce; (b) the Spare Engines and all Products shall
have been manufactured solely from new and unused materials, parts and
components; (c) the Engines and all Products and Services shall comply and have
been produced, processed, labeled, delivered and sold in conformity with all
applicable laws; and (d) all Services shall be performed in a good and
workmanlike manner, in accordance with any established professional standards
for similar services.

                                                                   Page 33 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

SCHEDULE 1 TO EXHIBIT C - DESIGNATED PARTS

Designated Parts, together with their warranted lives are as set out below
(hours or cycles of Parts Time, whichever is first completed).

For ease of reference only, the engine module and the ATA chapter are also
given.
<TABLE>
<CAPTION>
Module                       Designated Part                     ATA Chapter         Warranted Life
                                                                                     (Hours/Cycles)
<S>                          <C>                                 <C>                 <C>
LP Fan
                             Fan blades                          72-31               3,500
                             Vanes, outlet guide                 72-31               3,500
Booster
                             Vanes, inlet guide                  72-32               3,500
                             Vanes, stator                       72-32               3,500
HP Compressor
                             Blades, rotor stages 1 to 10        72-33               3,500
                             Stators, variable stages 0,1,2 and  72-33               3,500
                             3
                             Stators fixed, stages 4,5,6,7,8     72-33               3,500
                             and 9
                             Casings, front                      72-33               12,000
                             Casings, rear                       72-33               12,000
Combustor & HP Turbine
                             Vanes, outlet guide                 72-41               3,500
                             CCOC                                72-41               3,500
                             Combustion liner                    72-41               3,500
                             CCIC                                72-41               3,500
                             Rotor blade, stage one              72-41               3,500
                             Rotor blade, stage two              72-41               3,500
                             Vanes nozzle, stage one             72-41               3,500
                             Vanes nozzle, stage two             72-41               3,500
                             Seal segments, stage one            72-41               3,500
                             Seal segments, stage two            72-41               3,500
                             Turbine casing                      72-41               12,000
LP Turbine
                             Rotor blade, stage one              72-51               3,500
                             Rotor blade, stage two              72-51               3,500
                             Rotor blade, stage three            72-51               3,500
                             Vanes, nozzle, stage one            72-51               3,500
                             Vanes, nozzle stage two             72-51               3,500
                             Vanes, nozzle, stage three          72-51               3,500
                             Seal segments, stage one            72-51               3,500
                             Seal segments, stage two            72-51               3,500
                             Seal segments, stage three          72-51               3,500
                             LP turbine casing                   72-51               12,000
                             Turbine exhaust casing              72-51               12,000
LP Compressor Case
                             Fan casing                          71-72               12,000
</TABLE>

                                                                   Page 34 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

SCHEDULE 2 TO EXHIBIT C - ULTIMATE WARRANTED LIFE PARTS

Ultimate Warranted Life Parts are as set out below:

For ease of reference only, the engine module and the ATA chapter are also
given.

Module                       Ultimate Life Part                    ATA Chapter
LP Fan
                             Fan disc                              72-31
                             Fan shaft                             72-31
Fan Casing / Booster
                             LP Compressor Drum (Blisk)            72-32
HP Compressor
                             HPC Drum, front                       72-33
                             HPC Drum, rear                        72-33
Combustor and HP turbine
                             Curvic Ring                           72-41
                             HPT Disc, stage one                   72-41
                             HPT Disc, stage two                   72-41

LP Turbine
                             LPT Disc, stage one                   72-51
                             LPT Disc, stage two                   72-51
                             LPT Disc, stage three                 72-51
                             LPT shaft                             72-51

                                                                   Page 35 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

EXHIBIT D - OPERATOR SERVICES

1        Scope

         This Exhibit sets out Operator support services available to all
         operators of Rolls-Royce Products. Subject to the terms and conditions
         of this Agreement, Rolls-Royce shall supply to Operator and Operator
         shall purchase from Rolls-Royce certain Services as discussed in this
         Exhibit and as specified in Rolls-Royce's Commercial Price List.
         Rolls-Royce reserves the right to revise or update the Commercial Price
         List, any prices therein and any Information at any time, upon notice
         to Operator. The Rolls-Royce Spare Parts Price Catalogue for the
         Engine, and such other Commercial Price Lists and any revisions and
         updates thereof shall be published by Rolls-Royce to all operators of
         the Engine, and shall not be specific to operators but shall generally
         apply to the purchase of such goods or services from Rolls-Royce during
         their respective period of validity.

         General Policies and Procedures

         Standardized procedures and policies will be followed to ensure that
         requirements are performed in accordance with industry accepted
         standards. These procedures and policies include but are not limited to
         ATA specifications and Airworthiness Authority rules and or guidance.

         All Services supplied to Operator will be in compliance with the then
         current World Operators Supplier Guide (hereinafter "WASG") and the
         current revision ATA Specifications.

2        Rolls-Royce Operator Services Package

         2.1      Operator Support Manager

                  Rolls-Royce will designate an Operator support manager based
                  in the United States who will provide co-ordination and
                  liaison between Operator and Rolls-Royce in respect of the
                  operation of the Engines by Operator. Such services extend to
                  issues including:

                  2.1.1   Managing emergency Operator requirements,
                  2.1.2   Managing plans to incorporate Products into Operators'
                          operations,
                  2.1.3   Agreeing shop visit forecasts with Operators,
                  2.1.4   Providing technical and operational direction to
                          operators and field support recommendations, and
                  2.1.5   Interpretation of the Manuals, and
                  2.1.6   Assist with the resolution of warranty claims.

                  The services of Operator support manager are free of charge to
                  all operators of Rolls-Royce Products.

         2.2      Visiting Service Support

                  Rolls-Royce will designate a field service representative and
                  advise Operator of the location of the field service
                  representative. The field service representative will make
                  scheduled visits to Operator on a free of charge basis for the
                  purposes of liaison and to answer any general operational and
                  technical questions.

                  Should Operator require additional or specialist visits to
                  Operator's facilities to assist in the operation of Engines or
                  training activities, including but not limited to, boroscope
                  inspections and other line maintenance activities, Rolls-Royce
                  may charge for such services in accordance with pricing
                  established in its Commercial Price List.

                                                                   Page 36 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         2.3      On Site Service Representative

                  At one (1) month notice of request from Operator (but not
                  earlier than three (3) months prior to entry-of-service of the
                  first Aircraft), Rolls-Royce will make available the services
                  of a field service representative at Operator's facilities at
                  Milwaukee. Such representative will provide, in addition to
                  those services as described above, the following:

                  2.3.1    Local technical support to assist in the resolution
                           of technical problems,
                  2.3.2    Training in the operation and maintenance of Engines,
                  2.3.3    Advice regarding the borescoping and life management
                           of installed Engines, and
                  2.3.4    To effectively communicate to Rolls-Royce all aspects
                           of in-services issues affecting Operator's operation
                           of the Engine, and
                  2.3.5    Assist with the resolution o warranty claims.

                  Operator will make available to Rolls-Royce's representative
                  on a free of charge basis the following:

                  2.3.6    reasonable work space, services and facilities,
                           including free telephone calls in accordance with
                           his/ her duties;
                  2.3.7    free emergent medical attention to the extent
                           normally provided to Operator's own employees;
                  2.3.8    cost of travel and a reasonable daily allowance for
                           subsistence and accommodation while the
                           representative is required by Operator to travel away
                           from Operator's location at Milwaukee with Operator;
                  2.3.9    holiday privileges in accordance with Operator's
                           normal practice; upon Operator's request, Rolls-Royce
                           will send a field-representative on a temporary basis
                           to cover such holiday period.
                  2.3.10   access to Operator's computer network for all
                           non-sensitive data and information pursuant to the
                           representative's duties.

                  While working at Operator's facilities, Rolls-Royce's
                  representative shall comply with Operator's rules and
                  regulations. If Operator is dissatisfied with any
                  representative, Rolls-Royce will upon request provide a
                  replacement representative.

         2.4      Supply of Technical Publications

                  2.4.1    Rolls-Royce provides a full suite of technical
                           publications (defined as Manuals) to enable the
                           operation and maintenance of the Engine in accordance
                           with Rolls-Royce operating instructions. The full
                           listing of technical publications available for
                           purchase, together with prices for ongoing revision
                           services are provided in Rolls-Royce's Commercial
                           Price List.

                  2.4.2    Manuals will be supplied in simplified English and
                           any translation or interpretation that may be
                           required by Operator is the responsibility of
                           Operator.

                  2.4.3    Operator acknowledges that although Rolls-Royce may
                           provide instruction, training and advice under this
                           Agreement, Products are only to be maintained,
                           operated and otherwise handled in accordance with the
                           Manuals.

         2.5      Operator Training

                  Rolls-Royce provides training courses in the operation and
                  maintenance of Engines at one of the following locations: the
                  Rolls-Royce Corporation Training Center in Indianapolis,
                  Indiana, USA; Rolls-Royce plc training facilities in Derby,
                  England UK; or the Rolls-Royce/CASC training center in
                  Tianjin, China in accordance with a schedule published by
                  Rolls-Royce.

                                                                   Page 37 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

                  Rolls-Royce's training for the Engine comprises the following
                  courses:

                  o  General Familiarization, Course Duration 2 Day, Training
                     Level ATA 104 level I

                  o  Line and Base Maintenance, Course Duration 8 Day, Training
                     Level ATA 104 level III

                  o  Boroscope Inspection, Course Duration 2 Day, Training Level
                     ATA 104 level IV

                  The following general provisions apply to training:

                  2.5.1    One (1) copy of the training material per student
                           will be provided.
                  2.5.2    Preferred class size is fifteen (15) students.
                  2.5.3    Operator will be responsible for providing
                           transportation, subsistence, accommodations, salaries
                           and all other related expenses for its personnel
                           attending class at a Rolls-Royce training facility.

                  Charges for the training are specified in Rolls-Royce's
                  Commercial Price List.

                                                                   Page 38 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

EXHIBIT E - FLEET PROVISIONING SUPPORT

Exhibit E - 1     Spare Engine Purchase

1.       Supply

         Subject to the provisions of this Agreement Rolls-Royce agrees to sell
         and deliver to Operator and Operator agrees to buy and take delivery of
         spare Engines as set in Schedule 1 to this Exhibit. The schedule of
         spare Engines has been predicated upon the purchase by Operator of the
         Firm Aircraft; the schedule is subject to all of Operator's rights and
         remedies under its contract with Airframer for the purchase of
         Aircraft. If and to the extent Operator is entitled to terminate said
         contract with Airframer, or is otherwise not required to purchase
         Aircraft from Airframer, Operator's obligation to buy and take delivery
         of spare Engines from Rolls-Royce shall be proportionately reduced, and
         Operator shall not be liable to Rolls-Royce in connection with such
         reduction.

         Rolls-Royce also agrees that in the event Operator exhausts its pool of
         spare Engines, resulting in an Aircraft on ground situation, then
         emergency spare Engine(s) may be leased by Operator in accordance with
         the Lease Agreement. Subject to Clause 4.4.3 of Exhibit G, and
         notwithstanding anything to the contrary in the Lease Agreement, the
         applicable emergency lease rates shall be as follows:

         18,500 lb. Rating:

         To the extent Operator has purchased the recommended level of spare
         Engines the following rates apply:

         Daily Charge               USD2,840
         Security Deposit           USD185,850
         Take-off Charge            USD91
         Flying Hour Charge         USD133

         The above charges shall also apply should Operator be in a zero spare
         engine situation due to Failure (as defined in the Warranties), failure
         to achieve generally acceptable turn-around times, late delivery of
         spare engines (see Clause 9 above).

         To the extent Operator has purchased less than the recommended level of
         spare Engines the following rates apply:

         Daily Charge               USD5,680
         Security Deposit           USD185,850
         Take-off Charge            USD91
         Flying Hour Charge         USD133

         The charges set out herein are applicable to a lease commencing in
         2002, however Rolls-Royce reserves the right to revise charges
         quarterly.

2.       Type Approval/Changes

         All Products shall at time of delivery conform to a type certificate
         issued by the Airworthiness Authority and will be manufactured in
         compliance with the official interpretations of the relevant
         Airworthiness Authority.

