Document:

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                                                                    EXHIBIT 10.9

                                                               Execution Version

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                          LOAN AGREEMENT [SPARE PARTS]

                          DATED AS OF SEPTEMBER 3, 2004

                                      AMONG

                          AMERICA WEST AIRLINES, INC.,

                      GENERAL ELECTRIC CAPITAL CORPORATION,
                             AS ADMINISTRATIVE AGENT
                      GENERAL ELECTRIC CAPITAL CORPORATION,
                          AS ORIGINAL SERIES A LENDER,
                      GENERAL ELECTRIC CAPITAL CORPORATION
                           AS ORIGINAL SERIES B LENDER

                WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION

                               AS SECURITY TRUSTEE

                                       AND

                                   THE LENDERS

                         FROM TIME TO TIME PARTY HERETO

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                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            PAGE
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<S>                                                                                                         <C>
ARTICLE I  THE LOAN.......................................................................................    1

         Section 1.1.  The Loan...........................................................................    1
         Section 1.2.  Making the Loan....................................................................    3
         Section 1.3.  Fees...............................................................................    4
         Section 1.4.  Commitment Termination.............................................................    4
         Section 1.5.  [Intentionally omitted.]...........................................................    4
         Section 1.6.  Substitute Lenders.................................................................    4
         Section 1.7.  Special Provisions Governing the Loan..............................................    5
         Section 1.8.  Payments and Computations..........................................................    7
         Section 1.9.  Sharing of Payments, Etc. .........................................................    8
         Section 1.10.  Obligation of Lenders to Mitigate.................................................    8
         Section 1.11.  Replacement Notes.................................................................    8

ARTICLE II  INTEREST......................................................................................    8

         Section 2.1.  Rate of Interest...................................................................    8
         Section 2.2.  Interest Periods...................................................................    9
                    (a)  Interest Periods.................................................................    9
                    (b)  Expiration of Interest Periods...................................................    9
         Section 2.3.  Interest Payments..................................................................    9
         Section 2.4.  Default Rate.......................................................................    9
         Section 2.5.  Computation of Interest............................................................    9
         Section 2.6.  Maximum Rate.......................................................................    9

ARTICLE III  REPRESENTATIONS AND WARRANTIES...............................................................   10

         Section 3.1.  Representations and Warranties.....................................................   10
                    (a)  Organization; Powers.............................................................   10
                    (b)  Authorization; Enforceability....................................................   10
                    (c)  No Violation.....................................................................   10
                    (d)  Governmental Approvals...........................................................   10
                    (e)  Litigation.......................................................................   11
                    (f)  Financial Condition..............................................................   11
                    (g)  No Default.......................................................................   11
                    (h)  Investment and Holding Company Status............................................   11
                    (i)  Use of Proceeds..................................................................   12
                    (j)  Licenses, Permits, etc. .........................................................   12
                    (k)  Compliance with Laws.............................................................   12
                    (l)  Tax Returns......................................................................   12
                    (m)  Information......................................................................   12
         Section 3.2.  The Pledged Spare Parts............................................................   12
                    (a)  Good Title.......................................................................   12
                    (b)  Filings..........................................................................   13
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                                TABLE OF CONTENTS
                                   (CONTINUED)

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<S>                                                                                                          <C>
                    (c)  [Intentionally Omitted]..........................................................   13
                    (d)  Section 1110.....................................................................   13
                    (e)  Conditions.......................................................................   13
                    (f)  Location, Identification and Release of Pledged Spare Parts......................   13
                    (g)  Software.........................................................................   13
                    (h)  Records..........................................................................   13
                    (i)  Spare Parts......................................................................   13
         Section 3.3.  Representations and Warranties of the Security Trustee.............................   14
                    (a)  Powers and Authorizations........................................................   14
                    (b)  Litigation.......................................................................   14
                    (c)  No Legal Bar.....................................................................   14
         Section 3.4.  Representations and Warranties of the Lenders......................................   14
                    (a)  Accredited Investor..............................................................   14
                    (b)  Investment Intent................................................................   15
                    (c)  ERISA............................................................................   15
                    (d)  No Offering......................................................................   15

ARTICLE IV  COVENANTS.....................................................................................   15

         Section 4.1.  Covenants of the Borrower..........................................................   15
                    (a)  Financial Statements and Other Information.......................................   15
                    (b)  Existence; Conduct of Business...................................................   16
                    (c)  Mergers and Consolidations.......................................................   17
                    (d)  Delivery of Post-Recording FAA Opinion...........................................   18
                    (e)  Software.........................................................................   18
                    (f)  Compliance with Mortgage.........................................................   18

ARTICLE V  INCREASED COSTS; GENERAL INDEMNITY.............................................................   18

         Section 5.1.  Increased Costs....................................................................   18
         Section 5.2.  Capital Adequacy...................................................................   19
         Section 5.3.  Withholding of Taxes...............................................................   20
                    (a) Payments to Be Free and Clear.....................................................   20
                    (b) Grossing-up of Payments...........................................................   21
                    (c) Evidence of Exemption from U.S. Withholding Tax...................................   22
         Section 5.4.      (a) Other Taxes................................................................   24
         Section 5.4.      (b) Contest of Tax Claims......................................................   25
                           (c) Non-Parties................................................................   26
         Section 5.5.  Indemnity..........................................................................   26
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                                TABLE OF CONTENTS
                                   (CONTINUED)

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<S>                                                                                                          <C>
ARTICLE VI  CONDITIONS PRECEDENT..........................................................................   28

         Section 6.1.  General Conditions.................................................................   28
         Section 6.2.  Additional Conditions..............................................................   28

ARTICLE VII  EVENTS OF DEFAULT............................................................................   32

         Section 7.1.  Events of Default..................................................................   32

ARTICLE VIII  THE TRANSACTION AGENTS......................................................................   34

         Section 8.1.  Appointment and Authorization......................................................   34
         Section 8.2.  Delegation of Duties...............................................................   34
         Section 8.3.  Exculpatory Provisions.............................................................   34
         Section 8.4.  Reliance by Transaction Agents.....................................................   34
         Section 8.5.  Notice of Events of Default........................................................   35
         Section 8.6.      Non-Reliance on Transaction Agents and Other Lenders; Lender
                           Representations................................................................   35
         Section 8.7.  Transaction Agents and Affiliates..................................................   35
         Section 8.8.  Indemnification....................................................................   35
         Section 8.9.  Successor Transaction Agents.......................................................   36
         Section 8.10. Qualifications of Successor Security Trustee.......................................   36

ARTICLE IX  MISCELLANEOUS.................................................................................   36

         Section 9.1.  Amendments.........................................................................   36
         Section 9.2.  Notices............................................................................   37
         Section 9.3.  Costs and Expenses.................................................................   37
         Section 9.4.  Certain Agreements.................................................................   37
         Section 9.5.  Entire Agreement...................................................................   37
         Section 9.6.  Cumulative Rights and Severability.................................................   38
         Section 9.7.  Waivers............................................................................   38
         Section 9.8.  Successors and Assigns; Participations; Assignments................................   38
                    (a)  Successors and Assigns...........................................................   38
                    (b)  Participations...................................................................   38
                    (c)  Assignments......................................................................   38
                    (d)  Register.........................................................................   39
         Section 9.9.  Confidentiality....................................................................   39
         Section 9.10. Counterparts.......................................................................   40
         Section 9.11. Governing Law; Submission to Jurisdiction; Venue...................................   40
         Section 9.12. Waiver of Trial by Jury............................................................   41
         Section 9.13. Effective Date.....................................................................   41
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                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<S>               <C>
Schedule 1        Definitions
Schedule 2        Omitted
Schedule 3        Certain Information
</TABLE>

<TABLE>
<S>                        <C>
EXHIBIT A-1                Form of Mortgage
EXHIBIT A-2                Form of Subordinated Mortgage
EXHIBIT B                  Form of Promissory Note
EXHIBIT C                  Form of Notice of Borrowing
EXHIBIT D                  Form of Opinion of Special Counsel to the Borrower for Closing
EXHIBIT E                  Form of Opinion of Borrower's Legal Department for Closing
EXHIBIT F                  Form of Transfer Supplement
EXHIBIT G                  Form of Certificate of Non-Bank Status
EXHIBIT H                  Form of FAA Counsel's Opinion
</TABLE>

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                          LOAN AGREEMENT [SPARE PARTS]

      THIS LOAN AGREEMENT [SPARE PARTS], dated as of September 3, 2004 (this
"Agreement"), is among AMERICA WEST AIRLINES, INC., a Delaware corporation (the
"Borrower"), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, as
Administrative Agent for the Lenders (the "Administrative Agent"), WELLS FARGO
BANK NORTHWEST, National Association, as the Security Trustee (the "Security
Trustee"), GENERAL ELECTRIC CAPITAL CORPORATION (herein called the "Original
Series A Lender"), and GENERAL ELECTRIC CAPITAL CORPORATION (herein called the
"Original Series B Lender") and such other lenders as may from time to time be
party hereto (together with the Original Series A Lender and the Original Series
B Lender, the "Lenders"). Certain capitalized terms used herein are defined, and
certain rules of construction are specified, in Schedule 1.

                                   BACKGROUND

      l The Lenders have agreed to make loans to the Borrower to be secured by a
Lien on certain spare parts and related property owned by the Borrower and
stored at certain locations.

      2 In connection with such loans, the parties hereto wish to enter into
certain related understandings, as set forth herein.

      The parties hereto agree as follows:

                                    ARTICLE I
                                    THE LOAN

      Section 1.1. The Loan.

      (a) Commitments. Subject to the terms and conditions of this Loan
Agreement, on the Funding Date the Original Series A Lender shall make a loan to
the Borrower in the principal amount equal to the Series A Commitment, and the
Original Series B Lender shall make a loan to the Borrower in the principal
amount equal to the Series B Commitment. As evidence of the loan advanced by the
Original Series A Lender, on the Funding Date the Borrower shall issue and
deliver to the Original Series A Lender, as provided hereunder, a Series A Note
payable to the Original Series A Lender in an original principal amount equal to
the amount of its Series A Commitment. As evidence of the loan advanced by the
Original Series B Lender, on the Funding Date the Borrower shall issue and
deliver to the Original Series B Lender, as provided hereunder, a Series B Note
payable to the Original Series B Lender in an original principal amount equal to
the amount of the Series B Commitment. The Notes and the Security Trustee's form
of certificate of authentication to appear on the Notes shall each be
substantially in the form set forth in Exhibit B.

      (b) The Notes: Amortization. An amount equal to one hundred percent (100%)
of the original principal amount of the Loan shall be payable on the Maturity
Date; provided that, in the event that the Notes shall have been prepaid in part
pursuant hereto (regardless of whether such prepayment is made pursuant to
subparagraphs (c) or (d) of this Section 1.1 or pursuant to

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Section 1.7), the amount of the Loan due on the Maturity Date shall be reduced
by the amount of such partial prepayment. In the case of each Note, each payment
of the principal amount, LIBOR Breakage Costs, if any, and interest or other
amounts due thereon shall be applied, first, to the payment of any amounts due
in respect of the Loan (other than principal and accrued interest on the Loan
and LIBOR Breakage Costs) to the date of such payment (including any interest on
overdue principal amount, LIBOR Breakage Costs, if any, and to the extent
permitted by law, interest and other amounts thereunder), second, to the payment
of accrued interest on the Loan to the date of such payment, third, to the
payment of LIBOR Breakage Costs, if any, due hereunder in respect of the Loan,
and fourth, the balance, if any, remaining thereafter, to the payment of the
principal amount of the Loan remaining unpaid (provided that the Loan shall not
be subject to prepayment, except as provided in Sections 1.1(c), 1.1(d) and 1.7
hereof).

      (c) Optional Prepayment.

            (i) In General. The Borrower may not, except as otherwise expressly
      provided in this Agreement, prepay the Loan (or any portion thereof) prior
      to the Designated Date. On or after the Designated Date, on any Business
      Day (a "Prepayment Date"), on not less than three Business Days' prior
      irrevocable written notice from the Borrower to the Administrative Agent,
      the Borrower may prepay all, or any portion of the outstanding principal
      amount of the Loan; provided, however, that no partial prepayment of the
      Loan shall be for less than $5,000,000 original principal amount. If the
      Borrower elects to prepay the Loan, the Borrower shall pay on the
      Prepayment Date to the Administrative Agent the outstanding principal
      amount of the Loan subject to prepayment together with all accrued and
      unpaid interest thereon, any LIBOR Breakage Costs, the Prepayment Fee (if
      applicable), and all other amounts then due and payable under the
      Transaction Documents.

            (ii) Limited Optional Prepayment. Notwithstanding anything to the
      contrary in Section 1.1(c)(i) above and without limiting the Borrower's
      obligations under Sections 5.1, 5.2 and 5.3, in the event that the
      Borrower receives notice from any Lender of any costs that the Borrower is
      required to pay to such Lender pursuant to any of Sections 5.1, 5.2 or
      5.3, the Borrower and such Lender shall negotiate in good faith in order
      to arrive at a mutually acceptable alternative means of structuring the
      Loan Amount held by such Lender in order to mitigate, minimize or
      eliminate such costs in the future. In the event that the Borrower and
      such Lender are not able to agree, within thirty (30) days following the
      date of the notice to the Borrower of amounts due under any of Section
      5.1, 5.2 or 5.3, as the case may be, on an alternative means of
      structuring the Loan Amount held by such Lender, then the Borrower shall
      have the right, exercisable upon not less than ten Business Days' prior
      notice to the applicable Lender (with a copy to the Administrative Agent),
      to prepay in full the Loan Amount held by such Lender, together with
      accrued interest thereon, any LIBOR Breakage Costs and any amounts due to
      such Lender pursuant to Sections 5.1, 5.2 and 5.3, as applicable. Any
      prepayment by the Borrower pursuant to this Section 1.1(c)(ii) shall be
      made by the Borrower directly to the applicable Lender, and no prepayment
      by the Borrower pursuant to this Section 1.1(c)(ii) shall have any effect
      on the Borrower's obligations with respect to the remaining outstanding
      balance of the Loan to any of the other Lenders hereunder. For the
      avoidance of doubt

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      such prepayment would not be subject to any Prepayment Fee, may be made
      prior to the Designated Date and may be in an amount less than $5,000,000.

      (d) Ratio Prepayment. In the event that, in accordance with Section 3.03
of the Mortgage, the Borrower is entitled to make, and elects to make, a
prepayment of the Loan, then the amount of such prepayment shall be paid,
together with accrued interest thereon to the date of such prepayment, plus any
LIBOR Breakage Costs. For the avoidance of doubt such prepayment would not be
subject to any Prepayment Fee, may be made prior to the Designated Date and may
be in an amount less than $5,000,000.

      (e) Pro Rata Treatment. Except to the extent otherwise provided herein
(including, but not limited to, as otherwise specified in Section 1.1(c)(ii)
above and Section 1.6 below): (a) the borrowing of the Loan from the Lenders
under Section 1.2 shall be made from the Lenders pro rata according to the
amounts of their respective Commitments; (b) each payment or prepayment of
principal of the Loan shall be made for account of the Lenders pro rata in
accordance with the respective unpaid principal amounts of the Loan held by them
(as evidenced by the Notes, regardless of Series, held by them); and (c) each
payment of interest on the Loan shall be made for account of the Lenders pro
rata in accordance with the amounts of interest on the Loan then due and payable
to the Lenders, but must in all respects comply with the terms of the Mortgage.

      Section 1.2. Making the Loan.

            (a) The Loan shall be requested by the delivery of a Notice of
Borrowing by the Borrower to the Administrative Agent not later than 4:00 p.m.
(New York City time) on the third Business Day prior to the Funding Date
specified in such notice. The Administrative Agent shall give to each Lender
prompt notice thereof. The Notice of Borrowing shall be irrevocable and binding
on the Borrower. The Notice of Borrowing shall be in writing specifying therein
the (i) the aggregate amount of the Loan to be funded, and (ii) the proposed
Funding Date. The Original Series A Lender and the Original Series B Lender
shall, before 10:00 a.m. (New York City time) on the scheduled Funding Date,
make available for the account of its Lending Office to the Administrative
Agent's Account, in immediately available funds, the Series A Commitment and the
Series B Commitment respectively. After the Administrative Agent's receipt of
such funds and upon fulfillment of the applicable conditions set forth in
Article VI as confirmed during a closing conference call pursuant to which the
Administrative Agent or its counsel shall indicate such fulfillment, the
Administrative Agent shall transfer such funds to the Borrower at its account at
Bank One Arizona, N.A. (ABA No. 122-100-024), Account Number 23124479.

            (b) If for any reason a Closing is not consummated on the Funding
Date set forth in the Notice of Borrowing, the Borrower may, by written notice
to the Administrative Agent given by 5:00 p.m., New York City time on the
scheduled Funding Date, designate a delayed Funding Date for such Closing, in
which case the Administrative Agent shall hold the funds provided by the Lenders
until such delayed Funding Date and use reasonable efforts to invest such funds
in Permitted Investments, as directed by the Borrower, provided, that if such
Closing does not occur by the third Business Day after such initial scheduled
Funding Date, such funds shall be returned to the Lenders. The Administrative
Agent shall pay to the Borrower upon its request

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any earnings from such investments, and the Borrower shall pay to the
Administrative Agent upon its request any losses from such investments. If the
Closing fails to occur on a scheduled or delayed Funding Date and the Borrower
does not give notice of a delayed Funding Date pursuant to this Section, the
Administrative Agent shall promptly return to the Lenders the amounts funded by
them and the Borrower shall pay to the Lenders upon demand LIBOR Breakage Costs
with respect to amounts funded plus, in the case of failure to close on a
delayed Funding Date, interest from and including the initial scheduled Funding
Date to but excluding the date on which such funds are returned by 1:00 p.m.
(New York City time) (or, if returned after such time on such date, to but
excluding the next Business Day), at a rate per annum equal to the relevant
LIBOR Rate plus the Applicable Margin that would have been applicable thereto
had the Closing occurred on the initial scheduled Funding Date. If the Borrower
has designated a delayed Funding Date pursuant to this Section and the Closing
occurs on such delayed Funding Date, the Loan shall begin to accrue interest at
the relevant LIBOR Rate plus the Applicable Margin on the date that funds were
originally provided by the Lenders to the Administrative Agent to make the Loan
(which shall be deemed to be the commencement date of the initial Interest
Period for the Loan); provided, however, if all conditions precedent specified
in Article VI are satisfied in full on or before the initial scheduled Funding
Date and the Closing does not occur on the initial scheduled Funding Date solely
due to the failure of the Lenders to fund the Loan pursuant to their respective
Commitments hereunder (but the Closing does occur later pursuant to this Section
1.2(b)), then the Loan shall begin to accrue interest only on the date that the
Closing actually occurs (rather than from the initial scheduled Funding Date).

      Section 1.3. Fees. The Borrower shall pay to the Administrative Agent
on the Funding Date an upfront fee in the amount agreed to separately with the
Administrative Agent in writing.

      Section 1.4. Commitment Termination. The Aggregate Commitment and the
Commitment of each Lender shall terminate on the earlier of (i) the making of
the Loan pursuant to Section 1.2(a) above, or (ii) at 5:00 p.m. (New York time)
on the Commitment Termination Date.

      Section 1.5. [Intentionally omitted.].

      Section 1.6. Substitute Lenders. In the event the Borrower is required
under the provisions of Section 5.1, 5.2 or 5.3 to make payments to any Lender,
a notice has been given to the Borrower under Section 1.7(g) and the Borrower
and a Lender are unable to agree on a Substitute Basis or an Affected Lender has
given notice to the Borrower under Section 1.7(c) and the Borrower and the
Affected Lender are unable to agree on a Substitute Basis, the Borrower may, so
long as no Potential Default under clause (a), (e) or (f) of Section 7.1 or
Event of Default shall have occurred and be continuing, elect to terminate such
Lender (or Affected Lender) as a party to this Agreement; provided that
concurrently with such termination, (i) the Borrower shall pay or cause to be
paid to that Lender (or Affected Lender) all principal, interest, LIBOR Breakage
Costs and fees and other Obligations (including, without limitation, amounts, if
any, owed under Sections 5.1, 5.2 and 5.3) due to such Lender (or Affected
Lender) through such date of termination, (ii) another financial institution
reasonably satisfactory to the Borrower and the Administrative Agent shall
agree, as of such date, to become a Lender for all purposes under this Agreement
(whether by assignment or amendment) and to assume all obligations of the Lender
(or Affected Lender) to be terminated as of such date, and (iii) all documents
and supporting

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materials necessary, in the reasonable judgment of the Administrative Agent, to
evidence the substitution of such Lender shall have been received and approved
by the Administrative Agent as of such date.

      Section 1.7. Special Provisions Governing the Loan. Notwithstanding any
other provision of this Agreement to the contrary, the following provisions
shall govern with respect to the Loans as to the matters covered:

      (a) As soon as practicable after 11:00 a.m. (London time) on each Interest
Rate Determination Date, the Administrative Agent shall determine the interest
rate that shall apply to each Series of Notes for the applicable Interest Period
(which determination shall be prima facie evidence of such rate) and shall
promptly give notice thereof (in writing or by telephone confirmed in writing)
to the Borrower, the Security Trustee and each Lender; provided that the
Administrative Agent's failure to so give notice shall not relieve the Borrower
of its obligation to pay interest on the Notes hereunder.

      (b) [Intentionally Omitted.]

      (c) In the event that on any date the making, maintaining or continuation
by any Lender of its Percentage Share of the Loan as evidenced by its Notes has
become unlawful as a result of compliance by such Lender in good faith with any
change that becomes effective after the date hereof in any law, treaty,
governmental rule, regulation, guideline or order (whether or not having the
force of law), then, and in any such event, such Lender shall be an "Affected
Lender" and it shall promptly so notify (by facsimile or by telephone confirmed
in writing) the Borrower and the Security Trustee (which notice the Security
Trustee shall promptly transmit to each other Lender). Thereafter (i) the
obligation of the Affected Lender to make its Percentage Share of the Loan as
evidenced by its Notes (if not yet funded) shall be suspended until such notice
shall be withdrawn by the Affected Lender, (ii) the Affected Lender's obligation
to maintain its outstanding Loan Amount as evidenced by its Notes (the "Affected
Loan Amount") shall be suspended with respect to the Affected Loan Amount until
such notice shall be withdrawn by the Affected Lender, and (iii) the parties
shall follow the procedures set forth in Section 1.7(f) with respect to the
Affected Loan Amount so long as, if following such procedures, the maintaining
continuation of such Affected Loan Amount or the balance of the Loan is not
unlawful. The Borrower may elect to terminate such Affected Lender as a party to
this Agreement in compliance with Section 1.6. Except as provided in the
immediately preceding sentence, nothing in this Section 1.7(c) shall affect the
obligation of any Lender other than an Affected Lender to make its Percentage
Share of the Loan or maintain its Loan Amount as evidenced by its Notes in
accordance with the terms of this Agreement.

      (d) The Borrower shall compensate each Lender, within ten (10) Business
Days after written request by that Lender (which request shall set forth in
reasonable detail the basis for requesting such amounts), for all reasonable
losses, costs, expenses and liabilities (including any interest paid by that
Lender to lenders of funds borrowed by it to make or carry its Loan Amount as
evidenced by its Notes and any loss, expense or liability sustained by that
Lender in connection with the liquidation or re-employment of such funds)
(collectively, "LIBOR Breakage Costs") which that Lender may sustain: (i) except
as provided in Section 1.2(b), if for any reason (other than a default by that
Lender) a borrowing of the Loan does not occur on a date

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specified therefor in a Notice of Borrowing, (ii) as a consequence of any
prepayment or other principal payment of the Loan or any portion thereof that
occurs on a date other than the last day of an Interest Period, (iii) to the
extent that any prepayment of the Loan or any portion thereof is not made on any
date specified in a notice of prepayment given by the Borrower (including,
without limitation, any notice of prepayment revoked by the Borrower), (iv) as a
consequence of the replacement of such Lender pursuant to Section 1.6 or (v) as
a consequence of any default by the Borrower in the repayment of the Loan when
required by the terms of this Agreement.

      (e) In the case of any Lender, LIBOR Breakage Costs shall not exceed the
excess, if any, of (A) the amount of interest which would have accrued on the
principal amount of such Lender's Loan Amount (or in the case of an event
described in subclause (i) of Section 1.7(c) above, such Lender's Percentage
Share) had such event not occurred, at the LIBOR Rate that would have been
applicable to the Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure
to borrow, for the period that would have been the Interest Period for the
Loan)(the "Break Period"), over (B) the interest that would have accrued on such
amount during the Break Period at an interest rate equal to the LIBOR Rate
(determined two Business Days prior to the first day of the Break Period) with a
maturity comparable to the Break Period (or, if no such rate exists for such
period, the rate determined from the applicable Bloomberg screen using standard
interpolation methodologies by reference to the next higher and next lower
available maturities (as determined by the Administrative Agent). A certificate
of any Lender setting forth any amount or amounts that such Lender is entitled
to receive pursuant to this Section shall be delivered to the Borrower and shall
be prima facie evidence of amounts owed under this Section. The Borrower shall
pay such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof.

      (f) During the 30 days following the date of any notice given to the
Borrower pursuant to Section 1.7(c) or 1.7(g), each Affected Lender (or, in the
case of Section 1.7(g), each Lender) and the Borrower shall negotiate in good
faith in order to arrive at a mutually acceptable alternative basis for
determining the interest rate from time to time applicable to the Affected Loan
Amount (or, in the case of Section 1.7(g), the Loan) (the "Substitute Basis");
such interest rate to be based on an agreed cost-of-funds benchmark plus the
Applicable Margin. If within the 30 days following the date of any such notice
to the Borrower, any Affected Lender (or, in the case of Section 1.7(g), any
Lender) and the Borrower shall agree upon a Substitute Basis, such Substitute
Basis shall be retroactive to and effective from the first day of the applicable
Interest Periods until and including the last day of such Interest Periods. If
after 30 days from the date of such notice, any Affected Lender (or, in the case
of Section 1.7(g), any Lender) and the Borrower shall have failed to agree upon
a Substitute Basis, then each such Affected Lender (or, in the case of Section
1.7(g), each such Lender) shall certify in writing to the Borrower through the
Security Trustee (such certification to be conclusive and binding on all of the
parties hereto absent manifest error) the interest rate at which such Affected
Lender (or, in the case of Section 1.7(g), such Lender) is prepared to make or
maintain the Affected Loan Amount (or, in the case of Section 1.7(g), its Loan
Amount) for such Interest Periods, such interest rate to be retroactive to and
effective from the first day of such Interest Period. If no Substitute Basis is
established, upon receipt of notice of the interest rates at which an Affected
Lender (or, in the case of Section 1.7(g), a Lender) is prepared to make or
maintain its affected Loans, the Borrower shall have the right (i) exercisable
upon ten Business Days' prior notice to such Affected Lender (or such Lender)
through the Security Trustee (A) to continue to borrow the relevant Loan Amount
at the

                                      - 6 -
<PAGE>

interest rates so advised by such Affected Lender (or such Lender) (as such
rates may be modified, from time to time, at the outset of each subsequent
Interest Period) or (B) to prepay in full the affected Loan Amount of any such
Affected Lender (or any such Lender), together with accrued interest thereon at
the interest rate certified in writing by such Affected Lender (or such Lender)
as provided above and any LIBOR Breakage Costs (provided that LIBOR Breakage
Costs shall not include amounts attributable to an Affected Lender's (or in the
case of Section 1.7(g), a Lender's) funding commitment of greater than three
months), whereupon such affected Loan Amount shall become due and payable on the
date specified by the Borrower in such notice or (ii) to substitute any such
Affected Lender (or such Lender) pursuant to the provisions of, and subject to
the conditions contained in, Section 1.6.

      (g) In the event that on any Interest Rate Determination Date, by reason
of circumstances affecting the interbank Eurodollar market, adequate and fair
means do not exist for ascertaining the interest rate applicable to the Loan on
the basis provided for in the definition of LIBOR Rate, the Administrative Agent
shall on such date give notice (by facsimile or by telephone confirmed in
writing) to the Borrower and each Lender of such circumstance, whereupon the
relevant provisions of Section 1.7(f) shall be applicable.

      Section 1.8. Payments and Computations.

      (a) The Borrower shall make each payment hereunder and under the Notes not
later than 12:30 p.m. (New York City time) on the day when due in Dollars to the
Administrative Agent's Account in immediately available funds, without set-off
or counterclaim (except for any required withholding taxes not subject to
indemnification hereunder). Any amounts received after such time may, in the
discretion of the Administrative Agent, be deemed to have been received on the
next succeeding Business Day for the purpose of calculating interest thereon.
The Administrative Agent will promptly thereafter but in no event later than
2:00 p.m. (New York City time) on the date such funds are received by the
Administrative Agent from the Borrower cause to be distributed like funds to the
Lenders for the account of their respective Lending Offices, in each case to be
applied in accordance with the terms of this Agreement. If the payment by the
Borrower is received by the Administrative Agent after 12:30 p.m., New York
time, at the place of payment, the Administrative Agent shall make payment
promptly, but not later than 2:00 p.m. New York time on the next succeeding
Business Day. Upon its acceptance of any Transfer Supplement and recording of
the information contained therein in the Register pursuant to Section 9.8(d),
from and after the effective date specified in such Transfer Supplement, the
Administrative Agent shall make all payments hereunder and under the Notes in
respect of the interest assigned thereby to the Lender assignee thereunder.

      (b) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or other amounts as the case
may be; provided, however, that, if such extension would cause payment of
interest on or principal of a Loan to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day, and such
reduction of time shall be given effect in the computation of the payment of
interest hereunder.

                                     - 7 -
<PAGE>

      Section 1.9. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Loan owing to it in excess of its
proportionate share of payments on account of the Obligations, such Lender shall
forthwith purchase from the other Lenders such participation in the applicable
Obligations as shall be necessary to cause such purchasing Lender to share the
excess payment ratably with each of them; provided, however, that if all or any
portion of such excess payment is thereafter recovered from such purchasing
Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender's proportionate share (according to
the proportion of (i) the amount of such Lender's required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Borrower agrees that any Lender so purchasing a participation
from another Lender pursuant to this Section 1.9 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the
direct creditor of the Borrower in the amount of such participation.

      Section 1.10. Obligation of Lenders to Mitigate. If an event or the
existence of a condition occurs that would cause any Lender to become an
Affected Lender or that would entitle such Lender to receive payments under
Section 5.1, 5.2 or 5.3, then, upon the request of the Borrower, such Lender
will to the extent not inconsistent with any applicable legal or regulatory
restrictions, use reasonable efforts (i) to make, fund or maintain the
Commitment of such Lender or the Loan Amount of such Lender through another
lending office of such Lender or (ii) take such other reasonable measures, if as
a result thereof the circumstances which would cause such Lender to be an
Affected Lender would cease to exist or the additional amounts which would
otherwise be required to be paid to such Lender pursuant to Sections 5.1, 5.2
and 5.3 would be reduced and if the making, funding or maintaining of such
Commitment or Loan Amount through such other lending office or in accordance
with such other measures, as the case may be, would not otherwise materially
adversely affect such Commitment or Loan Amount or the interests of such Lender;
provided that such Lender will not be obligated to utilize such other lending
office pursuant to this Section 1.10 unless the Borrower agrees to pay all
incremental expenses, if any, incurred by such Lender as a result of utilizing
such other lending office as described in clause (i) above; provided, further,
that such Lender shall have no obligation to designate another lending office
that does not maintain loans comparable to the Loan. A certificate as to the
amount of any such expenses (setting forth in reasonable detail the basis for
requesting such amount and the calculation thereof) submitted by such Lender to
the Borrower (with a copy to the Security Trustee) shall be prima facie evidence
of such expenses.

      Section 1.11. Replacement Notes So long as General Electric Capital
Corporation and its Affiliates are the only Lenders, Replacement Notes may be
issued in accordance with the terms and conditions set forth in the Restructure
Letter.

                                   ARTICLE II
                                    INTEREST

      Section 2.1. Rate of Interest. Subject to Section 1.7 hereof, each Note
shall bear interest on the unpaid principal amount thereof for each Interest
Period from the date made

                                      - 8 -
<PAGE>

through maturity (whether by acceleration or otherwise) at a rate equal to the
sum of the LIBOR Rate for such Interest Period plus the Applicable Margin. The
applicable Interest Period for determining the rate of interest with respect to
each Note or portion thereof shall be established in accordance with Section
2.2.

      Section 2.2. Interest Periods.

