Document:

<PAGE>   1
                                  EXHIBIT 4.11

                                                                  EXECUTION COPY

                      REVOLVING CREDIT AGREEMENT (2001-1C)

                            Dated as of May 17, 2001

                                     between

                            WILMINGTON TRUST COMPANY,

                             as Subordination Agent,
                          as agent and trustee for the
                America West Airlines Pass Through Trust 2001-1C,

                                   as Borrower

                      WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                                New York Branch,

                              as Liquidity Provider

                                   Relating to

                America West Airlines Pass Through Trust 2001-1C
 8.37% America West Airlines Enhanced Pass Through Certificates, Series 2001-1C
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
ARTICLE 1             DEFINITIONS.................................................................................1

         Section 1.01      Certain Defined Terms..................................................................1

ARTICLE 2             AMOUNT AND TERMS OF THE COMMITMENT..........................................................7

         Section 2.01      Advances...............................................................................7

         Section 2.02      Making the Advances....................................................................7

         Section 2.03      Fees...................................................................................9

         Section 2.04      Automatic Adjustments and Termination of the Maximum Commitment........................9

         Section 2.05      Repayments of Interest Advances or the Final Advance...................................9

         Section 2.06      Repayments of Provider Advances.......................................................10

         Section 2.07      Payments to the Liquidity Provider Under the Intercreditor Agreement..................11

         Section 2.08      Book Entries..........................................................................11

         Section 2.09      Payments from Available Funds Only....................................................11

         Section 2.10      Extension of Expiry Date..............................................................12

ARTICLE 3             OBLIGATIONS OF THE BORROWER................................................................12

         Section 3.01      Increased Costs.......................................................................12

         Section 3.02      Capital Adequacy......................................................................13

         Section 3.03      Payments Free of Deductions...........................................................14

         Section 3.04      Payments..............................................................................15

         Section 3.05      Computations..........................................................................15

         Section 3.06      Payment on Non-Business Days..........................................................15

         Section 3.07      Interest..............................................................................15

         Section 3.08      Replacement of Borrower...............................................................17

         Section 3.09      Funding Loss Indemnification..........................................................17

         Section 3.10      Illegality............................................................................17

ARTICLE 4             CONDITIONS PRECEDENT.......................................................................18

         Section 4.02      Conditions Precedent to Borrowing.....................................................19

ARTICLE 5             COVENANTS..................................................................................20

         Section 5.01      Affirmative Covenants of the Borrower.................................................20

         Section 5.02      Negative Covenants of the Borrower....................................................20
</TABLE>

                                       i.
<PAGE>   3
                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<S>                                                                                                              <C>
ARTICLE 6             LIQUIDITY EVENTS OF DEFAULT................................................................20

ARTICLE 7             MISCELLANEOUS..............................................................................21

         Section 7.01      Amendments, Etc.......................................................................21

         Section 7.02      Notices, Etc..........................................................................21

         Section 7.03      No Waiver; Remedies...................................................................22

         Section 7.04      Further Assurances....................................................................22

         Section 7.05      Indemnification; Survival of Certain Provisions.......................................22

         Section 7.06      Liability of the Liquidity Provider...................................................22

         Section 7.07      Costs, Expenses and Taxes.............................................................23

         Section 7.08      Binding Effect; Participations........................................................23

         Section 7.09      Severability..........................................................................25

         Section 7.10      GOVERNING LAW.........................................................................25

         Section 7.11      Submission to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity..................25

         Section 7.12      Execution in Counterparts.............................................................26

         Section 7.13      Entirety..............................................................................26

         Section 7.14      Headings..............................................................................26

         Section 7.15      LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES......................................26

         Section 7.16      Transfer..............................................................................26
</TABLE>

Annex I   Interest Advance Notice of Borrowing

Annex II  Non-Extension Advance Notice of Borrowing

Annex III Downgrade Advance Notice of Borrowing

Annex IV  Final Advance Notice of Borrowing

Annex V   Notice of Termination

Annex VI  Notice of Replacement Subordination Agent

                                      ii.
<PAGE>   4
                      REVOLVING CREDIT AGREEMENT (2001-1C)