                                                                   Page 39 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         If, after the date of signature of this Agreement, a change is required
         to the Engines, either:

         2.1      to conform to the requirements of the Airworthiness Authority
                  that were promulgated after the Effective Date and the
                  official interpretations of such requirements in force at the
                  date of delivery of such Engines, or

         2.2      to incorporate a modification or change which has been agreed
                  between Operator and Rolls-Royce,

         then Rolls-Royce will issue a written change order, which shall
         constitute an amendment to this Agreement. Unless otherwise agreed, any
         increase in any price that is a result of any change order is to be
         borne by Operator, except that if the change is required due to a flaw
         or defect in the Engines, any increase in price resulting from the
         change order shall be borne by Rolls-Royce.

3.       Inspection and Acceptance

         Conformance to the Specification of Products will be assured by
         Rolls-Royce through the maintenance of procedures (including Engine
         acceptance testing), systems and records approved by the
         Luftfahrt-Bundesamt based on JAR 21-G by the JAA. An authorized Release
         Certificate will be issued and signed by Rolls-Royce personnel
         authorized for such purposes. Operator shall be given full access to
         review all such procedures, systems, records and certificates at any
         reasonable time and from time to time.

4.       Price and Payment

         The base price of Engines is set out in Schedule 1 to this Exhibit. The
         deposits and price of Engines shall be calculated in accordance with
         the formulae specified in Schedule 2 to this Exhibit.

         Unless otherwise agreed by the Parties, Operator will make payments in
         United States Dollars as follows:-

         o      Ten percent (10%) of the Engine base price upon signature of
                this Agreement, plus;
         o      Ten percent (10%) of the Engine base price eighteen (18) months
                before scheduled delivery, plus;
         o      Ten percent (10%) of the Engine base price twelve (12) months
                before scheduled delivery, plus;
         o      Balance of the Purchase Price upon delivery of the Engine.

         Rolls-Royce will issue invoices to cover each of the above payments.

                                                                   Page 40 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit E - 2     Spare Parts Supply

1.       Intent and Term

         Rolls-Royce shall sell spare Parts to Operator in quantities sufficient
         to meet Operator's requirements.

         Operator shall buy from Rolls-Royce all of its requirements for spare
         Parts. In the following circumstances Operator may obtain from
         established and approved sources other than Rolls-Royce or from other
         airline operators spare Parts which are required to be purchased from
         Rolls-Royce:

         o        as a temporary expedient in the event of a failure by RR to
                  supply spare Parts as required herein which has an impact on
                  Operator's operations; or

         o        during any period when Rolls-Royce is hindered or prevented
                  from delivering spare Parts due to circumstances beyond its
                  control provided Operator is thereby able to obtain the spare
                  Parts it requires sooner than Rolls-Royce is able to supply
                  them, and provided further that Operator will not unreasonably
                  thereby increase its stock of the spare Parts; or

         o        industry standard parts as identified in the Rolls-Royce
                  Illustrated Parts Catalogue.

         Where Operator has an urgent requirement for any Tooling which
         Rolls-Royce has in stock or otherwise has reasonably available to it,
         Rolls-Royce shall sell to the Operator such Tooling, at a reasonable
         price and reasonable Lead Time.

         Rolls-Royce and Operator shall comply with the ATA Specifications with
         regard to supply of spare Parts except as specifically amended herein.

         Operator is required to provide information required to become
         established on the Rolls-Royce on line spares management system.

         Rolls-Royce shall sell spare Parts to Operator on the terms set forth
         in this Agreement from the Effective Date through and including the
         date that is sixteen and one-half (16 1/2) years after the date on
         which the last Aircraft purchased by Operator is delivered to Operator.

         Upon, Operator's request, Rolls-Royce shall assist Operator in locating
         and facilitating the sale of spare Parts held by consignment with other
         operator or airframer, if any.

         Nothing in this clause shall be deemed to extend the obligations of RR
         or to diminish the limitations upon such obligations under the
         Warranties.

2.       Provisioning

         Operator shall purchase and maintain a mutually-agreed stock of spare
         Parts and Tooling to support its operation.

         Rolls-Royce and Operator shall agree upon the required stock of spare
         Parts and Tooling within a timescale commensurate with Operator's
         operational requirements.

         Consistent with changes in Operator's operational requirements,
         Rolls-Royce and Operator will regularly review and agree upon changes
         to required stock levels of spare Parts and Tooling.

3.       Forecasting

         Operator shall, upon request, provide Rolls-Royce with forecasts
         specifying projected requirements for spare Parts to cover a period of
         at least 12 months. Operator shall give Rolls-Royce as much notice as
         possible of any change in such estimated requirements. All such
         forecasts, projections and estimates will be non-binding and will not
         obligate Operator.

                                                                   Page 41 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         Operator shall, upon reasonable request, inform Rolls-Royce of the
         intended use of the Products, including details of the end user of the
         Products.

         Operator shall provide Rolls-Royce with the following information and
         thereafter shall give Rolls-Royce as much notice as possible of any
         change in its operation likely to affect spare Parts requirements:

         - a twenty-four (24) month non-binding shop visit forecast, detailing
         Engine Serial Numbers, such forecast shall be updated on a monthly
         basis,

         - a thirty-six (36) month shop-visit forecast, detailing Engine type
         and mark, such forecast shall be updated on a quarterly basis.

4.       Ordering Procedure

         Operator shall issue an order for spare Parts in an agreed format in
         accordance with the ATA Specifications.

         Rolls-Royce shall promptly acknowledge receipt of each order for spare
         Parts in accordance with the ATA Specifications. Unless qualified, such
         acknowledgement shall constitute an acceptance of the order under the
         terms of this Agreement.

5.       Order Cancellation

         Where Operator wishes to cancel an order placed in accordance with
         Clause 4, Operator shall inform Rolls-Royce immediately. Rolls-Royce
         shall use all reasonable efforts to place the part elsewhere with the
         effect of Operator not facing a cancellation fee. If Rolls-Royce is
         unable to sell or use the ordered part elsewhere Rolls-Royce may make a
         reasonable cancellation charge representing the actual costs incurred
         for such cancellation.

6.       Lead Times

         Unless otherwise agreed by the Parties, spare Parts shall be delivered
         within the lead time specified in the Commercial Price List current at
         the receipt of Operator's order except for:

                  spare Parts required for provisioning in accordance with
                  Clause 2, or

                  Orders significantly in excess of Operator's normal
                  requirements, in which case, the Parties shall mutually
                  agree upon the applicable lead time.

         Where Operator has an urgent requirement for a spare Part Rolls-Royce
         shall endeavor to deliver such spare Part within the time limits
         specified by Operator, and it shall be Rolls-Royce's objective to
         advise the Operator of Rolls-Royce's proposed action in response to
         such orders as follows:-

                           a)  AOG orders - within 4 hours;
                           b)  other urgent orders - within 24 hours;
                           c)  orders for items of which the Purchaser is
                               out-of-stock - within 7 days.

                                                                   Page 42 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         Notwithstanding the foregoing, Rolls-Royce shall use its reasonable
         endeavors to comply with the following:-

                           a)  in the case of AOG orders to deliver the required
                               spare Part within four (4) hours after receipt of
                               notice of the AOG:
                           b)  in the case of non-urgent AOG orders to advise
                               Operator of Rolls-Royce's proposed action within
                               24 hours;
                           c)  in the case of non-urgent orders for items of
                               which the Operator is out of stock to fill such
                               orders within 7 calendar days.

7        Modifications to spare Parts

         Rolls-Royce shall be entitled to substitute modified spare Parts in
         place of spare Parts ordered by the Operator hereunder, provided that
         the said modification has received the approval of the Airworthiness
         Authority in accordance with the relevant Rolls-Royce Service Bulletin,
         and shall notify Operator of such substitution prior to delivery.
         Rolls-Royce shall reimburse Operator for obsolete new parts in stock
         current at the time of delivery of the modified parts and up to the
         level that is normally required to support Operator's operation, if
         any.

         Modified spare Parts will be supplied unless the modifications stated
         in the Service Bulletins are non-mandatory and Operator states in
         writing to Rolls-Royce within 90 days of the issue of the relevant
         Service Bulletin that the modification is not required, in which case
         Operator shall be entitled to receive pre-modified spare Parts on terms
         to be agreed.

8        Conformance

         All spare Parts, and where necessary Tooling will be assured by
         Rolls-Royce through the maintenance of procedures, systems and records
         approved by the Airworthiness Authority. An Authorized Release
         Certificate will be issued and signed by Rolls-Royce authorized
         personnel for such purpose.

                                                                   Page 43 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit E Schedule 1 - Engine Delivery Schedule and Base Price
<TABLE>
<CAPTION>
                                                Specification                                   Base Price each
Description                                     Reference           Qty     Delivery Date**     (July 2001 US$)

<S>                                             <C>                  <C>    <C>                 <C>
Spare Engine (without QEC Kit)                  Clause 1.2.2*        1      January 2003        *
Transportation Stand                            Clause 4                    January 2003        *
Spare Engine (without QEC Kit)                  Clause 1.2.2*        1      April 2004          *
Transportation Stand                            Clause 4                    April 2004          *
Spare Engine (without QEC Kit)                  Clause 1.2.2*        1      January 2005        *
Transportation Stand                            Clause 4                    January 2005        *
Spare Engine (without QEC Kit)                  Clause 1.2.2*        1      November 2005       *
Transportation Stand                            Clause 4                    November 2005       *
Spare Engine (without QEC Kit)                  Clause 1.2.2*        1      January 2007        *
Transportation Stand                            Clause 4                    January 2007        *

</TABLE>

*The Spare Engine consists of the parts as detailed in Clause 1.2.2 of the
Specification contained in Exhibit H to this Agreement excluding the following
items: P20/T20 measuring system, Engine Starter Motor, and Independent Overspeed
Protection (IOP).

**All delivery dates are subject to the delivery of Firm Aircraft by Airframer
to Operator, and to the exercise by Operator of all its rights and remedies
under its contract with Airframer for the purchase of Aircraft; the general
intent is for the first Spare Engine to be delivered at approximately the same
time as the first Firm Aircraft, for the second Spare Engine to be delivered at
approximately the same time as the fifteenth Firm Aircraft, for the third Spare
Engine to be delivered at approximately the same time as the twenty-fourth Firm
Aircraft, for the fourth Spare Engine to be delivered at approximately nine (9)
months from delivery of the last Firm Aircraft, and for the fifth Spare Engine
to be delivered at approximately twenty-four (24) months from delivery of the
last Firm Aircraft.

Rolls-Royce and Operator hereby agree that Operator shall have the option (but
not the obligation) to purchase one (1) additional Spare Engine from Rolls-Royce
for every five (5) Option Aircraft that Operator (in its sole discretion)
purchases from Airframer. The Base Price for each such additional Spare Engine
that Operator chooses to purchase * shall be * , subject to escalation pursuant
to the formula set forth in Schedule 2 to Exhibit E; the delivery date shall be
as mutually agreed upon by the Parties; and any such purchases shall otherwise
be governed by the terms of this Agreement. *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 44 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit E Schedule 2 - Escalation

Engine Base Price Escalation Formula

The Price of each of the Spare Enginesand TSP charges shall be calculated as
follows:

PF = BP[0.7(I1/B1) + 0.3(I2/B2)] x 1.005

Where:   PF = Purchase Price / TSP Charge for Calendar Year Y
BP = Engine Base Price / TSP Charge in 2001

          L      M      E
P=P x(0.60--+0.30--+0.10--)x(1+0.005xN)
   b      Lo     Mo     Eo

provided that P shall always be equal to or greater than Pb.

The factors

    L         M         E            L      M      E
0.60--  , 0.30--  , 0.10--  and (0.60--+0.30--+0.10--)x(1+0.005xN)
    Lo        Mo        Eo           Lo     Mo     Eo

respectively shall be determined to the nearest fourth decimal place. Thus if
the fifth decimal place is five or more, the fourth decimal place shall be
raised to the next higher number.

P shall be rounded to the next full Dollar.

WHERE:

P =      The Purchase Price.

Pb =     The Base Price.

N =      The number of years from base year (2001) to year of scheduled
         delivery.

Lo =     the arithmetic average of the values of the Average Hourly Earnings
         -SIC Code 3721 for the industry group "Aircraft " as published by the
         US Department of Labor - Bureau of Labor Statistics for the months of
         June, July and August 2000.

L =      the arithmetic average of the corresponding Average Hourly Earnings
         for the 11th, 12th and 13th months prior to the month of scheduled
         delivery. Such arithmetic average shall be determined to the third
         decimal place; if the fourth decimal place is five or more, the third
         decimal place shall be raised to the next higher number.

Mo =     the arithmetic average of the values of the Producer Price Index -
         Code 10 for the commodity group "Metals and Metal Products" as
         published by the US Department of Labor - Bureau of Labor Statistics
         for the months of June, July and August 2000.