      (a) Interest Periods. The first Interest Period shall be the period
commencing on the Funding Date (provided, that in the case of a delayed Funding
Date, the date the funds for such Note are made available to the Administrative
Agent shall be the commencement date of such Interest Period pursuant to Section
1.2(b)), and shall end on, but shall exclude, the next Interest Payment Date,
and thereafter each successive Interest Period shall commence on (and shall
include) the last day of the next preceding Interest Period and shall end on
(but shall exclude) the next succeeding Interest Payment Date, provided however
that notwithstanding anything in this Agreement to the contrary, the final
Interest Period shall end on the Maturity Date.

      (b) Expiration of Interest Periods. If an Interest Period would otherwise
expire on a day that is not a Business Day, such Interest Period shall expire on
the next succeeding Business Day; provided that, if any Interest Period would
otherwise expire on a day that is not a Business Day but is a day of the month
after which no further Business Day occurs in such month, such Interest Period
shall expire on the next preceding Business Day.

      Section 2.3. Interest Payments. Accrued interest on each Note shall be
payable in arrears on the last day of each Interest Period; provided, that (i)
interest accrued pursuant to Section 2.4 shall be payable on demand and (ii) in
the event of any repayment or prepayment of any Note (or any portion thereof),
accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment.

      Section 2.4. Default Rate. Notwithstanding Section 2.1, the Borrower shall
pay the Security Trustee for the account of the Lenders and the Transaction
Agents on demand interest on any principal, interest, fee or other amount not
paid hereunder, under any Note or under any other Transaction Document when due
at a rate per annum that is 2% per annum in excess of the LIBOR Rate for the
relevant Interest Period plus the Applicable Margin (the "Default Rate").

      Section 2.5. Computation of Interest. Interest on the Notes shall be
computed on the basis of a 360-day year for the actual number of days elapsed in
the period during which such amount accrues. In computing such amounts, the
first day of the applicable period shall be included, and the last day of the
applicable period shall be excluded; provided that if a Note (or any portion
thereof) is repaid on the same day on which it is made, one day's interest shall
be paid on that Note or the relevant portion thereof.

      Section 2.6. Maximum Rate. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Note, together with
all fees, charges and other amounts which are treated as interest on such Note
under applicable law (collectively the "Charges"), shall exceed the maximum
lawful rate (the "Maximum Rate") which may be contracted for, charged, taken,
received or reserved by the Lender holding the Loan or the relevant portion
thereof in accordance with applicable law, the rate of interest payable in
respect of such Note or

                                      - 9 -
<PAGE>

the relevant portion thereof hereunder, together with all Charges payable in
respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
the interest and Charges that would have been payable in respect of such Note or
the relevant portion thereof but were not payable as a result of the operation
of this Section shall be cumulated and the interest and Charges payable to such
Lender in respect of other periods shall be increased (but not above the Maximum
Rate therefor) until such cumulated amount, together with interest thereon at
the LIBOR Rate to the date of repayment, shall have been received by such
Lender.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

      Section 3.1. Representations and Warranties. The Borrower represents and
warrants to the Transaction Agents and each Lender as of the date of this
Agreement that:

      (a) Organization; Powers. The Borrower is duly incorporated, validly
existing and in good standing under the laws of Delaware, has all requisite
corporate power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, would not
result in a Material Adverse Change, is qualified to do business in, and is in
good standing in, every jurisdiction where such qualification is required.

      (b) Authorization; Enforceability. The execution and delivery of the
Transaction Documents by the Borrower and the performance by the Borrower of its
obligations thereunder are within the Borrower's corporate powers, have been
duly authorized by all necessary corporate action of Borrower and do not require
any stockholder approval, or approval or consent of any trustee or holder of
indebtedness or obligations of the Borrower except such as have been duly
obtained. This Agreement has been duly executed and delivered by the Borrower
and the other Transaction Documents will be duly executed and delivered by the
Borrower when required by this Agreement. This Agreement constitutes, and each
of the other Transaction Documents when executed and delivered by the Borrower
will constitute, a legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

      (c) No Violation. The execution and delivery by the Borrower of the
Transaction Documents and the performance by the Borrower of its obligations
thereunder do not and will not (a) violate any provision of the Certificate of
Incorporation or By-Laws of the Borrower, (b) violate any law applicable to or
binding on the Borrower or (c) violate or constitute any default under (other
than any violation or default that would not result in a Material Adverse
Change), or result in the creation of any Lien (other than as permitted under
the Mortgage) upon any Pledged Spare Part under, any indenture, mortgage,
chattel mortgage, deed of trust, conditional sales contract, lease, loan or
other material agreement, instrument or document to which the Borrower is party
or by which the Borrower or any of its properties is bound.

      (d) Governmental Approvals. The execution and delivery by the Borrower of
the Transaction Documents and the performance by the Borrower of its obligations
thereunder do not and will not require the consent or approval of, or the giving
of notice to, or the registration

                                     - 10 -
<PAGE>

with, or the recording or filing of any documents with, or the taking of any
other action in respect of, any Governmental Authority, other than (i) the
consents of the ATSB and the four counterguarantors under the ATSB loan
documents to the Transaction Documents and the Additional Documents, which have
been obtained, (ii) the filings, recordings, notices and other ministerial
actions pursuant to any routine recording, and contractual or regulatory
requirements applicable to it, each of which has been effected or obtained, and
(iii) the filings described in Section 3.2(b).

      (e) Litigation. Except as set forth in the Borrower's Annual Report on
Form 10-K for 2003 (as amended through the Funding Date), or in any Quarterly
Report on Form 10-Q or Current Report on Form 8-K filed by the Borrower with the
SEC subsequent to such Form 10-K (in each case as amended through the Funding
Date) (a list of which filings has been provided by Borrower to the
Administrative Agent on the Funding Date), no action, claim or proceeding is now
pending or, to the Actual Knowledge of the Borrower, threatened against the
Borrower before any court, governmental body, arbitration board, tribunal or
administrative agency, which is reasonably likely to be determined adversely to
the Borrower and if determined adversely to the Borrower would result in a
Material Adverse Change.

      (f) Financial Condition. The audited consolidated balance sheet of the
Borrower with respect to its most recent fiscal year included in its Annual
Report on Form 10-K for 2003 (as amended through the Funding Date) filed by the
Borrower with the SEC, and the related consolidated statements of operations and
cash flows for the year then ended have been prepared in accordance with GAAP
and fairly present in all material respects the financial condition of the
Borrower and its consolidated subsidiaries as of such date and the results of
its operations and cash flows for such period, and since the date of such
balance sheet there has been no Material Adverse Change in such financial
condition or operations of the Borrower, except for matters disclosed in (a) the
financial statements referred to above or (b) any subsequent Quarterly Report on
Form 10-Q or Current Report on Form 8-K filed by the Borrower with the SEC (in
each case as amended through the Funding Date) (a list of which filings has been
provided by Borrower in writing to the Administrative Agent on the Funding
Date). The consolidated balance sheet of the Borrower as of June 30, 2004
included in its Quarterly Report on Form 10-Q for the period ended June 30,
2004, and the related consolidated statement of operations and cash flows for
the three months then ended have been prepared in accordance with GAAP (subject
to normal year-end adjustments and the absence of footnotes) and fairly present
in all material respects the financial condition of the Borrower and its
consolidated subsidiaries as of such date and the results of its operations and
cash flows for such period.

      (g) No Default. No Event of Default or Potential Default has occurred and
is continuing.

      (h) Investment and Holding Company Status. The Borrower is not (i) an
"investment company" as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (ii) a "holding company" as defined in, or
subject to regulation under, the Public Utility Holding Company Act of 1935.

                                     - 11 -
<PAGE>

      (i) Use of Proceeds. No part of the proceeds of the Loan will be used,
whether directly or indirectly, for any purpose that entails a violation of
Regulations U or X of the Board of Governors of the Federal Reserve System.

      (j) Licenses, Permits, etc. The Borrower is a Certificated Air Carrier and
holds all licenses, permits and franchises from the appropriate Governmental
Authorities necessary to authorize the Borrower to lawfully engage in air
transportation and to carry on scheduled commercial passenger service as
currently conducted, except where the failure to so hold any such license,
permit or franchise would not give rise to a Material Adverse Change.

      (k) Compliance with Laws. Each of the Borrower and its Subsidiaries is in
compliance with all laws, regulations and orders of any governmental or
regulatory authority or agency applicable to it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Change.

      (l) Tax Returns. The Borrower and its Subsidiaries have timely filed all
Federal income tax returns and all other material tax returns that are required
to be filed by them and have paid all Taxes that are material in amount shown to
be due pursuant to such returns or pursuant to any assessment received by the
Borrower or any of its Subsidiaries, other than any such assessment that is
being contested in good faith through appropriate proceedings and against which
adequate reserves are being maintained and the nonpayment of which (individually
or in the aggregate) could reasonably be expected to cause a material impairment
of the ability of the Borrower to perform, or the Transaction Agents or the
Lenders to enforce, the obligations of the Borrower under the Transaction
Documents. The charges, accruals and reserves on the books of the Borrower and
its Subsidiaries in respect of taxes and other governmental charges are, in the
opinion of the Borrower, adequate.

      (m) Information. The Borrower's Annual Report on Form 10-K for 2003 filed
with the SEC and each of the Borrower's Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K subsequently filed by the Borrower with the SEC, as
of the date it was filed with the SEC (or, if such report has been amended, in
each case as amended through the Funding Date) did not contain any untrue
statement of material fact or omit to state any material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading.

      (n) ERISA. The Borrower and its subsidiaries have no employee benefit
plans covered by the minimum funding requirements of ERISA.

      Section 3.2. The Pledged Spare Parts. The Borrower represents and
warrants to the Transaction Agents and each Lender, as of the date of this
Agreement and as of the Funding Date, that:

      (a) Good Title. The Borrower has good title to the Pledged Spare Parts,
free and clear of Liens other than any Permitted Liens and the Liens to be
released by the Release, and no Person holds any right or interest in any of the
Pledged Spare Parts by virtue of any interest that such Person may have in the
real property or improvements located at any of the Designated

                                     - 12 -
<PAGE>

Locations (whether as fee owner, landlord, tenant, ground lessor, mortgagee,
leasehold mortgagee, beneficiary of deed of trust, beneficiary of leasehold deed
of trust or otherwise).

      (b) Filings. Except for (i) the filing for recordation (and recordation)
with the FAA of the FAA Filed Documents with respect to the Pledged Spare Parts
located at the Designated Locations, and (ii) the filing of the Financing
Statements (and continuation statements relating thereto at periodic intervals)
with the Secretary of State of the State of Delaware (UCC Division) with respect
to the Collateral, no further action, including any filing or recording of any
document (including any financing statement in respect thereof under Article 9
of the UCC) is necessary in order to establish and perfect the Security
Trustee's interest in the Collateral created under the Mortgage as against the
Borrower and any other Person, in each case in any applicable jurisdiction in
the United States.

      (c) [Intentionally omitted.]

      (d) Section 1110. The Security Trustee is entitled to the benefits of
Section 1110 of the Bankruptcy Code with respect to not less than the Minimum
1110 Percentage (determined on the basis of Appraisal Value as of the Closing
Date) of the Rotables included within the Pledged Spare Parts as provided in the
Mortgage in the event of a case under Chapter 11 of the Bankruptcy Code in which
Borrower is a debtor.

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

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

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

      (h) Records. The Borrower shall maintain its records with respect to the
Pledged Spare Parts at a Borrower facility at Sky Harbor Airport in Phoenix,
Arizona, or the applicable Designated Location.

      (i) Spare Parts. It is the intention of the parties to this Agreement that
all Pledged Spare Parts be "spare parts" as defined in Section 40102(a)(38) of
Title 49 of the United States Code. The Borrower represents that it maintains
the Pledged Spare Parts for the purpose of

                                     - 13 -
<PAGE>

installing the Spare Parts on aircraft, aircraft engines or appliances as
defined in Sections 40102(a)(6), (7) and (11) of the United States Code.

      Section 3.3 Representations and Warranties of the Security Trustee. The
Security Trustee represents and warrants in its individual capacity that:

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

      (b) Litigation. There are no pending (or, to the Security Trustee's
knowledge, threatened) actions, suits, investigations or proceedings against or
affecting it before any court, arbitrator, or administrative or governmental
body which, individually or in the aggregate, if decided adversely to the
interests of the Security Trustee would materially and adversely affect the
ability of the Security Trustee, either in its individual capacity or as
Security Trustee, as the case may be, to perform its obligations under this
Agreement or any other Transaction Document or which questions or would affect
the legality or validity of this Agreement or such Transaction Document;

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

      Section 3.4 Representations and Warranties of the Lenders. Each Lender
represents and warrants that:

      (a) Accredited Investor. It is an accredited investor (as such term is
defined in Rule 501 under the Securities Act of 1933, as amended);

                                      -14-
<PAGE>

      (b) Investment Intent. It is acquiring its interest in a Note, and any
interest in and to the Collateral, for its own account for investment and not
with a view to resale or distribution (subject, however, to the disposition of
its property being at all times within its control);

      (c) ERISA. No part of the funds used by it to acquire its Notes constitute
the assets of any Plan. As used herein, "Plan" means an "employee benefit plan
(as such term is defined in Section 3(3) of ERISA or any "plan" (as such term is
defined in Section 4975(e)(1) of the Code which has been established or
maintained or contributed to by Borrower or an Affiliate that, together with
Borrower is treated as a single employer under Section 414(b), (c) or (m) of the
Code; and

      (d) No Offering. Neither it nor anyone acting on its behalf has directly
or indirectly offered its Notes or any interest therein or any interest in and
to the Collateral, for sale to, or solicited any offer to acquire any of the
same from, the public or in any manner that would violate, or require the
registration of the issuance and sale of, such Notes or any interest therein, or
any transaction contemplated hereby, under the Securities Act of 1933, as
amended, the Trust Indenture Act of 1939, as amended, or applicable state
securities laws, or that might subject the Borrower to regulation under, require
Borrower to give notice to, or register with or take any other action in respect
of, any foreign governmental authority or agency.

                                   ARTICLE IV

                                    COVENANTS

      Section 4.1. Covenants of the Borrower. The Borrower shall comply with the
following covenants and agreements, unless the Required Lenders shall otherwise
consent:

            (a) Financial Statements and Other Information. The Borrower will
      furnish to the Transaction Agents and each Lender:

                  (i) within 120 days after the end of each fiscal year of the
            Borrower, a copy of the Form 10-K (excluding exhibits) filed by the
            Borrower with the SEC for such fiscal year (or in lieu of such copy
            an e-mail notice that such report has been filed with the SEC and
            providing a web site address at which such report may be accessed,
            provided that such e-mail notice will satisfy this requirement only
            if such report is in fact accessible at such web site address), or,
            if no such Form 10-K was so filed, its audited consolidated balance
            sheet and related statements of operations, stockholders' equity and
            cash flows as of the end of and for such year, setting forth in each
            case in comparative form the figures for the previous fiscal year,
            all reported on by the Borrower's independent public accountants of
            recognized national standing to the effect that such consolidated
            financial statements present fairly in all material respects the
            consolidated financial condition and results of operations of the
            Borrower and its Subsidiaries on a consolidated basis in accordance
            with GAAP;

                  (ii) within 60 days after the end of each of the first three
            fiscal quarters of each fiscal year of the Borrower, a copy of the
            Form 10-Q (excluding exhibits) filed by the Borrower with the SEC
            for such quarterly period (or in lieu of such

                                      -15-
<PAGE>

            copy an e-mail notice that such report has been filed with the SEC
            and providing a web site address at which such report may be
            accessed, provided that such e-mail notice will satisfy this
            requirement only if such report is in fact accessible at such web
            site address), or if no such Form 10-Q was so filed, its
            consolidated balance sheet and related statements of operations and
            cash flows as of the end of and for such fiscal quarter (in the case
            of the statement of operations) and the then elapsed portion of the
            fiscal year, setting forth in each case in comparative form the
            figures for the corresponding period or periods of (or, in the case
            of the balance sheet, as of the end of) the previous fiscal year,
            prepared in accordance with GAAP, subject to normal year-end audit
            adjustments and the absence of footnotes;

                  (iii) concurrently with any delivery of financial statements
            under clause (i) above, an Officer's Certificate of the Borrower
            certifying as to whether the Borrower has Actual Knowledge that a
            Potential Default or an Event of Default has occurred and is
            continuing and, if so, specifying the details thereof and any action
            taken or proposed to be taken with respect thereto;

                  (iv) promptly following any request therefor, such other
            nonconfidential information regarding the Pledged Spare Parts, the
            operations, business affairs and financial condition of the Borrower
            or any Subsidiary, or compliance with the terms of the Transaction
            Documents, as any Transaction Agent or Lender may reasonably
            request; and

                  (v) in the event that Borrower or any Affiliate that, together
            with Borrower is treated as a single employer under Section 414(b),
            (c) or (m) of the Code, establishes any employee benefit plan
            subject to Title IV of ERISA, upon the request of the Security
            Trustee or any Lender, Borrower shall provide copies of the most
            recent annual reports or returns (IRS Form 5500), audited or
            unaudited financial statements and actuarial valuations with respect
            to such plans.

            (b) Existence; Conduct of Business. The Borrower will, and will
      cause each of its Subsidiaries to:

                  (i) do or cause to be done all things necessary to preserve
            and maintain its legal existence; provided that the foregoing shall
            not prohibit any merger, consolidation, liquidation or dissolution
            permitted under Section 4.1(c); provided further that this Section
            4.1(b)(i) shall apply to the Subsidiaries of Borrower, if any, only
            to the extent that the dissolution, termination or other loss of
            legal existence of such Subsidiaries would reasonably be expected to
            (either individually or in the aggregate) cause a material
            impairment of the ability of the Borrower to perform, or the
            Transaction Agents or the Lenders to enforce, the obligations of the
            Borrower under the Transaction Documents.

                                      -16-
<PAGE>

                  (ii) comply with the requirements of all applicable laws,
            rules, regulations and orders of governmental or regulatory
            authorities if failure to comply with such requirements would
            reasonably be expected to (either individually or in the aggregate)
            cause a material impairment of the ability of the Borrower to
            perform, or the Transaction Agents or the Lenders to enforce, the
            obligations of the Borrower under the Transaction Documents;

                  (iii) pay and discharge all Taxes imposed on it or on its
            income or profits or on any of its property prior to the date on
            which penalties attach thereto, except for any such Tax the payment
            of which is being contested in good faith and by proper proceedings
            and against which adequate reserves are being maintained, and the
            nonpayment of which (either individually or in the aggregate) could
            reasonably be expected to cause a material impairment of the ability
            of the Borrower to perform, or the Transaction Agents or the Lenders
            to enforce, the obligations of the Borrower under the Transaction
            Documents; and

                  (iv) permit representatives of any Lender, during normal
            business hours and on reasonable notice, to discuss its business and
            affairs with its officers, all to the extent reasonably requested by
            such Lender; provided, however, that this Section 4.1(b)(iv) shall
            apply to Subsidiaries of Borrower, if any, only to the extent that
            an adverse circumstance with respect to the business and affairs of
            such Subsidiaries would reasonably be expected to cause a material
            impairment of the ability of the Borrower to perform or the
            Transaction Agents or the Lenders to enforce, the obligations of the
            Borrower under the Transaction Documents.

            (c) Mergers and Consolidations. The Borrower will not consolidate
      with or merge into any other Person or convey, transfer or lease all or
      substantially all of its assets as an entirety to any Person unless:

                  (i) the Person formed by such consolidation or into which the
            Borrower is merged or the Person which acquires by conveyance,
            transfer or lease substantially all of the assets of the Borrower as
            an entirety shall be a Certificated Air Carrier;

                  (ii) the Person formed by such consolidation or into which the
            Borrower is merged or the Person which acquires by conveyance,
            transfer or lease substantially all of the assets of the Borrower as
            an entirety shall execute and deliver to the Security Trustee a duly
            authorized, valid, binding and enforceable agreement in form and
            substance reasonably satisfactory to the Security Trustee containing
            an assumption by such Person of the due and punctual performance and
            observance of each covenant and condition of the Transaction
            Documents to be performed or observed by the Borrower;

                  (iii) immediately after giving effect to such transaction, no
            Event of Default shall have occurred and be continuing;

                                      -17-
<PAGE>

                  (iv) all filings shall have been made as shall be necessary to
            preserve the perfection of (A) the Lien of the Mortgage on the
            Pledged Spare Parts on a first priority and perfected basis (subject
            to Permitted Liens) and (B) the Lien of the Subordinated Mortgage on
            Pledged Spare Parts on a second priority and perfected basis
            (subject to Permitted Liens); and

                  (v) promptly after the consummation of such transaction, the
            Borrower shall deliver to the Security Trustee a certificate of the
            Secretary or an Assistant Secretary of Borrower certifying as to
            Borrower's compliance with the conditions of this Section 4.1(c) and
            an opinion of Borrower's Legal Department as to Borrower's
            compliance with Sections 4.1(c)(i), 4.l(c)(ii) and 4.1(c)(iv).

      Upon any consolidation or merger, or any conveyance, transfer or lease of
      all or substantially all of the assets of the Borrower as an entirety in
      accordance with this Section 4.1(c), the Person formed by such
      consolidation or into which the Borrower is merged or to which such
      conveyance, transfer or lease is made shall succeed to, and be substituted
      for, and may exercise every right and power of, the Borrower under this
      Agreement and the other Transaction Documents with the same effect as if
      such Person had been named as the Borrower herein. No such conveyance,
      transfer or lease of all or substantially all of the assets of the
      Borrower as an entirety shall have the effect of releasing the Borrower or
      any Person which shall theretofore have become such in the manner
      prescribed in this Section 4.1(c) from the Borrower's liability in respect
      of any Transaction Document to which it is a party.

            (d) Delivery of Post-Recording FAA Opinion. Promptly upon the
      recording of the Mortgage, the Subordinated Mortgage and each Supplemental
      Mortgage and each Subordinated Supplemental Mortgage covering the Pledged
      Spare Parts and Designated Locations pursuant to the Act, the Borrower
      will cause Daugherty, Fowler, Peregrin & Haught, FAA counsel in Oklahoma
      City, Oklahoma, to deliver to the Security Trustee and the Borrower a
      favorable opinion addressed to each of them as to such recordation and the
      lack of filing of any intervening documents creating a Lien with respect
      to such Pledged Spare Parts.

            (e) Software. The Borrower hereby agrees that it shall maintain a\
      spare parts inventory tracking system at all times prior to the Maturity
      Date of the Loan.

            (f) Compliance with Mortgage. The Borrower will comply with the
      terms and provisions of the Mortgage.

                                    ARTICLE V
                       INCREASED COSTS; GENERAL INDEMNITY

      Section 5.1. Increased Costs. The Borrower shall pay directly to each
Lender from time to time, within ten (10) Business Days after demand therefor,
such additional amount or amounts as may be necessary to compensate such Lender
on a net after-tax basis for any increased costs incurred by such Lender which
are attributable to its making or maintaining its Percentage Share or its
Ratable Share of the Loan hereunder or its obligation to make its

                                      -18-
<PAGE>

Percentage Share of the Loan hereunder, or any reduction in any amount
receivable by such Lender under this Agreement in respect of the Loan or such
obligation (such increases in costs and reductions in amounts receivable being
herein called "Additional Costs"), resulting from any change after the date of
this Agreement in U.S. federal, state, municipal, or foreign or supranational
laws or regulations (including Regulation D of the Board of Governors of the
Federal Reserve System), or the adoption or making after the date of this
Agreement of any interpretations, directives, or requirements applying to a
class of banks including such Lender under any U.S. federal, state, municipal,
or any foreign laws or regulations (whether or not having the force of law) by
any court, central bank or monetary authority charged with the interpretation or
administration thereof (a "Regulatory Change"), which imposes or modifies any
reserve, special deposit, compulsory loan or similar requirements relating to
any extensions of credit or other assets of, or any deposits with other
liabilities of, such Lender (including its Percentage Share or its Ratable Share
of the Loan or any deposits referred to in the definition of LIBOR Rate or
related definitions) which is not otherwise included in the determination of the
applicable interest rate hereunder.

      Each Lender will notify the Borrower of any event occurring after the date
of this Agreement that will entitle such Lender to compensation pursuant to this
Section 5.1 as promptly as practicable, but in any event within 60 days, after
such Lender obtains Actual Knowledge thereof; provided, however, that if any
Lender fails to give such notice within 60 days after it obtains Actual
Knowledge of such an event, such Lender shall, with respect to compensation
payable pursuant to this Section 5.1 in respect of any costs resulting from such
event, be entitled to payment under this Section 5.1 only for costs incurred
from and after the date 60 days prior to the date that such Lender does give
such notice; provided, further that no compensation shall be payable by the
Borrower to any Lender pursuant to this Section 5.1 unless such Lender certifies
to the Borrower that (x) such Lender is assessing to its other borrowers (of
loans similar to the Loans) comparable allocable costs, and (y) such Lender
believes such costs are generally applicable to lenders similarly situated to
and in the same jurisdiction as such Lender. Such notice shall describe in
reasonable detail the calculation of the amounts owed under this Section.
Determinations by a Lender for purposes of this Section 5.1 of the effect of any
Regulatory Change on its costs of making or maintaining its Percentage Share or
its Ratable Share of the Loan or on amounts receivable by it in respect of the
Loan, and of the additional amounts required to compensate such Lender in
respect of any Additional Costs, shall be prima facie evidence of the amount
owed under this Section 5.1.

      Any assignee of a Lender that is not the initial Lender party to the Loan
Agreement shall not be entitled to any greater compensation under this Section
5.1 than that which would have been payable to the transferor Lender as of the
date of the transfer or sale of the Note to such transferee Lender; provided,
however, that, if subsequent to the date of transfer or sale of the Note there
occurs a Regulatory Change and such transferee Lender is domiciled in a
Designated Country, such transferee Lender shall be entitled to compensation
under this Section 5.1 as a result of such Regulatory Change.

      Section 5.2. Capital Adequacy. If (1) the adoption, after the date hereof,
of any applicable governmental law, rule or regulation regarding capital
adequacy, (2) any change, after the date hereof, in the interpretation or
administration of any such law, rule or regulation by any central bank or other
Governmental Authority charged with the interpretation or administration

                                      -19-
<PAGE>

thereof or (3) compliance by a Lender or any corporation or bank controlling a
Lender with any applicable guideline or request of general applicability, issued
after the date hereof, by any central bank or other Governmental Authority
(whether or not having the force of law) that constitutes a change of the nature
described in clause (2) ("Capital Adequacy Change"), has the effect of (x)
requiring an increase in the amount of capital required to be maintained by a
Lender or any corporation or bank controlling a Lender or (y) reducing the rate
of return on assets or capital of such Lender (or such corporation or bank) and
such adoption, change or compliance, as the case may be, relates to a category
of claims or assets that includes such Lender's Loan Amount, the Borrower shall
pay to such Lender from time to time such additional amount or amounts as are
necessary to compensate such Lender for such portion of such increase or
reduction as shall be reasonably allocable to such Lender's Loan Amount;
provided, that no such amounts shall be payable by the Borrower to any Lender
pursuant to this Section 5.2 unless such Lender certifies to the Borrower that
(A) such Lender is assessing to its other borrowers (of loans similar to the
Loans) comparable allocable costs, and (B) such Lender believes such costs are
generally applicable to lenders similarly situated to and in the same
jurisdiction as such Lender. For the avoidance of doubt, the matters set forth
in the Consultative Document titled "The New Basel Capital Accord" issued by the
Basel Committee on Banking Supervision in April 2003 will not be treated, for
purposes of determining whether any Lender is entitled to compensation under
this Section 5.2, as having been enacted or having come into effect before the
date of this Agreement.

      Each Lender will notify the Borrower of any event occurring after the date
of this Agreement that will entitle such Lender to compensation pursuant to this
Section 5.2 as promptly as practicable but in any event within 60 days, after
such Lender obtains Actual Knowledge thereof; provided, however, that if any
Lender fails to give such notice within 60 days after it obtains Actual
Knowledge of such an event, such Lender shall, with respect to compensation
payable pursuant to this Section 5.2 in respect of any costs resulting from such
event, be entitled to payment under this Section 5.2 only for costs incurred
from and after the date 60 days prior to the date that such Lender does give
such notice. Such notice shall describe in reasonable detail the calculation of
the amounts owed under this Section. Determinations by a Lender for purposes of
this Section 5.2 of the effect of any increase in the amount of capital required
to be maintained by the bank and of the amount allocable to such Lender's
obligations to the Borrower hereunder shall be prima facie evidence of the
amounts owed under this Section.

      Any assignee of a Lender that is not the initial Lender party to the Loan
Agreement shall not be entitled to any greater compensation under this Section
5.2 than that which would have been payable to the transferor Lender as of the
date of the transfer or sale of the Note to such transferee Lender; provided,
however, that, if subsequent to the date of transfer or sale of the Note there
occurs a Capital Adequacy Change and such transferee Lender is domiciled in a
Designated Country, such transferee Lender shall be entitled to compensation
under this Section 5.2 as a result of such Capital Adequacy Change.

      Section 5.3. Withholding of Taxes.

            (a) Payments to Be Free and Clear. All sums payable by the Borrower
      under this Agreement and the other Transaction Documents to each Lender
      and each Transaction Agent shall (except to the extent required by law) be
      paid free and clear of,

                                      -20-
<PAGE>

      and without any deduction or withholding on account of, any Tax imposed,
      levied, collected, withheld or assessed by or within any jurisdiction or
      by or within any political subdivision or taxing authority thereof or
      therein with respect to such payments.

            (b) Grossing-up of Payments. If the Borrower or any other Person is
      required by law to make any deduction or withholding on account of any Tax
      from any sum paid or payable by the Borrower to any Transaction Agent or
      any Lender under any of the Transaction Documents:

                  (i) the Borrower shall notify the Security Trustee in writing
            of such requirement;

                  (ii) the Borrower shall pay such Tax before the date on which
            any interest, addition to Tax or penalties attach thereto, such
            payment to be made (if the liability to pay is imposed on the
            Borrower) for its own account or (if that liability is imposed on
            any Transaction Agent or such Lender, as the case may be) on behalf
            of and in the name of such Transaction Agent or such Lender;

                  (iii) in the case of any Tax other than an Excluded Tax, the
            sum payable by the Borrower in respect of which the relevant
            deduction, withholding or payment is required shall be increased to
            the extent necessary to ensure that, after the making of that
            deduction, withholding or payment, such Transaction Agent or such
            Lender, as the case may be, receives on the due date a net sum equal
            to what it would have received had no such deduction, withholding or
            payment been required or made; and

                  (iv) within 30 days after paying any sum from which it is
            required by law to make any deduction or withholding, and within 30
            days after the due date of payment of any Tax which it is required
            by clause (b) above to pay, the Borrower shall deliver to the
            Security Trustee evidence reasonably satisfactory to the affected
            parties of such deduction, withholding or payment and of the
            remittance thereof to the relevant taxing or other authority.

      If any additional amounts are payable in respect of Taxes pursuant to
      clause (iii) above, the Borrower agrees to indemnify each Lender, each
      Transaction Agent and their successors, assigns and Affiliates for such
      Taxes required to be deducted or withheld and to reimburse such Persons,
      upon the written request of such Person, for the net increase in Tax
      imposed on or measured by the net income or net profits of such Lender
      (after taking into account current credits and deductions resulting from
      such Tax liability) pursuant to the laws of the jurisdiction in which such
      Lender is organized or in which the principal office or applicable Lending
      Office of such Lender is located or under the laws of any political
      subdivision or taxing authority of any such jurisdiction in which such
      Lender is organized or in which the principal office or applicable Lending
      Office of such Lender is located or in which such Lender is doing business
      (if the Taxes imposed on the net income, net profits or net gains of such
      Lender by such jurisdiction in which a Lender is doing business are
      treated as Excluded Taxes under this Agreement) and for any withholding of
      Taxes as such Lender shall reasonably determine (subject to verification

                                      -21-
<PAGE>

      pursuant to Section 5.3(c)(iv)) are payable by, or withheld from, such
      Lender in respect of such amounts so paid to or on behalf of such Lender
      pursuant to clause (iii) above and in respect of any amounts paid to or on
      behalf of such Lender pursuant to this sentence. Notwithstanding the
      foregoing provisions of this Section 5.3(b), no such additional amount
      shall be required to be paid to either Transaction Agent or any Lender
      under clause (iii) above in respect of United States federal withholding
      taxes except to the extent that such obligation to deduct or withhold
      results from a written change, after the date hereof in applicable law,
      treaty, or governmental rule, regulation or order, or any change in the
      official interpretation, administration or application thereof (other than
      the addition of or a change in an "anti-treaty-shopping" or "limitation of
      benefits" or similar provision of any income tax treaty affecting
      eligibility for benefits under such treaty).