         This REVOLVING CREDIT AGREEMENT (2001-1C), dated as of May 17, 2001 (as
it may be amended, supplemented or otherwise modified from time to time in
accordance with the terms hereof, this "Agreement"), between WILMINGTON TRUST
COMPANY, a Delaware banking corporation, not in its individual capacity but
solely as Subordination Agent under the Intercreditor Agreement (each as defined
below), as agent and trustee for the Class C Trust (as defined below) (the
"Borrower"), and WESTDEUTSCHE LANDESBANK GIROZENTRALE, a German banking
institution organized under the laws of the State of North Rhine - Westphalia,
Germany, acting through its New York branch ("West LB" or the "Liquidity
Provider").

                               W I T N E S S E T H

         WHEREAS, pursuant to the Class C Trust Agreement (as defined below),
the Class C Trust is issuing the Class C Certificates; and

         WHEREAS, the Borrower, in order to support the timely payment of a
portion of the interest on the Class C Certificates in accordance with their
terms, has requested the Liquidity Provider to enter into this Agreement,
providing in part for the Borrower to request in specified circumstances that
Advances be made hereunder.

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

                                    ARTICLE 1

                                   DEFINITIONS

         Section 1.01 Certain Defined Terms.

                  (a) For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:

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

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

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

                           (iv) the term "including" means "including without
                  limitation".

                  "Additional Costs" has the meaning specified in Section 3.01.

                                       1.
<PAGE>   5
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  "Advance" means an Interest Advance, a Final Advance, a
Provider Advance or an Applied Provider Advance, as the case may be.

                  "Applicable Liquidity Rate" has the meaning specified in
Section 3.07(g).

                  "Applicable Margin" means (x) with respect to any Unpaid
Advance or Applied Provider Advance, 2.25% and (y) with respect to any Unapplied
Provider Advance, 0.35%.

                  "Applied Downgrade Advance" has the meaning specified in
Section 2.06(a).

                  "Applied Non-Extension Advance" has the meaning assigned to
such term in Section 2.06(a).

                  "Applied Provider Advance" has the meaning assigned to such
term in Section 2.06(a).

                  "Assignment and Assumption Agreement" means the Assignment and
Assumption Agreement to be entered into between the Borrower and the trustee of
the Successor Trust, substantially in the form of Exhibit D to the Class C Trust
Agreement.

                  "Base Rate" means the rate of interest announced publicly by
WestLB from time to time in New York, New York, as its base rate.

                  "Base Rate Advance" means an Advance that bears interest at a
rate based upon the Base Rate.

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

                  "Borrowing" means the making of Advances requested by delivery
of a Notice of Borrowing.

                  "Business Day" means any day (x) other than a Saturday or
Sunday or a day on which commercial banks are authorized or required by law to
close in Phoenix, Arizona, New York, New York or, so long as any Class C
Certificate is outstanding, the city and state in which the Class C Trustee, the
Borrower or any Indenture Trustee maintains its corporate trust office or
receives and disburses funds, and (y) if the applicable Business Day relates to
any Advance or amount bearing interest based on LIBOR, on which dealings are
carried on in the London interbank market.

                  "Consent Period" has the meaning specified in Section 2.10.

                  "Deposits" has the meaning assigned to such term in the
Deposit Agreement.

                  "Depositary" means Citibank, N.A.

                  "Deposit Agreement" means the Deposit Agreement (2001-1C)
dated as of the date hereof between Wilmington Trust Company, as Escrow Agent
and Citibank, N.A., as

                                       1.
<PAGE>   6
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Depositary, pertaining to the Class C Certificates, as the same may be amended,
modified or supplemented from time to time in accordance with the terms thereof.

                  "Downgrade Advance" means an Advance made pursuant to Section
2.02(c).

                  "Effective Date" has the meaning specified in Section 4.01.
The delivery of the certificate of the Liquidity Provider contemplated by
Section 4.01(e) shall be conclusive evidence that the Effective Date has
occurred.