M =      the arithmetic average of the corresponding Producer Price Index for
         the 11th, 12th and 13th months prior to the month of scheduled
         delivery. Such arithmetic average shall be determined to the third
         decimal place; if the fourth decimal place is five or more, the third
         decimal place shall be raised to the next higher number.

Eo =     the arithmetic average of the values of the Producer Price Index -
         code 5 for the commodity group "Fuel and Related Products and Power" as
         published by the US Department of Labor - Bureau of Labor Statistics
         for the months of June, July and August 2000.

                                                                   Page 45 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

E =      the arithmetic average of the corresponding Producer Price Indices
         for the 11th, 12th and 13th months prior to the month of scheduled
         delivery. Such arithmetic average shall be determined to the nearest
         third decimal place; if the fourth decimal place is five or more, the
         third decimal place shall be raised to the next higher number.

If the United States government ceases to publish any of the statistics referred
to in this schedule or significantly modifies the basis of their calculation,
then Rolls-Royce shall have the right on giving written notice to Operator to
substitute any officially recognized, proper and substantially equivalent
statistics, such substitution to lead in application to the same adjustment
result, in so far as possible, as would have been achieved by continuing the use
of the original data or statistic had it not been so ceased to have been
published or modified as the case may be.

                                                                   Page 46 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

EXHIBIT F - FLEET GUARANTEES

PRODUCT ASSURANCE GUARANTEES

Rolls-Royce grants and Operator accepts the following product assurance
guarantees listed in this Exhibit F ("Guarantees") in respect of Engines first
installed in the Aircraft and Products delivered pursuant to this Agreement:

DEFINITIONS

In addition to those words and phrases defined in the main body of the
Agreement, the following words and phrases when used in the Product Assurance
Guarantees shall have the meaning and definition set forth below.

"Anniversary Date(s)" means any or all of the anniversary dates from the date of
delivery of the first Firm Aircraft to Operator through the Term of Guarantee.

"Period of Calculation" means the relevant period for which a calculation is
made under any of the Guarantees detailed in Exhibit F to this Agreement.

"Term of Guarantee" means that period of time commencing with the date of
delivery of the first Aircraft to Operator and ending after ten (10) years.

GOVERNING CONDITIONS AND ADMINISTRATION

1.     The obligations of Rolls-Royce under the Guarantees are subject to the
       following Governing Conditions:

       o      compliance by Operator with the material terms of the Warranties;

       o      Operator taking delivery of, retaining and maintaining for
              operational use Products as mutually agreed upon by the Parties;
              and

       o      Subject to the exercise by Operator of its rights and remedies
              under its contract with Airframer for the purchase of Aircraft,
              and to any changes in the schedule of delivery of Aircraft under
              said contract, Operator taking delivery of each Firm Aircraft in
              accordance with the schedule set out in this Agreement and
              operating each Firm Aircraft in regular and frequent airline
              operation;

2.     In establishing the Guarantees Rolls-Royce has assumed the Operational
       Assumptions set out in Exhibit B.

3      If during the term of the Guarantees the actual operation differs
       significantly from the above assumptions set out in Exhibit B above or
       the conditions set forth in Clause 1 above or if any other significant
       operational change occurs including, without limitation, the introduction
       of any mandatory modifications outside Rolls-Royce's control (other than
       modifications necessitated by defects in Engines or their components) or
       significantly inconsistent with Rolls-Royce's reasonable understanding at
       the time the guarantee levels were established, the Parties may revise,
       such revision not to be unreasonably withheld by either party, the
       Guarantees to take into account the effect of such difference.

4      Any credit granted under any of the Guarantees shall be solely used by
       Operator against 50% of the purchase price of any Rolls-Royce proprietary
       BR715 Parts purchased from Rolls-Royce.

                                                                   Page 47 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

5      If credits granted under any of the Guarantees are in excess of the
       amount which would have accrued to Operator under such Product Assurance
       Guarantee as determined by a single calculation over the entire Term of
       Guarantee of such Product Assurance Guarantee, such excess shall first be
       offset against any amounts due to Operator under any of the Guarantees.
       Any remaining excess shall be promptly refunded to Rolls-Royce by
       Operator.

6      If Operator is entitled to similar credit pursuant to the terms of more
       than one Warranty or Product Assurance Guarantee as a result of the same
       event then Operator shall not be entitled to receive credits pursuant to
       each Warranty or Product Assurance Guarantee but shall elect to claim
       credit under the particular Warranty or Product Assurance Guarantee which
       Operator considers most beneficial.

7      All credits granted to Midwest Express in this Exhibit F are personal to
       Midwest Express, are non-assignable (except as allowed under Clause 14.4
       of the Agreement), and are not convertible to cash.

Operator operates and maintains the Engines in accordance with the Manuals and
the reasonable written recommendations of Rolls-Royce (which recommendations
shall be given only after consultation with Operator).

                                                                   Page 48 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit F - 1     In-Flight Shutdown Guarantee

1      This guarantee provides cover against Qualified Shutdowns in excess of a
       cumulative fleet average rate of * per 1,000 Engine Flying Hours
       ("EFH").

2      At the end of each calendar month during the Term of Guarantee, Operator
       shall provide Rolls-Royce with (i) a list of all in-flight shutdowns
       during such calendar month which Operator considers to be Qualified
       Shutdowns and (ii) such information as Rolls-Royce may require to enable
       Rolls-Royce to determine which of such in-flight shutdowns are Qualified
       Shutdowns.

3      At the end of the Term of Guarantee, the Actual Shutdown Rate shall be
       calculated.

4      If the Actual Shutdown Rate for a Period of Calculation exceeds * per
       1,000 EFH, Rolls-Royce's sole obligation will be to grant to Operator a
       credit note of 20,000 US Dollars for each cumulative excess Qualified
       Shutdown as compensation less any credits already provided under the
       In-Flight Shutdown Guarantee.

5      "Qualified Shutdown" means the in-flight shutdown of a Dressed Engine (as
       defined in the Exhibit H, Specification) during the course of a scheduled
       revenue flight of the Aircraft by Operator which is determined to have
       been caused solely by a Dressed Engine-caused Failure. Multiple in-flight
       shutdowns of the same Dressed Engine during the same flight leg for the
       same problem will be counted as one in-flight shutdown. A subsequent
       in-flight shutdown on a subsequent flight leg for the same problem
       because corrective action has not been taken shall be excluded.

6      "Actual Shutdown Rate" means the total number of Qualified Shutdowns of
       all Qualified Equipment during a Period of Calculation multiplied by one
       thousand (1,000) and divided by the Flight Hours during such period.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 49 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit F - 2     Fuel Consumption Retention Guarantee

1.       This guarantee provides cover against Operator's BR715 average cruise
         fuel consumption increasing by more than * above an established
         baseline for Qualified Equipment during the Term of Guarantee.

2        Following each Engine's entry into service Operator will measure fuel
         consumption and record the following data for each Qualified Equipment
         in order to establish a performance baseline (hereinafter referred to
         as a "Performance Baseline") :

                  Engine serial number
                  Aircraft Serial Number
                  Date
                  Time
                  Altitude
                  Mach Number
                  Total Air Temperature (TAT)
                  Calibrated Air Speed (CAS)
                  Engine Pressure Ratio (EPR)
                  Fuel Flow
                  Fuel Temperature
                  Low Pressure Compressor Rotor Speed (N1)
                  High Pressure Compressor Rotor Speed (N2)
                  Exhaust Gas Temperature (EGT)
                  Bleed Air Configuration
                  Anti-Ice Wing
                  Anti-Ice Nose
                  Vibration

         Annually thereafter Operator will establish an annual performance level
         (hereinafter referred to as an "Annual Performance Level"). Performance
         Baseline and Annual Performance results are referred to collectively as
         Data. Rolls-Royce may be represented on measurement flights.
         Performance Baselines and Annual Performance Levels shall be expressed
         as percentage deviations from the Model with performance better than
         the Model being expressed as a negative percentage and performance
         worse than the Model as a positive percentage.

3        Instrumentation used in the recording of Data will be within
         calibration. If upon review of Data by both Parties and any necessary
         checking of instrumentation, in the reasonable judgment of the Parties
         the calibration of such instrumentation appears to be out of date or
         inadequate, Operator will re-calibrate the instrumentation. Rolls-Royce
         may require the correction of Data or re-establishment of Data
         hereunder.

4        The fleet average Performance Baseline shall be calculated at each
         Anniversary Date as the average of the Performance Baselines
         established pursuant to Clause 2 hereof and in existence at that
         Anniversary Date. If the fleet average specific fuel consumption for
         Engines as demonstrated on new production pass-off tests is better than
         the new engine test bed specific fuel consumption acceptance limit
         stated in the Specification, then for the purposes of this guarantee,
         the fleet average Performance Baseline shall be changed in a positive
         direction by the same amount.

5        The fleet average Annual Performance Level at each Anniversary Date
         shall be calculated as the average of the Annual Performance Levels at
         that Anniversary Date as established pursuant to Clause 2 hereof.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 50 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

6        If at the second or subsequent Anniversary Date during the Term of
         Guarantee the Weighted Average Deterioration (as defined by the term
         "WDi" in Clause 6 below) as a percentage exceeds *, and to the
         extent that such fuel consumption deterioration is attributable to a
         Basic Engine (as defined in the Specification in Exhibit H) deficiency,
         then Rolls-Royce's sole obligation shall be to compensate Operator by
         credit note for such excess fuel consumption deterioration for the
         period up to the Anniversary Date for which the Weighted Average
         Deterioration is being calculated.

         Reimbursement due to Operator hereunder shall be calculated for a given
         Anniversary Date (i) pursuant to the following formula:

         S  = R  --R
          n    n    n-1

         (For the purposes of such formula, negative values of Rn-1 shall have a
         value of zero.)

         Where

         Sn = the amount of reimbursement in US Dollars to be granted to
         Operator for Anniversary Date n (for positive values of Sn only).

         Rn-1 = the total value of credit paid to Operator under this guarantee
         in respect of the period from the commencement of the Term of Guarantee
         up to the Anniversary Date immediately prior to the said Anniversary
         Date (n).

         Rn = the total value of credit due to Operator from the commencement of
         the Term of Guarantee up to the said Anniversary Date (n), calculated
         in accordance with the following formula:

              (WD -- GD)
              (  n     )
         R  = ---------- x (G x H x WC )
          n       100                 8

         Where:

         WDn means the cumulative average fuel consumption deterioration of the
         Qualified Equipment from the start of the Term of Guarantee up to the
         said Anniversary Date (n), calculated in accordance with the following
         formula:

               n
               E (D x H )
                 ( i   i)
              i=1
         WD = -----------
           n       H

              (FD    + FD )
              (  i-1     i)
         D  = ----------- - F
          i       2

         Where:

         F = the fleet average Annual Performance Baseline calculated pursuant
         to Clause 4 of this Guarantee.

         FDi= the Annual Performance Baseline calculated pursuant to Clause 4 of
         this Guarantee at Anniversary Date (i).

         FDi-1 = the Annual Performance Baseline calculated pursuant to Clause 4
         of this Guarantee at the Anniversary Date immediately preceding the
         Anniversary Date (i-1).

         Hi = the total of all Qualified Engine Flight Hours by Operator as
         logged during the period between the Anniversary Dates relating to
         FDi-1 and FDi.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 51 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         H = the total of all Engine Flight Hours by Operator as logged on all
         Qualified Equipment from the start of the Term of Guarantee up to the
         said Anniversary Date n.

         GD = the guaranteed level allowable pursuant to Clause 5 hereof.

         WCn = the weighted average cost of fuel in US dollars from the start of
         the Term of Guarantee up to the said Anniversary Date (n), calculated
         in accordance with the following formula:

               n
               E (C x H )
                 ( i   i)
              i=1
         WC = -----------
           n       H

         Where

         Ci = the average cost to Operator of aviation fuel (after deduction of
         any subsidies or Government or other allowances received by Operator,
         and excluding, without limitation, pumping fees, taxes and fuel
         surcharges) consumed by Operator's Qualified Equipment during the
         period specified in the definition of Hi above in US dollars per US
         gallon and calculated by dividing the total amount actually paid during
         such period Hi by the number of US gallons of fuel so purchased.

         G = the block mission fuel burn expressed in US gallons per engine
         flight hour for the Typical Mission calculated using the Performance
         Document.