            (c)   Evidence of Exemption from U.S. Withholding Tax.

                  (i) Each Lender that is organized under the laws of any
            jurisdiction other than the United States or any state or other
            political subdivision thereof shall, to the extent it is entitled to
            do so, deliver to the Security Trustee for transmission to the
            Borrower, at or prior to the Closing (in the case of each Lender
            listed on the signature pages hereof) or on or prior to the date of
            the Transfer Supplement pursuant to which it becomes a Lender (in
            the case of each other Lender), (x) two original copies of Internal
            Revenue Service Form W-8BEN or W-8ECI (or any successor forms),
            properly completed and duly executed by such Lender, together with
            any other certificate or statement of exemption required under the
            Internal Revenue Code or the regulations issued thereunder to
            establish that such Lender is entitled to an exemption or reduction
            in the amount of United States federal income tax required to be
            deducted or withheld from any payments to such Lender of interest,
            fees or other amounts payable under any of the Transaction Documents
            or (y) if such Lender is not a "bank" or other Person described in
            Section 881(c)(3) of the Internal Revenue Code and cannot deliver
            either Internal Revenue Service Form W-8BEN claiming exemption under
            a treaty or W-8ECI, pursuant to clause (x) above, a Certificate re
            Non-Bank Status together with two original copies of Internal
            Revenue Service Form W-8BEN (or any successor form), properly
            completed and duly executed by such Lender, together with any other
            certificate or statement of exemption required under the Internal
            Revenue Code or the regulations issued thereunder to establish that
            such Lender is entitled to an exemption or reduction in the amount
            of United States federal income tax required to be withheld from
            payments to such Lender of interest payable under any of the
            Transaction Documents.

                  Each Lender that is organized under the laws of the United
            States or any state or other political subdivision thereof shall
            deliver to the Security Trustee for transmission to the Borrower, at
            or prior to the Closing (in the case of each Lender listed on the
            signature pages hereof) or on or prior to the date of the Transfer
            Supplement pursuant to which it becomes a Lender (in the case of
            each other Lender), two original copies of Internal Revenue Service
            Form W-9 (or any successor form), properly completed and duly
            executed by such Lender, if requested by the Borrower in writing and
            required by the Internal Revenue Code

                                      -22-
<PAGE>

            or the regulations issued thereunder to permit the Borrower to pay
            to or for the account of such Lender interest, fees or other amounts
            pursuant to any of the Transaction Documents without deducting or
            withholding any United States federal income tax from such payment.

                  (ii) Each Lender required to deliver any forms, certificates
            or other evidence with respect to United States federal income tax
            withholding matters pursuant to Section 5.3(c)(i) hereby agrees,
            from time to time after the initial delivery by such Lender of such
            forms, certificates or other evidence, whenever a lapse in time or
            change in circumstances (other than, unless notified by the
            Borrower, a change in applicable United States law, including United
            States income tax conventions and treaties) renders such forms,
            certificates or other evidence obsolete or inaccurate in any
            material respect, that such Lender, to the extent it is entitled to
            do so, shall promptly (x) deliver to the Security Trustee for
            transmission to the Borrower two new original copies of Internal
            Revenue Service Form W-8BEN or W-8ECI or W-9, or a Certificate re
            Non-Bank Status and two original copies of Internal Revenue Service
            Form W-8BEN, as the case may be, properly completed and duly
            executed by such Lender, together with any other certificate or
            statement of exemption required in order to confirm or establish
            that such Lender is entitled to an exemption or reduction in the
            amount of United States federal income tax required to be withheld
            from payments to such Lender under the Transaction Documents or (y)
            notify the Security Trustee and the Borrower of its inability to
            deliver any such forms, certificates or other evidence in which case
            such Lender shall not be required to deliver any such form or
            certificate pursuant to this Section 5.3(c).

                  (iii) The Borrower shall not be required to pay any additional
            amount to any Lender under clause (iii) of Section 5.3(b) if such
            Lender shall have failed to satisfy the requirements of clause (i)
            or (ii)(x) of this Section 5.3(c); provided that if such Lender
            shall have satisfied the requirements of Section 5.3(c)(i) at or
            prior to the Closing (in the case of each Lender listed on the
            signature pages hereof) or on the date of the Transfer Supplement
            pursuant to which it became a Lender (in the case of each other
            Lender), nothing in this Section 5.3(c)(iii) shall relieve the
            Borrower of its obligation to pay any additional amounts pursuant to
            Section 5.3(b) in the event that, as a result of any change in any
            applicable law, treaty or governmental rule, regulation or order, or
            any change in the interpretation, administration or application
            thereof, such Lender is no longer properly entitled to deliver
            forms, certificates or other evidence at a subsequent date
            establishing the fact that such Lender is not subject to withholding
            as described in Section 5.3(c)(i) or (ii).

                  (iv) If the Borrower pays any additional amount under this
            Section 5.3 to a Lender and such Lender determines in its sole
            discretion that it has actually realized in connection therewith a
            net cash benefit (including a net cash benefit which the relevant
            taxing authority applies to satisfy any liability of such Lender for
            Excluded Taxes) due to any refund or any reduction of, or credit
            against, its liabilities for Excluded Taxes in any taxable year,
            provided no Special Default or

                                      -23-
<PAGE>

            Event of Default shall have occurred and be continuing, such Lender
            shall, to the extent it can do so without prejudice to the retention
            of such benefit, pay to the Borrower an amount that the Lender
            shall, in its sole discretion, determine (subject to confirmation as
            provided below) is equal to such net cash benefit which was obtained
            by the Lender in such year as a consequence of such refund,
            reduction or credit realized in connection with the payment of such
            additional amount. A Lender shall, upon written request from the
            Borrower, provide to the Borrower a letter from independent
            accountants selected by the Lender and reasonably acceptable to the
            Borrower confirming the accuracy of the Lender's calculations of any
            amount due pursuant to the next-to-last sentence of Section 5.3(b),
            or the amount of any net benefit determined by Lender pursuant to
            the preceding sentence, provided that the interpretation of this
            Agreement or any other Transaction Document shall not be within the
            scope of the accountants' confirmation. Nothing contained in this
            Section 5.3(c)(iv) shall be construed as requiring any Lender to
            conduct its business or arrange or alter in any respect its tax or
            financial affairs so that it is entitled to receive a refund,
            reduction or credit or shall require any Lender to provide to the
            Borrower or its agents copies of any tax returns or other
            information with respect to the income, assets or operations
            attesting to such Lender's determination. The Borrower shall
            reimburse each Lender for all costs and expenses incurred by Lender
            in obtaining such accountants' letter, provided that the
            accountants' letter confirms, in all material respects, Lender's
            determination.

                  (v) The Borrower shall have no obligation to pay to any Lender
            any additional amount under Section 5.3(b)(iii) or to indemnify any
            Lender under Section 5.4 for any United States federal income tax or
            withholding tax which was required by law to be deducted or withheld
            by the Borrower or any Transaction Agent from any prior payment to
            or for the benefit of such Lender pursuant to the Transaction
            Documents but which was not deducted or withheld due to the
            Borrower's or the Transaction Agent's reasonable reliance on an
            Internal Revenue Service Form W-8BEN or W-8ECI or W-9 (or applicable
            successor form) theretofore delivered by such Lender pursuant to
            Section 5.3(c)(i) or (ii) if such form was inaccurate in any
            material respect when delivered by such Lender and such Lender had
            actual knowledge of such inaccuracy at the time such Lender
            delivered such form.

      Section 5.4. (a) Other Taxes. In addition to the amounts described
elsewhere in this Article V, the Borrower shall pay, and indemnify, and hold
harmless on a net after-tax basis each Lender and the Security Trustee from and
against all Other Taxes (other than (i) Taxes imposed by deduction or
withholding from amounts payable by the Borrower to any Transaction Agent or
Lender, (ii) Excluded Taxes and (iii) Taxes imposed on or with respect to a
transfer (including a participation) of any interest in a Loan unless such
transfer is in connection with an Event of Default or at the Borrower's request)
which arise from any payment made hereunder or under any other Transaction
Document or from the execution, delivery, registration, filing, recording,
performance or enforcement of, or otherwise with respect to, this Agreement or
any other Transaction Document or otherwise in connection with or as a result of
the transactions

                                      -24-
<PAGE>

contemplated by the Transaction Documents.

      (b) Contest of Tax Claims. If a Lender or either Transaction Agent (each a
"Tax Indemnitee") receives a written claim from any taxing authority for any Tax
for which the Borrower is liable pursuant to Section 5.3 or 5.4 (a "Tax Claim"),
such Tax Indemnitee shall promptly notify the Borrower in writing. If requested
by the Borrower in writing within 30 days after receipt of such Tax Indemnitee's
written notice (provided that if a response to such Tax Claim is due less than
40 days after the Borrower's receipt of such Tax Indemnitee's notice, the
Borrower's request must be made within 15 days or, if longer, the period ending
not later than the 10th day before the day on which the response to such Tax
Claim is due), such Tax Indemnitee shall in good faith contest or, at such Tax
Indemnitee's election, permit the Borrower to contest (unless such contest
involves Excluded Taxes or, in such Tax Indemnitee's reasonable, good faith
judgment, permitting the Borrower to contest may have a material adverse effect
on such Tax Indemnitee), in each case in accordance with and to the extent
permitted by applicable law and at the Borrower's expense, such Tax Claim,
provided that no Tax Indemnitee shall have any obligation to commence or
continue the contest of any such Tax Claim unless the following conditions are
satisfied at the time the contest is to be commenced and at all times during the
contest:

            (i) no Event of Default (or event described in Section 7.1(a), (b),
      (f) which would become an Event of Default after passage of time) shall
      have occurred and be continuing,

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

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

            (iv) such Tax Indemnitee shall have received a written confirmation
      of the Borrower that the Taxes that are the subject of such Tax Claim are
      Tax for which the Borrower is liable pursuant to Section 5.3 or 5.4,
      provided that the Borrower shall not be bound by such confirmation to the
      extent that the final determination of the contest articulates conclusions
      of law and fact that demonstrate that the Taxes that are the subject of
      such Tax Claim are Excluded Taxes,

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

                                      -25-
<PAGE>

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

            (vii) the Borrower shall be paying, on demand and on an after-tax
      basis, all reasonable costs and expenses incurred by such Tax Indemnitee,
      any Transaction Agent or any Lender in connection with the conduct of such
      contest (including, without limitation, reasonable attorneys' and
      accountants' fees and disbursements).

      (c) Non-Parties. If a Tax Indemnitee is not a party to this Agreement, the
Borrower may require such Tax Indemnitee to agree in writing to the terms of
Sections 5.3 and 5.4 prior to making any payment to such Tax Indemnitee under
Section 5.3 or 5.4.

      Section 5.5. Indemnity. (a) Indemnity Obligation. The Borrower agrees to
indemnify and hold harmless each Lender, the Security Trustee, the
Administrative Agent, General Electric Capital Corporation under the Restructure
Letter and their respective successors, assigns, directors, officers, employees
and agents (hereinafter in this Section 5.5 referred to individually as an
"Indemnitee," and collectively as "Indemnitees") on an after-tax basis against
any and all liabilities, obligations, losses, damages, penalties, claims,
demands, actions, suits, judgments and any and all costs and expenses (including
reasonable attorneys' fees, disbursements and other charges) (for the purposes
of this Section 5.5 the foregoing are collectively called "Losses") of
whatsoever kind and nature imposed on, asserted against or incurred or suffered
by any of the Indemnitees in any way relating to, or arising out of, or by
reason of any investigation, litigation, or other proceedings (including any
threatened investigation, litigation or other proceedings) relating to the
Mortgage or the exercise or enforcement by the Security Trustee of any of the
terms, rights, or remedies thereunder, or in any way relating to or arising out
of the manufacture, ownership, ordering, purchase, delivery, control,
acceptance, lease, possession, operation, condition, sale, return or other
disposition, or use of the Collateral (including latent or other defects,
whether or not discoverable), the violation of the Laws of any country, state or
other governmental authority with respect to or arising otherwise in connection
with the Collateral, or any tort (including claims arising or imposed under the
doctrine of strict liability, or for or on account of injury to or the death of
any Person (including any Indemnitee), or property damage) with respect to or
arising otherwise in connection with the Collateral (but excluding any such
Losses to the extent incurred by reason of (i) the gross negligence or willful
misconduct of such Indemnitee or any related Indemnitee (as defined below), (ii)
Taxes, reserve requirements or similar regulatory requirements imposed by
banking authorities except as otherwise provided in Sections 5.1, 5.2, 5.3 and
5.4 hereof, (iii) breaches by such Indemnitee of any Transaction Document to
which it is a party or (iv) to the extent attributable to the failure of any
Transaction Agent to distribute funds received and distributable by it in
accordance any such Transaction Documents). For purposes of subclause (i) above,
an Indemnitee shall be considered a "related" Indemnitee with respect to another
Indemnitee if such Indemnitee is an Affiliate or employer of such other
Indemnitee or a director,

                                      -26-
<PAGE>

officer, employee or agent of such other Indemnitee, or a successor or assignee
of such other Indemnitee.

      (b) Indemnification Procedures.

            (i) Notice. In case any action, suit or proceeding shall be brought
against any Indemnitee for which such Indemnitee will seek indemnification under
Section 5.5(a), such Indemnitee shall notify the Borrower of the commencement
thereof and the Borrower may, subject to the provisions of this Section 5.5, at
its expense, participate in and to the extent that it shall wish (subject to the
provisions of the following subsections), assume and control the defense thereof
and, subject to Section 5.5(b)(iii), settle or compromise the same.
Notwithstanding the foregoing, the failure of any Indemnitee to notify the
Borrower as provided in this Section 5.5(b)(i) shall not release the Borrower
from any of its obligations to indemnify such Indemnitee hereunder, except to
the extent that such failure results in an additional Loss to the Borrower (in
which event the Borrower shall not be responsible for such additional Loss) or
materially impairs the Borrower's ability to contest such claim.

            (ii) Control. The Borrower or its insurer(s) shall have the right,
at its or their expense, to investigate and, if the Borrower or its insurer(s)
shall agree not to dispute liability to the Indemnitee giving notice of such
action, suit or proceeding under Section 5.5(a) or under any insurance policies
pursuant to which coverage is sought, control the defense of any action, suit or
proceeding relating to any Losses for which indemnification is sought pursuant
to this Section 5.5, and each Indemnitee shall cooperate with the Borrower or
its insurer(s) with respect thereto; provided, that the Borrower shall not be
entitled to control the defense of any such action, suit, proceeding or
compromise any such Losses during the continuance of any Event of Default and so
long as no such cooperation shall entail a material risk of (A) criminal
liability of such Indemnitee, (B) unindemnified civil liability of such
Indemnitee or (C) the sale, loss, forfeiture or seizure of the Collateral. In
connection with any such action, suit or proceeding being controlled by the
Borrower, such Indemnitee shall have the right to participate therein, at its
sole cost and expense.

            (iii) Settlement. In no event shall any Indemnitee enter into a
settlement or other compromise with respect to any Losses without the prior
written consent of the Borrower, unless such Indemnitee waives its right to be
indemnified with respect to such Losses under this Section 5.5.

            (iv) Cooperation. Each Indemnitee agrees to cooperate with the
Borrower and its insurers in the exercise of their rights to investigate, defend
or compromise Losses for which indemnification may be claimed hereunder.

            (v) Nonparties. If an Indemnitee is not a party to this Agreement,
the Borrower may require such Indemnitee to agree in writing to the terms of
this Section 5.5 prior to making any payment to such Indemnitee under this
Section 5.5.

            (vi) No Requirement. Nothing contained in this Section 5.5(b) shall
be deemed to require an Indemnitee to assume responsibility for or control of
any judicial proceeding with respect to any Losses.

                                      -27-
<PAGE>

                                   ARTICLE VI

                              CONDITIONS PRECEDENT

      Section 6.1. General Conditions. The obligation of the Original Lenders to
make the Loan is subject to the conditions that on or prior to the Funding Date:

      (a) The Borrower shall have delivered to the Administrative Agent (with a
copy for each Original Lender) the following:

            (i) an executed counterpart of this Agreement;

            (ii) an executed counterpart of the Payment and Indemnity Agreement;

            (iii) an executed counterpart of the Mortgage;

            (iv) an executed counterpart of the Subordinated Mortgage;

            (v) an executed counterpart of the Security Trustee Agreement;

            (vi) an opinion of Vedder, Price, Kaufman & Kammholz, P.C., special
      New York counsel to the Borrower, substantially in the form of Exhibit D
      to this Agreement;

            (vii) an opinion of the Borrower's Legal Department, substantially
      in the form of Exhibit E to this Agreement;

            (viii) an opinion of Ray, Quinney & Nebeker, special counsel to the
      Security Trustee, in a form satisfactory to the Administrative Agent;

            (ix) an opinion of Daugherty, Fowler, Peregrin & Haught, FAA
      counsel, substantially in the form of Exhibit H to this Agreement;

            (x) (1) a certificate of the Secretary or an Assistant Secretary of
      the Borrower certifying (i) the resolutions of the Borrower's board of
      directors or executive committee of such board approving the transactions
      contemplated by this Agreement, (ii) the name and signature of each
      officer who executes a Transaction Document or Additional Document on the
      Borrower's behalf (on which certificate the Transaction Agents and each
      Lender may conclusively rely until a revised certificate is received),
      (iii) the Borrower's certificate of incorporation and (iv) a copy of the
      Borrower's By-Laws and (2) a good standing certificate of the Borrower
      from the Secretary of State of the State of Delaware; and

            (xi) an executed counterpart of the Restructure Letter.

      (b) The Borrower shall have paid the upfront fee specified in Section 1.3.

      Section 6.2. Additional Conditions. The obligation of the Lenders to make
the Loan is subject to the fulfillment, prior to or on the Funding Date, of the
following additional conditions precedent:

                                      -28-
<PAGE>

            (a) The Security Trustee shall have received the following documents
      (with a copy for each Lender):

                  (i) (1) a Series A Note (duly executed by the Borrower and
            authenticated by the Security Trustee) in an original principal
            amount equal to the Original Series A Lender's Commitment and (2)
            provided that the Original Series B Lender's Commitment is greater
            than zero, a Series B Note (duly executed by Borrower and
            authenticated by the Security Trustee) in an original principal
            amount equal to the Original Series B Lender's Commitment shall each
            have been issued to the applicable Original Lender;

                  (ii) the broker's report and insurance certificate required by
            Appendix B of the Mortgage and the Subordinated Mortgage with
            respect to the Pledged Spare Parts;

                  (iii) an Officer's Certificate of the Borrower, dated as of
            the Funding Date, stating that its representations and warranties
            set forth in Sections 3.1 and 3.2 of this Agreement are true and
            correct as of the Funding Date (or, to the extent that any such
            representation and warranty expressly relates to an earlier date,
            true and correct as of such earlier date);

                  (iv) the Financing Statements;

                  (v) the UCC Termination Statements; and

                  (vi) the Releases.

            (b) On the Funding Date, after giving effect to the filing of the
      FAA Filed Documents and the Financing Statements with respect to the
      Pledged Spare Parts, (i) the Security Trustee under the Mortgage shall
      have received a duly perfected first priority security interest in all of
      the Borrower's right, title and interest in the Pledged Spare Parts,
      subject only, after giving effect to the Release, to Permitted Liens that
      are not Liens of record and (ii) the "Security Trustee" under the
      Subordinated Mortgage shall have received a duly perfected second priority
      security interest in all of the Borrower's right, title and interest in
      the Pledged Spare Parts, subject only, after giving effect to the Release,
      to the Lien of the Mortgage and other Permitted Liens (as defined in the
      Subordinated Mortgage) that are not Liens of Record.

            (c) No change shall have occurred after the date of this Agreement
      in any applicable law that makes it a violation of law for (a) the
      Borrower, the Transaction Agents or any Lender to execute, deliver and
      perform the Transaction Documents or Additional Documents to which any of
      them is a party or (b) any Lender to make the Loans with respect to the
      Pledged Spare Parts.

            (d) On the Funding Date, no event shall have occurred and be
      continuing, or would result from the mortgage of the Pledged Spare Parts,
      which constitutes an Event of Default or a Potential Default.

                                      -29-
<PAGE>

            (e) The ATSB letter of approval, in form reasonably acceptable to
      each Lender and the Borrower, shall have been provided by the Borrower.

            (f) The Borrower shall have good title to the Pledged Spare Parts,
      free and clear of all Liens, except, after giving effect to the Release,
      Permitted Liens which are not Liens of Record, and with respect to each
      Designated Location that is not owned in fee simple interest by Borrower,
      free and clear of all Liens, Borrower shall have obtained from each Person
      with any interest in the real property and/or the improvements thereon at
      each Designated Location (whether as fee owner, landlord, tenant, ground
      lessor, mortgagee, leasehold mortgagee, beneficiary of deed of trust,
      beneficiary of leasehold deed of trust or otherwise), a waiver of any and
      all right or interest that such Person may otherwise have in the Pledged
      Spare Parts and such Person's consent, if applicable, to access by the
      Security Trustee and/or any Lender or any representative of any of them to
      the premises in connection with the exercise of any rights or remedies
      under or pursuant to the Mortgage or the Subordinated Mortgage (in each
      case, in form and substance satisfactory to the Lenders).

            (g) The Security Trustee shall be entitled to the benefits of
      Section 1110 of the Bankruptcy Code with respect to not less than the
      Minimum 1110 Percentage (determined on the basis of Appraisal Value as of
      the Closing Date) of the Rotables included within the Pledged Spare Parts
      as provided in the Mortgage in the event of a case under Chapter 11 of the
      Bankruptcy Code in which the Borrower is a debtor.

            (h) On the Funding Date (i) the FAA Filed Documents with respect to
      the Collateral shall have been duly filed for recordation (or shall be in
      the process of being so duly filed for recordation) with the FAA in
      accordance with the Act and (ii) each Financing Statement and each of the
      UCC Termination Statements with respect to the Collateral shall have been
      duly filed (or shall be in the process of being so duly filed) in the
      appropriate jurisdiction.

            (i) No action or proceeding shall have been instituted, nor shall
      any action be threatened in writing, before any Governmental Authority,
      nor shall any order, judgment or decree have been issued or proposed to be
      issued by any Governmental Authority, to set aside, restrain, enjoin or
      prevent the completion and consummation of this Agreement or any other
      Transaction Document, Additional Document or the transactions contemplated
      hereby or thereby.

            (j) The representations and warranties in Sections 3.1 and 3.2 shall
      be true and correct in all material respects on and as of such date
      (except to the extent such representations and warranties relate solely to
      an earlier date but then as of such earlier date).

            (k) The Borrower shall have paid (or shall have given instructions
      for the initiation of wire transfers to pay) all amounts referred to in
      the first sentence of Section 9.3 for which it shall have received
      reasonably detailed invoices at least two Business Days before the Funding
      Date.

                                      -30-
<PAGE>

            (l) No payment default (without giving effect to any grace period)
      by Borrower shall have occurred and be continuing under any of the AWA
      Operative Documents (as defined in the Payment and Indemnity Agreement) or
      any agreement to which the Borrower and any Lender or any Lender's
      Subsidiaries are parties (or any agreement to which the Borrower is a
      party relating to the same transaction as any such agreement).

            (m) No payment default by the Borrower currently exists with respect
      to any financing facility of $5,000,000 or more and the Security Trustee
      and the Lenders shall have received a certification from the Borrower to
      such effect.

            (n) All conditions to the funding of the loan contemplated by the
      Related Loan Agreement have been satisfied, and such loan is being funded
      contemporaneously with the Loan.

            (o) The ATSB letter of approval, in form reasonably satisfactory to
      each Lender and the Borrower, shall have been provided by the Borrower.

            (p) The Lenders shall have received an Appraisal (using the Physical
      Appraisal Methodology) with respect to the Pledged Spare Parts from the
      Independent Appraiser, satisfactory in the sole discretion of the Lenders,
      confirming that the aggregate Current Market Value of the Rotables
      included in the Pledged Spare Parts when multiplied by the applicable
      Advance Rates set forth in Schedule 3 would be greater than or equal to
      the Aggregate Commitment.

            (q) Lenders shall be satisfied in respect of the Borrower's system
      of inventory control.

            (r) On the Funding Date after the Loan has been made, the Rotables
      Ratio shall be no greater than the Maximum Rotables Ratio, and the Lenders
      shall have received a certification from the Borrower to such effect,
      which certification may be based upon the Current Market Value of the
      Rotables included within the Pledged Spare Parts as set forth in the
      Appraisal prepared by the Independent Appraiser and delivered to the
      Lenders pursuant to Section 6.2(o) above, but which certification shall
      include an express certification by the Borrower as to the accuracy and
      completeness of all information and data provided by Borrower to the
      Independent Appraiser for the preparation of such Appraisal.

            (s) (1) A certificate of the Secretary or an Assistant Secretary of
      the Security Trustee certifying (i) the name and signature of each officer
      who executes a Transaction Document or Additional Document on the Security
      Trustee's behalf, (ii) the Security Trustee's certificate of incorporation
      and (iii) the Security Trustee's bylaws; and (2) a good standing
      certificate of the Security Trustee from the Comptroller of the Currency.

            (t) Such other documents relating to the Loan contemplated hereby as
      the Security Trustee or any Lender may reasonably request.

                                      -31-
<PAGE>

                                   ARTICLE VII

                                EVENTS OF DEFAULT

      Section 7.1. Events of Default. Each of the following events shall
constitute an "Event of Default," whether any such event shall be voluntary or
involuntary or come about or be effected by operation of law or pursuant to or
in compliance with any judgment, decree or order of any court or any order, rule
or regulation of any administrative or governmental body:

            (a) The Borrower shall fail to make any payment of principal of or
      interest on the Loan or LIBOR Breakage Costs within five Business Days
      after the same shall have become due hereunder; or

            (b) The Borrower shall fail to pay any other amount payable
      hereunder or under any other Transaction Document when due and such
      failure shall continue for a period of ten Business Days after receipt by
      the Borrower of written notice that such payment is overdue given to the
      Borrower by any Transaction Agent or any Lender (through the Security
      Trustee); or

            (c) Any representation or warranty made by the Borrower herein or
      pursuant to Section 6.2(a)(iii) or any other Transaction Document or any
      amendment or modification hereof or thereof or waiver hereunder or
      thereunder, or in any report, certificate or other document (other than
      financial statements and other documents, including exhibits, filed with
      the SEC) prepared by the Borrower and furnished pursuant to or in
      connection with this Agreement or any other Transaction Document or any
      amendment or modification hereof or thereof or waiver hereunder or
      thereunder shall prove to have been incorrect in any material respect when
      made, such incorrect representation or warranty is material at the time in
      question, and, if curable, the same shall remain uncured for a period in
      excess of 30 days (or in the case of any representation or warranty made
      in Section 3.1(g) hereof with respect to a Potential Default, 60 days)
      after the date of written notice thereof from any Transaction Agent or any
      Lender (through the Security Trustee); or

            (d) The Borrower shall fail to perform or observe any term, covenant
      or agreement contained in this Agreement or any other Transaction Document
      on its part to be performed or observed and such failure shall remain
      unremedied for a period of 30 days after written notice of such failure
      shall have been given to the Borrower by any Transaction Agent or any
      Lender (through the Security Trustee), unless such failure is capable of
      being corrected and the Borrower shall be diligently proceeding to correct
      such failure, in which case there shall be no Event of Default unless and
      until such failure shall continue unremedied for a period of 60 days after
      receipt of such notice; or

            (e) The Borrower shall consent to the appointment of or the taking
      of possession by a receiver, trustee or liquidator of itself or of
      substantially all of its property, or the Borrower shall admit in writing
      its inability to pay its debts generally as they come due, or does not pay
      its debts generally as they become due or shall make a general assignment
      for the benefit of creditors, or the Borrower shall file a voluntary
      petition in bankruptcy or a voluntary petition or an answer seeking
      reorganization,

                                      -32-
<PAGE>

      liquidation or other relief in a case under any bankruptcy laws or other
      insolvency laws (as in effect at such time), or the Borrower shall seek
      relief by voluntary petition, answer or consent, under the provisions of
      any other bankruptcy or other similar law providing for the reorganization
      or winding-up of corporations (as in effect at such time) or the
      Borrower's board of directors shall adopt a resolution authorizing any of
      the foregoing; or

            (f) An order, judgment or decree shall be entered by any court of
      competent jurisdiction appointing, without the consent of the Borrower, a
      receiver, trustee or liquidator of the Borrower or of substantially all of
      its property, or substantially all of the property of the Borrower shall
      be sequestered, and any such order, judgment or decree of appointment or
      sequestration shall remain in force undismissed, unstayed and unvacated
      for a period of 90 days after the date of entry thereof; or a petition
      against the Borrower in a case under any bankruptcy laws or other
      insolvency laws (as in effect at such time) is filed and not withdrawn or
      dismissed within 90 days thereafter, or if, under the provisions of any
      law providing for reorganization or winding-up of corporations which may
      apply to the Borrower, any court of competent jurisdiction assumes
      jurisdiction, custody or control of the Borrower or of substantially all
      of its property and such jurisdiction, custody or control remains in force
      unrelinquished, unstayed and unterminated for a period of 90 days; or

            (g) The Borrower shall fail to carry and maintain, or cause to be
      carried and maintained, insurance on and in respect of any Pledged Spare
      Part in accordance with the provisions of Section 3.05 of the Mortgage; or

            (h) The Borrower shall cease to be a Certificated Air Carrier; or

            (i) The Mortgage shall for any reason cease to be a valid first
      priority perfected security interest (subject to Permitted Liens) in favor
      of the Security Trustee in the Borrower's right, title and interest in and
      to the Pledged Spare Parts under the laws of the United States of America;
      or

            (j) an "Event of Default" under the Related Loan Agreement shall
      have occurred and is continuing.

then, if an Event of Default referred to in clause (e) or (f) of this Section
7.1 shall have occurred and be continuing, (x) the principal of the Loan then
outstanding, together with interest accrued but unpaid thereon, LIBOR Breakage
Costs, the Prepayment Fee (if applicable), and all other amounts owing to the
Transaction Agents and any Lender hereunder or under any other Transaction
Document, shall immediately and without further act become due and payable, and
(y) the Commitments shall automatically terminate, in each case without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived by the Borrower and, if any other Event of Default shall have
occurred and be continuing, then the Administrative Agent shall, upon request of
the Required Lenders, by notice to the Borrower, terminate the Commitments and
declare the unpaid principal of the Loans then outstanding, together with
interest accrued but unpaid thereon, LIBOR Breakage Costs and all other amounts
due to the Transaction Agents and any Lender hereunder or under any other
Transaction Document, to be

                                      -33-
<PAGE>

forthwith due and payable, whereupon the Commitments shall terminate and the
Loans, all such interest and all other amounts shall become and be forthwith due
and payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by the Borrower. In addition to any
other remedies available to the Transaction Agents and the Lenders under the
Transaction Documents or at law or otherwise, if an Event of Default shall have
occurred and so long as the same shall be continuing unremedied, then and in
every such case the Security Trustee may exercise any or all of the rights and
powers and pursue any and all of the remedies set forth in the Mortgage.

                                  ARTICLE VIII
                             THE TRANSACTION AGENTS

      Section 8.1. Appointment and Authorization. Each Lender hereby irrevocably
designates and appoints General Electric Capital Corporation as the
"Administrative Agent", and Wells Fargo Bank Northwest, National Association, as
the "Security Trustee" (collectively, the "Transaction Agents") under the
Transaction Documents and authorizes each Transaction Agent to take such actions
and to exercise such powers as are delegated to it thereby and to exercise such
other powers as are reasonably incidental thereto. No Transaction Agent shall
have any duties other than those expressly set forth in a Transaction Document
or any fiduciary relationship with any Lender, and no implied obligations or
liabilities shall be read into this Agreement, or otherwise exist, against any
Transaction Agent. The Transaction Agents do not assume, nor shall they be
deemed to have assumed, any obligation to, or relationship of trust or agency
with, the Borrower. Notwithstanding any provision of this Agreement or any other
Transaction Document, in no event shall any Transaction Agent ever be required
to take any action which exposes it to personal liability or which is contrary
to the provision of any Transaction Document or applicable law.