                  "Excluded Taxes" means (i) any Taxes imposed on, based on, or
measured by the overall net income, capital, franchises, or receipts (other than
Taxes which are or are in the nature of sales or use Taxes or value added Taxes)
of the Liquidity Provider or any of its Lending Offices, (ii) withholding Taxes
imposed under laws in effect on the date hereof by the United States on payments
to a recipient in the jurisdiction in which the Liquidity Provider's initial
Lending Office is located, (iii) withholding Taxes imposed by the United States
on payments to a recipient in any other jurisdiction to which such Lending
Office is moved if, under the laws in effect at the time of such move, such laws
would require greater withholding of Taxes on payments to such Liquidity
Provider acting from an office in such jurisdiction than would be required on
payments to such Liquidity Provider acting from an office in the jurisdiction
from which such Lending Office was moved, and (iv) any withholding Taxes imposed
by the United States which are imposed or increased as a result of the Liquidity
Provider failing to deliver to the Borrower any certificate or document (which
certificate or document in the good faith judgment of the Liquidity Provider it
is able and legally entitled to provide) which is reasonably requested by the
Borrower to establish that payments under this Agreement are exempt from (or
entitled to a reduced rate of) withholding Tax.

                  "Expenses" means liabilities, obligations, damages,
settlements, penalties, claims, actions, suits, costs, expenses, and
disbursements (including, without limitation, reasonable fees and disbursements
of legal counsel and costs of investigation), provided that Expenses shall not
include Taxes.

                  "Expiry Date" means May 15, 2002, initially, or any date to
which the Expiry Date is extended pursuant to Section 2.10.

                  "Final Advance" means an Advance made pursuant to Section
2.02(d).

                  "Intercreditor Agreement" means the Intercreditor Agreement,
dated as of the date hereof among the Trustees, the Liquidity Provider, the
liquidity provider under each Liquidity Facility (other than this Agreement),
the Policy Provider and the Subordination Agent, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

                  "Interest Advance" means an Advance made pursuant to Section
2.02(a).

                                       2.
<PAGE>   7
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  "Interest Period" means, with respect to any LIBOR Advance,
each of the following periods:

                  (1) the period beginning on the third Business Day following
         either (x) the Liquidity Provider's receipt of the Notice of Borrowing
         for such LIBOR Advance or (y) the withdrawal of funds from the Class C
         Cash Collateral Account for the purpose of paying interest on the Class
         C Certificates as contemplated by Section 2.06(a) hereof and, in either
         case, ending on the next Regular Distribution Date; and

                  (2) each subsequent period commencing on the last day of the
         immediately preceding Interest Period and ending on the next Regular
         Distribution Date;

provided, however, that if (x) the Final Advance shall have been made, or (y)
other outstanding Advances shall have been converted into the Final Advance,
then the Interest Periods shall be successive periods of one month beginning on
the third Business Day following the Liquidity Provider's receipt of the Notice
of Borrowing for such Final Advance (in the case of clause (x) above) or the
Regular Distribution Date following such conversion (in the case of clause (y)
above).

                  "Lending Office" means the lending office of the Liquidity
Provider, presently located at New York, New York, or such other lending office
as the Liquidity Provider from time to time shall notify the Borrower as its
lending office hereunder.

                  "LIBOR" means, with respect to any Interest Period, the
interest rate per annum at which deposits in United States dollars are offered
to prime banks in the London interbank market as indicated on display page 3750
(British Bankers Association-LIBOR) of the Dow Jones Markets Service (or such
other page as may replace such display page 3750 for the purpose of displaying
London interbank offered rates for United States dollar deposits) or, if not so
indicated, the average (rounded upwards to the nearest 1/16%), as determined by
the Liquidity Provider, of such rates as indicated on the Reuters Screen LIBO
Page (or such other page as may replace such Reuters Screen LIBO Page for the
purpose of displaying London interbank offered rates for United States dollar
deposits) or, if neither such alternative is indicated, the average (rounded
upwards to the nearest 1/16%), as determined by the Liquidity Provider, of such
rates offered by the London Reference Banks to prime banks in the London
interbank market, in each case at or about 11:00 a.m. (London time) on the day
two Business Days prior to the first day of such Interest Period for deposits of
a duration equal to such Interest Period (or such other period most nearly
corresponding to such period) in an amount substantially equal to the principal
amount of the applicable LIBOR Advance as of the first day of such Interest
Period. The Liquidity Provider will, if necessary, request that each of the
London Reference Banks provide a quotation of its rate. If at least two such
quotations are provided, the rate will be the average of the quotations (rounded
upwards to the nearest 1/100%). If no such quotation can be obtained, the rate
will be the Base Rate.