7.       If at the third or subsequent Anniversary Date during the Term of
         Guarantee the value of Sn is negative then Operator shall refund to
         Rolls-Royce an amount equal to the value of Rn-1 - Rn. If the value of
         Rn is zero or negative, Operator shall refund an amount equal to Rn-1.
         To calculate Si at the following Anniversary Date the Value of Rn-1 is
         set to zero.

8.       Any liability under this guarantee will continue until such time as
         Rolls-Royce may elect to make fuel improvement modifications available.
         If such modifications have not been incorporated into the Engines at
         delivery, then to the extent that any Rolls-Royce charge for such
         modification parts is in excess of parts charges which Operator would
         otherwise have incurred, such excess will be offset by credit notes
         issued by Rolls-Royce.

9        Intentionally left blank.

10       "Model" means the Rolls-Royce datum Engine model as may be amended from
         time to time.

11       "Typical Mission" means the standard aircraft mission agreed between
         the parties from time to time on a block hour basis (including taxi
         time) to be reasonably representative of Operator's average operation
         of the Aircraft in terms of those flight parameters affecting fuel burn
         including but not limited to range, payload, flight profile, climatic
         conditions and take off derate. The parties shall change the Typical
         Mission if either can reasonably demonstrate to the other that a
         material change has occurred in any of such parameters.

12       "Performance Document" means the Airframer performance document for the
         Aircraft.

                                                                   Page 52 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

13       If, after the date of signature of this Agreement, modifications are
         required to be made to Engines as a result of Airworthiness Authority's
         requirements and such modifications have the effect of increasing fuel
         consumption, Rolls-Royce may (unless the modifications are necessitated
         by a defect in the Engines) require that within 30 (thirty) days after
         incorporation of any such modification the initial performance baseline
         for each Qualified Engine in which any such modification is
         incorporated shall be adjusted to take into account the effect of such
         modification. The average of such new performance baselines for all
         such Qualified Equipment shall thereafter constitute the fleet average
         Performance Baseline and shall thereafter be used to determine any
         liability of Rolls-Royce under this Guarantee. However, if further
         modifications are introduced which alleviate the effect of the original
         modifications then Operator may require that within 30 (thirty) days
         after incorporation of any such modification a further revised
         performance baseline for each Qualified Engine in which any such
         modification is incorporated shall be established. The average of such
         new performance baselines for all such Qualified Equipment shall
         thereafter constitute the fleet average Performance Baseline and shall
         thereafter be used to determine any liability of Rolls-Royce under this
         Guarantee.

                                                                   Page 53 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit F - 3     *

1.       *

2.       *

3.       *

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 54 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit G - TOTAL SUPPORT PACKAGE

1.       Definitions

         In addition to those words and phrases contained in the main body of
         the Agreement, the following words and phrases when in this Total
         Support Package shall have the meaning and definition set forth below.

         "Additional Services" means (i) the Rework of Non-Qualified Events in
         accordance with the EMP or (ii) the incorporation of any optional
         performance improvement modifications which Rolls-Royce may offer to
         Operator from time to time.

         "Authorized Facility" means a Rolls-Royce approved Rework station as
         may be specified by Rolls-Royce to Operator from time to time and which
         is certified by the Airworthiness Authorities for the Rework of
         Engines, Modules and Parts.

         "Covered Services" means the Rework at an Authorized Facility
         (including the provision of Parts) necessary to return Qualified
         Equipment suffering Qualified Events to a serviceable condition in
         accordance with the applicable Manuals and the EMP and which cannot be
         accomplished by timely Line Maintenance.

         "Line Maintenance" means any work required to be carried out on an
         Engine in accordance with the Manuals and which Operator may accomplish
         without returning such Engine to an Authorized Facility. Line
         Maintenance includes, without limitation, the provision, rework or
         replacement of Parts and the provision of labor in the course of work
         as mentioned in the preceding sentence.

         "Line Replaceable Unit (LRU)" means those Parts listed in Schedule F of
         Exhibit G hereto.

         "Non-Qualified Event" means the removal of any Engine, Module or Part
         which requires a shop visit and which is not a Qualified Event,
         including without limitation, such a removal caused by FOD or events
         which are found by the Authorized Facility not to be Qualified Events
         or to be within the applicable limits set forth in the Manual,
         including but not limited to, "no fault found", accidents, improper
         maintenance, misuse or improper transportation, storage or handling.

         "Period of Cover" means the period of time commencing upon delivery of
         the first Aircraft to Operator and ending either (i.) ten (10) years
         thereafter; provided, however, that Operator may at its option, and
         with a notice period of one year prior to the end of the ten-year
         period, extend the Period of Cover to five (5) additional years, or
         (ii.) fifteen (15) years thereafter. The Charges that apply to those
         options are described in Clause 7 below.

         "Qualified Equipment" means any installed or Spare Engine (including
         all Modules and Parts thereof or incorporated therein but excluding
         Line Replaceable Units and Life Limited Parts, unless such Line
         Replaceable Units and/ or Life Limited Part coverage is selected
         pursuant to Clause 2 of this Agreement) which was acquired by Operator
         from Rolls-Royce or the Airframer or channels specifically approved by
         Rolls-Royce.

                                                                   Page 55 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         "Qualified Event" means the removal of an item of Qualified Equipment
         which is unserviceable as a result of any one or more of the following:

         o    Normal wear and tear or performance deterioration beyond
              appropriate Manual limits which requires restoration following
              appropriate on-wing troubleshooting and Line Maintenance; or

         o    Airworthiness Directives or Mandatory Service Bulletins; or at
              Rolls-Royce's written recommendation; or

         o    Time expiry of a Life Limited Part (For the avoidance of doubt
              this applies only if LLP option is selected); or

         o    Failure (as defined in Clause 1 of the Agreement) of a Part, and
              which requires a shop visit at an Authorized Facility to return
              such item to a serviceable condition.

         "Replacement Parts" shall mean any serviceable Part incorporated in an
         Engine in the course of Covered Services or Additional Services
         pursuant to this Total Support Package.

2.       Scope

         This Exhibit records that Operator has agreed to participate in
         Rolls-Royce's Total Care Program, whereby Rolls-Royce provides Rework
         and maintenance support for Qualified Equipment used by Operator in the
         operation of its Aircraft, and in accordance with the terms hereof.

3.       Provision of Services and Exclusivity

         During the Term of this Agreement, Rolls-Royce will provide Engine
         off-wing Covered Services and Additional Services to Operator on the
         terms and conditions contained herein.

         In consideration of the mutual agreements contained herein, Operator
         hereby grants to Rolls-Royce exclusivity in respect of the
         accomplishment of any Rework of any item of Products which becomes
         unserviceable during the Period of Cover.

4        Rolls-Royce's Undertakings

4.1      Provision of Services

         Rolls-Royce shall arrange for the prompt provision of Covered Services
         and Additional Services to be undertaken at an Authorized Facility
         during the Period of Cover.

4.2      Records

         Rolls-Royce will require the Authorized Facility to maintain records of
         Covered Services and Additional Services undertaken in accordance with
         Operator's Airworthiness Authority's requirements, and to provide
         Operator with access to review such records at all reasonable times and
         from time to time.

                                                                   Page 56 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

4.3      Re-delivery and Acceptance

         4.3.1    Following Covered Services and any Additional Services
                  Rolls-Royce will redeliver Engines (in a Dressed Engine
                  configuration) to Operator ex-works (Incoterms 2000) the
                  Authorized Facility. Notwithstanding anything to the contrary
                  herein, however, Operator shall only be responsible for return
                  transportation costs in an amount equal to the transportation
                  expenses Operator would have incurred in shipping the Engine
                  from an Authorized Facility in the United States to Operator's
                  facilities in Milwaukee. Rolls-Royce shall be responsible for
                  any return transportation expenses in excess of this amount.
                  To the extent necessary, Rolls-Royce shall be responsible for
                  clearing Engines through customs.

         4.3.2    Rolls-Royce will require the Authorized Facility to maintain
                  records of Rework undertaken in accordance with Operator's
                  Airworthiness Authority's requirements and deliver such
                  documentation as is reasonably required by Operator.

         4.3.3    Operator will be deemed to have accepted Rework undertaken on
                  Qualified Equipment upon the issuance of a properly authorized
                  JAA or FAA release note or other approval certificate by
                  Rolls-Royce or Authorized Facility (as applicable).

4.4      Spare Engine Support

         When Operator has purchased and taken delivery of the Rolls-Royce's
         recommended level of Spare Engines, then

         4.4.1    If Operator's total quantity of available serviceable Spare
                  Engines falls to one (1) as a direct and sole result of
                  Qualified Events, then Rolls-Royce use all reasonable efforts
                  to expedite the Rework of an Engine by the Authorized
                  Facility; and further

         4.4.2    If Operator's total quantity of available serviceable Spare
                  Engines is zero (0) as a direct and sole result of Qualified
                  Events, then in addition to expediting Rework of Engines,
                  Rolls-Royce will use all reasonable efforts to identify a
                  non-exclusive lease engine which could be made available to
                  Operator until such time as the level of Spare Engine support
                  increases to one (1) or more.

         4.4.3    If Operator and Rolls-Royce agree that Operator will
                  imminently declare an Aircraft on ground, as defined in World
                  Airline Glossary (WATOG), or Operator agree with Rolls-Royce
                  that a scheduled Engine removal in accordance with the
                  requirements of the EMP or predictive trending results is
                  required, then a non-exclusive lease engine shall, within 24
                  hours of such agreement, be made available to Operator under
                  the terms of the Lease Agreement. The daily rental charges
                  under the Lease Agreement will be waived until the seventh
                  (7th) calendar day after the level of serviceable Spare Engine
                  support increases to one (1) or more. Operator will remain
                  responsible for the Flight Hour and Flight Cycle charges under
                  the Lease Agreement, except that the Flight Hour charge will
                  be reduced to the Flight Hour charge as provided in Clause 7.1
                  of this Total Support Package, and, to the extent Operator has
                  selected the LLP coverage under the Total Support Package, the
                  Flight Cycle charge will be reduced to the Flight Cycle charge
                  as provided in Clause 7.1 of this Total Support Package.
                  Operator shall substitute the first available Reworked Engine
                  for the Rolls-Royce furnished non-exclusive lease engine as
                  soon as possible and return the lease engine to Rolls-Royce
                  (but in no event more than ten (10) calendar days) after
                  receipt of such Reworked Engine.

                                                                   Page 57 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         4.4.4    If Operator has requested Additional Services (which in the
                  reasonable opinion of Rolls-Royce will cause an AOG) or if
                  Rolls-Royce or its Authorized Facility is prevented from
                  undertaking Rework or redelivering any Qualified Equipment by
                  reason of failure by Operator to comply with its obligations
                  under this Total Support Package, Rolls-Royce's liability with
                  respect to Clause 4.4.3 shall be suspended for a period equal
                  to the period during which the Rework or redelivery, as the
                  case may be, shall have been so prevented, and Rolls-Royce
                  shall be under no liability whatsoever in respect of such
                  delay. The Parties shall promptly notify each other in writing
                  of the reasons of any such delay, part performance and the
                  likely duration of the delay.

         4.4.5    If Rolls-Royce is unable to meet its obligations under Clause
                  4.4.3 above for reason other than as contemplated in Clause
                  4.4.4 above, Rolls-Royce's sole liability to Operator shall be
                  to reimburse Operator its reasonable and substantiated daily
                  usage costs paid to a third party by Operator or, should no
                  other engine be available, a liquidated damage of 120% of the
                  then current Rolls-Royce daily rental charge for and Engine as
                  per the Leasing Agreement until either Rolls-Royce makes a
                  lease engine available to Operator or redelivers a Reworked
                  Engine to Operator. Rolls-Royce and Operator acknowledge that
                  the liquidated damages calculated as set forth above are
                  reasonable damages in light of the anticipated harm that will
                  be caused by Rolls-Royce's failure to meet its obligations,
                  the difficulties of proof of loss, and the inconvenience or
                  nonfeasibility of Operator's otherwise obtaining an adequate
                  remedy. Any such liquidated damages shall be payable by
                  Rolls-Royce to Operator upon demand; provided that Operator
                  may, at its option, apply the amount of said liquidated
                  damages as a credit against the purchase price of Products or
                  Services, and/or to the charges identified in Clause 7.1
                  below.