      Section 8.2. Delegation of Duties. Each of the Transaction Agents may
execute any of its duties through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.

      Section 8.3. Exculpatory Provisions. No Transaction Agent nor any of their
respective directors, officers, agents or employees shall be liable to any
Lender for any action taken or omitted (i) with the consent or at the direction
of the Required Lenders or (ii) in the absence of such Person's gross negligence
or willful misconduct. No Transaction Agent shall be responsible to any Lender
or other Person for (a) any recitals, representations, warranties or other
statements made by the Borrower or any of its Affiliates, (b) the value,
validity, effectiveness, genuineness, enforceability or sufficiency of any
Transaction Document, (c) any failure of the Borrower or any of its Affiliates
to perform any obligation or (d) the satisfaction of any condition specified in
Article VI. No Transaction Agent shall have any obligation to any Lender to
ascertain or inquire about the observance or performance of any agreement
contained in any Transaction Document or to inspect the properties, books or
records of the Borrower or any of its Affiliates.

      Section 8.4. Reliance by Transaction Agents. As between the Transaction
Agents and the Lenders, each of the Transaction Agents shall in all cases be
entitled to rely, and shall be fully protected in relying, upon any document,
other writing or conversation reasonably believed

                                      -34-
<PAGE>

by it to be genuine and correct and to have been signed, sent or made by the
proper Person and upon advice and statements of legal counsel (including counsel
to the Borrower or any of its Affiliates), independent accountants and other
experts selected by such Transaction Agent. Each of the Transaction Agents shall
in all cases be fully justified in failing or refusing to take any action under
any Transaction Document unless it shall first receive such advice or
concurrence of the Lenders, and assurance of its indemnification, as it deems
appropriate. Subject to Section 9.1, no Transaction Agent shall effect any
waiver or grant any consent or make any determination (except as provided in
Section 1.7(a)) without the direction of the Required Lenders.

      Section 8.5. Notice of Events of Default. No Transaction Agent shall be
deemed to have knowledge or notice of the occurrence of any Potential Default
unless it has received notice from any Lender or the Borrower stating that a
Potential Default has occurred hereunder and describing such Potential Default.
Promptly upon receiving notice of the occurrence of any Potential Default, a
Transaction Agent shall notify each Lender and the other Transaction Agent of
such occurrence. The Transaction Agents shall take such action concerning a
Potential Default as may be directed by the Required Lenders (or, if required
for such action, all of the Lenders), but until a Transaction Agent receives
such directions, each Transaction Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, as such Transaction Agent deems
advisable and in the best interests of the Lenders.

      Section 8.6. Non-Reliance on Transaction Agents and Other Lenders; Lender
Representations. Except as set forth in Section 3.3 with respect to the Security
Trustee, each Lender expressly acknowledges that no Transaction Agent nor any of
their respective officers, directors, employees, agents, attorneys-in-fact or
Affiliates has made any representations or warranties to it and that no act by a
Transaction Agent hereafter taken, including any review of the affairs of the
Borrower or any of its Affiliates, shall be deemed to constitute any
representation or warranty by such Transaction Agent. Each Lender represents and
warrants to each of the Transaction Agents that, independently and without
reliance upon the Transaction Agents or any other Lender and based on such
documents and information as it has deemed appropriate, it has made and will
continue to make its own appraisal of and investigation into the business,
operations, property, prospects, financial and other conditions and
creditworthiness of the Borrower and its own decision to enter into this
Agreement and to take, or omit, action under any Transaction Document. Except
for items specifically required to be delivered hereunder, no Transaction Agent
shall have any duty or responsibility to provide any Lender with any information
concerning the Borrower or any of its Affiliates that comes into the possession
of such Transaction Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates.

      Section 8.7. Transaction Agents and Affiliates. Each of the Transaction
Agents and its Affiliates may extend credit to, accept deposits from and
generally engage in any kind of business with the Borrower or any of its
Affiliates and, in its role as a Lender, General Electric Capital Corporation
may exercise or refrain from exercising its rights and powers as if it were not
Administrative Agent.

      Section 8.8. Indemnification. Each Lender shall indemnify and hold
harmless each of the Transaction Agents and its officers, directors, employees,
representatives and agents (to the

                                      -35-
<PAGE>

extent not reimbursed by the Borrower and without limiting the obligation of the
Borrower to do so), ratably in accordance with its Percentage Share (or, after
the Commitments have been terminated, its Ratable Share) from and against any
and all liabilities, obligations, losses, damages, penalties, judgments,
settlements, costs, expenses and disbursements of any kind whatsoever (including
in connection with any investigative or threatened proceeding, whether or not
such Transaction Agent or such Person shall be designated a party thereto) that
may at any time be imposed on, incurred by or asserted against such Transaction
Agent or such Person as a result of, or related to, any of the transactions
contemplated by the Transaction Documents or the execution, delivery or
performance of the Transaction Documents or any other document furnished in
connection therewith (but excluding any such liabilities, obligations, losses,
damages, penalties, judgments, settlements, costs, expenses or disbursements
resulting solely from the gross negligence or willful misconduct of such
Transaction Agent or such Person as finally determined by a court of competent
jurisdiction).

      Section 8.9. Successor Transaction Agents. Each Transaction Agent may,
upon at least 30 days notice to the Borrower and each Lender, resign its
position as a Transaction Agent. Such resignation shall not become effective
until a successor Transaction Agent acceptable to the Borrower is appointed by
the Required Lenders and has accepted such appointment. Upon such acceptance of
its appointment as a Transaction Agent hereunder by a successor Transaction
Agent, such successor Transaction Agent shall succeed to and become vested with
all the rights and duties of the retiring Transaction Agent, and the retiring
Transaction Agent shall be discharged from its duties and obligations under the
Transaction Documents. After any retiring Transaction Agent's resignation
hereunder, the provisions of Article V and this Article VIII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was a
Transaction Agent.

      Section 8.10. Qualifications of Successor Security Trustee. Any successor
Security Trustee, however appointed, shall be a bank or trust company having a
combined capital and surplus of at least $500,000,000 and be incorporated in the
United States, so long as such an institution is willing, able and legally
qualified to perform the duties of the Security Trustee hereunder upon
reasonable or customary terms.

                                   ARTICLE IX
                                  MISCELLANEOUS

      Section 9.1. Amendments. Neither this Agreement nor any other Transaction
Document nor any terms hereof or thereof may be changed, waived, discharged or
terminated (excluding any Mortgage Supplement contemplated by the Mortgage)
unless such change, waiver, discharge or termination is in writing signed by the
Borrower and the Required Lenders, provided that no such change, waiver,
discharge or termination shall, without the consent of each Lender affected
thereby, (i) extend the final scheduled maturity of the Loan or any Note, or
reduce the rate or extend the time of payment of interest or fees thereon, or
reduce the principal amount thereof, (ii) increase the Commitment of any Lender,
(iii) release any Collateral (except as expressly provided in the Mortgage),
(iv) amend, modify or waive any provision of this Section 9.1, (v) reduce the
percentage specified in the definition of Required Lenders, (vi) consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement or (vii) impair any indemnity under a Transaction Document
in favor of such

                                      -36-
<PAGE>

Lender; provided, further, that no such change, waiver, discharge or termination
shall without the consent of a Transaction Agent, amend, modify or waive any
provision of Article VIII as same applies to such Transaction Agent or any other
provision as same relates to the rights or obligations of such Transaction
Agent.

      Section 9.2. Notices. Unless otherwise specified, all notices and other
communications hereunder shall be in writing (including by facsimile
communication), given to the appropriate Person at its address or facsimile
number set forth on the signature pages hereof or at such other address or
facsimile number as such Person may specify, and effective when received at the
address specified by such Person. The number of days for any advance notice
required hereunder may be waived (orally or in writing) by the Person receiving
such notice and, in the case of notices to the Security Trustee, the consent of
each Person to which the Security Trustee is required to forward such notice.

      Section 9.3. Costs and Expenses. The Borrower agrees to pay at or prior to
Closing after receipt of reasonably detailed invoices, all reasonable and actual
costs and expenses of the initial Lender and each Transaction Agent in
connection with the preparation, execution and delivery of the Transaction
Documents and Additional Documents (whether or not any such Transaction Document
or Additional Document is entered into), including, without limitation the
reasonable fees and expenses of (a) Holland & Knight LLP, special counsel to the
Lenders, (b) Weil, Gotshal & Manges, special bankruptcy counsel to the Lenders,
(c) Ray, Quinney & Nebeker, special counsel to the Security Trustee, and (d)
Daugherty, Fowler, Peregrin & Haught, FAA counsel. The Borrower further agrees
to pay on demand (i) the initial and annual fees, and the reasonable expenses
of, the Security Trustee in connection with the transactions contemplated hereby
and (ii) all reasonable and actual costs and expenses of each Transaction Agent
and the Lenders, if any (including, without limitation, reasonable counsel fees
and expenses), in connection with the enforcement (whether through negotiations,
legal proceedings or otherwise) of the Transaction Documents after the
occurrence of an Event of Default (including, without limitation, reasonable
fees and expenses of one counsel for the Security Trustee and one counsel for
all of the Lenders in connection with the enforcement of their rights under the
Transaction Documents).

      Section 9.4. Certain Agreements . (a) Each Lender and each Transaction
Agent agrees as to itself with the Borrower that, so long as no Event of Default
shall have occurred and be continuing, such person shall not (and shall not
permit any Affiliate or other person claiming by, through or under it to) take
or cause to be taken any action contrary to the Borrower's right to quiet
enjoyment of the Collateral, and to possess, use, retain and control the Pledged
Spare Parts and all revenues, income and profits derived therefrom without
hindrance.

      (b) Each Lender agrees to comply with its obligations under the Mortgage.

      Section 9.5. Entire Agreement. The Transaction Documents and Additional
Documents constitute the entire understanding of the parties thereto concerning
the subject matter thereof. Any previous agreements, whether written or oral,
concerning such matters are superseded thereby.

                                      -37-
<PAGE>

      Section 9.6. Cumulative Rights and Severability. All rights and remedies
of the Lenders and the Transaction Agents hereunder shall be cumulative and
non-exclusive of any rights or remedies such Persons have under law or
otherwise. Any provision hereof that is prohibited or unenforceable in any
jurisdiction shall, in such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof and without affecting such provision in any other jurisdiction.

      Section 9.7. Waivers. No failure or delay of any party hereto in
exercising any power, right, privilege or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power,
right, privilege or remedy preclude any other or further exercise thereof or the
exercise of any other power, right, privilege or remedy. Any waiver hereof shall
be effective only in the specific instance and for the specific purpose for
which such waiver was given. After any waiver, the Borrower, the Lenders and the
Transaction Agents shall be restored to their former position and rights and any
Potential Default waived shall be deemed to be cured and not continuing, but no
such waiver shall extend to (or impair any right consequent upon) any subsequent
or other Potential Default.

      Section 9.8. Successors and Assigns; Participations; Assignments.

            (a) Successors and Assigns. This Agreement shall be binding upon and
      inure to the benefit of the parties hereto and their respective successors
      and assigns. Except as otherwise provided herein, the Borrower may not
      assign or transfer any of its rights or delegate any of its duties without
      the prior consent of the Transaction Agents and each of the Lenders.

            (b) Participations. Any Lender may sell to one or more Persons (each
      a "Participant") participating interests in the interests of such Lender
      hereunder. Such Lender shall remain solely responsible for performing its
      obligations hereunder, and the Borrower and the Transaction Agents shall
      continue to deal solely and directly with such Lender in connection with
      such Lender's rights and obligations hereunder. Each Participant shall be
      entitled to the benefits of Article V; provided that such Participant
      shall not be entitled to any greater benefit under Article V than the
      Lender that sold the participating interest to the Participant would have
      been entitled to thereunder and no Participant shall be entitled to any
      benefit thereunder unless it shall perform such obligations as are imposed
      on the Lenders under Article V. A Lender shall not agree with a
      Participant to restrict such Lender's right to agree to any amendment,
      waiver or modification hereto, except amendments described in the proviso
      to Section 9.1.

            (c) Assignments. Notwithstanding the foregoing, any Lender may
      assign all or a portion of its Commitment and its outstanding Notes to a
      Qualified Affiliate of such Lender or assign all, or if less than all, a
      portion equal to at least $5,000,000 in the aggregate face amount of Notes
      and of such Commitment (and related Obligations) to one or more Eligible
      Assignees, each of which assignees referred to in Section 9.8(c) shall
      become a party to this Agreement as a Lender by execution of a supplement
      hereto in the form of Exhibit F (a "Transfer Supplement") hereto, provided
      that (i) such transfer or assignment will not be effective until recorded
      by the Security Trustee on the Register pursuant to Section 9.8(d) hereof,
      and (ii) the Original Series A Lender and the Original

                                      -38-
<PAGE>

      Series B Lender shall at all times retain, between them in the aggregate,
      at least 51% of the Aggregate Loan Amount. To the extent of any assignment
      pursuant to this Section 9.8(c) (other than an assignment to a Qualified
      Affiliate pursuant to the preceding sentence), the assigning Lender shall
      be relieved of its obligations hereunder with respect to its assigned
      Commitment. At the time of each assignment pursuant to this Section 9.8(c)
      to a Person which is not already a Lender hereunder, the respective
      assignee Lender shall provide to the Borrower and the Security Trustee the
      Internal Revenue Service forms (and, if applicable, a Certificate re
      Non-Bank Status) required by Section 5.3 (c)(i).

            (d) Register. The Borrower hereby designates the Security Trustee to
      serve as the Borrower's agent, solely for purposes of this Section 9.8(d),
      to maintain a register (the "Register") on which it will record the
      registered holder of the Notes of each Series and the registration of
      transfers of Notes of each Series made pursuant to and in accordance with
      Section 9.8(c). The Register shall be available for inspection by the
      Borrower or any Lender at any reasonable time and from time to time upon
      reasonable prior notice, and the Security Trustee shall, reasonably
      promptly after (a) any person becomes a Lender after the date hereof and
      (b) any Lender alters or modifies its name or address, notify the Borrower
      of and deliver to the Borrower a written update of the names and addresses
      of all Lenders. Failure to make any such recordation, or any error in such
      recordation shall not affect the Borrower's obligations in respect of the
      Loan Amount of any Lender. With respect to any Lender, the transfer of the
      Commitment of such Lender and the rights to the principal of, and interest
      on, the Loan Amount made pursuant to such Commitment shall not be
      effective until such transfer is recorded on the Register maintained by
      the Security Trustee with respect to ownership of such Commitment and Loan
      Amount and prior to such recordation all amounts owing to the transferor
      with respect to such Commitment and Loan Amount shall remain owing to the
      transferor. The registration of assignment or transfer of all or part of
      the Commitment and the Loan Amount shall be recorded by the Security
      Trustee on the Register only upon the acceptance by the Security Trustee
      of a properly executed and delivered Transfer Supplement. Coincident with
      the delivery of such a Transfer Supplement to the Security Trustee for
      acceptance and registration of assignment or transfer of all or part of a
      Loan Amount, or as soon thereafter as practicable, the assigning or
      transferor Lender shall surrender the Notes evidencing such Loan Amount,
      and thereupon one or more new Notes of the same series of Notes in the
      same aggregate principal amount shall be issued by the Borrower to the
      assigning or transferor Lender and/or the new Lender, as appropriate to
      reflect such assignment. Such new Notes shall be authenticated by the
      Security Trustee. By execution and delivery hereof, the Borrower request
      and directs the Security Trustee to authenticate and deliver the Notes to
      be issued hereunder and the Security Trustee agrees to do so.

      Section 9.9. Confidentiality. None of the Transaction Agents nor any
Lender shall disclose any nonpublic information relating to the Borrower
(provided to it by the Borrower) or any Transaction Document or Additional
Document to any other Person without the consent of the Borrower, other than (a)
to such Transaction Agent's or Lender's Affiliates and its officers, directors,
employees, agents and advisors and, as contemplated by Section 9.8, to actual or
prospective assignees and participants, and then, in all such cases, only with
an undertaking by

                                      -39-
<PAGE>

the party to whom such information is disclosed to keep such information
confidential, (b) as required by any law, rule or regulation or judicial
process, (c) as requested or required by any state, federal or foreign authority
or examiner regulating banks or banking, and (d) to the extent reasonably
necessary in connection with any dispute related to, or enforcement of, the
Transaction Documents or Additional Documents.

      Notwithstanding anything to the contrary set forth herein or in any other
agreement to which the parties hereto are parties or by which they are bound,
the obligations of confidentiality contained herein and therein, as they relate
to the transactions described in the Transaction Documents and the Additional
Documents (the "Transaction"), shall not apply to the U. S. federal tax
structure or U. S. federal tax treatment of the Transaction, and each party
hereto (and any employee, representative, or agent of any party hereto) may
disclose to any and all persons, without limitation of any kind, the U. S.
federal tax structure and U. S. federal tax treatment of the Transaction. The
preceding sentence is intended to cause the Transaction to be treated as not
having been offered under conditions of confidentiality for purposes of Section
1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations
promulgated under Section 6011 of the Internal Revenue Code of 1986, as amended,
and shall be construed in a manner consistent with such purpose. In addition,
each party hereto acknowledges that it has no proprietary or exclusive rights to
the U. S. federal tax structure of the Transaction or any U. S. federal tax
matter or U. S. federal tax idea related to the Transaction.Section 9.10.
Counterparts. This Agreement may be executed by different parties on any number
of counterparts, each of which shall constitute an original and all of which,
taken together, shall constitute one and the same agreement.

      Section 9.11. Governing Law; Submission to Jurisdiction; Venue.

      (a)This Agreement and the rights and obligations of the parties hereunder
and thereunder shall be construed in accordance with and be governed by the laws
of the State of New York. Any legal action or proceeding with respect to this
Agreement may be brought in the courts of the State of New York or the United
States for the Southern District of New York located in the Borough of
Manhattan, and, by execution and delivery of this Agreement or a Transfer
Supplement, each party hereto hereby irrevocably accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts. Each party hereto hereby further irrevocably waives any claim
that any such courts lack jurisdiction over such party, and agrees not to plead
or claim, in any legal action or proceeding with respect to this Agreement
brought in any of the aforesaid courts, that any such court lacks jurisdiction
over such party. Each party hereto further irrevocably consents to the service
of process out of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to it at its address specified pursuant to Section 9.2, such
service to become effective 30 days after such mailing. Nothing herein shall
affect the right of any party hereto to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
any other party hereto in any other jurisdiction.

      (b) Each party hereto hereby irrevocably waives any objection which it may
now or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement brought in the
courts referred to in clause (a) above and hereby further irrevocably waives and
agrees not to plead or claim in any such court that any such action or
proceeding brought in any such court has been brought in an inconvenient forum.

                                      -40-
<PAGE>

      Section 9.12. Waiver of Trial by Jury. To the extent permitted by
applicable law, each party hereto irrevocably waives all right of trial by jury
in any action, proceeding or counterclaim arising out of, or in connection with,
any Transaction Document or any matter arising thereunder.

      Section 9.13. Effective Date. Although this Agreement is dated as of
September 3, 2004, it shall not be effective unless and until executed by the
parties listed on the signature pages hereto.

                         [Remainder of this page blank]

                                      -41-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered by their duly authorized officers as of the date hereof.

                                   GENERAL ELECTRIC CAPITAL CORPORATION
                                   as the Administrative Agent

                                        By: /s/ Norman Liu
                                           -------------------------------------
                                        Name: Norman Liu
                                        Title: Vice President

                                        Address:
                                        General Electric Capital Corporation
                                        c/o GE Capital Aviation Services, Inc.
                                        201 High Ridge Road
                                        Stamford, Connecticut 06927

                                        Attention: Customer Services
                                        Facsimile:  (203) 357-3201
                                        email:       Nanotices@gecas.com

<PAGE>

                                        WELLS FARGO BANK NORTHWEST,
                                        NATIONAL ASSOCIATION
                                        as the Security Trustee

                                        By: /s/ Michael D. Hoggan
                                           -------------------------------------
                                        Title: Vice President
                                              ----------------------------------

                                        Address:
                                        Wells Fargo Bank Northwest, National
                                        Association
                                        MAC: U1228-120
                                        299 South Main Street
                                        12th Floor
                                        Salt Lake City, Utah 84111

                                        Attention:   Corporate Trust Services
                                        Telephone: (801) 246-5630
                                        Telecopy:    (801) 246-5053
                                        Email: michael.hoggan@wellsfargo.com

<PAGE>

                                        AMERICA WEST AIRLINES, INC.

                                        By: /s/ Thomas T. Weir
                                           -------------------------------------
                                        Name: Thomas T. Weir
                                        Title: Vice President and Treasurer

                                        Address:

                                        America West Airlines, Inc.
                                        4000 E. Sky Harbor Blvd.
                                        Phoenix, Arizona  85034

                                        Attention: Vice President and Treasurer
                                        Telephone: (480) 693-5886
                                        Telecopy:  (480) 693-3685
                                        email:      tom.weir@americawest.com

<PAGE>

                                        GENERAL ELECTRIC CAPITAL
                                        CORPORATION
                                        as Original Series A Lender

                                        By: /s/ Norman Liu
                                           ____________________________________
                                        Name: Norman Liu
                                        Title: Vice President

                                        GENERAL ELECTRIC CAPITAL
                                        CORPORATION
                                        as Original Series B Lender

                                        By: /s/ Norman Liu
                                           ____________________________________
                                        Name: Norman Liu
                                        Title: Vice President

                                        Notice Address and Lending Office:

                                        General Electric Capital Corporation
                                        c/o GE Capital Aviation Services, Inc.
                                        201 High Ridge Road
                                        Stamford, Connecticut 06927

                                        Attention: Customer Services
                                        Facsimile: (203) 357-3201
                                        email:     Nanotices@gecas.com

<PAGE>

                                   SCHEDULE 1
                  DEFINITIONS AND OTHER INTERPRETIVE PROVISIONS

      1. Definitions. The following terms have the meanings set forth, or
referred to, below:

            "Act" means part A of subtitle VII of title 49, United States Code.

            "Actual Knowledge" means, with respect to (i) any Lender, actual
      knowledge of any officer of such Lender having responsibility for the
      transactions contemplated by the Transaction Documents and (ii) any other
      Person, actual knowledge of a Vice President or more senior officer of
      such Person or any other officer of such Person having responsibility for
      the transactions contemplated by the Transaction Documents.

            "Additional Documents" means the Payment and Indemnity Agreement,
      the Subordinated Mortgage and each Subordinated Supplemental Mortgage.

            "Administrative Agent" is defined in the first paragraph of this
      Agreement.

            "Administrative Agent's Account" means the Administrative Agent's
      account number 50-234-585, reference AWA Spare Parts Loan, at Deutsche
      Bank Trust Company Americas, New York branch, ABA No. 021-001-033, Swift
      Code BKTRUS 33, or such other account at a bank in the United States
      designated to the Borrower and the Lenders by the Administrative Agent.

            "Advance Rates" has the meaning set forth on Schedule 3 to this
      Agreement.

            "Affected Lender" is defined in Section 1.7(c).

            "Affected Loan Amount" is defined in Section 1.7(c).

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

            "Aggregate Commitment" means $75,563,891, but in no event more than
      the product, calculated as of the Funding Date, of the Current Market
      Value of all Rotables included in the Pledged Spare Parts and the Advance
      Rate applicable to such Rotables.

            "Aggregate Loan Amount" means the sum of the Loan Amounts of all
      Lenders.

            "Agreement" is defined in the first paragraph of this Agreement.

                                        1
<PAGE>

            "Applicable Margin" means (a) with respect to the Original Series A
      Note and the Original Series B Note 3.0% per annum, and (b) with respect
      to any Replacement Note, the percentage set forth in such Note.

            "Appraisal" has the meaning set forth in the Mortgage.

            "Appraisal Value" has the meaning set forth in the Mortgage.

            "ATSB" means the Air Transportation Stabilization Board, or any
      agency which may succeed to the rights, duties and obligations thereof
      under applicable law.

            "Bankruptcy Code" means Title 11 of the United States Code, as the
      same may be amended.

            "Borrower" is defined in the first paragraph of this Agreement.

            "Borrower's Account" means initially the account set forth in
      Section 1.2(a) or any subsequent account designated in writing by the
      Borrower to the Security Trustee and Administrative Agent from time to
      time.

            "Business Day" means any day other than (i) a Saturday, Sunday or
      other day on which banks in New York City or Phoenix, Arizona are
      authorized or required by law to close, and (ii) with respect to all
      notices and determinations in connection with, and borrowings and payments
      of principal and interest on the Loan, any day which is a Business Day
      described in clause (i) above and which is also a day for trading by and
      between banks in the London interbank Eurodollar market.

            "Capital Adequacy Change" is defined in Section 5.2.

            "Certificate re Non-Bank Status" means a certificate substantially
      in the form of Exhibit G annexed hereto.

            "Certificated Air Carrier" is defined in the Mortgage.

            "Closing" means the time at which the Loan has been advanced to the
      Borrower.

            "Code" means the Internal Revenue Code of 1986, as amended from time
      to time.

            "Collateral" is defined in the Mortgage.

            "Commitment" means (a) with respect to the Original Series A Lender,
      its Series A Commitment and (b) with respect to the Original Series B
      Lender, its Series B Commitment. The aggregate amount of the Commitments
      is set forth in the definition of Aggregate Commitment.

            "Commitment Termination Date" means September 30, 2004.

            "Current Market Value" has the meaning set forth in the Mortgage.

                                        2
<PAGE>

            "Default Rate" is defined in Section 2.4.

            "Designated Country" means the United States, the United Kingdom,
      the Netherlands, Germany, France, Australia, Luxembourg, Switzerland,
      Italy, Japan and Ireland.

            "Designated Date" means the day coinciding with the thirtieth (30th)
      monthly anniversary of the Funding Date.

            "Designated Locations" means the locations in the U.S. designated
      from time to time by the Borrower at which the Pledged Spare Parts may be
      maintained by or on behalf of the Borrower, which initially shall be the
      locations set forth on Schedule I to the Mortgage and shall include the
      additional locations designated by the Company pursuant to Section 3.02(b)
      of the Mortgage.

            "Dollar" and "$" means lawful currency of the United States of
      America.

            "Eligible Assignee" means (i) prior to the termination of the
      Commitments in full, a Person approved by the Borrower which approval
      shall not be unreasonably withheld or delayed and which approval shall not
      be required if an Event of Default shall be continuing and (ii) after the
      termination of the Commitments in full, a bank or other financial
      institution nominated by a Lender.

            "Engine" means an engine used, or intended to be used, to propel an
      aircraft, including a part, appurtenance, and accessory of the Engine.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      as amended from time to time, and the relations promulgated and rulings
      issued thereunder. Section references to ERISA are to ERISA as in effect
      at the date of this Agreement and any subsequent provisions of ERISA
      amendatory thereof, supplemental thereto or substituted therefor.

            "Event of Default" is defined in Section 7.1.

            "Exchange Event" has the meaning set forth in the Restructure
      Letter.

            "Excluded Tax" of a Person means (A) any Tax imposed on all or part
      of the income, profits or gains (whether worldwide, or only insofar as
      such income, profits or gains are considered to arise in or to relate to a
      particular jurisdiction) of that Person, any franchise, doing business,
      net worth or capital-based Tax imposed on that Person, and any intangibles
      Tax or similar Tax imposed on the principal amount or value of the Loans,
      by any jurisdiction (including the United States) (i) in which that Person
      is organized, (ii) in which that Person's principal office or applicable
      Lending Office is located, or (iii) in which that Person is subject to
      such Tax as a result of that Person doing business unrelated to making a
      Loan under this Agreement, (B) any Tax imposed on a transferee (including
      a Participant) of a Lender or on payments to a transferee to the extent
      that, under applicable law in effect on the date of the transfer to such
      transferee, the amount of such Taxes exceeds the amount of such Taxes that
      would have been

                                        3
<PAGE>

      imposed on the transferor to such transferee or on payments to such
      transferor and indemnified against hereunder (with appropriate adjustment
      to reflect the amount of the Loan acquired by such transferee) or (C) any
      Tax to the extent that liability for such Tax is caused by, and would not
      have been incurred but for, (i) the gross negligence or willful misconduct
      of such Person or a "related" Indemnitee (as defined in Section 5.5(a)) or
      (ii) the inaccuracy of any representation of such Person in any
      Transaction Document or (iii) the breach by such Person of any of its
      obligations under Section 5.3(c)(i).

            "FAA" means the Federal Aviation Administration of the United States
      Department of Transportation, or any agency which may succeed to the
      rights, duties and obligations thereof under applicable law.

            "FAA Filed Documents" means the Release, the Mortgage, the
      Subordinated Mortgage and any Supplemental Mortgage.

            "Federal Aviation Act" means Title 49 of the United States Code
      which, among other things, recodified and replaced the U.S. Federal
      Aviation Act of 1958 and the regulations promulgated thereunder, or any
      subsequent legislation that amends, supplements or supersedes such
      provisions.

            "Fee Letter" means the Fee Letter dated as of September 3, 2004,
      between the Administrative Agent and the Borrower.

            "Financing Statements" means Uniform Commercial Code financing
      statements covering all the security interests in the Collateral created
      by or pursuant to the Mortgage and Subordinated Mortgage necessary or
      desirable to perfect said security interests.

            "Funding Date" means September 10, 2004 (or such later date on or
      prior to the Commitment Termination Date on which the Borrower requests
      the Lenders to fund the Loan in accordance with Section 1.2).

            "GAAP" means generally accepted accounting principles as set forth
      in the statements of financial accounting standards issued by the
      Financial Accounting Standards Board of the American Institute of
      Certified Public Accountants, as such principles may at any time or from
      time to time be varied by any applicable financial accounting rules or
      regulations issued by the SEC and, with respect to any Person, means such
      principles applied on a basis consistent with prior periods except as may
      be disclosed in such Person's financial statements.

            "Governmental Authority" means any (a) governmental entity, board,
      bureau, agency or instrumentality, (b) administrative or regulatory
      authority (including any central bank or similar authority) or (c) court,
      judicial authority or arbitrator, in each case, whether foreign or
      domestic.

            "Independent Appraiser" has the meaning specified in the Mortgage.

            "Independent Appraiser's Fee Amount" has the meaning set forth on
      Schedule 3 to this Agreement.

                                        4
<PAGE>

            "Interest Payment Date" means, subject to Section 1.8(b), the date
      numerically corresponding to the Funding Date in each of March, June,
      September and December, commencing the next such date occurring after the
      Funding Date and the final such date for any Note shall be the Maturity
      Date for such Note.

            "Interest Period" means a period used for calculating the interest
      rate applicable to the Loan, as determined pursuant to Section 2.2.

            "Interest Rate Determination Date" means, with respect to any
      Interest Period for a Loan, the second Business Day prior to the first day
      of such Interest Period.

            "Lenders" is defined in the first paragraph of this Agreement.

            "Lending Office" means the lending office of each Lender set forth
      on the signature page of this Agreement with respect to such Lender, or
      such other lending office as a Lender from time to time shall notify the
      Borrower as its lending office hereunder; provided that a Lender shall
      not, without the Borrower's request, change its Lending Office if it would
      increase the Borrower's obligations under Section 1.7, 5.1, 5.2 or 5.3.

            "LIBOR Breakage Costs" is defined in Section 1.7(d).

            "LIBOR Rate" means, with respect to any Interest Period, the rate
      appearing on Bloomberg Page BBAM 1 screen service (or on any successor or
      substitute page of such service, or any successor to or substitute for
      such service, providing rate quotations comparable to those currently
      provided on such page of such service) at approximately 11:00 a.m., London
      time, on the Interest Rate Determination Date for such Interest Period, as
      the rate for dollar deposits with a maturity of three months. In the event
      that such rate is not available at such time for any reason, then the
      "LIBOR Rate" for such Interest Period shall be the average (rounded
      upwards to the nearest 1/100%), as determined by the Administrative Agent,
      of the per annum interest rates at which dollar deposits of amounts
      comparable to the outstanding principal amount of the Loan and for a
      maturity of three months are offered by the principal London offices of
      the Reference Banks, in each case offered to prime banks in the London
      interbank market, in each case at or about 11:00 a.m., London time, on the
      Interest Rate Determination Date for such Interest Period.

            "Lien" means any mortgage, pledge, lien, charge, claim, encumbrance,
      lease, sublease, sub-sublease or security interest affecting the title to
      or any interest in property.

            "Lien of Record" means, with respect to any Pledged Spare Parts, any
      Lien that is recorded in the records of the aircraft registry maintained
      by the FAA in Oklahoma City, Oklahoma in accordance with the Act (or any
      successor thereto under applicable law) against property located at the
      Designated Locations and having a description which would include any of
      such Pledged Spare Parts.