                  "LIBOR Advance" means an Advance bearing interest at a rate
based upon LIBOR.

                                       3.
<PAGE>   8
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  "Liquidity Event of Default" means the occurrence of either
(a) the Acceleration of all of the Equipment Notes (provided, that, with respect
to the period prior to the Delivery Period Expiry Date, such Equipment Notes
have an aggregate outstanding principal balance in excess of $100,000,000) or
(b) an America West Bankruptcy Event.

                  "Liquidity Indemnitee" means (i) the Liquidity Provider, (ii)
the directors, officers, employees, servants and agents of the Liquidity
Provider, and (iii) the successors and permitted assigns of the persons
described in clauses (i) through (ii), inclusive.

                  "Liquidity Provider" has the meaning specified in the recital
of parties to this Agreement.

                  "London Reference Banks" means the principal London offices of
Citicorp USA, Inc., The Fuji Bank, Limited, National Westminster Bank plc and
The Industrial Bank of Japan, Limited, or such other bank or banks as may from
time to time be agreed to by America West and the Liquidity Provider.

                  "Maximum Available Commitment" shall mean, subject to the
proviso contained in the third sentence of Section 2.02(a), at any time of
determination, (a) the Maximum Commitment at such time, less (b) the aggregate
amount of each Interest Advance outstanding at such time; provided, however,
that following a Provider Advance or a Final Advance, the Maximum Available
Commitment shall be zero.

                  "Maximum Commitment" means initially $7,158,986.55, as the
same may be reduced or increased from time to time in accordance with Section
2.04(a).

                  "Non-Excluded Tax" has the meaning specified in Section 3.03.

                  "Non-Extension Advance" means an Advance made pursuant to
Section 2.02(b).

                  "Notice of Borrowing" has the meaning specified in Section
2.02(e).

                  "Notice of Replacement Subordination Agent" has the meaning
specified in Section 3.08.

                  "Offering Memorandum" means the Offering Memorandum dated May
10, 2001 relating to the Certificates, as such Offering Memorandum may be
amended or supplemented.

                  "Participating Institution" has the meaning specified in
Section 7.08(b).

                  "Participation Agreement" means, with respect to each
Indenture, the "Participation Agreement" referred to therein.

                  "Performing Note Deficiency" means any time that less than 65%
of the then aggregate outstanding principal amount of all Equipment Notes are
Performing Equipment Notes.

                  "Provider Advance" means a Downgrade Advance or a
Non-Extension Advance.

                                       4.
<PAGE>   9
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  "Regulatory Change" has the meaning specified in Section 3.01.

                  "Replenishment Amount" has the meaning assigned to such term
in Section 2.06(b).

                  "Required Amount" means, for any day, the sum of the aggregate
amount of interest, calculated at the rate per annum equal to the Stated
Interest Rate for the Class C Certificates on the basis of a 360-day year
comprised of twelve 30-day months, that would be payable on the Class C
Certificates on each of the three successive semiannual Regular Distribution
Dates following such day or, if such day is a Regular Distribution Date, on such
day and the succeeding two semiannual Regular Distribution Dates, in each case
calculated on the basis of the Pool Balance of the Class C Certificates on such
day and without regard to expected future payments of principal on the Class C
Certificates. Notwithstanding the above, in the event of any Policy Provider
Election, for purposes of the definition of the Required Amount the Pool Balance
shall be deemed to be reduced by the amount (if positive) by which (a) the then
outstanding principal balance of each Series C Equipment Note in respect of
which such Policy Provider Election has been made shall exceed (b) the amount of
any Policy Drawings previously paid by the Policy Provider in respect of
principal on such Series C Equipment Note.