4.5      Loss or Damage

         4.5.1    If any Qualified Equipment delivered to Rolls-Royce or
                  Authorized Facility is lost, destroyed or damaged during the
                  time between such delivery and return to Operator then
                  Rolls-Royce will, promptly and at its sole discretion, either:

                  4.5.1.1  Rework such damage free of charge, or

                  4.5.1.2  provide Operator a credit note to the value of the
                           item as mutually agreed upon, taking into account
                           age, usage and condition, not to exceed the original
                           price of the item; or

                  4.5.2.3  provide a replacement of equal value and use.

4.6      Suspended Warranty

         4.6.1    In respect of all Replacement Parts incorporated by
                  Rolls-Royce, the Warranties granted by Rolls-Royce as set out
                  in Exhibit C shall apply subject to all the provisions
                  contained therein.

         4.6.2    During the Period of Cover Operator shall not be entitled to
                  receive any benefit whatsoever whether by way of Rework,
                  replacement parts cost allowance, labour charges or otherwise
                  under the Warranties as set out in Exhibit C in relation to
                  any rework of Qualified Equipment which are covered by this
                  Exhibit; but save as expressly provided herein the Warranties
                  shall remain in full force and effect.

                                                                   Page 58 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

5.       Operator's Undertakings

5.1      Operation and Line Maintenance

         5.1.1    Operator shall operate and maintain Qualified Equipment in
                  accordance with the Manuals including the water washing of
                  Engines (unless prohibited by EPA regulations) and the
                  performance of all reasonable Rolls-Royce recommended Engine
                  troubleshooting procedures that are conveyed in writing to
                  Operator to extend the on-Aircraft life of Engines.

         5.1.2    Operator shall, at its own expense, perform all scheduled and
                  unscheduled Line Maintenance on Engines as may be required
                  pursuant to the Manuals and the requirements of the EMP, and
                  perform any mutually agreed recommendations of Rolls-Royce
                  which may from time to time be notified to Operator in
                  writing.

         5.1.3    Operator shall comply with the requirements and
                  recommendations of Rolls-Royce with respect to the
                  introduction of mandatory Service Bulletins, Airworthiness
                  Directives or Service Bulletins at Rolls-Royce written
                  recommendation, as stated in the EMP, at Rolls-Royce's
                  expense, unless (i) the purpose of such Service Bulletins is
                  improved fuel efficiency or other economic value to Operator,
                  or (ii) such Airworthiness Directives or Service Bulletins may
                  be accomplished by Operator through Line Maintenance, in which
                  case such Airworthiness Directives or Service Bulletins shall
                  be at Operator's expense. If Operator experiences a
                  significant additional Line Maintenance burden as a direct
                  result of the accomplishment of such Airworthiness Directives
                  or Service Bulletins, Rolls-Royce shall recompense Operator at
                  the Warranty Labor Rate for incremental labor hours expended
                  in accomplishing such Airworthiness Directives or Service
                  Bulletins. If the aircraft is in service, Rolls-Royce shall
                  provide sufficient training and instruction for Operator to
                  perform the Service Bulletin itself.

         5.1.4    Operator shall, in accordance with normal airline operating
                  procedures, provide an adequate level of training for line
                  station personnel and shall ensure that such line station
                  personnel receive initial and follow up training from time to
                  time on Engine maintenance troubleshooting techniques.

         5.1.5    Operator shall, at its own expense, acquire and maintain
                  during the Period of Cover Engine stands and other support
                  equipment sufficient (as mutually agreed by the Parties) to
                  support its operation and maintenance of the Qualified
                  Equipment.

5.2      Preparation, Transport and Shipment of Qualified Equipment

         5.2.1    If any Qualified Equipment requires removal due to a Qualified
                  Event, Operator shall promptly deliver such Qualified
                  Equipment to the Authorized Facility in accordance with the
                  provisions of this Clause 5.2.

         5.2.2    Operator shall be responsible at its expense for performing
                  the removal of all Qualified Equipment from Aircraft, the
                  configuration of Engines to a Dressed Engine standard (as
                  defined in the Specification in Exhibit H), the subsequent
                  preparation of redelivered Qualified Equipment for
                  installation, the installation of Qualified Equipment on
                  Aircraft, the preparation of Qualified Equipment for transport
                  and for the provision of appropriate transportation equipment.

                                                                   Page 59 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

         5.2.3    Operator shall deliver Qualified Equipment DDP (Incoterms
                  2000) accompanied, where appropriate, by an up to date Engine
                  Log Book to the Authorized Facility. Notwithstanding anything
                  to the contrary herein, however, Operator shall not be liable
                  for any transportation expenses related to the delivery of
                  Qualified Equipment to an Authorized Facility above the amount
                  it would have cost Operator to transport the Qualified
                  Equipment to an Authorized Facility in North America.
                  Rolls-Royce shall be responsible for any transportation
                  expenses in excess of this amount, and (if applicable) for
                  clearing Qualified Equipment through Customs. Operator shall
                  comply with the relevant paragraphs of the Rolls-Royce
                  maintenance manual in respect of the shipping and storage of
                  Qualified Equipment and/or Parts.

5.3      Records and Reporting

         5.3.1    Operator shall maintain such airworthiness certificates,
                  licenses, log books, flight manuals, records and other data
                  pertaining to Engines including Engine accessories and the
                  operation and maintenance thereof as required by law, and
                  shall permit Rolls-Royce or its authorized representative to
                  inspect such records and data during normal business hours
                  upon reasonable advance notice.

         5.3.2    Operator shall maintain full and up to date records of Engine
                  operation, Engine Flight Hours and cycles flown and shall
                  permit Rolls-Royce or its authorized representative to inspect
                  such records during normal business hours upon reasonable
                  advance notice.

         5.3.3    Within seven (7) days after the end of each calendar month or
                  part calendar month during the Period of Cover Operator shall
                  submit to Rolls-Royce a certified statement including:

                  Engine cumulative Flight Hours (CFH) and Flight Cycles (CFC),
                  and Flight Hours and Flight Cycles operated for the monthly
                  period reporting (MFH and MFC respectively), using the
                  Operating Report form (Schedule C) to this Exhibit).

         5.3.4    Rolls-Royce will arrange for Data Systems and Solutions
                  ("DS&S"), a joint venture of Rolls-Royce and SAIC, to provide
                  a comprehensive Engine health monitoring service to Operator
                  during the Period of Cover. Such service will include, without
                  limitation, daily notification of significant alerts and
                  weekly reports of Engine condition to assist Operator in
                  planning its Engine maintenance activity and provide the data
                  necessary to manage Operator's fleet performance on-condition
                  most effectively.

                  DS&S require the following electronic data from Operator:

                  For every flight the following parameters to be accurately and
                  consistently recorded for both engines at stabilized cruise
                  conditions.

                  Date, Flight no, EPR, N1, N2, TGT, Fuel Flow Oil Pressure, Oil
                  Temperature, N1 Vibration, N2 Vibration, Altitude, Mach, IAS,
                  Total Air Temperature

                  This data needs to be sent to DS&S within three days of
                  recording, such that if an engine develops a problem,
                  Rolls-Royce has a chance to respond before it develops into an
                  unplanned event, or engine removal.

                  Oil Consumption

                  Operator is expected to monitor oil consumption (Oil uplift
                  versus flight hours) and report any exceedances or significant
                  deviations to Rolls-Royce.

                  Format of data received by DS&S.

                                                                   Page 60 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

                  Operator shall provide the data in COMPASS compliant
                  electronic format - ASCII text format. If the data entry
                  method is manual, then DS&S can provide a data-entry
                  spreadsheet tool for this purpose and this can be formatted to
                  suit Operator.

6        Rework procedures

6.1      Replacement of Parts

         Rolls-Royce reserves the right, at its sole discretion, to fit any new
         or used serviceable Replacement Parts in the course of Covered Services
         and Additional Services, providing such parts meet the requirements of
         the EMP.

         In the event that any Engine received by Rolls-Royce from Operator is
         not complete, or has missing or non-OEM parts, then Rolls-Royce
         reserves the right to replace such parts and will charge Operator as
         specified in Clause 7.3 below.

6.2      Title

         6.2.1    Title to and risk of loss of or damage to any Parts replaced
                  under this Exhibit, whether scrap or reworkable, shall pass to
                  Rolls-Royce upon removal from Qualified Equipment for
                  Rolls-Royce's disposal. A Part shall be considered to be scrap
                  when such Part in the opinion of Rolls-Royce is beyond
                  economic Rework, or when such part requires replacement in
                  accordance with rejection criteria as set out in the Manuals.

         6.2.2    Any Replacement Parts incorporated in the course of Rework
                  pursuant to this Exhibit shall be deemed to have been sold to
                  Operator and title to and risk of loss of and damage to such
                  Replacement Parts shall pass to Operator upon redelivery of
                  Qualified Equipment to Operator pursuant to Clause 4.3.1 of
                  this Exhibit.

         6.2.3    Operator and Rolls-Royce each represent and warrant to the
                  other that each will accomplish the transfer to the other of
                  the full legal title to any equipment exchanged under Clauses
                  6.2.1 and 6.2.2 above, free and clear of all charges, liens
                  and encumbrances. Operator warrants that it will obtain the
                  authorization of the owner of such equipment (if Operator is
                  not the owner), to effect such exchanges of title. Operator
                  shall not without the prior written consent of Rolls-Royce
                  enter into any arrangement or agreement which might prejudice
                  or impair its ability to perform its obligations under this
                  Clause 6.2. Operator and Rolls-Royce shall each take all
                  necessary steps to secure the release with respect to any
                  charges, liens and encumbrances with respect to any such
                  equipment exchanged. Each party shall indemnify the other
                  party for its failure to comply with this Clause 6.2.

7        Charges

7.1      Charges for Covered Services

         During the Period of Cover, the charges payable by Operator to
         Rolls-Royce in respect of Covered Services shall be calculated by
         multiplying the Flight Hours for each Engine during each month by the
         following Charges (in United States Dollars).

                                                                   Page 61 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement
         7.1.1    Shop Visit Coverage
<TABLE>
<CAPTION>
                                           ----------------------------------------------------------------------------
            10-Year term, Firm Aircraft            Annual Utilization (FH per Year)
         --------------------------------------------------------------------------------------------------------------
             Mission Length (FH/Cycle)         2,500          2,600           2,960          3,300          3,600
         --------------------------------------------------------------------------------------------------------------
                        <S>                    <C>            <C>            <C>             <C>            <C>
                        1.3                    *              *              *               *              *
         --------------------------------------------------------------------------------------------------------------
                        1.6                    *              *              *               *              *
         --------------------------------------------------------------------------------------------------------------
                        1.9                    *              *              *               *              *
         --------------------------------------------------------------------------------------------------------------
                        2.1                    *              *              *               *              *
         --------------------------------------------------------------------------------------------------------------
</TABLE>
                  As an alternative payment plan, Rolls-Royce offers the
                  following stepped Charges. Operator shall inform Rolls-Royce
                  no later than three (3) months prior to entry-into-service of
                  the first Aircraft which of the two options Operator wishes to
                  elect.

                  Based on an annual utilization of 2,960 EFH and a Stage Length
                  of 1.6 EFH.

                  Years 1-2:       *
                  Years 3-5:       *
                  Years 6-10:      *

                  Rolls-Royce offers to extend the term of the Total Support
                  Package to 15 years. Based on an annual utilization of 2,960
                  EFH and a Stage Length of 1.6 EFH the Charge for years 11-15
                  would be *. Operator shall inform Rolls-Royce no later
                  than twelve (12) months prior to the end of the ten-year term
                  whether Operator wishes to extend the term of the Total
                  Support Package to 15 years.