            "Loan" means the aggregate amount of funds advanced by the Lenders
      to the Borrower on the Funding Date pursuant to the terms of this
      Agreement.

                                        5
<PAGE>

            "Loan Amount" means, for each Lender, the aggregate outstanding
      principal amount of the Notes held by such Lender.

            "Material Adverse Change" means a material adverse change in the
      business or financial condition of the Borrower and its Subsidiaries taken
      as a whole or the material impairment of the ability of the Borrower to
      perform, or the Transaction Agents or the Lenders to enforce, the
      obligations of Borrower under the Transaction Documents.

            "Maturity Date" means (a) with respect to the Original Series A Note
      and the Original Series B Note, the sixth (6th) anniversary of the Funding
      Date, and (b) with respect to any Replacement Note, the date designated
      therein as the Maturity Date.

            "Maximum Self-Insurance Amount" has the meaning set forth on
      Schedule 3 to this Agreement.

            "Maximum Rotables Ratio" has the meaning set forth on Schedule 3 to
      this Agreement.

            "Minimum 1110 Percentage" has the meaning set forth on Schedule 3 to
      this Agreement.

            "Moody's" means Moody's Investors Service, Inc.

            "Mortgage" means the Spare Parts Mortgage and Security Agreement in
      substantially the form of Exhibit A-1 to this Agreement entered into by
      the Borrower and the Security Trustee to secure the Loans.

            "Note" means a Series A or Series B promissory note of the Borrower
      issued in connection with a Loan made by a Lender and payable to the order
      of such Lender, in substantially the form of Exhibit B hereto, evidencing
      the indebtedness of the Borrower to such Lender resulting from such Loan.

            "Notice of Borrowing" means a notice substantially in the form of
      Exhibit C annexed hereto delivered by the Borrower to the Administrative
      Agent pursuant to Section 1.2(a) with respect to a proposed borrowing.

            "Obligations" is defined in the Mortgage.

            "Officer's Certificate" is defined in the Mortgage.

            "Original Lender" shall mean the Original Series A Lender and or the
      Original Series B Lender.

            "Other Taxes" means any and all present or future Taxes arising from
      any payment made under any Transaction Document or from the execution,
      delivery, performance, filing, recording or enforcement of, or otherwise
      with respect to, any Transaction Document or the transactions contemplated
      by the Transaction Documents.

                                        6
<PAGE>

            "Participant" is defined in Section 9.8(b).

            "Payment and Indemnity Agreement" means the Payment and Indemnity
      Agreement [Spare Parts] dated as of the date hereof among the Borrower,
      the Administrative Agent and the Security Trustee.

            "Payment Date" means, subject to Section 1.8(b), the date
      numerically corresponding to the Funding Date in each of March, June,
      September and December, commencing with such date in December, 2004. The
      final "Payment Date" for any Note shall be the Maturity Date for such
      Note.

            "Percentage Share" means, for each Lender, such Lender's Commitment
      divided by the Aggregate Commitment.

            "Permitted Disposition Amount" has the meaning set forth on Schedule
      3 to this Agreement.

            "Permitted Investments" is defined in the Mortgage.

            "Permitted Liens" is defined in the Mortgage.

            "Persons" or "persons" means individuals, firms, partnerships, joint
      ventures, trusts, trustees, Governmental Authorities, organizations,
      associations, corporations, limited liability companies, or any
      committees, departments, authorities and other bodies thereof, corporate
      or incorporate, whether having distinct legal status or not, or any member
      of any of the same.

            "Physical Appraisal Methodology" has the meaning set forth in the
      Mortgage.

            "Pledged Spare Parts" has the meaning set forth in Clause (a) of the
      first paragraph of Section 2.01 of the Mortgage.

            "Potential Default" means any Event of Default or any event or
      condition that with the lapse of time or giving of notice, or both, would
      constitute an Event of Default.

            "Prepayment Date" has the meaning specified in Section 1.1(c)(i).

            "Prepayment Fee" means, with respect to any prepayment of the Loan
      (other than any prepayment pursuant to Section 1.1(d) or Section 1.6) on
      or before the forty second monthly anniversary of the Funding Date, an
      amount equal to one percent (1%) of the principal amount of the Loan so
      prepaid as of the date of such prepayment.

            "Qualified Affiliate" means, as to any Lender, an Affiliate of such
      Lender engaged in the business of making loans.

            "Ratable Share" means, for each Lender, such Lender's Loan Amount
      divided by the Aggregate Loan Amount.

                                        7
<PAGE>

            "Reference Banks" means (a) Deutsche Bank, (b) Citibank, N.A., (c)
      JPMorgan Chase Bank, and (d) such other bank or banks as may from time to
      time be agreed by the Borrower and the Required Lenders.

            "Register" is defined in Section 9.8(d).

            "Regulatory Change" is defined in Section 5.1.

            "Related Loan Agreement" means that certain Loan Agreement [Engines]
      dated the date hereof among the Borrower, the Administrative Agent, the
      Security Trustee, the Original Series A Lender and the Original Series B
      Lender.

            "Release" means the Release in respect of the Collateral from the
      Lien of the Spare Engine and Simulator Security Agreement, dated as of
      December 12, 1997 between the Borrower and Mizuho Corporate Bank, Ltd. as
      assignee from The Industrial Bank of Japan, Limited as Agent and assigned
      FAA Conveyance No. K15691, as amended and assigned.

            "Replacement Notes" means the Replacement Notes issued in accordance
      with the terms of Section 1.11.

            "Required Lenders" means Lenders having (i) Commitments in excess of
      50% of the Commitment of all Lenders or (ii) if the Commitments have been
      terminated, Loan Amounts in excess of 50% of the Aggregate Loan Amount.

            "Restructure Letter" means the Restructure Letter [Spare Parts],
      dated as of September 3, 2004, between the Administrative Agent and the
      Borrower.

            "Rotables" has the meaning set forth in the Mortgage.

            "Rotables Ratio" has the meaning set forth in the Mortgage.

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

            "Security Trustee" is defined in the first paragraph of this
      Agreement.

            "Security Trustee Agreement" the Security Trustee Agreement [Spare
      Parts] dated as of the date hereof among the Beneficiaries (as defined
      therein) and the Security Trustee.

            "Series" means either the Series A Notes, collectively, or the
      Series B Notes, collectively.

            "Series A Commitment" means the amount set forth in Schedule 3 to
      this Agreement.

                                        8
<PAGE>

            "Series B Commitment" means the amount set forth in Schedule 3 to
      this Agreement.

            "Series A Note" means a promissory note substantially in the form of
      Exhibit B hereto designated on its face as a "Series A Note", duly
      completed and executed by Borrower.

            "Series B Note" means a promissory note substantially in the form of
      Exhibit B hereto designated on its face as a "Series B Note", duly
      completed and executed by Borrower.

            "Software" has the meaning set forth in the Mortgage.

            "Special Default" means any Event of Default pursuant to Section
      7.1(a), and/or (b) or any event or condition that with the lapse of time
      or giving of notice, or both, would constitute an Event of Default under
      Section 7.1(a) and/or (b).

            "Subordinated Mortgage" means the Subordinated Spare Parts Mortgage
      and Security Agreement in substantially the form of Exhibit A-2 to this
      Agreement entered into by the Borrower and the Security Trustee to secure
      the obligations of the Borrower under the Payment and Indemnity Agreement.

            "Subordinated Supplemental Mortgage" is defined in the Subordinated
      Mortgage.

            "Subsidiary" means, as to any Person, any other Person of which at
      least a majority of the voting stock (or equivalent equity interests) is
      owned or controlled by such first Person or by one or more other
      Subsidiaries.

            "Substitute Basis" is defined in Section 1.7(f).

            "Supplemental Mortgage" means a supplement to the Mortgage
      substantially in the form of Exhibit A to the Mortgage.

            "Taxes" means all taxes, charges, fees, levies or other assessments
      (including income, gross receipts, profits, withholding, excise, property,
      sales, use, license, occupation and franchise taxes and including any
      related interest, penalties or other additions) imposed by any
      jurisdiction or taxing authority (whether international, foreign or
      domestic).

            "Threshold Amount" has the meaning set forth in Schedule 3 to this
      Agreement.

            "Transaction Agents" is defined in Section 8.1 hereof.

            "Transaction Documents" means this Agreement, the Notes, the
      Mortgage and each Mortgage Supplement, the Restructure Letter, the Fee
      Letter and the Waiver Letter.

            "Transfer Supplement" is defined in Section 9.8(c).

                                        9
<PAGE>

            "UCC" or "Uniform Commercial Code" means the Uniform Commercial Code
      as in effect in any applicable jurisdiction.

            "UCC Termination Statements" means the Delaware UCC Termination
      Statement in respect of the UCC Financing Statement 32330408 relating to
      the Collateral subject to the Lien of the Spare Engine and Simulator
      Security Agreement, dated as of December 12, 1997, between the Borrower
      and Mizuho Corporate Bank, Ltd. as assignee from The Industrial Bank of
      Japan, Limited as Agent.

            "USA" means the United States of America (including all states and
      political subdivisions thereof).

            "Waiver Letter" means the Waiver Letter, dated as of the Funding
      Date, among the Administrative Agent, the Security Trustee, the
      Subordinated Trustee and the Borrower.

      2. Other Interpretive Provisions. (a) The foregoing definitions shall
be equally applicable to both the singular and plural forms of the defined
terms. All terms defined directly or by incorporation in this Agreement shall
have the defined meanings when used in any certificate or other document
delivered pursuant hereto unless otherwise defined therein. For purposes of this
Agreement and all such certificates and other documents, unless the context
otherwise requires: (i) accounting terms not otherwise defined in this
Agreement, and accounting terms partly defined in this Agreement to the extent
not defined, shall have the respective meanings given to them under GAAP; (ii)
references to any amount as on deposit or outstanding on any particular date
means such amount at the close of business on such day; (iii) the words
"hereof," "herein" and "hereunder" and words of similar import refer to this
Agreement (or the certificate or other document in which they are used) as a
whole and not to any particular provision of this Agreement (or such certificate
or document); (iv) references to any Section, Schedule or Exhibit are references
to Sections, Schedules and Exhibits in or to this Agreement (or the certificate
or other document in which the reference is made), and references to any
paragraph, subsection, clause or other subdivision within any Section or
definition refer to such paragraph, subsection, clause or other subdivision of
such Section or definition; (v) the term "including" means "including without
limitation"; (vi) references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or
regulation; (vii) references to any agreement refer to that agreement as from
time to time amended or supplemented or as the terms of such agreement are
waived or modified in accordance with its terms; (viii) references to any Person
include that Person's successors and assigns; and (ix) headings are for
convenience of reference only and shall not otherwise affect the meaning or
interpretation of any provision hereof.

      (b) Each exhibit and schedule to this Agreement is incorporated in, and
shall be deemed a part of, this Agreement.

      (c) All terms defined in the Mortgage and used herein have such respective
defined meanings unless otherwise defined herein.

                                       10
<PAGE>

                                   SCHEDULE 2

                                    [OMITTED]

                                       1
<PAGE>

                                   SCHEDULE 3

                               Certain Information

      "Advance Rate" means the following percentages in respect of the Current
Market Value of Rotables included in the Pledged Spare Parts and maintained for
the respective airframe type:

<TABLE>
<CAPTION>
AIRFRAME TYPE                      ADVANCE RATE
<S>                                <C>
B737-100/200                           0%
  B737-300                            40%
  B757-200                            35%
    A319                              70%
    A320                              70%
</TABLE>

      "Independent Appraiser's Fee Amount" means $94,000, subject to increase
from time to time in the event that the fees charged by the Independent
Appraiser are increased due to (i) changes in the overall number of Designated
Locations, (ii) changes in the relative percentage (determined on the basis of
Appraisal Value) of Pledged Spare Parts stored at each Designated Location,
(iii) changes in the locations of Designated Locations, whether within the
United States or outside, and/or (iv) any other material changes in Borrower's
operations or spares inventory or spares inventory management systems that
increase the cost to the Independent Appraiser of performing its duties under
the Mortgage.

      "Maximum Self Insurance Amount" means the standard market spares
deductible in existence from time to time in the worldwide airline insurance
marketplace, but in no event greater than $100,000, any one occurrence.

      "Maximum Rotables Ratio" means fifty-four percent (54%).

      "Minimum 1110 Percentage" means fifty-five percent (55%).

      "Minimum Liability Amount" means $600,000,000.

      "Permitted Disposition Amount" means $1,000,000.

      "Series A Commitment" means $75,563,891.

      "Series B Commitment" means $0.

      "Threshold Amount" means $2,000,000.

                                       1
<PAGE>

                                   EXHIBIT A-1

                            [Insert Form of Mortgage]

<PAGE>

                                   EXHIBIT A-2

                     [Insert Form of Subordinated Mortgage]

<PAGE>

                                    EXHIBIT B

                             FORM OF PROMISSORY NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "ACT"), OR UNDER THE SECURITIES OR SIMILAR LAWS OF ANY STATE OR OTHER
JURISDICTION AND MAY NOT BE OFFERED, TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF
EXCEPT WHILE SUCH A REGISTRATION UNDER THE ACT AND SUCH SECURITIES OR SIMILAR
LAWS IS IN EFFECT OR PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION.

THIS NOTE IS SUBJECT TO CERTAIN ADDITIONAL RESTRICTIONS ON TRANSFER SET FORTH IN
SECTION 9.8 OF THE LOAN AGREEMENT REFERRED TO BELOW.

             SERIES [*] NOTE [SPARE PARTS] DUE SEPTEMBER [__], 2010

No. [*] - New York, New York
_______, 200[]
$____________________________

            FOR VALUE RECEIVED, the undersigned, AMERICA WEST AIRLINES, INC., a
Delaware corporation (together with its successors and permitted assigns, the
"Borrower") hereby unconditionally promises to pay to _____________, or the
registered assignee thereof, the principal amount of ______________ DOLLARS
($_________), in lawful currency of the United States of America, in full on the
Maturity Date, and to pay interest in arrears on each Interest Payment Date at
the Debt Rate (as defined herein below) for the Interest Period ending on such
Interest Payment Date on the amount of such principal amount remaining unpaid
from time to time from the date hereof until such principal amount is paid in
full; provided that in the event (i) that this Note shall have been prepaid in
part pursuant to the Loan Agreement, from and after the relevant Prepayment
Date, the amounts of such installments shall be reduced, in inverse order of
maturity, by the amount of such partial prepayment and (ii) of any repayment or
prepayment of any principal amount hereof, accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or
prepayment; and provided further that the final principal payment hereon shall
in any and all events equal the then outstanding principal balance hereof and
such final payment shall discharge all amounts due under this Note. Interest
shall be computed on the basis of a year of 360 days and the actual days elapsed
(including the first day but excluding the last day) in the period for which
interest is payable. The Applicable Margin for this Note is []% per annum. As
used herein, the term "Debt Rate" means the LIBOR Rate for the relevant Interest
Period plus the Applicable Margin, unless the Substitute Basis shall have become
applicable pursuant to Section 1.7 of the Loan Agreement, in which case the
"Debt Rate" shall mean the sum of the Substitute Basis and the Applicable
Margin.

            Notwithstanding the foregoing, this Note shall bear interest at the
Default Rate on overdue principal and, to the extent permitted by applicable
law, on any interest and any other

                                        1
<PAGE>

amounts payable hereunder not paid when due and payable for any period during
which the same shall be overdue, payable on demand by the holder hereof.

      This Note is one of the Notes referred to in, and is entitled to the
benefits of, the Loan Agreement [Spare Parts] dated as of September 3, 2004,
among the Borrower, General Electric Capital Corporation, as Administrative
Agent, Wells Fargo Bank Northwest, National Association, as Security Trustee,
General Electric Capital Corporation, as Original Series A Lender, and General
Electric Capital Corporation, as Original Series B Lender and the Lenders from
time to time party thereto (as amended or modified from time to time, the "Loan
Agreement"; the terms defined therein being used herein as therein defined). The
Loan Agreement, among other things, (i) provides for the making of a Series A
Loan and/or a Series B Loan by the Lenders to the Borrower on the Funding Date
and (ii) contains provisions for acceleration of the maturity hereof upon the
happening of certain stated events and also prepayments on account of principal
hereof prior to the maturity hereof upon the terms and conditions therein
specified. The obligations of the Borrower under this Note and the Loan
Agreement are secured by collateral as provided in the Spare Parts Mortgage and
Security Agreement (as amended or supplemented from time to time) dated as of
September 3, 2004, executed by the Borrower and Wells Fargo Bank Northwest,
National Association, as Security Trustee (the "Mortgage").

      Each holder hereof, by its acceptance of this Note, agrees that each
payment received by it hereunder shall be applied, first, to the payment of any
amount (other than principal of or interest on this Note) then due in respect of
this Note, including, without limitation, LIBOR Breakage Costs, if any; second,
to the payment of accrued interest on this Note (as well as any interest on
overdue principal, or, to the extent permitted by law, on LIBOR Breakage Costs,
if any, on interest and on other amounts due hereunder) due and payable to the
date of such payment; and third, to the payment of principal then due hereunder
(applied, in the case of a partial prepayment, in inverse order of maturity).

      There shall be maintained a Note Register for the purpose of registering
transfers and exchanges of Notes at the Corporate Trust Office of the Security
Trustee or at the office of any successor security trustee in the manner
provided in Section 9.8(d) of the Loan Agreement. As provided in the Loan
Agreement and subject to certain limitations therein set forth, the Notes may be
assigned, and the Notes are exchangeable for a like aggregate original principal
amount of Notes of different authorized denominations, as requested by the
Lender surrendering the same.

      Unless the certificate of authentication hereon has been executed by or on
behalf of the Security Trustee by manual signature, this Note shall not be
entitled to any benefit under the Loan Agreement or the Mortgage or be valid or
obligatory for any purpose.

                                       -2-
<PAGE>

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

                                                   AMERICA WEST AIRLINES, INC.

                                                   By:_________________________
                                                       Name:
                                                       Title:

<PAGE>

                SECURITY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Notes referred to in the within-mentioned Loan
Agreement and Mortgage.

                                         WELLS FARGO BANK NORTHWEST,
                                         NATIONAL ASSOCIATION,
                                             not in its individual capacity but
                                             solely as Security Trustee

                                         By: __________________________________
                                               Name:
                                               Title:

<PAGE>

                                    EXHIBIT C

                           FORM OF NOTICE OF BORROWING

                               NOTICE OF BORROWING

General Electric Capital Corporation
   as Administrative Agent

Attention:  [_______________]                             _______________, 2004

Ladies and Gentlemen:

      We refer to the Loan Agreement [Spare Parts] dated as of September 3,
2004, among America West Airlines, Inc., General Electric Capital Corporation,
as Administrative Agent, Wells Fargo Bank Northwest, National Association, as
Security Trustee, General Electric Capital Corporation, as Original Series A
Lender and as Original Series B Lender and the Lenders from time to time party
thereto (as amended or modified from time to time, the "Loan Agreement"; the
terms defined therein being used herein as therein defined). We hereby give you
notice requesting a Loan pursuant to Section 1.2(a) of the Loan Agreement, and
in that connection we set forth below the required information relating to such
Loan (the "Proposed Loan"):

      (1)   The Funding Date on which the Proposed Loan shall be made is
            _______________.

      (2)   The aggregate principal amount of the Proposed Loan is
            $_______________.

                                                 Very truly yours,

                                                 AMERICA WEST AIRLINES, INC.

                                                 By:___________________________
                                                     Name:
                                                     Title:

<PAGE>

                                    EXHIBIT D

             [Insert Form of Opinion of Special Counsel to Borrower]

<PAGE>

                                    EXHIBIT E

             [Insert Form of Opinion of Borrower's Legal Department]

<PAGE>

                                    EXHIBIT F

                           FORM OF TRANSFER SUPPLEMENT

                                                           Date __________, ____

      Reference is made to the Agreement described in Item 2 of Annex I hereto
(as such Loan Agreement may hereafter be amended, supplemented or otherwise
modified from time to time, the "Loan Agreement"). Unless defined in Annex I
hereto, terms defined in the Loan Agreement are used herein as therein defined.
___________ (the "Assignor") and __________ (the "Assignee") hereby agree as
follows:

      1. The Assignor hereby sells and assigns to the Assignee without recourse
and without representation or warranty (other than as expressly provided
herein), and the Assignee hereby purchases and assumes from the Assignor, that
interest in and to all of the Assignor's rights and obligations under the Loan
Agreement as of the date hereof which represents the percentage interest
specified in Item 4 of Annex I hereto (the "Assigned Share") of all of the
outstanding rights and obligations under the Loan Agreement relating to the
Loans and Commitments listed in Item 4 of Annex I hereto. After giving effect to
such sale and assignment, the amount of the outstanding Loans owing to the
Assignee will be as set forth in Item 4 of Annex I hereto.

      2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Loan Agreement
or the other Transaction Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Agreement or the
other Transaction Documents or any other instrument or document furnished
pursuant thereto; and (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any party to the
Transaction Documents or the performance or observance by any party to the
Transaction Documents of any of their respective obligations under the Loan
Agreement or the other Transaction Documents to which they are a party or any
other instrument or document furnished pursuant thereto.

      3. The Assignee (i) confirms that it has received a copy of the Loan
Agreement and the other Transaction Documents, together with copies of the
financial statements referred to therein and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Transfer Supplement; (ii) agrees that it will,
independently and without reliance upon the Transaction Agents, the Assignor or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Agreement; (iii) confirms that it is an
Eligible Assignee under Section 9.8(c) of the Loan Agreement; (iv) appoints and
authorizes the Transaction Agents to take such action as an agent on its behalf
and to exercise such powers under the Loan Agreement and the other Transaction
Documents as are delegated to the Transaction Agents, as the case may be, by the
terms thereof,

<PAGE>

together with such powers as are reasonably incidental thereto; (vi) agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of the Loan Agreement are required to be performed by it as a Lender;
(vii) makes the representations and warranties contained in Section 3.4 of the
Loan Agreement[; and (viii) attaches the forms described in Sections 5.3(c) and
9.8(c) of the Loan Agreement.](1)

      4. Following the execution of this Transfer Supplement by the Assignor and
the Assignee, an executed original hereof (together with all attachments) will
be delivered to the Security Trustee. This Transfer Supplement shall be
effective, unless a later date is otherwise specified in Item 5 of Annex I
hereto (the "Settlement Date"), upon the date upon which each of the following
conditions shall have been satisfied: (i) each of the Assignor and Assignee
shall have executed a copy hereof and delivered the same to the other party,
(ii) the registration of the transfer on the Register as provided by Section
9.8(d) of the Loan Agreement and (iii) receipt by the Assignee of such other
documentation or fees specified on Item 9 of Annex I hereto.

      5. Upon the delivery of a fully executed original hereof to the Security
Trustee, as of the Settlement Date of this Transfer Supplement, (i) the Assignee
shall be a party to the Loan Agreement and, to the extent provided in this
Transfer Supplement, have the rights and obligations of a Lender thereunder and
under the other Transaction Documents and (ii) the Assignor shall, to the extent
provided in this Transfer Supplement, relinquish its rights and be released from
its obligations under the Loan Agreement and the other Transaction Documents.

      6. It is agreed that the Assignee shall be entitled to all interest on the
Assigned Share of the Loans at the rates specified in Item 6 of Annex I which
are paid by the Borrower on and after the Settlement Date, such interest to be
paid by the Security Trustee directly to the Assignee. It is further agreed that
all payments of principal made on the Assigned Share of the Loans which occur on
and after the Settlement Date will be paid directly by the Security Trustee to
the Assignee. Upon the Settlement Date, the Assignee shall pay to the Assignor
an amount specified by the Assignor in writing which represents the Assigned
Share of the principal amount of the Loans pursuant to the Loan Agreement which
are outstanding on the Settlement Date, and which are being assigned hereunder.
The Assignor and the Assignee shall make all appropriate adjustments in payments
under the Loan Agreement for periods prior to the Settlement Date directly
between themselves.

      7. The Borrower is an intended third party beneficiary of, and may
enforce, this Transfer Supplement.

      8. THIS TRANSFER SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

----------
(1.) Include if the Assignee is organized under the laws of a jurisdiction
outside of the United States.

                                       -2-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
officers to execute and deliver this Transfer Supplement, as of the date first
above written, such execution also being made on Annex I hereto.

                                                 [NAME OF ASSIGNOR],
                                                 as Assignor

                                                 By ___________________________
                                                 Title:

                                                 [NAME OF ASSIGNEE],
                                                 as Assignee

                                                 By ___________________________
                                                 Title:

Acknowledged and Agreed:

WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION
 as Security Trustee

By __________________________________
     Name:
     Title:

                                       -3-
<PAGE>

                          ANNEX FOR TRANSFER SUPPLEMENT

                                     ANNEX I

1.    Borrower: America West Airlines, Inc.

2.    Name and Date of Loan Agreement:

      Loan Agreement [Spare Parts], dated as of September 3, 2004, among America
      West Airlines, Inc., as Borrower, General Electric Capital Corporation, as
      Administrative Agent, Wells Fargo Bank Northwest, National Association, as
      Security Trustee, General Electric Capital Corporation, as Original Series
      A and Series B Lender, and the Lenders from time to time party thereto.

3.    Date of Assignment Agreement:

4.    Amounts (as of date of Item 3 above):

<TABLE>
<CAPTION>
                           Outstanding Principal               Aggregate
                                  of Loan                     Commitment
                           ---------------------              ----------
<S>                        <C>                                <C>
a.    Aggregate Amount
      for all Lenders           $__________                   $__________

b.    Assigned Share

c.    Amount of
      Assigned Share            $__________                   $__________
</TABLE>

5.    Settlement Date:

6.    Rate of Interest to the               As set forth in Section 2.1 of the
      Assignee:                             Loan Agreement (unless  otherwise
                                            agreed to by the Assignor and the
                                            Assignee)*

----------
*     The Borrower and the Security Trustee shall direct the entire amount of
      the interest to the Assignee at the rate set forth in Section 2.1 of the
      Loan Agreement, with the Assignor and Assignee effecting the agreed upon
      sharing of the interest through payments by the Assignee to the Assignor.

<PAGE>

7.    Notice and Lending Office:

      ASSIGNOR:

           ______________________
           ______________________
           ______________________
           ______________________
           Attention:
           Telephone:
           Telecopier:

      ASSIGNEE:

           ______________________
           ______________________
           ______________________
           ______________________
           Attention:
           Telephone:
           Telecopier:

8.    Payment Instructions:

      ASSIGNOR:

           ______________________
           ______________________
           ______________________
           ______________________
           Attention:
           Reference:

      ASSIGNEE:

           ______________________
           ______________________
           ______________________
           ______________________
           Attention:
           Reference:

                                       -2-
<PAGE>

9.    Other Documents or Fees for Closing (if any):

Acknowledged and Agreed:

[NAME OF ASSIGNEE]                                [NAME OF ASSIGNOR]

By ____________________________                    By __________________________
________________________________                   _____________________________
(Print Name and Title)                             (Print Name and Title)

<PAGE>

                                    EXHIBIT G

                     FORM OF CERTIFICATE RE NON-BANK STATUS

                         CERTIFICATE RE NON-BANK STATUS

      Reference is hereby made to the Loan Agreement [Spare Parts], dated as of
September 3, 2004, among America West Airlines, Inc., General Electric Capital
Corporation, as Administrative Agent, Wells Fargo Bank Northwest, National
Association, as Security Trustee, General Electric Capital Corporation, as
Original Series A Lender, and General Electric Capital Corporation, as Original
Series B Lender and the Lenders from time to time party thereto (as amended or
modified from time to time, the "Loan Agreement"). Pursuant to the provisions of
Section 5.3(c) of the Loan Agreement, the undersigned hereby certifies that (i)
it is not a "bank" as such term is used in Section 881(c)(3)(A) of the Internal
Revenue Code of 1986, as amended (the "Code"), (ii) it is not a controlled
foreign corporation (within the meaning of Section 957(a) of the Code) related
(within the meaning of Section 864(d)(4) of the Code) to the Borrower, and (iii)
it is not a 10% shareholder (within the meaning of Section 871(h)(3)(B) of the
Code) of the Borrower.

                                         [NAME OF LENDING INSTITUTION]

                                         By ________________________________
                                               Title:_______________________
                                               Date: _______________________

<PAGE>

                                    EXHIBIT H

                     [Insert Form of FAA Counsel's Opinion]<PAGE>

                                                                   EXHIBIT 10.10

                                                               Execution Version

================================================================================

                   SPARE PARTS MORTGAGE AND SECURITY AGREEMENT

                          Dated as of September 3, 2004

                                     between

                           AMERICA WEST AIRLINES, INC.

                                       and

                WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,

                               as Security Trustee

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                                                <C>
                                                                                                   Page
                                                                                                   ----
ARTICLE 1.   DEFINITIONS.........................................................................    1

             Section 1.01.  Certain Definitions..................................................    1
             Section 1.02.  Certain Rules of Construction........................................    1

ARTICLE 2.   SECURITY............................................................................    2

             Section 2.01.  Grant of Security Interest...........................................    2

ARTICLE 3.   COVENANTS OF THE COMPANY............................................................    4

             Section 3.01.  Liens................................................................    4
             Section 3.02.  Possession, Use, Designated Locations,
                            Excluded Locations, Permitted Sales, Maintenance and
                            Identification.......................................................    5
             Section 3.03.  Maintenance of Rotable Ratio.........................................    9
             Section 3.04.  Intentionally Left Blank.............................................   11
             Section 3.05.  Insurance............................................................   11
             Section 3.06.  Assurances and Filings...............................................   13
             Section 3.07.  [Intentionally Left Blank]...........................................   13
             Section 3.08.  Notice of Change of the Company's Location...........................   13
             Section 3.09.  Inspection...........................................................   13
             Section 3.10.  Reports Regarding the Collateral.....................................   14

ARTICLE 4.   REMEDIES OF THE SECURITY TRUSTEE UPON AN EVENT OF DEFAULT...........................   16
             Section 4.01.  Remedies with Respect to Collateral..................................   16
             Section 4.02.  Remedies Cumulative..................................................   17
             Section 4.03.  Discontinuance of Proceedings........................................   18
             Section 4.04.  Allocation of Payments...............................................   18

ARTICLE 5.   INTENTIONALLY LEFT BLANK............................................................   19

ARTICLE 6.   SECURITY FUNDS

             Section 6.01.  Investment of Security Funds.........................................   19
             Section 6.02.  Investment of Cash Collateral........................................   20
             Section 6.03.  Release of Cash Collateral...........................................   20

ARTICLE 7.   MISCELLANEOUS.......................................................................   20

             Section 7.01.  Termination of Mortgage..............................................   20
             Section 7.02.  Alterations to Mortgage..............................................   20
             Section 7.03.  No Legal Title to Collateral.........................................   20
             Section 7.04.  Sale of the Engines by Security Trustee Is Binding...................   20
             Section 7.05.  Benefit of Mortgage..................................................   21
             Section 7.06.  Section 1110 of the Bankruptcy Code..................................   21
             Section 7.07.  Notices..............................................................   21
</TABLE>

                                      (i)

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                 <C>
             Section 7.08.  Severability.........................................................   22
             Section 7.09.  Separate Counterparts................................................   22
             Section 7.10.  Successors and Assigns...............................................   22
             Section 7.11.  Headings.............................................................   22
             Section 7.12.  Governing Law........................................................   22

APPENDIX A                  Definitions

APPENDIX B                  Insurance

APPENDIX C                  Form of Appraisal Compliance Report

APPENDIX D                  Form of Data Report

APPENDIX E                  Form of Independent Appraiser's Certificate

EXHIBIT A                   Supplemental Mortgage

SCHEDULE I                  Designated Locations
</TABLE>

                                      (ii)
<PAGE>

                   SPARE PARTS MORTGAGE AND SECURITY AGREEMENT

            This SPARE PARTS MORTGAGE AND SECURITY AGREEMENT, dated as of
September 3, 2004 (the "Mortgage") between AMERICA WEST AIRLINES, INC., a
Delaware corporation (the "Company"), and WELLS FARGO BANK NORTHWEST, NATIONAL
ASSOCIATION, as Security Trustee (the "Security Trustee").

                              W I T N E S S E T H :

            WHEREAS, the Company, which is a certificated air carrier under
Section 44705 of title 49 of the U.S. Code, the Lenders and the Security Trustee
have entered into the Loan Agreement; and

            WHEREAS, the Lenders have agreed, pursuant and subject to the terms
and conditions of the Loan Agreement, to make the Loan to the Company secured by
a Lien on the Collateral; and

            WHEREAS, the Company desires by this Mortgage, among other things,
to grant to the Security Trustee for the benefit of the Secured Parties a first
priority perfected Lien on the Collateral in accordance with the terms hereof,
as security for the Obligations; and

            WHEREAS, all things necessary to make this Mortgage a legal, valid
and binding obligation of the Company and the Security Trustee, for the uses and
purposes herein set forth, in accordance with its terms, have been done and
performed and have occurred;

            NOW, THEREFORE, to secure the due and punctual payment of the
Obligations, it is hereby covenanted and agreed by and between the parties
hereto as follows.

                                   ARTICLE 1.

                                   DEFINITIONS

            Section 1.01. Certain Definitions. Unless otherwise defined herein
or the context requires otherwise, capitalized terms used herein shall have the
meanings set forth in Appendix A hereto.

            Section 1.02. Certain Rules of Construction. The defined terms and
the other provisions of this Mortgage shall be construed in accordance with the
rules of construction set forth under the heading "General Provisions" in
Appendix A hereto.

<PAGE>

                                   ARTICLE 2.

                                    SECURITY

Section 2.01 Grant of Security Interest. In order to secure (i) the prompt
payment when due of the Obligations and (ii) the performance and observance by
the Company of all agreements, covenants and provisions contained herein and in
the other Operative Documents to the extent same relate to the Obligations and
in consideration of the premises and of the covenants herein contained, and of
other good and valuable consideration, the receipt of which is hereby
acknowledged, the Company has granted, bargained, sold, assigned, transferred,
conveyed, mortgaged, pledged and confirmed and does hereby grant, bargain, sell,
assign, transfer, convey, mortgage, pledge and confirm unto the Security
Trustee, its successors in trust and assigns, for the security and benefit of
the Secured Parties, a first priority security interest in, and mortgage lien
on, all right, title and interest of the Company in, to and under the following
described properties, rights, interests and privileges (which, collectively,
including all property hereafter specifically subjected to the lien of this
Mortgage by any instrument supplemental hereto, are referred to herein as the
"Collateral"):

            (a) all Spare Parts and Appliances (including all Rotables and Key
      Repairables), other than any Excluded Parts, currently owned or hereafter
      acquired by the Company including any replacements, substitutions or
      renewals therefor, and accessions thereto, including but not limited to
      Spare Parts and Appliances owned or hereafter acquired by the Company and
      located at (a) the Designated Locations described on Schedule I attached
      hereto or (b) any other place in the United States of America or in Mexico
      (such Spare Parts and Appliances, the "Pledged Spare Parts");

            (b) the rights of the Company under any existing or hereinafter
      acquired warranty or indemnity, express or implied, regarding title,
      materials, workmanship, design or patent infringement or related matters
      in respect of the Pledged Spare Parts to the extent such rights can be
      assigned or pledged by the Company (the "Warranties");

            (c) all insurance proceeds and requisition proceeds with respect to
      any Pledged Spare Part;

            (d) all Software owned or hereafter acquired by the Company,
      including any replacement, substitution or renewal thereof, as well as all
      rights of the Company under any license or use agreement in respect of any
      Software not owned by the Company and all rights of the Company under any
      existing or hereinafter acquired service or support contracts or
      agreements in respect of the Software (such licenses and support
      agreements collectively, the "Software Support Agreements");

            (e) all rents, revenues and other proceeds collected or required to
      be collected by the Security Trustee hereunder, including, without
      limitation, all proceeds with respect to the sale or other disposition by
      the Security Trustee of any Pledged Spare Part or other Collateral
      pursuant to the terms of this Mortgage;

            (f) all repair, maintenance and inventory records, logs, tags,
      manuals and all other documents and materials similar thereto (including,
      without limitation, any such

                                       2
<PAGE>

      records (whether on paper or in an electronic format), logs, manuals,
      documents and materials that are computer print-outs) at any time
      maintained, created or used by the Company, and all records, logs, tags,
      documents and other materials required at any time to be maintained by the
      Company by the FAA or under the Federal Aviation Act, in each case with
      respect to any of the Pledged Spare Parts (the "Spare Parts Documents");
      and

            (g) all proceeds of the foregoing;

PROVIDED, HOWEVER, that notwithstanding any of the foregoing provisions of this
Section 2.01, so long as no Event of Default shall have occurred and be
continuing, (i) the Company shall have the right, to the exclusion of the
Security Trustee, to quiet enjoyment of the Pledged Spare Parts and other
Collateral, and peaceably and quietly, without hindrance or molestation, to
possess, use, retain and control the Pledged Spare Parts, (ii) subject always to
compliance with Section 3.02(C)(2) hereof, the Company shall have the right to
dispose of Spare Parts Documents in the ordinary course of its business, and
(iii) the Company shall have the right, to the exclusion of the Security
Trustee, with respect to the Warranties and the Software Support Agreements, to
exercise in the Company's name all rights and powers as the beneficiary, owner
and/or licensee thereof and to retain any recovery or benefit resulting from the
enforcement of any warranty, indemnity or other contract right under the
Warranties and the Software Support Agreements;

            TO HAVE AND TO HOLD the Collateral unto the Security Trustee, its
successors and assigns, forever, upon the terms herein set forth, for the
benefit, security and protection of the Security Trustee, and for the uses and
purposes and subject to the terms and provisions set forth in this Mortgage.

            It is expressly agreed that anything herein contained to the
contrary notwithstanding, the Company shall remain liable under the Warranties
and the Software Support Agreements to perform all of the obligations assumed by
it thereunder, all in accordance with and pursuant to the terms and provisions
thereof, and the Security Trustee shall have no obligation or liability under
the Warranties or Software Support Agreements by reason of or arising out of the
assignment hereunder, nor shall the Security Trustee be required or obligated in
any manner to perform or fulfill any obligations of the Company under any of the
Warranties or Software Support Agreements, or, except as herein expressly
provided, to make any payment, or to make any inquiry as to the nature or
sufficiency of any payment received by it, or present or file any claim, or take
any action to collect or enforce the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

            The Company does hereby irrevocably constitute and appoint the
Security Trustee the true and lawful attorney of the Company (which appointment
is coupled with an interest) with full power (in the name of the Company or
otherwise) to ask, require, demand, receive, compound and give acquittance for
any and all moneys and claims for moneys (in each case including insurance and
requisition proceeds) and all other property which now or hereafter constitutes
part of the Collateral, to endorse any checks or other instruments or orders in
connection therewith and to file any claims or to take any action or to
institute any proceeding which the Security Trustee may deem to be necessary or
advisable to collect such property which constitutes Collateral; provided that
the Security Trustee shall not exercise any such rights except upon the
occurrence and during the continuance of an Event of Default. Without limiting
the

                                       3
<PAGE>

provisions of the foregoing, during the continuance of any Event of Default, but
subject to the terms hereof and any mandatory requirements of applicable Law,
the Security Trustee shall have the right under such power of attorney in its
discretion to file any claim or to take any other action or proceedings, either
in its own name or in the name of the Company or otherwise, that the Security
Trustee may reasonably deem necessary or appropriate to protect and preserve the
right, title and interest of the Security Trustee in and to the security
intended to be afforded hereby. The Company hereby agrees that promptly on
receipt thereof, except as otherwise contemplated by the Operative Documents, it
will transfer to the Security Trustee any and all moneys from time to time
received by the Company constituting part of the Collateral, for distribution by
the Security Trustee pursuant to this Mortgage.

            The Company does hereby warrant and represent that it has not sold
or assigned, and hereby covenants that it will not sell or assign, so long as
this Mortgage shall remain in effect and the Lien hereof shall not have been
released pursuant to the provisions hereof, any of its estate, right, title or
interest hereby assigned, to any Person other than the Security Trustee, except
as expressly permitted herein, in any other Operative Document or in the
Subordinated Mortgage.

            The Company agrees that at any time and from time to time, upon the
written request of the Security Trustee, the Company will promptly and duly
execute and deliver or cause to be duly executed and delivered any and all such
further instruments and documents as the Security Trustee may reasonably deem
necessary to perfect and protect the priority of the security interests and
assignments created hereby and to obtain the full benefits of the security
interest granted hereunder and of the rights and powers herein granted.

                                   ARTICLE 3.

                            COVENANTS OF THE COMPANY

            Section 3.01. Liens. The Company will not directly or indirectly
create, incur, assume or permit to exist any Lien on or with ----- respect to
the Company's interest in the Collateral, except:

                  (a) the Lien of this Mortgage and the Subordinated Mortgage;

                  (b) the rights of others under agreements or arrangements to
      the extent permitted by Section 3.02 hereof;

                  (c) Liens for Taxes of the Company and its U.S. Federal tax
      law consolidated group either not yet due or payable or being contested in
      good faith by appropriate proceedings so long as such Liens and such
      proceedings do not involve any material risk of the sale, forfeiture or
      loss (including loss of use) of any Pledged Spare Part or other portion of
      the Collateral or any interest therein or any discernible risk of criminal
      liability or any material risk of civil penalty against any Secured Party
      or impair the Lien of this Mortgage;

                                       4
<PAGE>

                  (d) materialmen's, mechanics', workmen's, repairmen's,
      employees' or other like Liens arising in the ordinary course of business
      (including those arising under maintenance agreements entered into in the
      ordinary course of business) securing obligations that are not overdue for
      more than sixty (60) days or are being contested in good faith by
      appropriate proceedings so long as such Liens and such proceedings do not
      involve any material risk of civil penalty or any discernible risk of
      criminal liability against any Secured Party or any material risk of the
      sale, forfeiture or loss of any Pledged Spare Part or other portion of the
      Collateral or adversely affect the Lien of this Mortgage;

                  (e) Liens arising out of any judgment or award against the
      Company, so long as such judgment or award shall, within sixty (60) days
      after the entry thereof, have been discharged or vacated, or execution
      thereof stayed pending appeal or shall have been discharged, vacated or
      reversed within sixty (60) days after the expiration of such stay and so
      long as during any such 60-day period there is not, or any such judgment
      or award does not involve, any material risk of the sale, forfeiture or
      loss (including loss of use) of any Pledged Spare Part or other portion of
      the Collateral, or any interest therein or any discernible risk of
      criminal liability or any material risk of civil penalty against any
      Secured Party or impair the Lien of this Mortgage;

                  (f) salvage or similar rights of insurers under policies of
      insurance maintained by the Company pursuant to Section 3.05 hereof;

                  (g) any other Lien with respect to which the Company shall
      have provided a bond, cash collateral or other security adequate in the
      reasonable opinion of the Security Trustee;

                  (h) Liens attributable to the Security Trustee; and

                  (i) Liens approved in writing by the Security Trustee.

Liens described in clauses (a) through (i) above are referred to herein as
"Permitted Liens." The Company shall promptly, at its own expense, take such
action as may be necessary to duly discharge (by bonding or otherwise) any such
Lien on the Collateral other than a Permitted Lien arising at any time.

            Section 3.02. Possession, Use, Designated Locations, Excluded
Locations, Permitted Sales, Maintenance and Identification.

      (a) Possession. Without the prior written consent of the Security Trustee,
the Company will not sell, lease, transfer or relinquish possession of any
Pledged Spare Part to anyone except as permitted by the provisions of Sections
3.02(b) of this Mortgage and except that the Company shall, subject to Section
3.03, have the right, in the ordinary course of business, (i) to transfer
possession of any Pledged Spare Part to the manufacturer thereof or any other
organization for testing, overhaul, repairs, maintenance, alterations or
modifications or to any Person for the purpose of transport to any of the
foregoing or (ii) to subject any Pledged Spare Part to a pooling, exchange,
borrowing or maintenance servicing agreement arrangement and entered into in the
ordinary course of business (provided always that no such arrangement

                                       5
<PAGE>

results in any Pledged Spare Part being stored at a location other than one of
the Designated Locations, or being commingled with any Excluded Parts and/or any
other Spare Parts and/or Appliances that are not Pledged Spare Parts).

      (b) Use; Designated Locations; Excluded Locations; Permitted Sales,
Dispositions or Modifications.

      (1) Use. Subject to the terms of this Mortgage (including, without
limitation, Section 3.03 hereof), the Company shall have the right, at any time
and from time to time at its own cost and expense, without any release from or
consent by the Security Trustee, to:

            (i) incorporate in, install on, attach or make appurtenant to, or
      use in, any aircraft, Engine or Spare Part or Appliance (whether or not
      subject to any Lien and whether or not operated by the Company) any
      Pledged Spare Part, free from the Lien of this Mortgage; and

            (ii) dismantle any Pledged Spare Part that has become worn out or
      obsolete or unfit for use, and to scrap, sell or dispose of any such
      Pledged Spare Part or any salvage resulting from such dismantling, free
      from the Lien of this Mortgage.

      (2) Designated Locations. The Company shall keep the Pledged Spare Parts
at one or more of the Designated Locations and, except as otherwise permitted
under Sections 3.02(a), 3.02(b)(1) or 3.02(b)(3) of this Mortgage, shall not
suffer or permit any Pledged Spare Part to be stored at any other location. The
Company shall not suffer or permit any Pledged Spare Parts at any Designated
Location to be commingled with any Excluded Parts (it being acknowledged that,
so long as the Company complies with Section 3.02(d)(1) hereof, Excluded Parts
which are stored on a separate shelf from Pledged Spare Parts and in a separate
storage bin or other storage unit from any Pledged Spare Parts shall not be
considered as having been commingled with Pledged Spare Parts even though such
Excluded Parts are present at the same Designated Location as the Pledged Spare
Parts). The Company shall ensure that each Designated Location is adequate for
warehousing and storing the Pledged Spare Parts, and at all times that the
Current Market Value of Rotables included in the Pledged Spare Parts which are
stored at a Secure Location is no less than eighty percent (80%) of the Current
Market Value of all the Rotables included within the Collateral. The Company
shall obtain from each landlord, mortgagee or other Person from time to time
holding title to or a security or leasehold interest in a Designated Location a
waiver in a form reasonably satisfactory to the Security Trustee of any right or
interest in the Pledged Spare Parts stored at such Designated Location. The
Company shall add as a Designated Location (in accordance with this Section
3.02(b)(2)) any location in the United States where Pledged Spare Parts may be
stored by the Company from time to time. Upon adding a location that is to
become a Designated Location, the Company will furnish to the Security Trustee
the following:

            (i) a Supplemental Mortgage duly executed by the Company,
      identifying each location that is to become a Designated Location and
      specifically subjecting the Pledged Spare Parts at such location to the
      Lien of this Mortgage;

                                       6
<PAGE>

            (ii) an Opinion of Counsel, dated the date of execution of said
      Supplemental Mortgage, stating that said Supplemental Mortgage has been
      duly filed for recording in accordance with the provisions of the Federal
      Aviation Act, and either: (a) no other filing or recording is required in
      any other place within the United States in order to perfect the Lien of
      this Mortgage on the Pledged Spare Parts held at the Designated Locations
      specified in such Supplemental Mortgage under the laws of the United
      States, or (b) if any such other filing or recording shall be required
      that said filing or recording has been accomplished in such other manner
      and places, which shall be specified in such Opinion of Counsel, as are
      necessary to perfect the Lien of this Mortgage with respect to such
      Pledged Spare Parts; and

            (iii) an Officer's Certificate stating that in the opinion of the
      Officer executing the Officer's Certificate, all conditions precedent
      provided for in this Mortgage relating to the subjection of such property
      to the Lien of this Mortgage have been complied with.

      (3) Excluded Locations. With the prior written consent of the Security
Trustee, which consent shall not be unreasonably withheld, the Company shall be
entitled, from time to time, to establish one or more locations for the storage
of Spare Parts and Appliances which shall not be subject to the lien of this
Mortgage (herein, "Excluded Locations"), provided that the Company's business
purpose in establishing such Excluded Location is to support operations that are
beyond the scope of the Company's existing and currently planned operations as
of the Funding Date. Without limiting the generality of the foregoing, the
Security Trustee shall be entitled to withhold its consent to the establishment
of an Excluded Location if the Required Lenders consider any of the following
circumstances to be applicable:

            (i) the expected fair market value of the Spare Parts and Appliances
      to be stored at the proposed location would be less than $5,000,000;

            (ii) unless the proposed location would be devoted exclusively to
      the storage of Spare Parts and Appliances that are not compatible with any
      of the aircraft and engines operated by the Company as of the Funding
      Date, the proposed location would be in any of the states of Arizona,
      Maryland or Nevada;

            (iii) all or any material portion of the proposed location would be
      stocked by the transfer of Spare Parts and Appliances from any of the
      Designated Locations;

            (iv) the Lenders have not been offered the opportunity to provide
      the Company with financing for the Spare Parts and Appliances to be stored
      at the proposed location on terms, in the case of new acquisition
      financing, substantially the same as the terms of the Operative Documents,
      and in the case of financing assumed by the Company in connection with the
      acquisition of such Spare Parts and Appliances, substantially the same as
      the terms of such pre-existing financing and at the same net financing
      cost to the Company (taking into account any prepayment premiums and/or
      breakage costs thereunder); provided, however, that if any pre-existing
      financing does not permit any voluntary prepayment thereof by the Company,
      then the failure by the Company to offer the Lenders the opportunity to
      provide financing to take out such pre-existing financing

                                       7
<PAGE>

      shall not be deemed grounds for the Security Trustee to withhold its
      consent under this Section 3.02(b)(3);

            (v) the Company's acquisition of the Spare Parts and Appliances to
      be stored at the proposed location is part of the Company's ordinary fleet
      replacement and/or growth and is associated with routes served by the
      Company as of the Funding Date; or

            (vi) the amount of Spare Parts and Appliances to be stored at the
      proposed location will be greater than the amount reasonably required by
      the Company to support the operations of the aircraft and engines that are
      being added to the Company's fleet contemporaneously with the Company's
      acquisition of such Spare Parts and Appliances.

The Security Trustee shall be entitled to condition its consent to the
establishment of an Excluded Location upon the amendment of this Mortgage to
include a covenant pursuant to which the Company would be obligated to comply
with such additional inspection, reporting and valuation requirements
(including, but not limited to, the obligation to afford access to the Excluded
Location to the Security Trustee and the Independent Appraiser for inspection
and other purposes) as the Security Trustee may deem appropriate in order to
ensure that the establishment and maintenance of such Excluded Location does not
have a prejudicial effect on the quantity or value of the Rotables and Key
Repairables included within the Pledged Spare Parts or on the interests of the
Security Trustee in the Collateral.

      (4) Permitted Sales, Dispositions and Modifications. Unless an Event of
Default has occurred and is continuing and subject to the limitations contained
in Section 3.03 of this Mortgage, the Company may, in the ordinary course of its
business, (i) sell, lease, transfer or dispose of any Pledged Spare Parts which
have become surplus to its normal operations free from the Lien of this
Mortgage, and (ii) sell, lease, transfer or dispose of, in a single transaction
or in a series of transactions within any thirty (30) day period, Pledged Spare
Parts with an aggregate Current Market Value equal to the Permitted Disposition
Amount or less which are not surplus to the Company's normal operations so long
as the Company acquires replacements for such Spare Parts and causes such
replacements to be subject to the Lien of this Mortgage and to be stored within
the appropriately marked shelves or storage areas at the Designated Locations as
Pledged Spare Parts within the thirty (30) day period following any such sale,
lease, transfer or disposition (or, in the case of a series of transactions,
within the thirty (30) day period following the first of such transactions). In
addition, the Company may modify or alter any Pledged Spare Parts as the Company
may deem appropriate in the proper conduct of its business, so long as the
Company remains in compliance at all times with the requirements of Section
3.02(c) and Section 3.03 below, after giving effect to any such modification or
alteration.

      (c) Maintenance. The Company:

      (1) shall maintain, or cause to be maintained, at all times the Pledged
Spare Parts in accordance with (x) all applicable Laws issued by the FAA and (y)
all applicable Laws issued by any other Governmental Authority having
jurisdiction over the Company or any such Pledged Spare Parts, including making
any modifications, alterations, replacements and additions necessary therefor;

                                       8
<PAGE>

      (2) shall maintain, or cause to be maintained, all records, logs and other
materials required by the FAA or under the Federal Aviation Act to be maintained
in respect of the Pledged Spare Parts and shall not modify its record retention
procedures in respect of the Pledged Spare Parts unless such modification is
consistent with the Company's FAA approved maintenance program; provided
however, that such modification shall not materially diminish the value of the
Pledged Spare Parts, taken as a whole;

      (3) shall maintain, or cause to be maintained on a timely basis, the
Pledged Spare Parts in good working order (other than during periods of
maintenance, overhaul, inspection and testing) and condition and shall perform
all maintenance thereon necessary for that purpose, excluding (i) Pledged Spare
Parts that have become worn out or unfit for use, beyond economic repair or
become obsolete or scrap, and (ii) Pledged Spare Parts that are not required for
the Company's normal operations. Notwithstanding anything herein to the
contrary, all Pledged Spare Parts located at Designated Locations other than for
the purpose of being maintained, altered, modified or overhauled shall have a
current and valid serviceable tag and shall be in compliance with such tag, in
each case in compliance with applicable FAA regulations.

      (d) Identification of Security Trustee's Interest.

      (1) On or prior to the Closing Date, the Company shall install signs, in
size and form reasonably satisfactory to the Security Trustee, at each of the
Designated Locations and on each shelf, bin or other storage unit in which the
Pledged Spare Parts are stored and otherwise as may be directed by the Security
Trustee within each Designated Location, bearing the inscription: "MORTGAGED TO
WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, AS SECURITY TRUSTEE" (such
sign to be replaced if there is a successor Security Trustee).

      (2) The Company shall consult with the Security Trustee and the Lenders,
prior to replacing the system utilized in tracking the Pledged Spare Parts and
preparing the necessary reports required pursuant to Section 3.10 of this
Mortgage. Any replacement system must be reasonably acceptable to the Security
Trustee. In addition, in the event that any such replacement system includes the
use of any Software that is licensed by the Company from a third party vendor,
rather than owned outright, then the Company shall, before implementing any such
new system and Software, cause such vendor or licensor to recognize the rights
in such Software granted to the Security Trustee under this Mortgage, including
the right to access and use such Software in connection with the exercise of
remedies under Section 4.01.

            Section 3.03. Maintenance of Rotables Ratio.

      (a) The Company hereby agrees that the Company shall not at any time
directly or indirectly permit the Rotables Ratio to be greater than the Maximum
Rotables Ratio. If, based upon an Appraisal Compliance Report, the Rotables
Ratio set forth therein is greater than the Maximum Rotables Ratio, the Company
shall promptly, and in any case within 10 Business Days:

            (i) subject additional Rotables that are free and clear of all Liens
      other than Permitted Liens and are otherwise acceptable to the Lenders in
      their sole discretion (the

                                       9
<PAGE>

      "Additional Rotables") to the Lien of this Mortgage in accordance with
      Section 3.03(c) hereof;

            (ii) provide cash to the Security Trustee (any cash provided to the
      Security Trustee pursuant to this Mortgage, the "Cash Collateral");

            (iii) provide a letter of credit meeting the requirements set forth
      in Section 3.03(b) below (each such letter of credit, a "Letter of
      Credit");

            (iv) prepay some or all of the Loans pursuant to Section 1.1(d) of
      the Loan Agreement; or

            (v) any combination of the foregoing;

such that, the Rotables Ratio, as recalculated giving effect to such action
taken pursuant to this Section 3.03(a) and, in the case of clause (i) of this
Section 3.03(a), using the Current Market Value of any Rotables included in such
additional Collateral determined pursuant to Section 3.03(d), would not be
greater than the Maximum Rotables Ratio.

      (b) Any Letter of Credit provided by the Company to the Security Trustee
pursuant to Section 3.03(a)(iii) must satisfy each of the following conditions:

            (i) Such Letter of Credit must be issued and payable by a
      Pre-Approved Bank or another bank acceptable to the Security Trustee in
      its sole and absolute discretion and in substantially the form of Exhibit
      B or in another form and substance acceptable to the Security Trustee in
      its sole and absolute discretion, and, if not issued by a Pre-Approved
      Bank or the New York branch of a major international bank acceptable to
      the Security Trustee in its sole and absolute discretion from time to
      time, will be confirmed by and payable at a Pre-Approved Bank or the New
      York branch of a major international bank acceptable to the Security
      Trustee in its sole and absolute discretion from time to time, and shall
      remain in full force and effect and may be drawn down by the Security
      Trustee upon demand at any time or times following the occurrence of an
      Event of Default until the Required LC Expiry Date.

            (ii) Such Letter of Credit may have a validity period or periods
      ending prior to the Required LC Expiry Date, provided that (i) the Letter
      of Credit shall, in each case, be renewed, extended or reissued and
      delivered to the Security Trustee not later than sixty (60) days prior to
      its expiry; and (ii) a Letter of Credit shall remain in force at all times
      up to the Required LC Expiry Date.

            (iii) If at any time while the Lien of this Mortgage remains in
      effect, the Security Trustee determines in its sole and absolute
      discretion that the current issuing or confirming bank for the Letter of
      Credit is no longer an acceptable issuing or confirming bank (whether by
      virtue of a material adverse change in its financial condition, a decrease
      in any credit rating of its long-term unsecured debt obligations or for
      any other reason) the Security Trustee shall notify the Company of such
      fact and the Company shall within five (5) Business Days after the date of
      such notice cause the Letter of Credit to be

                                       10
<PAGE>

      replaced by a Letter of Credit issued by a Pre-Approved Bank or another
      bank acceptable to the Security Trustee in its sole and absolute.

      (c) In order to comply with Section 3.03(a)(i) of this Mortgage, the
Company shall add to a Designated Location, Rotables, other than Excluded Parts,
that were not included as Pledged Spare Parts on the preceding Valuation Date.

      (d) In connection with the provision of additional Collateral pursuant to
Section 3.03(a)(i) of this Mortgage, the Company shall cause the Independent
Appraiser (only to the extent of the AWA Appraiser Responsibility) to furnish to
the Security Trustee and the Lenders an Independent Appraiser's Certificate
signed by the Independent Appraiser, dated as of a date after the most recent
Valuation Date, stating, in the opinion of the Independent Appraiser, the
Current Market Value of the Rotables included in such additional Collateral
(other than Cash Collateral and any Letters of Credit), as of a date not earlier
than the most recent Valuation Date, and using the Physical Appraisal
Methodology. Each Independent Appraiser's Certificate shall be accompanied by an
Appraisal Compliance Report determined as of a date not earlier than the most
recent Valuation Date.

      (e) If the Company shall have provided Cash Collateral pursuant to Section
3.03(a) or the Security Trustee shall have made a drawing upon a Letter of
Credit for any reason other than the occurrence of an Event of Default (the
amount of Cash Collateral so provided and/or the proceeds of such Letter of
Credit drawing being referred to herein as "Temporary Cash Collateral"), it
shall within 60 days after providing such Temporary Cash Collateral take
additional action pursuant to Section 3.03(a) (excluding the right to provide
Cash Collateral), including directing the Security Trustee to apply such Cash
Collateral to the prepayment of the Loans, to cause the Rotables Ratio,
calculated to exclude such Temporary Cash Collateral, not to be greater than the
Maximum Rotables Ratio. If pursuant to such Appraisal Compliance Report, the
Rotables Ratio is less than the Maximum Rotables Ratio the Security Trustee
shall release the Temporary Cash Collateral in accordance with, and to the
extent provided in, Section 6.03 of this Mortgage. If the Company fails to take
any such action, the Security Trustee shall, on the 60th day after Cash
Collateral is posted, or earlier at the Company's direction, apply such
Temporary Cash Collateral to prepay the Loan in accordance with Section 1.1(d)
of the Loan Agreement, but excluding any Prepayment Fee or, if an Event of
Default exists and remedies are being exercised, Article VII of the Loan
Agreement, as applicable.

            Section 3.04. [Intentionally Left Blank] .

            Section 3.05. Insurance.

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

      (b) Insurance for Own Account. Nothing in Section 3.05 shall limit or
prohibit (a) the Company from maintaining the policies of insurance required
under Appendix B with higher limits than those specified in Appendix B, or (b)
the Security Trustee or any Lender from obtaining insurance for its own account
(and any proceeds payable under such separate insurance

                                       11
<PAGE>

shall be payable as provided in the policy relating thereto); provided, however,
that no insurance may be obtained or maintained that would limit or otherwise
adversely affect the coverage of any insurance required to be obtained or
maintained by the Company pursuant to this Section 3.05 and Appendix B.

      (c) Indemnification by Government in Lieu of Insurance. Security Trustee
agrees to accept, in lieu of insurance against any risk with respect to any
aircraft or Engine described in Appendix B, indemnification from, or insurance
provided by, the U.S. Government, or upon the written consent of Security
Trustee, other Government Entity, against such risk in an amount that, when
added to the amount of insurance (including permitted self-insurance), if any,
against such risk that the Company (or any Lessee) may continue to maintain, in
accordance with this Section 3.05, shall be at least equal to the amount of
insurance against such risk otherwise required by this Section 3.05.

      (d) Application of Insurance Proceeds.

            (1) All insurance proceeds in respect of the Pledged Spare Parts in
excess of the Threshold Amount up to an amount equal to the outstanding
principal amount of the Loan together with accrued but unpaid interest thereon
paid under policies required to be maintained by the Company pursuant to this
Mortgage shall be held by or paid over to the Security Trustee as security for
the obligations of the Company under this Mortgage and be invested pursuant to
Section 6.01. If the Rotables Ratio at any time is less than the Maximum
Rotables Ratio such proceeds shall be released and paid by the Security Trustee
to the Company in accordance with Section 6.03.

            (2) Except as expressly provided in Section 3.05(e) below, all
proceeds of insurance in respect of the Pledged Spare Parts required to be
maintained by the Company in accordance with this Mortgage in respect of any
property damage or loss involving proceeds less than the Threshold Amount shall
be paid over to, and retained by, the Company.

      (e) Application of Payments During Existence of Event of Default. Any
amount referred to in this Section 3.05 which is payable to or retainable by the
Company shall not be paid to or retained by the Company, if at the time of such
payment or retention a Special Default or an Event of Default shall have
occurred and be continuing, but shall be held by or paid over to the Security
Trustee as security for the Obligations and invested pursuant to Section 6.01.
Upon the earlier of (a) such time as there shall not be continuing any such
Special Default or Event of Default or (b) the termination of this Mortgage in
accordance with Section 7.01, such amount, and any interest realized thereon
pursuant to Section 6.01 hereof, shall be paid over to the Company to the extent
not previously applied in accordance with the preceding sentence, provided that
if at the time of the termination of this Mortgage a "Special Default" or
"Subordinated Event of Default" (as such terms are defined in the Subordinated
Mortgage) has occurred and is continuing, then such amount, and any such
interest, not so previously applied shall be held or paid over to the
Subordinated Trustee as security under the Subordinated Mortgage.

                                       12
<PAGE>

      Section 3.06. Assurances and Filings.

      (a) The Company shall duly execute, acknowledge and deliver, or shall
cause to be executed, acknowledged and delivered, all such further agreements,
instruments, certificates or documents, and shall do and cause to be done such
further acts and things, in any case, as Security Trustee shall reasonably
request for accomplishing the purposes of this Mortgage including, without
limitation, ensuring that each of the Security Trustee, the Independent
Appraiser and GECC (so long as it is a Lender), subject, in each case, to such
Person executing any non-disclosure agreement as may be required by the Software
provider, remains at all times a third party beneficiary of any Software Support
Agreements.

      (b) The Company shall promptly take such action with respect to the
recording, filing, re-recording and refiling of this Mortgage and any amendments
or supplements thereto, as shall be necessary to continue the perfection and
priority of the Lien created by this Mortgage with respect to the Pledged Spare
Parts held at Designated Locations.

      (c) The Company, at its sole cost and expense, will cause the FAA Filed
Documents, the Financing Statements and all continuation statements (and any
amendments necessitated by any consolidation or merger of the Company, any
conveyance, transfer or lease of all or substantially all of the assets of the
Company, or any change of the Company's location) in respect of the Financing
Statements to be prepared and, subject only to the execution and delivery
thereof by Security Trustee, duly and timely filed and recorded, or filed for
recordation, to the extent permitted under the Federal Aviation Act (with
respect to the FAA Filed Documents) or the UCC or similar law of any other
applicable jurisdiction (with respect to such other documents). In addition, the
Company will pay any and all recording, stamp and other similar taxes payable in
the United States, in connection with the execution, delivery, recording,
filing, re-recording and refiling of this Mortgage or any such Financing
Statements or other instruments.