                  Firm and Option Aircraft:

                  Should Operator take delivery of any Option Aircraft, then
                  upon Operator's request, Rolls-Royce will cover such Option
                  Aircraft under the Total Support Package. Based on an Option
                  Aircraft delivery schedule of 1 (one) aircraft every month
                  starting in March 2005, the following charges would apply:

                  15-Years Flat Charge,
                  30 Aircraft fleet:   *  from EIS of the first Aircraft

                  15-Years Flat Charge,
                  50 Aircraft fleet:   *   from EIS of the first Aircraft

         7.1.2    Life Limited Parts

                  This service is offered to Operator as an optional coverage
                  and additional to the Shop Visit Coverage above and includes
                  the rework or replacement of LLP's in Covered Services.
                  Operator shall inform Rolls-Royce no later than three (3)
                  months prior to entry-into-service of the first Aircraft
                  whether Operator wishes to select this option.
<TABLE>
<CAPTION>
                                           ----------------------------------------------------------------------------
            10-Year term, Firm Aircraft            Annual Utilization (FH per Year)
         --------------------------------------------------------------------------------------------------------------
             Mission Length (FH/Cycle)         2,500          2,600           2,960          3,300          3,600
         --------------------------------------------------------------------------------------------------------------
                        <S>                     <C>           <C>            <C>             <C>            <C>
                        1.3                     ----          *              *               *              *
         --------------------------------------------------------------------------------------------------------------
                        1.6                     ----           ----           ----           *              *
         --------------------------------------------------------------------------------------------------------------
                        1.9                     ----           ----           ----            ----           ----
         --------------------------------------------------------------------------------------------------------------
                        2.1                     ----           ----           ----            ----           ----
         --------------------------------------------------------------------------------------------------------------
</TABLE>
*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                   Page 62 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement
         7.1.3    Transportation

                  This service is offered to Operator as an optional coverage
                  and additional to the Shop Visit Coverage above and covers the
                  round-trip transportation of Engines and Covered Components
                  for Rework to and from the Authorized Facilities. Operator
                  shall inform Rolls-Royce no later than three (3) months prior
                  to entry-into-service of the first Aircraft whether Operator
                  wishes to select this option.
<TABLE>
<CAPTION>
                                           ----------------------------------------------------------------------------
            10-Year term, Firm Aircraft            Annual Utilization (FH per Year)
         --------------------------------------------------------------------------------------------------------------
             Mission Length (FH/Cycle)         2,500          2,600           2,960          3,300          3,600
         --------------------------------------------------------------------------------------------------------------
                        <S>                    <C>            <C>             <C>            <C>            <C>
                        1.3                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        1.6                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        1.9                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        2.1                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                  (Assumption: Main Base Milwaukee)
</TABLE>
         7.1.4    Foreign Object Damage

                  This service is offered to Operator as an optional coverage
                  and additional to the Shop Visit Coverage and covers the
                  removal of Engines for Rework due to the non-negligent
                  ingestion of ice, birds, hailstones or runway gravel. Operator
                  shall inform Rolls-Royce no later than three (3) months prior
                  to entry-into-service of the first Aircraft whether Operator
                  wishes to select this option.
<TABLE>
<CAPTION>
                                           ----------------------------------------------------------------------------
            10-Year term, Firm Aircraft            Annual Utilization (FH per Year)
         --------------------------------------------------------------------------------------------------------------
             Mission Length (FH/Cycle)         2,500          2,600           2,960          3,300          3,600
         --------------------------------------------------------------------------------------------------------------
                        <S>                    <C>            <C>             <C>            <C>            <C>
                        1.3                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        1.6                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        1.9                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        2.1                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
</TABLE>
         7.1.5    Covered Components

                  This service is offered to Operator as an optional coverage
                  and additional to the Shop Visit Coverage above and covers the
                  rework of Covered Components rejected and removed on the line
                  due to a Qualified Event. Operator shall inform Rolls-Royce no
                  later than three (3) months prior to entry-into-service of the
                  first Aircraft whether Operator wishes to select this option.
<TABLE>
<CAPTION>
                                           ----------------------------------------------------------------------------
            10-Year term, Firm Aircraft            Annual Utilization (FH per Year)
         --------------------------------------------------------------------------------------------------------------
             Mission Length (FH/Cycle)         2,500          2,600           2,960          3,300          3,600
         --------------------------------------------------------------------------------------------------------------
                        <S>                    <C>            <C>             <C>            <C>            <C>
                        1.3                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        1.6                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        1.9                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                        2.1                    *              *               *              *              *
         --------------------------------------------------------------------------------------------------------------
                  (Assumption: Main Base Milwaukee)
</TABLE>
         7.1.6    The charges referred to in Clauses 4.4 and 7.1.1 to 7.1.5 are
                  in July 2001 economic conditions, and are subject to
                  escalation in accordance with Exhibit E Schedule 2 of this
                  Agreement.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.
                                                                   Page 63 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

7.2      Adjustment of Charges

         The above pricing has been calculated based on certain understandings
         as set out in Clause 5.1 above and the assumptions as specified in
         Exhibit B to this Agreement. The Parties shall review the validity of
         these assumptions no earlier than one year after the effective date of
         this agreement. If Operator's operation of the Aircraft and Engines is
         at any time during the Period of Cover materially different from these
         understandings and assumptions, then the Parties by mutual agreement
         shall make adjustments on a going-forward basis as set out below to the
         pricing contained in Clause 7.1 to reasonably reflect the effect of
         such different operation on the cost to Rolls-Royce of providing the
         services specified herein. In connection with any agreement by the
         Parties to implement a new hourly rate due to a change in the
         assumptions, the Parties shall also agree to a date, corresponding to
         the date that the original assumption became invalid, that the new rate
         shall be effective. To the extent that the retroactive application of
         the new rate creates an overage or shortage in payments due to
         Rolls-Royce, then the Parties shall mutually agree upon a schedule to
         offset the overage or shortage commencing no later than three months
         after the overage or shortage is identified. The overage or shortage
         may be reimbursed in one lump sum or over time, but in no event shall
         the duration for reimbursement exceed two years.

7.3      Charges for Additional Services

         Rolls-Royce shall invoice Operator, and Operator shall pay, for all
         Additional Services and any and all Parts incorporated in accordance
         with, and the then current applicable Authorized Facility's commercial
         rates for labor, subcontract charges, handling fees and test facility,
         fuel and oil fees.

8        Payment

8.1      During the Period of Cover, Rolls-Royce shall invoice Operator for
         charges established under Clauses 7.1 on a monthly basis based upon
         information for the previous month provided by Operator through the
         Operating Report form (Schedule C to this Exhibit). Within five (5)
         business days of the date of invoice (such invoice to be faxed to the
         fax number set out in Clause 14.3 above), Operator will pay for such
         invoice. Should Operator not provide an Operating Report within the
         schedule set out above, then Rolls-Royce may send Operator a monthly
         invoice based on the hours and cycles flown in the preceding month.

8.2      Payment by Operator of any amounts due in accordance with Clause 7.3
         above shall be made within thirty (30) calendar days after the later of
         (a) Rolls-Royce's date of invoice, or (b) redelivery to Operator of any
         item of Products following the Rework of such item of Products.

                                                                   Page 64 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule A To Exhibit G (Total Support Package)

Engine Serial Numbers

To be amended

                                                                   Page 65 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule B to Exhibit G (Total Support Package)

NOT APPLICABLE

                                                                   Page 66 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule C to Exhibit G (Total Support Package)

Operating Report

Operating Report for the month of _____________, ______

Engine Serial Number       TSN       CSN     MFH      MFC

BR12345                   10,000    8,000    200      50

                                                     -----    -----
Monthly Total

% of Flight Cycles using of ATO/1 during month:                        XX%
OR
Average Derate achieved During Month:                                  XX%

                                                                   Page 67 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule D to Exhibit G (Total Support Package)

RESERVED

                                                                   Page 68 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule E to Exhibit G (Total Support Package) - NOT APPLICABLE

                                                                   Page 69 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule F to Exhibit G (Total Support Package)

Covered Components:

Covered Components shall include the following major line replaceable units:

1        COOLER, SURFACE AIR COOLED         241201 01-100
2        PUMP, FUEL                         731101 01-100
3        VALVE; BYPASS AND VENT             731304 01-100
4        CONTROLLER,ELECTR.ENGINE           732101 01-400
5        METER, FUEL (FMU)                  732103 01-100
6        PROBE,P20/T20                      732105 01-100
7        CONTROLLER, OVERSPEED PROT.        732111 01-100
8        TRANSMITTER, FUEL FLOW             733101 01-100
9        VALVE, AIR BUFFER                  752201 01-100
10       ACTUATOR, VAR STATOR VANE          753101 01-200
11       SOLENOID, BLEED VALVE HANDLING     753102 01-100
12       ACTUATOR, BOOSTER BLEED VALVE      753201 01-100
13       PUMP, OIL UNIT                     792101 01-100
14       COOLER, FUEL COOLED OIL            792201 01-400
15       STARTER,AIR TURBINE                801101 01-100
16       VALVE,STARTER AIR                  801103 01-100

                                                                   Page 70 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Schedule G to Exhibit G (Total Support Package)

(RESERVED)

                                                                   Page 71 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

Exhibit H - CONTRACT SPECIFICATION

1        Engine Supply Details

This Section 1 defines the standard of the certified production version of the
Rolls-Royce BR715 turbofan Aero Engine (Engine) to be supplied as spare
equipment for 717-200 installation.

1.1      Engine Build Standard

a)    Code Name(s):

      BR700-715A1-30 Series         Rated MTOT SLS at ISA +15(0)C 18,500 lb.

b)    Type and Description:

      The Dressed Engine is a two-spool, high bypass ratio configuration
      featuring:

      o 58 inch single stage wide chord fan
      o Two stage LP booster
      o Ten stage HP compressor
      o Annular combustor
      o Two stage HP turbine
        Three stage LP turbine
        Full Authority Digital Engine Control (FADEC)

c)    Direction of Rotation:

      The LP and HP systems are co-rotational and will turn clockwise when
      viewed from the rear looking forward.

1.2      Module Assemblies and Dressed Engine

The following describes module assemblies and the Dressed Engine.

1.2.1    Basic Engine

The Engine consists of eight major module assemblies which constitute a Basic
Engine:

Module 3-1                  LP Fan
Module 3-2                  Intermediate Case (including LP booster)
Module 3-3                  HP compressor
Module 3-4                  LP Fan Case
Module 4-1                  Combustor/HP Turbine
Module 5-1                  LP Turbine
Module 6-1                  Accessory gearbox

                                                                   Page 72 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

1.2.2    Dressed Engine

The Dressed Engine consists of the Basic Engine as set out in Section 1.2.1
above together with the following items:

i)         Nose cone
ii)        Core Engine Fairings
iii)       Engine mounts - engine items
iv)        Engine Bleed Air Control System
v)         Electrical system - engine items
vi)        Fuel system - engine items
vii)       Engine Oil system
viii)      Turbine gas temperature measuring system
ix)        Ignition system
x)         Engine LP and HP speed signal generation system
xi)        T30 temperature measuring system
xii)       Turbine overheat temperature measuring system
xiii)      P20/T20 measuring system - engine items
xiv)       Engine starting system - engine items (excluding Air Starter Motor)
xv)        Electronic Engine Controller (EEC)
xvi)       Independent Overspeed Protection (IOP)
xvii)      Full-Authority Digital Engine Control System (FADEC) - items iii)
           to xv)
xviii)     Fire detection system - core, upper splitter and lower splitter
           detectors only
xix)       Air system - engine items

                                                                   Page 73 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

2        Engine Line Replaceable Units

The following items are designated as Line Replaceable Units (LRU's):

i)         Fuel filter (LP)
ii)        Fuel filter (HP)
iii)       Oil pressure filter
iv)        Magnetic chip detector
v)         Oil quantity transmitter
vi)        Oil pressure transmitter - each
vii)       Oil filter differential pressure switch
viii)      Oil temperature sensor - each
ix)        Fuel low pressure switch - each
x)         Fuel filter differential pressure switch
xi)        Fuel temperature sensor - each
xii)       Igniter boxes - each
xiii)      Igniters - each
xiv)       Engine vibration transducer
xv)        Drains tank ejector
xvi)       Drains Tank Ejector Filter
xvii)      Starter air valve, ship loose item
xviii)     HP speed probe
xix)       Dedicated Generator
xx)        Starter motor
xxi)       Fire detectors - core, upper splitter and lower splitter
xxii)      Fuel nozzles - each
xxiii)     TGT thermocouples - each
xxiv)      Fuel Flow Transmitter
xxv)       Engine Electronic Controller (EEC)
xxvi)      Handling bleed valve solenoid
xxvii)     Oil pump
xxviii)    Igniter lead - each
xxix)      Fuel pump
xxx)       Buffer air valve
xxxi)      Turbine overheat thermocouple
xxxii)     Bleed valve - each
xxxiii)    Booster bleed valve actuator
xxxiv)     T30 thermocouple
xxxv)      Fuel Metering Unit (FMU)
xxxvi)     Variable Stator Vane Actuator (VSVA)
xxxvii)    Fan blade - each
xxxviii)   Booster Bleed Valve Actuator
xxxix)     Fuel Overspeed Splitter Unit (OSU)
xl)        Surface Air Cooler Oil Cooler (SACOC) - for IDG oil
xli)       Combined Fuel Cooled Oil Cooler (CFCOC) - for IDG and engine oil
xlii)      P20/T20 probe, ship loose item
xliii)     Bubble pipe educator