            Section 3.07. [Intentionally Left Blank].

            Section 3.08. Notice of Change of the Company's Location. The
Company will notify the Security Trustee of any change in the location of the
Company (within the meaning of Section 9-307 of the Uniform Commercial Code)
promptly after making such change and in any event within a reasonable period of
time prior to the date by which it is necessary under applicable Law to make any
filing in order to prevent the lapse of perfection (absent refiling) of
financing statements filed under or with respect to this Mortgage.

            Section 3.09. Inspection.

      (a) At reasonable times but, so long as no Default shall have occurred and
be continuing, not more often than once every 12 months, the Security Trustee
and its authorized representatives (the "Inspecting Parties") may inspect the
Pledged Spare Parts located at Designated Locations (including without
limitation, the Spare Parts Documents [and any computer files] maintained by the
Company with respect to the Pledged Spare Parts) and the Company shall cooperate
with the Inspecting Parties in connection with any such inspection (including,
without limitation, providing Inspecting Parties reasonable access to buildings
or

                                       13
<PAGE>

facilities at Designated Locations where such Pledged Spare Parts are located
and permitting any such Inspecting Party to make copies of Spare Parts Documents
and computer files (excluding the Software) not reasonably deemed confidential
by the Company) at its own cost and expense. Additionally, the Independent
Appraiser shall have such inspection rights as permitted to the Inspecting
Parties hereunder. For the avoidance of doubt, however, this Section 3.09 shall
not be considered to limit the AWA Appraiser Responsibility with respect to the
audits contemplated by Section 3.10 hereof.

      (b) Any inspection of the Pledged Spare Parts hereunder shall be limited
to a visual inspection, shall be in compliance with the Company's work and
safety rules at the Designated Locations (and any applicable governmental rules
and regulations), and shall not include the disassembling, or opening of any
components, of any Pledged Spare Part, and no such inspection shall interfere
with the Company's or any Lessee's maintenance or use of any Pledged Spare Part.

      (c) With respect to such rights of inspection, the Security Trustee shall
not:

            (i) have any duty or liability to make, or any duty or liability
      arising out of, any such visit, inspection or survey or failure to make
      any such visit, inspection or survey; or

            (ii) so long as no Event of Default has occurred and is continuing,
      exercise its inspection rights hereunder other than on reasonable notice
      and, whether or not an Event of Default shall have occurred and be
      continuing, so as not to unreasonably interfere with the Company's spare
      parts management operations or maintenance and operation of its aircraft
      and Engines.

      (d) Each person inspecting the Pledged Spare Parts hereunder shall bear
its own expenses in connection with any such inspection, unless an Event of
Default shall have occurred and be continuing, in which case the Company shall
bear all such expenses; provided further that, any costs of the Independent
Appraiser in connection with the performance of his duties under Section 3.10
shall be for the account of the Company.

          Section 3.10. Compliance Reports Regarding the Collateral.

      (a) Report Dates. On each Data Report Date, the Company shall furnish the
Independent Appraiser with a Data Report that is certified (pursuant to an
Officer's Certificate) as a true and correct copy of the data obtained from the
Company's spare parts tracking system as of the final calendar day of the
preceding month. On or before the twentieth calendar day after each Desk-Top
Data Report Date (each such day, a "Desk-Top Appraisal Date"), and after each
Physical Appraisal Data Report Date (each such day, a "Physical Appraisal Date",
and together with the Desk-Top Appraisal Date, each an "Appraisal Date"), the
Company shall cause the Independent Appraiser (only to the extent of the AWA
Appraiser Responsibility) to furnish to the Security Trustee, the Company and
each Lender an Independent Appraiser's Certificate signed by the Independent
Appraiser, dated as of a date no earlier than seven Business Days prior to the
applicable Appraisal Date. Each such Independent Appraiser's Certificate shall
state,

                                       14
<PAGE>

in the opinion of the Independent Appraiser, based in the case of a Desk-Top
Appraisal Date, upon use of the Desk-Top Appraisal Methodology, and in the case
of a Physical Appraisal Date, upon the use of the Physical Appraisal
Methodology, the Current Market Value of the Rotables and the Key Repairables
that are included in the Collateral (excluding any Cash Collateral, excluding
any Letters of Credit, and excluding any such Pledged Spare Parts as are out for
repair or in transit and consequently not located at a Designated Location) as
of the final calendar day of the month preceding the date of such Independent
Appraiser's Certificate (the "Valuation Date").

      On or prior to the tenth calendar day following the issuance of the
Independent Appraiser's Certificate, the Company shall furnish to the Security
Trustee and each Lender an Appraisal Compliance Report determined as of the
applicable Valuation Date. The Appraisal Compliance Report shall set forth the
calculation of the Rotables Ratio based on the Current Market Value of the
Rotables included in the Collateral set forth in such Independent Appraiser's
Certificate, the amount of Cash Collateral held by the Security Trustee, and the
aggregate outstanding principal amount of the Loans, each as of the applicable
Valuation Date.

      (b) Binding Determination. Each of the Company, the Security Trustee and
each Lender agree that any determination made by the Independent Appraiser in
any Independent Appraiser's Certificate shall be binding on each party, absent
manifest error.

      (c) Independent Appraiser. All fees and expenses of the Independent
Appraiser in preparing the Independent Appraiser's Certificates shall be for the
account of the Company; provided, however, that such fees and expenses to the
extent incurred in the ordinary course of preparing ten such Independent
Appraiser's Certificates based upon the Desk-Top Appraisal Methodology and two
such Independent Appraiser's Certificates based upon the Physical Appraisal
Methodology shall not exceed the Independent Appraiser's Fee Amount (as such
amount may be adjusted from time to time) during any consecutive 12-month
period. If the same Independent Appraiser is unable to continue preparing the
certificates, the Security Trustee will select an alternative independent
appraiser of recognized standing which shall be reasonably acceptable to the
Company. If the Security Trustee has a reasonable basis for concluding that the
performance of the Independent Appraiser that executed the most recent
Independent Appraiser's Certificate delivered pursuant to this Section 3.10 was
unsatisfactory as to the quality, accuracy and/or timeliness of work product,
the Security Trustee may, by written notice to the Company delivered no later
than 60 days following the date of such Independent Appraiser's Certificate,
select an alternative independent appraiser of recognized standing which shall
be reasonably acceptable to the Company to perform the next required appraisal
under this Section 3.10. Each appraisal inspection pursuant to this Section 3.10
shall be carried out during the Company's normal business hours and subject to
the safety, security and workplace rules applicable at the location where such
appraisal is conducted and any applicable governmental rules or regulations.

                                       15
<PAGE>

                                   ARTICLE 4.

            REMEDIES OF THE SECURITY TRUSTEE UPON AN EVENT OF DEFAULT

          Section 4.01. Remedies with Respect to Collateral.

      (a) Remedies Available. Upon the occurrence of any Event of Default and at
any time thereafter so long as the same shall be continuing, the Security
Trustee may do one or more of the following:

            (i) cause the Company, upon the written demand of the Security
      Trustee, at the Company's expense, to deliver promptly, and the Company
      shall deliver promptly, all or any of the Pledged Spare Parts constituting
      the Collateral at the Designated Locations, together in each case with the
      Spare Parts Documents for such Pledged Spare Parts as the Security Trustee
      may so demand, to the Security Trustee or its order, or the Security
      Trustee, at its option, may enter upon the premises where all or any of
      such Pledged Spare Parts and/or Spare Parts Documents are located and take
      immediate possession (to the exclusion of the Company and all Persons
      claiming under or through the Company) of and remove the same by summary
      proceedings;

            (ii) sell all or any part of the Collateral at public or private
      sale, whether or not the Security Trustee shall at the time have
      possession thereof, as the Security Trustee may determine, or lease or
      otherwise dispose of all or any part of the Collateral as the Security
      Trustee, in its sole discretion, may determine, all free and clear of any
      rights or claims of whatsoever kind of the Company; provided, however,
      that the Company shall be entitled at any time prior to any such
      disposition to redeem the Collateral by paying in full all of the
      Obligations;

            (iii) draw upon any Cash Collateral and/or Letters of Credit then
      held and apply such amounts as provided in Section 4.04 hereof; or

            (iv) exercise any or all of the rights and powers and pursue any and
      all remedies of a secured party under applicable Law.

            Upon every such taking of possession of Collateral under this
Section 4.01, the Security Trustee may, from time to time, make all such
expenditures for maintenance, insurance, repairs, replacements, alterations,
additions and improvements to and of the Collateral, as it may deem proper. In
each such case, the Security Trustee shall have the right to maintain, store,
lease, control or manage the Collateral and to exercise all rights and powers of
the Company relating to the Collateral in connection therewith, as the Security
Trustee shall deem best, including the right to enter into any and all such
agreements with respect to the maintenance, insurance, storage, leasing,
control, management or disposition of the Collateral or any part thereof as the
Security Trustee may determine; and the Security Trustee shall be entitled to
collect and receive directly all tolls, rents, revenues, issues, income,
products and profits of the Collateral and every part thereof, without
prejudice, however, to the right of the Security Trustee under any provision of
this Mortgage to collect and receive all cash held by, or required to be
deposited with, the Security Trustee hereunder. Such tolls, rents, revenues,
issues, income,

                                       16
<PAGE>

products and profits shall be applied to pay the expenses of storage, leasing,
control, management or disposition of the Collateral, and of all maintenance,
repairs, replacements, alterations, additions and improvements, and to make all
payments which the Security Trustee may be required or may elect to make, if
any, for taxes, assessments, insurance or other proper charges upon the
Collateral or any part thereof (including the employment of engineers and
accountants to examine, inspect and make reports upon the properties and books
and records of the Company), and all other payments which the Security Trustee
may be required or authorized to make under any provision of this Mortgage, as
well as compensation for the services of the Security Trustee, and of all
Persons engaged and employed by the Security Trustee. If the income and proceeds
of the Collateral shall not be sufficient to pay in full the Obligations, the
Company shall be liable for any deficiency.

            In addition, the Company shall be liable for all reasonable legal
fees and other costs and expenses incurred by reason of the occurrence of any
Event of Default or the exercise of the Security Trustee's remedies with respect
thereto, including, without limitation, all costs and expenses incurred in
connection with the retaking or return of any Pledged Spare Parts in accordance
with the terms hereof or under applicable Law, which amounts shall, until paid,
be secured by the Lien of this Mortgage.

            If an Event of Default shall have occurred and be continuing, at the
request of the Security Trustee the Company shall promptly execute and deliver
to the Security Trustee such instruments of title and other documents as the
Security Trustee may deem necessary or advisable to enable the Security Trustee
or an agent or representative designated by the Security Trustee, at such time
or times and place or places as the Security Trustee may specify, to obtain
possession of all or any part of the Collateral to which the Security Trustee
shall at the time be entitled hereunder. If the Company shall for any reason
fail to execute and deliver such instruments and documents after such request by
the Security Trustee, the Security Trustee may obtain a judgment conferring on
the Security Trustee the right to immediate possession of the Collateral and
requiring the Company to execute and deliver such instruments and documents to
the Security Trustee, to the entry of which judgment the Company hereby
specifically consents to the fullest extent it may lawfully do so. If an Event
of Default shall have occurred and be continuing, the Company shall provide the
Security Trustee and the Independent Appraiser or any of their agents or
representatives, with full and complete access to the system (including the
Software) utilized by the Company or its designees solely to track the Pledged
Spare Parts and prepare the Data Reports; provided, however, access to the
system and Software required to prepare Data Reports will be provided to the
Security Trustee and the Independent Appraiser, or their respective agents or
representatives, only if the Company fails to prepare and deliver such Data
Reports in the manner and within the deadlines required pursuant to Section
3.10(a) hereof.

            (b) Notice of Sale. The Security Trustee shall give the Company at
least fifteen (15) days' prior written notice of the date fixed for any public
sale of any Pledged Spare Parts or of the date on or after which any private
sale will be held, which notice the Company hereby agrees is reasonable notice,
and any such public sale shall be conducted in general so as to afford the
Company a reasonable opportunity to bid.

            Section 4.02. Remedies Cumulative. Each and every right, power and
remedy herein specifically given to the Security Trustee or otherwise in this
Mortgage shall be

                                       17
<PAGE>

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

            Section 4.03. Discontinuance of Proceedings. If the Security Trustee
shall have proceeded to enforce any right, power or remedy under this Mortgage
by foreclosure, entry or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason, then and in every such case the
Company and the Security Trustee shall be restored to their former positions and
rights hereunder with respect to the property, subject to the Lien of this
Mortgage, and all rights, remedies and powers of the Security Trustee shall
continue, as if no such proceedings had been undertaken (but otherwise without
prejudice).

            Section 4.04. Allocation of Payments. Notwithstanding any other
provisions of the Loan Agreement to the contrary, after the occurrence and
during the continuance of an Event of Default, all amounts collected or received
by the Security Trustee or any Lender on account of the Obligations shall be
paid over or delivered as follows:

            FIRST, to the payment of all reasonable out-of-pocket costs and
      expenses (including without limitation reasonable attorneys' fees and
      expenses actually incurred) of the Security Trustee in connection with
      enforcing the rights of the Security Trustee under the Operative
      Documents;

            SECOND, to payment of any fees owed to any Transaction Agent;

            THIRD, to the payment of all reasonable out-of-pocket costs and
      expenses (including without limitation, reasonable attorneys' fees and
      expenses actually incurred) of each of the Lenders in connection with
      enforcing its rights under the Operative Documents or otherwise with
      respect to the Obligations owing to such Lender (it being understood,
      however, that (i) the Original Series A Lender, the Original Series B
      Lender and their respective Affiliates shall use joint counsel, and (ii)
      all other Lenders shall use reasonable endeavors to select joint counsel,
      but may retain separate counsel if in the reasonable judgment of such
      other Lenders joint counsel would not be able to provide effective
      representation, whether due to conflicts of interest among such Lenders, a
      conflict of interest between the proposed joint counsel's representation
      of any Lender and its representation of any other client, or for any other
      reason);

            FOURTH, to all other Obligations (other than as covered by Clause
      "FIFTH", "SIXTH" and "SEVENTH" below) which shall have become due and
      payable under the Operative Documents or otherwise and not repaid pursuant
      to clauses "FIRST" through "THIRD" above; and

                                       18
<PAGE>

            FIFTH, to the payment of all accrued interest on the Obligations;

            SIXTH, to the payment of LIBOR Breakage Costs, if any, due under the
      Loan Agreement in respect of the Loan;

            SEVENTH, to the payment of the outstanding principal amount of the
      Loan;

            EIGHTH, so long as the Lien of the Subordinated Mortgage has not
      been discharged, to the Subordinated Trustee to be held as security under
      the Subordinated Mortgage;

            NINTH, to the payment of the surplus, if any, to whoever may be
      lawfully entitled to receive such surplus.

In carrying out the foregoing, (i) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next
succeeding category and (ii) if amounts available are insufficient to pay all
amounts due within any category, such available amounts shall be paid pro rata
to the parties entitled thereto based upon the amount due under such category to
each such party.

                                   ARTICLE 5.

                            INTENTIONALLY LEFT BLANK

                                   ARTICLE 6.

                                 SECURITY FUNDS

            Section 6.01. Investment of Security Funds. Any monies paid to or
received by the Security Trustee as cash collateral or which are required to be
paid to the Company or applied for the benefit of the Company (including,
without limitation, amounts payable to the Company under Sections 3.05(d) and
3.05(e) hereof), but which the Security Trustee is entitled to hold under the
terms hereof pending the occurrence of some event or the performance of some act
(including, without limitation, the remedying of an Event of Default), shall,
until paid to the Company or applied as provided herein, be invested by the
Security Trustee at the written authorization and direction of the Company (or,
if an Event of Default shall have occurred and be continuing, the Security
Trustee) from time to time at the sole expense and risk of the Company in
Permitted Investments. All Permitted Investments held by the Security Trustee
pursuant to this Section 6.01 shall either be (a) registered in the name of,
payable to the order of, or specially endorsed to, the Security Trustee or (b)
held in an Eligible Account. At the time of such payment or application, there
shall be remitted to the Company any gain (including interest received) realized
as the result of any such investment (net of any fees, commissions, other
expenses or losses, if any, incurred in connection with such investment) unless
an Event of Default shall have occurred and be continuing. The Security Trustee
shall not be liable for any loss relating to a Permitted Investment made
pursuant to this Section 6.01. The Company will promptly pay to the Security
Trustee, on demand, the amount of any loss (net of any gains,

                                       19
<PAGE>

including interest received) realized as the result of any such investment
(together with any fees, commissions and other expenses, if any, incurred in
connection with such investment).

            Section 6.02 Investing of Cash Collateral. The Company may from time
to time provide Cash Collateral to the Security Trustee in accordance with the
terms and conditions of this Mortgage. The Security Trustee agrees that any Cash
Collateral provided by the Company shall be retained and invested by the
Security Trustee in accordance with the terms and conditions of Section 6.01
hereof.

            Section 6.03 Release of Cash Collateral. If the Rotables Ratio is
less than the Maximum Rotables Ratio, as most recently determined pursuant to
Section 3.03, Section 3.05(d) and Section 3.10, upon written request of the
Company the Security Trustee shall, unless an Event of Default has occurred and
is continuing, pay to the Company an amount of the Cash Collateral or insurance
proceeds held by the Security Trustee pursuant to Section 3.05(d)(1), as the
case may be, such that the Rotables Ratio would not be greater than the Maximum
Rotables Ratio giving effect to such payment.

                                   ARTICLE 7.

                                  MISCELLANEOUS

            Section 7.01. Termination of Mortgage. Upon (or at any time after)
payment in full of the unpaid principal of, and accrued interest on, the Loans
and all other Obligations then due and payable (and regardless of whether any
Default or Event of Default shall have occurred and be continuing), the Security
Trustee shall, upon the written request of the Company execute and deliver to,
or as directed in writing by, the Company an appropriate instrument (in due form
for recording) releasing the Pledged Spare Parts and the balance of the
Collateral from the Lien of this Mortgage and, in such event, this Mortgage
shall terminate and this Mortgage shall be of no further force or effect,
provided that the Security Trustee shall have no obligation to release such
Pledged Spare Parts and Collateral from the Lien of this Mortgage or otherwise
terminate this Mortgage prior to such payment in full. Upon any release of any
Pledged Spare Parts from the Lien of this Mortgage in accordance with the terms
of this Mortgage, the Spare Parts Documents and other Collateral referred to in
subsections (b), (c), (d) and (e) of Section 2.01 relating to such Pledged Spare
Part shall also be released.

            Section 7.02. Alterations to Mortgage. This Mortgage shall not be
varied except in accordance with the Loan Agreement.

            Section 7.03. No Legal Title to Collateral. No Secured Party shall
have legal title to any part of the Collateral. No transfer, by operation of Law
or otherwise, of a Note or any right, title and interest of any Secured Party in
and to the Collateral or this Mortgage shall operate to terminate this Mortgage
or entitle any successor or transferee to an accounting or to the transfer to it
of legal title to any part of the Collateral.

            Section 7.04. Sale of the Collateral by Security Trustee Is Binding.
Any sale or other conveyance of the Collateral, or any part thereof or any
interest therein by the Security Trustee made pursuant to and in accordance with
the terms of this Mortgage shall bind the

                                       20
<PAGE>

Secured Parties, and shall be effective to transfer or convey all right, title
and interest of the Security Trustee, the Secured Parties and the Company, in
and to such Collateral, or such part thereof or interest therein. No purchaser
or other grantee shall be required to inquire as to the authorization,
necessity, expediency or regularity of such sale or conveyance or as to the
application of any sale or other proceeds with respect thereto by the Security
Trustee.

            Section 7.05. Benefit of Mortgage. Nothing in this Mortgage, whether
express or implied, shall be construed to give to any Person other than the
Company, the Secured Parties and the Security Trustee any legal or equitable
right, remedy or claim under or in respect of this Mortgage.

            Section 7.06. Section 1110 of the Bankruptcy Code. It is the
intention of the parties hereto that the security interest created hereby in the
Pledged Spare Parts entitles the Security Trustee on behalf of the Lenders to
all of the benefits of Section 1110 of Chapter 11 of the Bankruptcy Code with
respect to at least the Minimum 1110 Percentage (determined on the basis of
Appraisal Value) of the Rotables included within the Pledged Spare Parts in the
event the Company becomes a debtor under such Chapter.

            Section 7.07. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, any notice or other communication herein required
or permitted to be given shall be in writing and may be personally served or
sent by telefacsimile, United States mail, courier service or overnight delivery
and shall be effective when received addressed:

            (i)   if to the Company, at its office at

                  America West Airlines, Inc.
                  4000 Sky Harbor Blvd.
                  Phoenix, AZ 85034

                  Attention: Vice President and Treasurer
                  Telephone: (480) 693-5886
                  Telecopy:  (480) 693-3685
                  email: tom.weir@americawest.com

            (ii)  if to the Security Trustee, at its office at

                  MAC: U1228-120
                  299 South Main Street,
                  12th Floor
                  Salt Lake City, Utah 84111

                  Attention: Corporate Trust Services
                  Telephone: (801) 246-5630
                  Telecopy:  (801) 246-5053
                  Email: michael.hoggan@wellsfargo.com

                                       21
<PAGE>

            (iii) if to any Lender, at its address for notices to it provided
                  under the Loan Agreement,

            or, as to any party, at such other address as such party shall from
            time to time designate by written notice to the other parties in
            accordance with this Section 7.07.

            Section 7.08. Severability. Should any one or more provisions of
this Mortgage be determined to be illegal or unenforceable by a court of any
jurisdiction, such provision shall be ineffective to the extent of such
illegality or unenforceability without invalidating the remaining provisions
hereof or affecting the validity or enforceability of such provisions in any
other jurisdiction. The Company and the Security Trustee agree, as to such
jurisdiction and to the extent permitted by such jurisdiction's Laws, to replace
any provision of this Mortgage which is so determined to be illegal or
unenforceable by a valid provision which has as nearly as possible the same
effect; provided that such replacement provision shall not expand the Company's
or the Security Trustee's obligations hereunder.

            Section 7.09. Separate Counterparts. This Mortgage may be executed
in any number of counterparts (and each of the parties hereto shall not be
required to execute the same counterpart). Each counterpart of this Mortgage
executed by a party hereto shall be an original counterpart of this Mortgage,
and all of such counterparts together shall constitute one instrument.

            Section 7.10. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, the Company
and its successors and permitted assigns, and the Security Trustee and its
successors and permitted assigns, all as herein provided.

            Section 7.11. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

            Section 7.12. Governing Law. THIS MORTGAGE IS BEING DELIVERED IN THE
STATE OF NEW YORK AND SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. The provisions of Sections
9.11 and 9.12 of the Loan Agreement are incorporated herein by reference,
mutatis mutandis.

            Section 7.13 Certification. The Company hereby represents that it is
a certificated air carrier under Section 44705 of title 49 of the U.S. Code.

                       [Remainder of this page is blank.]

                                       22
<PAGE>

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

                                    AMERICA WEST AIRLINES, INC.

                                    By: /s/ Thomas T. Weir
                                       _________________________________________
                                       Name: Thomas T. Weir
                                       Title: Vice President and Treasurer

                                    WELLS FARGO BANK NORTHWEST
                                    NATIONAL ASSOCIATION, as Security Trustee

                                    By: /s/ Michael D. Hoggan
                                       _________________________________________
                                       Name: Michael D. Hoggan
                                       Title: Vice President

<PAGE>
                                                                      APPENDIX A

                           DEFINITIONS RELATING TO THE
                         MORTGAGE AND SECURITY AGREEMENT

                               General Provisions

(a)   Unless otherwise expressly provided, a reference to:

      (i)   each of "the Company," "Security Trustee" or any other person
            includes, without prejudice to the provisions of any Operative
            Document, any successor in interest to it and any permitted
            transferee or permitted assignee of it;

      (ii)  words importing the plural include the singular and words importing
            the singular include the plural;

      (iii) any agreement, instrument or document, or any annex, schedule or
            exhibit thereto, or any other part thereof, includes, without
            prejudice to the provisions of any Operative Document, that
            agreement, instrument or document, or annex, schedule or exhibit, or
            part, respectively, as amended, modified or supplemented from time
            to time in accordance with its terms and in accordance with the
            Operative Documents, and any agreement, instrument or document
            entered into in substitution or replacement therefor;

      (iv)  any provision of any Law includes any such provision as amended,
            modified, supplemented, substituted, reissued or reenacted prior to
            the Closing Date, and thereafter from time to time;

      (v)   the words "Mortgage," "this Mortgage," "hereby," "herein," "hereto,"
            "hereof" and "hereunder" and words of similar import when used in
            the Mortgage refer to the Mortgage as a whole and not to any
            particular provision of the Mortgage;

      (vi)  the words "including," "including, without limitation," "including,
            but not limited to," and terms or phrases of similar import when
            used in the Mortgage, with respect to any matter or thing, mean
            including, without limitation, such matter or thing; and

      (vii) a "Section," an "Exhibit," an "Appendix," an "Annex" or a "Schedule"
            referred to in the Mortgage, or in any annex thereto, is a reference
            to a section of, or an exhibit, an appendix, an annex or a schedule
            to, the Mortgage or such annex, respectively.

(b)   Each exhibit, appendix, annex and schedule to the Mortgage is incorporated
      in, and shall be deemed to be a part of, the Mortgage.

(c)   Headings used in the Mortgage are for convenience only and shall not in
      any way affect the construction of, or be taken into consideration in
      interpreting, the Mortgage.

                                       1
<PAGE>

                                                                      APPENDIX A

(d)   The occurrence and continuance of a Default, Special Default or Event of
      Default referred to in Section 7.1 of the Loan Agreement shall not be
      deemed to prohibit the Company from taking any action or exercising any
      right that is conditioned on no Default, Special Default or Event of
      Default having occurred and be continuing if such Default, Special Default
      or Event of Default consists of the institution of reorganization
      proceedings with respect to the Company under Chapter 11 of the Bankruptcy
      Code and the trustee or debtor-in-possession in such proceedings shall
      have agreed to perform its obligations under the Mortgage with the
      approval of the applicable court and thereafter shall have continued to
      perform such obligations in accordance with Section 1110 of the Bankruptcy
      Code.

                                   Definitions

            "Additional Rotables" has the meaning specified in Section 3.03(a)
of the Mortgage.

            "Affiliate" means, with respect to any person, any other person
directly or indirectly controlling, controlled by or under common control with
such person. For purposes of this definition, "control" means the power,
directly or indirectly, to direct or cause the direction of the management and
policies of such person, whether through the ownership of voting securities or
by contract or otherwise and "controlling," "controlled by" and "under common
control with" have correlative meanings.

            "Appliance" means an instrument, equipment, apparatus, a part, an
appurtenance, or an accessory used, capable of being used, or intended to be
used, in operating or controlling aircraft in flight, including a parachute,
communication equipment, and another mechanism installed in or attached to
aircraft during flight, and not a part of an aircraft, Engine, or Propeller.

            "Appraisal" means an appraisal of the Pledged Spare Parts completed
with the either the Desk-Top Appraisal Methodology or the Physical Appraisal
Methodology, as the case may be.

            "Appraisal Compliance Report" means, as of any date, a report
providing information relating to the calculation of the Rotables Ratio, which
shall be substantially in the form of Appendix C to this Mortgage.

            "Appraisal Date" has the meaning set forth in Section 3.10(a) of the
Mortgage.

            "Appraisal Value" means, with respect to any Rotable included in the
Collateral, the Current Market Value of such Rotable as most recently determined
pursuant to Section 3.03(d), 3.03(e) or Section 3.10 of the Mortgage (including,
without limitation, in connection with an Independent Appraiser's Certificate).

            "AWA Appraiser Responsibility" means the responsibility of the
Company to (i) make timely payment of the Independent Appraiser's fees and
expenses (subject to the limitation set forth in Section 3.10(c) of the
Mortgage), (ii) provide the Independent Appraiser with timely and accurate Data
Reports, and (iii) in the case of any Physical Appraisal, provide the

                                      A-2
<PAGE>

                                                                      APPENDIX A

Independent Appraiser with full and complete access to all Designated Locations
required by the Independent Appraiser.

            "Bankruptcy Code" means Title 11 of the United States Code.

            "Business Day" means any day except Saturday, Sunday and any day
which shall be in New York City or Phoenix, Arizona a day on which banking
institutions are authorized or required by Law to close.

            "Cash Collateral" has the meaning set forth in Section 3.03(a)(ii)
of the Mortgage.

            "Certificated Air Carrier" means a Person holding an air carrier
operating certificate issued by the Secretary of Transportation pursuant to
Chapter 447 of Title 49, United States Code, for aircraft capable of carrying
ten or more individuals or 6,000 pounds or more of cargo.

            "Citizen of the United States" has the meaning specified in Section
40102(a)(15) of Title 49 of the United States Code.

            "Closing Date" means the date on which the Loan is made pursuant to
the Loan Agreement.

            "Collateral" has the meaning given such term in Section 2.01 of the
Mortgage.

            "Collateral Diminution Event" means as of any Appraisal Date, if the
Current Market Value of the Rotables included in the Collateral, as of such
Appraisal Date, is 10% (or more) lower than the Current Market Value of the
Rotables included within the Collateral, as of the immediately preceding
Appraisal Date; provided, however, if such 10% or more change in the Current
Market Value of the Rotables included within the Collateral is attributable
primarily to a change in industry-wide market values or to a change in the
valuation methodology used by the Independent Appraiser, then such change shall
not constitute a "Collateral Diminution Event" for purposes of this Mortgage.

            "Company" means America West Airlines, Inc., a Delaware corporation.

            "Current Market Value" means, with respect to any Rotable included
in the Collateral, its current market value determined on the basis of a
hypothetical sale negotiated in an arm's length free market transaction between
a willing and able seller and a willing and able buyer, neither of whom is under
undue pressure to complete the transaction, under then current market condition,
as determined by the Independent Appraiser.

            "Data Report" means information and data relating to the Pledged
Spare Parts supplied by the Company to the Independent Appraiser necessary for
the Independent Appraiser to complete the Independent Appraiser's Certificate
and substantially in the form of Appendix D to the Mortgage.

                                      A-3
<PAGE>

                                                                      APPENDIX A

            "Data Report Date" means the sixth calendar day of each month,
commencing with the first month following the month in which the Funding Date
occurs.

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

            "Designated Locations" means the locations designated from time to
time by the Company at which the Pledged Spare Parts may be maintained by or on
behalf of the Company, which initially shall be the locations set forth on
Schedule I to the Mortgage and shall include the additional locations designated
by the Company pursuant to Section 3.02(b)(2) of the Mortgage.

            "Desk-Top Appraisal Date" has the meaning set forth in Section
3.10(a) of the Mortgage.

            "Desk-Top Appraisal Methodology" means the Physical Appraisal
Methodology, excluding the actions referred to in clauses (vi) and (vii) of the
definition of Physical Appraisal Methodology.

            "Desk-Top Data Report Date" means each Data Report Date that is not
a Physical Data Report Date.

            "Dollars" and "$" means the lawful currency of the United States of
America.

            "Eligible Account" means an account established by and with an
Eligible Institution at the request of the Security Trustee, which institution
agrees, for all purposes of the New York UCC including Article 8 thereof, that
(a) such account shall be a "securities account" (as defined in Section 8-501 of
the New York UCC), (b) such institution is a "securities intermediary" (as
defined in Section 8-102(a)(14) of the New York UCC), (c) all property (other
than cash) credited to such account shall be treated as a "financial asset" (as
defined in Section 8-102(9) of the New York UCC), (d) the Security Trustee shall
be the "entitlement holder" (as defined in Section 8-102(7) of the New York UCC)
in respect of such account, (e) it will comply with all entitlement orders
issued by the Security Trustee to the exclusion of the Company, (f) it will
waive or subordinate in favor of the Security Trustee all claims (including
without limitation, claims by way of security interest, lien or right of set-off
or right of recoupment), and (g) the "securities intermediary jurisdiction"
(under Section 8-110(e) of the New York UCC) shall be the State of New York.

            "Eligible Institution" means (a) the Security Trustee, acting solely
in its capacity as a "securities intermediary" (as defined in Section 8-102(14)
of the New York UCC), or (b) a depository institution organized under the Laws
of the United States of America or any of the states thereof or the District of
Columbia (or any U.S. branch of a foreign bank), which has a long-term unsecured
debt rating from Moody's and Standard & Poor's of at least A3 or its equivalent.

            "Engine" means an engine used, or intended to be used, to propel an
aircraft, including a part, appurtenance, and accessory of the Engine.

                                      A-4
<PAGE>

                                                                      APPENDIX A

            "Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

            "Event of Default" has the meaning given such term in the Loan
Agreement.

            "Excluded Parts" means (i) Expendable Parts that are not stored on a
shelf or within an area marked with the signs and inscriptions required pursuant
to Section 3.02(d) at a Designated Location, (ii) Spare Parts and Appliances
that are stored at an Excluded Location established in accordance with Section
3.02(b)(3) of the Mortgage and (iii) Hazardous Materials.

            "Expendable Parts" means those Spare Parts and Appliances that, once
used, cannot be re-used, and if not serviceable, cannot be overhauled or
repaired.

            "FAA Filed Documents" has the meaning set forth in the Loan
Agreement.

            "Federal Aviation Act" means Part A of Subtitle VII of Title 49,
United States Code.

            "Federal Aviation Administration" and "FAA" mean the United States
Federal Aviation Administration, and any agency or instrumentality of the United
States government succeeding to its functions.

            "Financing Statements" has the meaning set forth in the Loan
Agreement.

            "Funding Date" has the meaning given to such term in the Loan
Agreement.

            "Government Entity" means (a) any federal, state, provincial or
similar government, and any body, board, department, commission, court,
tribunal, authority, agency or other instrumentality of any such government or
otherwise exercising any executive, legislative, judicial, administrative or
regulatory functions of such government or (b) any other government entity
having jurisdiction over any matter contemplated by the Operative Documents or
relating to the observance or performance of the obligations of any of the
parties to the Operative Documents.

            "Hazardous Materials" means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Laws.

            "Independent Appraiser" means Sage-Popovich, Inc. or, if
Sage-Popovich, Inc. is no longer the Independent Appraiser, any other Person
selected by the Security Trustee and reasonably acceptable to the Company
pursuant to Section 3.10(c).

                                      A-5
<PAGE>

                                                                      APPENDIX A

            "Independent Appraiser's Certificate" means a certificate delivered
pursuant to Section 3.03(d), 3.03(e) or Section 3.10 of the Mortgage, and
substantially in the form of Appendix E to the Mortgage.

            "Independent Appraiser's Fee Amount" has the meaning set forth in
Schedule 3 to the Loan Agreement.

            "JAA" means the European Joint Aviation Authorities, and any agency
or instrumentality succeeding to its functions.

            "Key Repairable" means those Spare Parts and Appliances that can be
economically restored or repaired to a serviceable condition, but have a life
that is considerably less than the life of the flight equipment to which they
are related.

            "Law" means (a) any constitution, treaty, statute, law, decree,
regulation, order, rule or directive of any Government Entity, and (b) any
judicial or administrative interpretation or application of, or decision under,
any of the foregoing.

            "Lender" has the meaning given to that term in the Loan Agreement.

            "Letter of Credit" has the meaning specified in Section
3.03(a)(iii).

            "Lien" means any mortgage, pledge, lien, charge, encumbrance, lease,
or security interest affecting the title to or interest in property.

            "Loan" has the meaning given to that term in the Loan Agreement.

            "Loan Agreement" means the Loan Agreement [Spare Parts], dated as of
September 3, 2004 among the Company, General Electric Capital Corporation, the
Security Trustee and the Lenders from time to time party thereto.

            "Maximum Rotables Ratio" has the meaning set forth in Schedule 3 to
the Loan Agreement.

            "Maximum Self-Insurance Amount" has the meaning set forth in
Schedule 3 to the Loan Agreement.

            "Minimum 1110 Percentage" has the meaning set forth in Schedule 3 to
the Loan Agreement.

            "Minimum Liability Amount" has the meaning set forth in Schedule 3
to the Loan Agreement.

            "Moody's" means Moody's Investors Service, Inc.

            "Mortgage" means the Spare Parts Mortgage and Security Agreement
covering the Collateral dated as of September 3, 2004, between the Company and
the Security Trustee.

                                      A-6
<PAGE>

                                                                      APPENDIX A

            "New York UCC" means the Uniform Commercial Code as in effect in the
State of New York.

            "Note" has the meaning given to that term in the Loan Agreement.

            "Obligations" means the principal of and interest on the Loan, any
LIBOR Breakage Costs (as defined in the Loan Agreement), the Prepayment Fee (as
defined in the Loan Agreement), if applicable, and all other obligations of
every nature of the Company from time to time owed to the Security Trustee, the
other Secured Parties or any of them under the Loan Agreement or any other
Operative Document.

            "Officer's Certificate" means, as to any company, a certificate
signed by the Chairman, any Vice Chairman, the President, any Executive Vice
President, any Senior Vice President, any Vice President, any Assistant Vice
President, the Treasurer, any Assistant Treasurer, the Secretary, or any
Assistant Secretary of such company.

            "Operative Documents" means the Loan Agreement, each Note, the
Restructure Letter, the Mortgage and each Supplemental Mortgage.

            "Permitted Disposition Amount" has the meaning set forth in Schedule
3 to the Loan Agreement.

            "Permitted Investments" means (i) securities issued or directly and
fully guaranteed by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof), the Federal Home Loan Mortgage
Corporation, the Student Loan Marketing Association and the Federal National
Mortgage Association, in all cases having a maturity of not more than 90 days
or, in the case of auction rate notes issued by any of the foregoing, having an
action reset interval of not more than 30 days; (ii) certificates of deposit,
bankers' acceptances, repurchase agreements or time deposits issued or accepted
or guaranteed by any bank, trust company or national banking association
incorporated under the Laws of the United States of America or one of the states
thereof having combined capital and surplus and retained earnings as of its last
report of condition of at least $500,000,000 and having a rating of AA or better
by Moody's or AA or better by Standard & Poor's and having a final maturity of
90 days or less from date of purchase thereof; and (iii) commercial paper of any
holding company of a bank, trust company or national banking association
described in (ii) and commercial paper of any corporation or finance company
incorporated or doing business under the Laws of the United States of America or
any state thereof having a rating assigned to such commercial paper of A1 by
Standard & Poor's or P1 by Moody's and having a final maturity of 90 days or
less from the date of purchase thereof; provided that the aggregate amount at
any one time invested in certificates of deposit issued by any one bank shall
not be in excess of 5% of such bank's capital and surplus.

            "Permitted Liens" has them meaning given such term in Section 3.01
of the Mortgage.

            "Person" has the meaning given to such term in the Loan Agreement.

                                      A-7
<PAGE>

                                                                      APPENDIX A

            "Physical Appraisal" means an appraisal of the Rotables included
within the Pledged Spare Parts conducted using the Physical Appraisal
Methodology.

            "Physical Appraisal Methodology" means, in determining an opinion as
to the Current Market Value of the Pledged Spare Parts, taking at least the
following actions: (i) reviewing the Data Report prepared as of the applicable
Valuation Date; (ii) reviewing the Independent Appraiser's internal value
database for values applicable to the Pledged Spare Parts; (iii) developing a
representative sampling of a reasonable number of the different Rotables
included in Pledged Spare Parts for which a market check will be conducted; (iv)
checking other sources, such as manufacturers, other airlines, U.S. Government
procurement data and airline parts pooling price lists, for current market
prices of the sample parts referred to in clause (iii); (v) establishing an
assumed ratio of Serviceable Parts to Unserviceable Parts as of the applicable
Valuation Date based upon information provided by the Company and the
Independent Appraiser's limited physical review of the Rotables referred to in
the following clause (vi); (vi) visiting Designated Locations selected by the
Independent Appraiser where in the aggregate up to 80% (by measure of Appraisal
Value) of the Pledged Spare Parts are kept by the Company to conduct a physical
inspection of the Pledged Spare Parts; (vii) conducting a limited review of the
inventory reporting system applicable to the Pledged Spare Parts, including
checking information reported in such system against information determined
through physical inspection pursuant to the proceeding clause (vi); and (viii)
reviewing a sampling of the Spare Parts Documents (including tear-down reports).

            "Physical Data Report Date" means the Data Report Date occurring on
the sixth calendar day of the sixth month following the Funding Date, and
thereafter on the sixth calendar day of the sixth month after the preceding
Physical Data Report Date; provided that, if at any time, a Collateral
Diminution Event has occurred as of a Data Report Date occurring after a
Physical Appraisal Date (or, if a Physical Appraisal Date has not yet occurred,
after the Funding Date) but prior to the next succeeding Data Report Date (and
is not cured as of the next succeeding Data Report Date, if any, occurring prior
to such next succeeding Data Report Date), then the next Physical Data Report
Date shall be such next succeeding Data Report Date.

            "Pledged Spare Parts" has the meaning set forth in clause (a) of the
first paragraph of Section 2.01 of the Mortgage.

            "Pre-Approved Bank" means any bank organized under the laws of the
United States or any State thereof, or the New York branch of a major
international bank, in each case for only so long as its long-term Dollar
denominated unsecured debt (or if it does not have long-term unsecured Dollar
denominated debt, its parent corporation's long-term unsecured Dollar
denominated debt) carries a rating from Standard & Poor's of A or better.

            "Propeller" includes a part, appurtenance, and accessory of a
propeller.

            "Required LC Expiry Date" means the day that is the ninety-first
(91st) day following the Maturity Date of the Notes issued pursuant to the Loan
Agreement.

            "Restructure Letter" means the Restructure Letter [Spare Parts],
dated as of September 3, 2004, between General Electric Capital Corporation and
the Company.

                                      A-8
<PAGE>

                                                                      APPENDIX A

            "Rotable" means those Spare Parts and Appliances that can be
repeatedly and economically restored to a serviceable condition over a period
approximating the life of the flight equipment to which they are related.

            "Rotables Ratio" shall mean, as of any date, a percentage determined
by dividing (i) the aggregate outstanding principal amount of the Loan minus the
amount of the Cash Collateral held by the Security Trustee as of such date by
(ii) the aggregate Current Market Value of all Rotables that are Pledged Spare
Parts, excluding (x) those Rotables which are either in transit or out for
repair and consequently not located at a Designated Location as of such date,
and (y) those Rotables which are located at any Designated Location which is at
the premises of a third party maintenance facility, including, but not limited
to the two locations identified as "TIMCO" locations as of the Closing Date.

            "Secure Location" means an area in a Designated Location to which
access is controlled by lock and key, supported by an appropriate security
system, and which is accessible only to authorized employees of the Company.

            "Secured Parties" means the Lenders, the Security Trustee and the
parties (except the Company) from time to time party to the Restructure Letter.

            "Security Trustee" means Wells Fargo Bank Northwest, National
Association, in its capacity as security trustee under the Mortgage.

            "Serviceable Parts" means Pledged Spare Parts in condition
satisfactory for incorporation in, installation on, attachment or appurtenance
to or use in an aircraft, Engine or other Pledged Spare Part.

            "Software" means any and all computer programs and inventory
management systems, including, but not limited to all source code and user
interfaces associated therewith as well as all data files used as input thereto
and data files or other records generated thereby, used by the Company to track
and manage the location, use and maintenance status of Spare Parts and
Appliances.

            "Special Default" has the meaning given to that term in the Loan
Agreement.

            "Spare Part" means an accessory, appurtenance, or part of an
aircraft (except an Engine or Propeller), Engine (except a Propeller),
Propeller, or Appliance, that is to be installed at a later time in an aircraft,
Engine, Propeller or Appliance.

            "Spare Parts Documents" has the meaning set forth in clause (e) of
the first paragraph of Section 2.01 of the Mortgage.

            "Standard & Poor's" has the meaning given to such term in the Loan
Agreement.

            "Subordinated Mortgage" has the meaning given to that term in the
Loan Agreement.

                                      A-9
<PAGE>

                                                                      APPENDIX A

            "Subordinated Trustee" means the "Security Trustee" as defined in
the Subordinated Mortgage.

            "Supplemental Mortgage" means a Supplemental Mortgage and Security
Agreement in substantially the form of Exhibit A to the Mortgage.

            "Taxes" has the meaning given to that term in the Loan Agreement.

            "Threshold Amount" has the meaning set forth in Schedule 3 to the
Loan Agreement.

            "Transaction Agents" has the meaning given to that term in the Loan
Agreement.

            "UCC" or "Uniform Commercial Code" means the Uniform Commercial Code
as in effect in any applicable jurisdiction.

            "Unserviceable Parts" means Pledged Spare Parts that are not
Serviceable Parts.

            "U.S. Government" means the federal government of the United States,
or any instrumentality or agency thereof the obligations of which are guaranteed
by the full faith and credit of the federal government of the United States.

            "Valuation Date" has the meaning given to that term in Section
3.10(a) of the Mortgage.

            "Warranties"" has the meaning given to that term in Section 2.01 of
the Mortgage.

                                      A-10
<PAGE>

                                   APPENDIX B

                                    INSURANCE

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

A.    LIABILITY INSURANCE

            The Company will carry or cause to be carried at all times, at no
expense to any Secured Party, third party liability insurance with
respect to the Pledged Spare Parts, which is (i) of amount and scope as is
usually carried by airlines engaged in the same or similar business, similarly
situated with Company and owning or operating similar spare parts for aircraft
and engines and covering risks of the kind customarily insured against by the
Company for equipment similar to the Pledged Spare Parts and (ii) maintained in
effect with insurers of recognized responsibility (such insurers being referred
to herein as "Approved Insurers").

            The Company will carry or cause to be carried at all times, at no
expense to any Secured Party, with Approved Insurers third party
liability insurance covering the Designated Locations where any Pledged Spare
Parts shall be located. Pursuant to Section C below, the Secured Parties shall
be named as Additional Insureds under any such insurance policy.

B.    PROPERTY INSURANCE

            The Company will carry or cause to be carried at all times, at no
expense to Security Trustee or any Lender, with Approved Insurers insurance
covering physical damage to the Pledged Spare Parts, of the type covering the
same risks as are usually carried by airlines engaged in the same or similar
business as Company and covering risks of the kind customarily insured against
by Company and providing for the reimbursement of the actual expenditure
incurred in repairing or replacing any damaged or destroyed Pledged Spare Part
or, if not repaired or replaced, for the payment of the amount it would cost
(determined as of the date of loss) to repair or replace such Pledged Spare Part
with proper deduction for obsolescence and physical depreciation.

            The Company will carry or cause to be carried at all times, at no
expense to any Secured Party, with Approved Insurers property insurance covering
the Designated Locations where any Pledged Spare Parts shall be located.

            Any policies of insurance carried in accordance with this Section B
covering the Pledged Spare Parts and any policies taken out in substitution or
replacement for any such policies shall provide that (A) all insurance proceeds
paid under such policies as a result of the occurrence of any loss or damage
with respect to any Pledged Spare Parts involving proceeds in excess of the
Threshold Amount up to an amount equal to the unpaid principal amount of the
Loan and the accrued but unpaid interest due thereon will be paid to the
Security Trustee and (B) the entire amount of any insurance proceeds up to the
Threshold Amount shall be paid to the

                                      B-1
<PAGE>

Company or its order; provided that if a Special Default or Event of Default
shall have occurred and be continuing and the insurers have been notified
thereof by the Security Trustee or any other Person, the amount of any proceeds
up to the Threshold Amount of any loss with respect to the Pledged Spare Parts
shall not be paid to the Company, but shall instead be paid to the Security
Trustee notwithstanding the preceding clause (B) of this paragraph.

C.    GENERAL PROVISIONS

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

            (a) shall name each Secured Party as an additional insured
      (collectively, the "Additional Insureds"), as their respective interests
      may appear;

            (b) in the case of Section A, shall provide that, in respect of the
      interests of the Additional Insureds in such policies, the insurance shall
      not be invalidated or impaired by any act or omission (including
      misrepresentation and nondisclosure) by the Company or any other Person
      (including, without limitation, use of the Pledged Spare Parts for illegal
      purposes) and shall insure the Additional Insureds regardless of any
      breach or violation of any representation, warranty, declaration, term or
      condition contained in such policies by the Company;

            (c) shall provide that, if the insurers cancel such insurance for
      any reason whatsoever, including nonpayment of premium, or if any material
      change is made in the insurance which adversely affects the interest of
      any of the Additional Insureds, such cancellation or change shall not be
      effective as to the Additional Insureds for 30 days (10 days for
      nonpayment of premiums or cancellation by the Company) after receipt by
      the Additional Insureds of written notice by such insurers of such
      cancellation or change;

            (d) shall waive any right of recourse, subrogation, setoff,
      recoupment, counterclaim or other deduction against any Additional
      Insured;

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

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

            (g) shall provide that none of the Additional Insureds shall be
      liable for any insurance premium.

D.    REPORTS, ETC.

            On or prior to the Closing Date and on or prior to each renewal date
of the insurance policies required hereunder, the Company will furnish or cause
to be furnished to the Secured Parties insurance certificates describing in
reasonable detail the insurance maintained by the Company hereunder and a
report, signed by the Company's regularly retained independent

                                      B-2
<PAGE>

insurance broker (the "Insurance Broker"), stating the opinion of such Insurance
Broker that all premiums in connection with the insurance then due have been
paid and that the insurance terms are in compliance with the requirements of
this Annex I. Such information shall remain confidential as provided in Section
9.9 of the Loan Agreement. The Company will cause such Insurance Broker to agree
to advise the Security Trustee in writing of any default in the payment of
premium as required by the terms hereof and to advise the Security Trustee at
least sixty (60) days (ten (10) days in the case of nonpayment of premium) prior
to the cancellation or material adverse change of any insurance maintained
pursuant to this Appendix B. In the event that the Company shall fail to
maintain or cause to be maintained insurance as herein provided, the Security
Trustee may, at its sole option, provide such insurance and, in such event, the
Company shall, upon demand, reimburse the Security Trustee for the cost thereof.

E.    REINSURANCE

            The Company shall procure that in respect of insurances maintained
by the Company in accordance with the provisions in this Appendix B the insurers
shall maintain, if such insurances do not provide for direct coverage in the
markets hereafter referred to, reinsurance covering identical subject matter and
risk for an amount which shall not be less than 100% of the coverage amount
under Sections A and B hereof in Lloyd's of London or other internationally
recognized aviation reinsurance markets. Such reinsurance shall contain a
customary "cut-through" endorsement and shall provide that any payment by the
reinsurers shall be made notwithstanding any bankruptcy, insolvency or
liquidation of the original insurer and/or that the original insurer has made no
payment under the original policies.

F.    SELF-INSURANCE

            The Company may self-insure, by way of deductible, premium
adjustment provisions in insurance policies, or otherwise, on a basis consistent
with standard industry practice among major U.S. Airlines, the risks required to
be insured against pursuant to Sections A and B hereof but in no case shall the
self-insurance exceed the Maximum Self-Insurance Amount for any one occurrence.

                                      B-3
<PAGE>

                                   APPENDIX C

                       FORM OF APPRAISAL COMPLIANCE REPORT

[Address to each Lender and
to the Security Trustee]

APPRAISAL COMPLIANCE REPORT UNDER THE SPARE PARTS MORTGAGE AND SECURITY
AGREEMENT

Ladies and Gentlemen:

            We refer to the Spare Parts Mortgage and Security Agreement (the
"Mortgage"), dated as of ______, between America West Airlines, Inc. (the
"Company") and Wells Fargo Bank Northwest, National Association (the "Security
Trustee"). Terms defined in the Mortgage and used herein have such respective
defined meanings. The Company hereby certifies that:

      1.    This Appraisal Compliance Report is based upon an Independent
Appraiser's Certificate (the "Relevant Appraisal") dated [___________]. The
Valuation Date for purposes of the Relevant Appraisal was [___________] (the
"Relevant Valuation Date").

      2.    Based on the Relevant Appraisal, the following sets forth the
calculation of the Rotable Ratio as of the Relevant Valuation Date:

            a.    The Current Market Value of the Rotables included
                  in the Collateral, is at least

                                                                        $[_____]

            b.    The Current Market Value of the Rotables included in
                  the Collateral and either (A) in transit or out for   $[_____]
                  repair and consequently not located at a Designated
                  Location as of the Relevant Valuation Date, or (B)
                  located at a Designated Location that is at the
                  premises of a third party maintenance facility as of
                  the Relevant Valuation Date, in each case as set
                  forth in the accompanying Independent Appraiser's
                  Certificate, is at least

                                      C-1
<PAGE>

            c.    The aggregate principal amount of all Loans
                  outstanding as of the Relevant Valuation Date         $[_____]

            d.    The amount of the Cash Collateral as of the
                  Relevant Valuation Date
                                                                        $[_____]

            e.    The aggregate amount of Letters of Credit as of
                  the Relevant Valuation Date                           $[_____]

            f.    The Rotables Ratio
                  ((c - d  - e) / (a - b))                              $[_____]

Dated:  [__________]

                                                 Very truly yours,

                                                 AMERICA WEST AIRLINES, INC.

                                                 By:____________________________
                                                    Name:
                                                    Title:

                                      C-2
<PAGE>

                                   APPENDIX D

                               FORM OF DATA REPORT

[Address to each Lender, to
the Security Trustee and the
Independent Appraiser]

______________, 20__

        DATA REPORT UNDER THE SPARE PARTS MORTGAGE AND SECURITY AGREEMENT

Ladies and Gentlemen:

            We refer to the Spare Parts Mortgage and Security Agreement (the
"Mortgage"), dated as of ______, between America West Airlines, Inc. (the
"Company") and Wells Fargo Bank Northwest, National Association (the "Security
Trustee"). Terms defined in the Mortgage and used herein have such respective
defined meanings. The Company hereby certifies that:

      1.    Attached hereto as Exhibit 1 is a report that correctly sets forth
the following information as of the date hereof with respect to each Pledged
Spare Part:

      i)    Manufacturer's part number;

      ii)   part description;

      iii)  related aircraft model(s) in summary form;

      iv)   classification as Rotable or Key Repairable;

      v)    quantity on hand;

      vi)   the Company's cost basis;

      vii)  each Pledged Spare Part out for repair; and

      viii) each Pledged Spare Part in transit.

      2.    The respective values of all Rotables and Key Repairables stored at
a Designated Location calculated on a historical basis, by Designated Location,
are _______________.

                                      D-1

<PAGE>

      3.    Attached hereto as Exhibit 2 is a report that correctly sets forth
the following information as of the date hereof with respect to each Pledged
Spare Part:

      i)    Rotable/Key Repairable Asset Report by total quantity and value by
      part number;

      ii)   Rotable and Key Repairable by Designated Location;

      iii)  Rotable/Key Repairable asset summary values;

      iv)   Key Repairable allocation summary quantity and value by Designated
      Location; and

      v)    Rotable allocation summary quantity and value by Designated
      Location.

                                                 Very truly yours,

                                                 AMERICA WEST AIRLINES, INC.

                                                 By:____________________________
                                                    Name:
                                                    Title
                                                    Date:

                                      D-2

<PAGE>

                                   APPENDIX E

                   FORM OF INDEPENDENT APPRAISER'S CERTIFICATE

[Address to each Lender and
to the Security Trustee]

INDEPENDENT APPRAISER'S CERTIFICATE UNDER THE SPARE PARTS MORTGAGE AND SECURITY
                                   AGREEMENT

Ladies and Gentlemen:

We refer to the Spare Parts Mortgage and Security Agreement (the "Mortgage"),
dated as of ______, between America West Airlines, Inc. (the "Company") and
Wells Fargo Bank Northwest, National Association (the "Security Trustee"). Terms
defined in the Mortgage and used herein have such respective defined meanings.
The Independent Appraiser hereby certifies that as of the Data Report Date of
[insert date]:

1.    The aggregate Appraisal Value of (x) all Rotables that are included within
the Pledged Spare Parts and that are located at a Designated Location is
$[________], and (y) all Key Repairables that are included within the Pledged
Spare Parts and that are located at a Designated Location is $[________].

2.    The aggregate Appraisal Value of (x) all Rotables that are included within
the Pledged Spare Parts and that are in transit or outside a Designated Location
for maintenance or at a Designated Location that is at the premises of a third
party maintenance facility is $[ ], and (y) all Rotable Parts that are
Unserviceable Parts is $[ ].

                                                 Very truly yours,

                                                 [NAME OF INDEPENDENT APPRAISER]

                                                 By:_________________________
                                                 Name:
                                                 Title:
                                                 Date:

                                      E-1

<PAGE>

                                    EXHIBIT A

              FORM OF SUPPLEMENTAL MORTGAGE AND SECURITY AGREEMENT
                          (TO ADD DESIGNATED LOCATIONS)
                         SUPPLEMENTAL MORTGAGE NO. _____

            SUPPLEMENTAL MORTGAGE NO.________, dated as of __________ of AMERICA
WEST AIRLINES, INC., a Delaware corporation (together with its successors and
assigns, the "Company").

            WHEREAS, the Company, which is a certificated air carrier under
Section 44705 of title 49 of the U.S. Code, and Wells Fargo Bank Northwest,
National Association, as Security Trustee (the "Security Trustee"), have
heretofore executed and delivered a Spare Parts Mortgage and Security Agreement,
dated as of September 3, 2004 (the "Mortgage"), and terms defined in the
Mortgage and used herein have such defined meanings unless otherwise defined
herein;

            WHEREAS, the Mortgage grants a Lien on, among other things, certain
Spare Parts and Appliances to secure (subject to the provisions of the Mortgage)
the payment of the Loans and the other obligations under the Loan Agreement, the
other Operative Documents; and

            WHEREAS, the Company has previously designated the locations at
which the Pledged Spare Parts may be stored by the Company in the Mortgage [and
in Supplemental Mortgage No. __];

            WHEREAS, the Mortgage [and the Supplemental Mortgages] has [have]
been duly recorded with the Federal Aviation Administration at Oklahoma City,
Oklahoma, pursuant to the Federal Aviation Act on the following date as a
document or conveyance bearing the following number:

                                    DATE OF                        DOCUMENT OR
                      DATE         RECORDING                      CONVEYANCE NO.

Mortgage

[Supplemental
Mortgage]

            WHEREAS, the Company, as provided in the Mortgage, is hereby
executing and delivering to the Security Trustee this Supplemental Mortgage for
the purposes of adding locations at which the Pledged Spare Parts may be stored
by the Company; and

            WHEREAS, all things necessary to make this Supplemental Mortgage the
valid, binding and legal obligation of the Company, including all proper
corporate action on the part of the Company, have been done and performed and
have happened;

                                       1

<PAGE>

            NOW, THEREFORE, THIS SUPPLEMENTAL MORTGAGE, WITNESSETH, that the
locations listed on Schedule I hereto shall be Designated Locations for purposes
of the Mortgage at which Pledged Spare Parts may be maintained by or on behalf
of the Company.

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

            THIS SUPPLEMENTAL MORTGAGE IS DELIVERED IN THE STATE OF NEW YORK.
THIS SUPPLEMENTAL MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

            Delivery of an executed counterpart of a signature page to this
Supplemental Mortgage by telecopier shall be effective as delivery of an
original executed counterpart of this Supplemental Mortgage.

            IN WITNESS WHEREOF, this Supplemental Mortgage has been duly
executed and delivered all as of the date first above written.

                                                 AMERICA WEST AIRLINES, INC.

                                                 By:____________________________
                                                    Name:
                                                    Title:

                                       2

<PAGE>

                             SCHEDULE I to EXHIBIT A

                                       3

<PAGE>

                                    EXHIBIT B

                            FORM OF LETTER OF CREDIT

Wells Fargo Bank Northwest, National Association,
           as Security Trustee
299 South Main Street, 12th Floor
Salt Lake City, UT  84111

Dated _________

This Letter of Credit is provided pursuant to the Spare Parts Mortgage and
Security Agreement dated as of September 3, 2004 between America West Airlines,
Inc. , and Wells Fargo Bank Northwest, National Association, as Security Trustee
(the "SECURITY TRUSTEE"). This letter of credit however creates primary
obligations on us and is independent from the mortgage.

On the instructions of America West Airlines, Inc. and for its account, we
hereby establish this irrevocable Letter of Credit to authorize the Security
Trustee, to draw on [APPROPRIATE BRANCH/DEPARTMENT DETAILS/ADDRESS OF ISSUING
BANK] an amount or amounts not exceeding a total of USD [AMOUNT IN FIGURES
(AMOUNT IN WORDS] United States Dollars) upon receipt by us of a signed demand
certificate from you in the following format (with the square bracketed sections
completed):

"The undersigned as an authorized signatory or representative of the Security
Trustee hereby draws upon your irrevocable Letter of Credit dated [DATE OF THIS
LETTER OF CREDIT] and instructs you to transfer US$ [AMOUNT IN FIGURES] ([AMOUNT
IN WORDS] United States Dollars) to [INSERT APPROPRIATE BANK details]
immediately."

We will honor drawings under this Letter of Credit upon our receipt of such a
demand certificate (by facsimile to fax number: [BANK FAX NUMBER], mail, courier
service or by hand) and will make payment to the account specified in the demand
certificate, for value no later than close of business on the next succeeding
banking day following our receipt of the demand certificate. If any drawing
hereunder does not conform with these terms, we shall promptly notify you of
that, state the reason(s) why and hold the document(s) presented at your
disposal (or return them to you if you so request).

Partial drawings are permitted.

This letter of credit expires on [INITIAL EXPIRY DATE] ("Expiry Date") but shall
be automatically extended, without the need for amendment, for one year from the
said Expiry Date and annually thereafter unless at least 60 days prior to the
then applicable Expiry Date we have notified you by registered mail that we will
not renew the letter of credit for the following year.

                                       1

<PAGE>

This Letter of Credit is transferable and constitutes an obligation to make
payment against documents.

(1) Except as provided above, this Letter of Credit is issued subject to the
Uniform Customs and Practice for Documentary Credits (1993 Revision)
International Chamber of Commerce Publication No. 500 and is governed by New
York law. Unless you otherwise require, any disputes arising out of or in
connection with this letter of credit shall be resolved before the United States
District Court for the Southern District of New York and any New York state
court sitting in the County of New York, New York, and all related appellate
courts.

All bank charges, including, but not by way of limitation, fees or commissions,
shall be for the applicant's account.

------------------------
(1) Alternatively where bank wants to use ISP 98: Except as provided above, this
Letter of Credit is issued subject to the International Standby Practices 1998
and is governed by New York law. Unless you otherwise require, any disputes
arising out of or in connection with this letter of credit shall be resolved
before the United States District Court for the Southern District of New York
and any New York state court sitting in the County of New York, New York, and
all related appellate courts.

                                       2

<PAGE>

                                   SCHEDULE I

                              DESIGNATED LOCATIONS

America West Airlines - ATL
Hartsfield International Airport
6000 N. Terminal Parkway
Atlanta, GA 30320

America West Airlines - BWI
Baltimore/Washington International Airport
Terminal D, Gate 29
Baltimore, MD 21240

America West Airlines - CMH
Port Columbus International Airport
4600 International Gateway
Columbus, OH  43219

America West Airlines - COS
Colorado Springs Municipal Airport
7770 E. Drennan Rd.
Colorado Springs, CO 80916

America West Airlines - DEN
Denver International Airport
8500 Pena Blvd., Concourse C Gate 30
Denver, CO 80249

America West Airlines - JFK
JFK Airport
Building 59 / Terminal 7 - AWA Mx Facility
Jamaica, NY 11430

America West Airlines -LAS
McCarran International Airport
5757 Wayne Newton Blvd.
Las Vegas, NV 89111

<PAGE>

America West Airlines - LAX
Los Angeles International Airport
100 World Way Terminal 1
Los Angeles, CA 90045

America West Airlines -  PHC
Hohokam 10 Business Center #3
4445 E. Elwood Street
Phoenix, AZ  85040

America West Airlines - PDX
Portland International Airport
7000 NE Airport Way
Portland, OR 97218

America West Airlines - PHL
Philadelphia International Airport
Terminal D
Philadelphia, PA 19153

America West Airlines-PHT
Terminal 4
3800 E. Sky Harbor Blvd.
Phoenix, AZ 85034

America West Airlines-PHX
Phoenix Hangar
4000 E. Sky Harbor Blvd.
Phoenix, AZ  85034

America West Airlines - PVR
AeroPuerto International
Gustavo Diaz Ordaz
Puerto Vallarta, Mexico

America West Airlines - SAN
Lindbergh Field
3707 N. Harbor Drive #28
San Diego, CA 92101

                                       2

<PAGE>

America West Airlines - SEA
Seattle-Tacoma International Airport
Main Terminal
Seattle, WA 98158

America West Airlines- SNA
John Wayne Airport-Orange County
18601 N. Airport Way, Suite 238
Santa Ana, CA  92707

                                       3

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