                                                                   Page 74 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

xliv)      By-pass and Vent valve
xlv)       Oil Filter Pop-up Indicator
xlvi)      Independent Overspeed Protection Unit (IOP), ship loose item

3        Boeing & BFGoodrich Furnished Equipment

The following LRU's are Boeing/BFG Furnished Equipment (MDFE):

i)         Hydraulic Pump, V-band clamp and hoses
ii)        Integrated Drive Generator (IDG), V-Band Clamp and harnesses
iii)       Check Valves (x2), High Stage Valve, Pressure Regulating Shutoff
           Valve (PRSOV), Pilot Valves (x2), temperature and pressure sensors -
           required A/C Bleed Air Supply
iv)        Precooler (inc. inlet and outlet ducts) and Fan Air Valve (FAV)
v)         Nose-cowl ice detector - customer option
vi)        Nose cowl
vii)       Thrust Reverser and adapter ring
viii)      Cowls - upper and lower
ix)        Fixed apron
x)         Engine fire extinguishing system (excluding bottles)
xi)        Gearbox fire detector
xii)       Exhaust fire detector
xiii)      Anti-ice valve and ducts
xiv)       Engine air and start system ducts and hoses

                                                                   Page 75 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

4        Engine Transportation and Handling Equipment

The following transportation and handling equipment can be purchased directly
from Rolls-Royce:

<TABLE>
<CAPTION>
   ATA CH.       TOOL No.   DESCRIPTION                 ACTIVITY                                   QTY      MFR    REV-ISION
   -------       --------   -----------                 --------                                   ---      ---    ---------
<S>              <C>        <C>                         <C>                                         <C>     <C>       <C>
  Line Main      8546603    Extractor, VSV actuator     Removal & installation of the VSV           1       RR        R1
                            tie rod                     actuator
  Line Main      8546608    Traverse tool, VSVA         Removal & installation of the VSVA,         1       RR        R1
                                                        trouble shooting and HPC borescoping
  Line Main      8547060    Socket, rotor, dedicated    Removal & installation of the dedicated     1       RR        R1
                            generator                   generator rotor
  Line Main      8547257    Locking tool, rotor,        Removal & installation of the dedicated     1       RR        R4
                            dedicated generator         generator rotor
  Line Main      8548913    Adustment tool, BBV         Trouble shooting BBV mechanism              1       RR        R1
  Line Main      8549100    Dressing stand, engine or   Removal & installation of EBU               1       RR        R1
                            powerplant
  Line Main      8549101    Lifting sling, engine or    Removal & installation of the engine or     1       RR        R1
                            powerplant                  powerplant
  Line Main      8549700    Trunnions,  dressing stand  Removal & installation of EBU               2       RR        R1
  Transport      8549742    Transportation stand        Transportation of engine or powerplant      1       RR        R3
  Transport      8549744    Rear trunnions,             Transportation of engine or powerplant    1 Set     RR        R3
                            transportation stand
  Transport      8549745    MVP bag, transportation     Transportation and storage of engine or     1       RR        R1
                                                        powerplant
  Transport      8549747    Drop cover, transportation  Transportation of engine                    1       RR        R1
                            stand
  Line Main      8549753    Rigging pin, BBV, VSVA and  Trouble shooting BBV, VSVA and BAV          3       RR        R1
                            BAV                         mechanisms
  Line Main      8600004    Extension adapters,         Removal & installation of EBU             1 Set     RR        R1
                            transportation stand
  Transport      8600134    Tow bar, transportation     Transportation of engine or powerplant      1       RR        R1
                            stand
  Line Main      8600152    Extractor, rotor,           Removal & installation of the dedicated     1       RR        R5
                            dedicated generator         generator rotor
  Line Main      8600176    Adapters, front, front      Removal & installation of EBU             1 Set     RR        R1
                            pedestals
  Line Main      8600177    Adapters, rear, rear        Removal & installation of EBU             1 Set     RR        R1
                            pedestals
  Line Main      8600178    Front pedestals             Removal & installation of EBU             1 Set     RR        R1
  Line Main      8600179    Rear pedestals              Removal & installation of EBU             1 Set     RR        R1
  Line Main      8600213    Lifting trolley, accessory  Removal & installation of the accessory     1       RR        R3
                            gearbox                     gearbox
  Transport      8600221    Front trunnions,            Transportation of engine or powerplant    1 Set     RR        R3
                            transportation stand
  Line Main      8600222    Adapter, LP, inhibiting rig Inhibiting of the engine                    1       RR        R2
  Line Main      8600223    Adapter, HP, inhibiting rig Inhibiting of the engine                    1       RR        R2
  Line Main      8600224    Adapter, OSU, inhibiting    Inhibiting of the engine                    1       RR        R2
                            rig
  Line Main      8600225    Protective cover, SACOC     Protection of the SACOC during              1       RR        R2
                                                        maintenance activities
  Line Main       29001J    Inhibiting rig              Inhibiting of the engine                    1    Bowyer       R2
                                                                                                         Eng. Ltd.

</TABLE>
                                                                   Page 76 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

5        Engine General Features

5.1      Type Approval

The BR700-715A1-30 Engine has received the Engine Type Certificate Number
E00061EN issued by the Federal Aviation Administration (FAA).

5.2      Acceptance Test

The Dressed Engine is constructed and tested under Rolls-Royce Inspection, as
approved by JAA/FAA in accordance with JAR-E/FAR Part 33 Requirements.

5.3      Materials

All material and process specifications and subsequent revisions shall be
approved by JAA and FAA.

5.4      Lifting

Lift slinging or hoist points are provided on the Engine compressor intermediate
casing, and rear mount ring.

5.5      Log Book

A log book duly filled in and signed, together with an inspection and test
certificate is supplied with each Engine as specified by Rolls-Royce.

5.6      Leading Particulars

A summary of leading particulars is detailed below. Additional information
including but not limited to performance, weight, thrust and dimensions of the
BR715 engine will be listed in the Maintenance Manual and in the Operating
Instructions.

5.6.1    Dimensions

                                                   inch           mm
length (spinner tip to exhaust cone)              147.18        3738.39
height                                             80.77        2051.55
width                                              67.83        1722.91

5.6.2    Thrust Ratings

Thrust ratings are given at sea level test bed rating thrusts, no offtakes, for:

BR700-715A1-30 Series      Rated MTOT SLS at ISA +15(0)C 18,500 lb.

-----------------------------------------------------------------------
                         Flat Rated To :        FN 18,500 lbf
-----------------------------------------------------------------------
       Take Off              ISA + 15              18,699
-----------------------------------------------------------------------
        M / CT               ISA + 10              17,696
-----------------------------------------------------------------------

6        Engine Fuel and Oil Types

                                                                   Page 77 of 78
<PAGE>
                                Rolls-Royce Deutschland/Midwest Express Airlines
                                                         General Terms Agreement

6.1      Fuel Specifications

The Engine is currently approved for operation with fuels conforming to the
following specifications and requirements:

American: ASTM D1655-94 Jet A or A-1 or Jet B, MIL-T-83133D JP8, MIL-T-5624P,
and Grade JP5

6.2      Oil Specifications

Lubricating oils shall be per MIL-L-23699C, DERD 2497, or DERD 2499. Lubricating
oils shall be approved individually by brand name and the manufacturing quality
and consistency shall be controlled by a separate Rolls-Royce laboratory
approval letter for each oil.

Maintenance Manuals shall provide lists of all approved oils. Oils evaluated for
approval shall include Mobil Jet II and Mobil Jet 254.

                                                                   Page 78 of 78
<PAGE>

                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

April 12, 2002

Midwest Express Airlines, Inc.
6744 South Howell Avenue
Oak Creek, WI  53154

Dear Sirs:

Side Letter Agreement Number One to General Terms Agreement
RR/MWE/M055.01.00/MG752

Rolls-Royce Deutschland Ltd & Co KG ("Rolls-Royce") and Midwest Express
Airlines, Inc. ("Midwest Express") have entered into a General Terms Agreement
referenced RRD/MWE/M055.01.00/MG752, of even date herewith, relating to amongst
other things the purchase of support equipment and the provision of warranties
and guarantees (the "GTA").

In consideration of Midwest Express entering into the GTA the parties agree to
amend and supplement the GTA as follows:

Terms used herein and not defined herein shall have the meanings assigned to
them in the GTA.

1.     Installed Engine Credit

       1.1    Firm Aircraft

              Upon delivery to Midwest Express of each of the twenty-five (25)
              Firm Aircraft delivered prior to February 28, 2006, Rolls-Royce
              will provide to Midwest Express a credit in the amount of *
              United States Dollars (*).

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

<PAGE>
                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

              For the avoidance of doubt, pursuant to paragraph 1.6 of the
              Business Consideration Letter between Midwest Express and Boeing,
              of even date herewith (the "Business Consideration Letter"),
              Boeing has agreed to provide to Midwest Express a portion of such
              total credit of * United States Dollars (*) per Firm Aircraft,
              such portion amounting to * United States Dollars (*) per Firm
              Aircraft (the "Boeing Firm Aircraft Credits"). To the extent that
              Boeing provides Midwest Express with the Boeing Firm Aircraft
              Credits and payment by Boeing to Midwest Express of such credits
              is funded by Rolls-Royce, Rolls-Royce and Midwest Express agree
              that the credits to be provided directly to Midwest Express by
              Rolls-Royce pursuant to this Clause 1.1 shall be reduced to *
              United States Dollars (*) per Firm Aircraft.

       1.2    Option Aircraft

              Upon delivery to Midwest Express of up to twenty-five (25) Option
              Aircraft delivered prior to December 31, 2009, Rolls-Royce will
              provide to Midwest Express (i) a credit in the amount of * United
              States Dollars (*) for each of the first five (5) such Option
              Aircraft, and (ii) a credit in the amount of * United States
              Dollars (*) for each of the remaining twenty (20) such Option
              Aircraft.

              For the avoidance of doubt, pursuant to paragraph 1.6 of the
              Business Consideration Letter Boeing has agreed to provide to
              Midwest Express a portion of the credit of * United States Dollars
              (*) due against each of the first five (5) Option Aircraft, such
              portion amounting to * United States Dollars (*) per Option
              Aircraft (the "Boeing Option Aircraft Credits"). To the extent
              that Boeing provides Midwest Express with the Boeing Option
              Aircraft Credits against each of the first five (5) Option
              Aircraft and payment by Boeing to Midwest Express of such credits
              is funded by Rolls-Royce, Rolls-Royce and Midwest Express agree
              that the credits to be provided directly to Midwest Express by
              Rolls-Royce against each of the first five (5) Option Aircraft
              pursuant to this Clause 1.2 shall be reduced to * United States
              Dollars (*) per Firm Aircraft.

       1.3    If Midwest Express should not accept delivery of and operate the
              Aircraft contemplated in this Side Letter Agreement and the Spare
              Engines ordered in accordance with the GTA, then the value of any
              credits on a per aircraft basis becoming due to or received by
              Midwest Express pursuant to this Side Letter or the GTA will be
              reduced on a pro-rata basis.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 2 of 10
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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

       1.4    The credits set out in Clauses 1.1 and 1.2 above may be used
              towards any of the following purposes:

              1.4.1  Reduction of the acquisition price of the Aircraft;

              1.4.2  To pay for up to * of the Spare Engine list price for
                     each of the five (5) firm Spare Engines purchased by
                     Midwest Express from Rolls-Royce;

              1.4.3  Acquisition of IP spares and support equipment purchased
                     from Rolls-Royce;

              1.4.4  Reduction of up to 50% of any invoice relating to charges
                     for Covered Services under the TSP set out in Exhibit G of
                     the GTA; or

              1.4.5  Reduction of lease rentals associated with the lease of
                     Spare Engines from Rolls-Royce and Partners Finance
                     Limited.

2.     Used Spare Engine Supply

       Rolls-Royce and Midwest Express agree that one of the five firm Spare
       Engines to be purchased by Midwest Express pursuant to Schedule 1 to
       Exhibit E to the GTA shall be a used Spare Engine without QEC kit (the
       "Used Spare Engine"). Rolls-Royce shall elect the delivery date of such
       Used Spare Engine, which will be one of the delivery dates specified for
       Spare Engines in Exhibit E Schedule 1 to the GTA. The purchase by Midwest
       Express of the Used Spare Engine shall be subject to the following terms.

       2.1    Used Spare Engine Purchase Price

       The purchase price of the Used Spare Engine shall be * at July
       2001 levels, subject to escalation pursuant to the formula set forth in
       Schedule 2 to Exhibit E to the GTA.

       2.2    Used Spare Engine Credits

       Upon delivery to Midwest Express of the Used Spare Engine, Rolls-Royce
       will provide to Midwest Express the following credits, usable solely to
       reduce the purchase price of such Used Spare Engine.

              2.2.1  Delivery Credit

                     Upon delivery to Midwest Express of the Used Spare Engine,
                     Rolls-Royce will provide to Midwest Express a credit in the
                     amount of * United States Dollars (*).

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 3 of 10
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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

              2.2.2  Usage Credit

                     If, upon delivery to Midwest Express, the Used Spare Engine
                     has in excess of 2,000 (two thousand) engine flying hours
                     of operation since new, Rolls-Royce shall provide Midwest
                     Express with an additional usage credit of * (* United
                     States Dollars) for each such engine flying hour in excess
                     of 2,000 (two thousand) that such Used Spare Engine has
                     been operated.

              2.2.3  LLP Utilization Credit

                     Upon delivery to Midwest Express of the Used Spare Engine,
                     Rolls-Royce shall provide Midwest Express with an
                     additional LLP Utilization Credit of * (* United States
                     Dollars) for each cycle completed by such Used Spare Engine
                     since new.

              2.2.4  Selection of the FHA

                     If Midwest Express elects to operate under the FHA
                     contained in Exhibit G to the GTA, the credits detailed in
                     this Clause 2 will be amended in accordance with the
                     following. If Midwest Express elects to operate under the
                     Shop Visit Coverage pursuant to Clause 7.1.1 of Exhibit G
                     to the GTA but elects not to select the LLP coverage
                     pursuant to Clause 7.1.2 of Exhibit G to the GTA, the Usage
                     Credit detailed in Clause 2.2.2 herein shall not apply to
                     the purchase of the Used Spare Engine by Midwest Express.
                     If, Midwest Express elects to operate under the Shop Visit
                     Coverage pursuant to Clause 7.1.1 of Exhibit G to the GTA,
                     and also selects the LLP coverage pursuant to Clause 7.1.2
                     of Exhibit G to the GTA, then neither the Usage Credit
                     detailed in Clause 2.2.2 herein nor the LLP Utilization
                     Credit detailed in Clause 2.2.3 herein shall apply to the
                     purchase of the Used Spare Engine by Midwest Express.

              The credits detailed herein, which are at July 2001 levels and are
              subject to escalation pursuant to the formula set forth in
              Schedule 2 to Exhibit E to the GTA, are provided in addition to
              the use by Midwest Express of the Installed Engine Credits
              pursuant to Clause 1.1 and 1.2 herein against up to * of the
              Purchase Price pursuant to Clause 1.4.2 above.

       2.3    Used Spare Engine Warranty

              The provisions of Clause 12 (Grant of Warranty and Limitation of
              Liability) of the GTA shall apply to the Used Spare Engine
              purchased by Midwest Express, except as follows.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

              2.3.1  New Engine Warranty

                     Clause 2 of Exhibit C (New Engine Warranty) to the GTA,
                     shall be deleted in its entirety and replaced by the Used
                     Engine Warranty contained in Attachment A to this Side
                     Letter Agreement.

              2.3.2  Ultimate Life Warranty

                     Clause 4 of Exhibit C (Ultimate Life Warranty) to the GTA,
                     shall apply to the Used Spare Engine, except that any
                     allowances granted by Rolls-Royce against the Used Spare
                     Engine pursuant to Clause 4.2 of such Exhibit C shall be
                     reduced by the amount of any credits provided by
                     Rolls-Royce to Midwest Express pursuant to Clause 2.2.3
                     herein.

              Except as amended by the provisions of this Clause 2.3, Clause 12
              (Grant of Warranty and Limitation of Liability) of the GTA shall
              continue in full force and effect.

       Except as amended and supplemented by this Side Letter Agreement, the
       purchase by Midwest Express of the Used Spare Engine shall be subject to
       the terms of the GTA.

3.     Reduced Spare Engine Pre-Delivery Payments

       The parties agree to amend Clause 4 of Exhibit of E-1 of the GTA with
       respect to the five (5) firm Spare Engines, as follows:

       * Therefore, Midwest Express shall make payments in respect of Spare
       Engines as follows:

       o      * and

       o      *

4.     Training

       4.1    Rolls-Royce will provide free of charge training to Midwest
              Express for the following courses:

              4.1.1  General Familiarization (2 days) - For management, planning
                     engineers, and peripheral engine support personnel;

              4.1.2  Line Maintenance (7 days) - For licensed engineers
                     responsible for supervising routine and non-routine engine
                     maintenance and troubleshooting tasks; and

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 5 of 10
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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

              4.1.3  Borescope (2 days) - For personnel who specialize in
                     borescope inspection damage assessment.

       4.2    Free of charge training shall be provided for up to * students for
              each Aircraft delivered, and must be attended within two (2) years
              after the delivery of the last Aircraft.

       4.3    Each student will be provided with one (1) copy of the training
              material. Five (5) additional copies and a reproducible master of
              the training material shall be provided for Midwest Express'
              internal use.

5.     Manuals

       Rolls-Royce will provide free of charge Manuals (as detailed in Exhibit
       D, Clause 2.4 of the GTA) to Midwest Express, together with a * year
       revision service.

6.     Representative Services

       Rolls-Royce will make available the services of a field service
       representative (as detailed in Exhibit D, Clause 2.3 of the GTA) at
       Midwest Express' facilities in Milwaukee *.

7.     Obligations of Midwest Express

       The obligations of Rolls-Royce set out herein are subject to the
       following conditions:

       7.1    Midwest Express shall acquire and take delivery of at least
              twenty-five (25) new Aircraft before February 28, 2006;

       7.2    Midwest Express shall operate in regular and frequent airline
              service any Aircraft delivered from delivery of such Aircraft, *

       7.3    Midwest Express shall not be in material breach of any of its
              obligations under the GTA or any other contract with Rolls-Royce
              or an affiliate of Rolls-Royce;

       7.4    Midwest Express undertakes that the Aircraft that Midwest Express
              may acquire will be BR715 powered;

       7.5    The GTA shall remain in effect and not be terminated in accordance
              with Clause 9 of the GTA.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 6 of 10
<PAGE>
                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

8.     General Conditions

       8.1    All credits granted to Midwest Express in this Side Letter
              Agreement and the GTA are personal to Midwest Express, are
              non-assignable, and are not convertible to cash.

       8.2    Unless otherwise amended herein, the provisions of the GTA are
              hereby incorporated by reference in this Side Letter Agreement. In
              the event of any inconsistency or conflict between this Side
              Letter Agreement and the GTA, the provisions hereof shall control.

       8.3    This Side Letter Agreement shall not be amended in any way other
              than by agreement in writing, entered into by the parties hereto
              after the date of this Side Letter Agreement, which is expressly
              stated to amend this Side Letter Agreement. This Side Letter
              Agreement shall not be amended or terminated orally.

       8.4    THIS SIDE LETTER AGREEMENT SHALL BE SUBJECT TO AND INTERPRETED AND
              CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WASHINGTON
              EXCLUDING ITS CONFLICT OF LAW RULES, AND EXCLUDING THE UNITED
              NATIONS CONVENTION FOR THE INTERNATIONAL SALE OF GOODS (CISG,
              1980, "VIENNA CONVENTION").

              It is the intent of the Parties and the Airframer (collectively,
              the "Contracting Parties") that any and all disputes arising out
              of or relating to this Agreement, the Aircraft, the Engines, the
              Products or the Services that cannot be resolved through
              negotiation ("Disputes") and that involve one or more Contracting
              Parties (whether or not a particular such Dispute also involves
              disputants that are not Contracting Parties) be resolved to the
              greatest extent possible in a single, comprehensive, definitive
              litigation proceeding. Accordingly, the Parties hereby agree that
              (a) any Contracting Party that files or responds to a complaint or
              other initial pleading (in any form and however denominated) in
              connection with a Dispute shall notify the other Contracting
              Parties of the same and provide copies of said complaint or
              response to each of them; (b) any Contracting Party which
              thereafter wishes to assert a claim or grievance amounting to a
              Dispute against any other Contracting Party shall do so by way of
              a claim, counterclaim, cross-claim or third-party claim in the
              first complying litigation that is the subject of a notification
              provided for in sub-clause (a) above, unless the court refuses for
              procedural reasons to entertain such claim as part of that
              litigation; and (c) in the event that suits relating to Disputes
              are initiated in more than one court, the parties to all such
              suits shall promptly stipulate that all such suits may be
              consolidated into a single case before the U.S. District Court for
              the Eastern District of Wisconsin or, if such court lacks subject
              matter jurisdiction, a state court of competent jurisdiction
              within the geographic area included in that district

                                                                    Page 7 of 10
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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

              (in either case, the "Forum Court"), and may be heard and
              determined in a single and integrated proceeding. Each Party
              hereby consents to the exercise of personal jurisdiction over it
              by the Forum Court for the purpose of resolving any Dispute.

Please confirm your agreement to the above by executing this letter in the space
provided below.

Yours faithfully,

For Rolls-Royce Deutschland Ltd &             For Midwest Express Airlines,
  Co KG                                         Inc.

By       /s/ N.F. Ansell                    By:   /s/ Timothy E. Hoeksema
         --------------------------            ---------------------------------

Printed  N.F. Ansell                        Printed  Timothy E. Hoeksema
         --------------------------                 ----------------------------

Title:   Director                           Title:   Chairman of the Board,
         --------------------------                  President and Chief
                                                     Executive Officer

By       /s/ J.W.N. Boutell
         --------------------------

Printed  J.W.N. Boutell
         --------------------------

Title:   Director of Regional
         Programmes
         --------------------------

                                                                    Page 8 of 10
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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

                                  ATTACHMENT A

USED SPARE ENGINE WARRANTY

Rolls-Royce warrants the Used Spare Engine against defect in design, material
and workmanship which result in Failure or Resultant Damage as follows:

1        Warranty Period

         The period of this Used Spare Engine warranty shall be:

         1.1      the first * hours or cycles following delivery of the Used
                  Spare Engine to Midwest Express, whichever is first completed
                  ("First Engine Run"), and

         1.2      the * through * hours or cycles following delivery of
                  the Used Spare Engine to Midwest Express, whichever is first
                  completed ("Extended Engine Run").

2        Warranty Remedies

         2.1      First Engine Run

                  If the Used Spare Engine suffers Failure or Resultant Damage
                  during its First Engine Run warranty period as defined in
                  Clause 1.1, then:

                  2.1.1      where such Failure or Resultant Damage necessitates
                             repair of the Used Spare Engine, Rolls-Royce will
                             arrange to have such repair carried out promptly,
                             correctly and at no charge to Operator, or

                  2.1.2      where such Failure or Resultant Damage does not
                             necessitate repair of the Used Spare Engine,
                             Rolls-Royce will provide a one hundred percent
                             (100%) allowance on the Price of the affected
                             Engine Parts.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                                                    Page 9 of 10
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                                  PRIVATE DATA
      NOT TO BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES

         2.2      Extended Engine Run

                  If the Used Spare Engine suffers Failure or Resultant Damage
                  during its Extended Engine Run warranty period as defined in
                  Clause 1.2, then

                  2.2.1      where such Failure or Resultant Damage necessitates
                             repair of the Used Spare Engine, Rolls-Royce will
                             arrange to have such repair carried out promptly
                             and correctly and will accept repair charges for an
                             amount equal to

                             (* - Engine Time) / * x invoiced repair
                             charges, or

                  2.2.2      where such Failure or Resultant Damage does not
                             necessitate repair of the Used Spare Engine,
                             Rolls-Royce will provide an allowance in respect of
                             the affected Engine Parts for an amount equal to:

                             (* - Engine Time) / * x Price of such Engine
                             Parts

3        BFE Exclusion

         The Boeing and BFGoodrich Furnished Equipment (hereinafter referred to
         as "MDFE") as set out in Section 3 of the Specification for the Engine
         (Exhibit H to the GTA) shall not be warranted by Rolls-Royce and the
         benefits to Operator under any of the warranties contained in this
         Attachment A shall not apply to such MDFE.

*   Indicates that material has been omitted and confidential treatment has been
    requested therefor. All such omitted material has been filed separately with
    the SEC pursuant to Rule 24b-2.

                                 Page 10 of 10

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