                  "Successor Trust" means America West Airlines Pass Through
Trust 2001-1C-S.

                  "Termination Date" means the earliest to occur of the
following: (i) the Expiry Date; (ii) the date on which the Borrower delivers to
the Liquidity Provider a certificate, signed by a Responsible Officer of the
Borrower, certifying that all of the Class C Certificates have been paid in full
(or provision has been made for such payment in accordance with the
Intercreditor Agreement and the Trust Agreement) or are otherwise no longer
entitled to the benefits of this Agreement; (iii) the date on which the Borrower
delivers to the Liquidity Provider a certificate, signed by a Responsible
Officer of the Borrower, certifying that a Replacement Liquidity Facility has
been substituted for this Agreement in full pursuant to Section 3.6(e) of the
Intercreditor Agreement; (iv) the fifth Business Day following the receipt by
the Borrower and America West of a Termination Notice from the Liquidity
Provider pursuant to Section 6.01; and (v) the date on which no Advance is or
may (including by reason of reinstatement as herein provided) become available
for a Borrowing hereunder.

                  "Termination Notice" means the Notice of Termination
substantially in the form of Annex V to this Agreement.

                  "Unapplied Provider Advance" means any Provider Advance other
than an Applied Provider Advance.

                  "Unpaid Advance" has the meaning specified in Section 2.05.

                  (b) Terms Defined in the Intercreditor Agreement. For all
purposes of this Agreement, the following terms shall have the respective
meanings assigned to such terms in the Intercreditor Agreement:

         "Acceleration," "Affiliate," "America West," "America West Bankruptcy
Event," "Certificates," "Class C Cash Collateral Account," "Class C
Certificates," "Class C Trust,"

                                       5.
<PAGE>   10
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

"Class C Trust Agreement," "Class C Trustee," "Class G Certificates," "Class D
Certificates," "Closing Date," "Controlling Party," "Delivery Period Expiry
Date," "Distribution Date," "Downgraded Facility," "Equipment Notes," "Fee
Letter," "Final Legal Distribution Date," "Indenture," "Initial Purchasers,"
"Interest Payment Date," "Investment Earnings," "Liquidity Facility," "Liquidity
Obligations," "Loan Trustee," "Moody's," "Non-Extended Facility," "Note Purchase
Agreement," "Operative Agreements," "Performing Equipment Note," "Person,"
"Policy Drawings," "Policy Provider," "Policy Provider Election," "Pool
Balance," "Purchase Agreement," "Rating Agency," "Regular Distribution Date,"
"Replacement Liquidity Facility," "Responsible Officer," "Scheduled Payment,"
"Special Payment," "Standard & Poor's," "Stated Interest Rate," "Subordination
Agent," "Taxes," "Threshold Rating," "Trust Agreement," "Trustee," and "Written
Notice."

                                    ARTICLE 2

                       AMOUNT AND TERMS OF THE COMMITMENT

         Section 2.01 Advances. The Liquidity Provider hereby irrevocably
agrees, on the terms and conditions hereinafter set forth, to make Advances to
the Borrower from time to time on any Business Day during the period from the
Effective Date until 12:00 noon (New York time) on the Expiry Date (unless the
obligations of the Liquidity Provider shall be earlier terminated in accordance
with the terms of Section 2.04(b)) in an aggregate amount at any time
outstanding not to exceed the Maximum Commitment.

         Section 2.02 Making the Advances.

                  (a) Each "Interest Advance" shall be made in a single
Borrowing by delivery to the Liquidity Provider of a written and completed
Notice of Borrowing in substantially the form of Annex I, signed by a
Responsible Officer of the Borrower, such Interest Advance in an amount not
exceeding the Maximum Available Commitment at such time and shall be used solely
for the payment when due of interest on the Class C Certificates at the Stated
Interest Rate therefor in accordance with Section 3.6(a) of the Intercreditor
Agreement. Each Interest Advance made hereunder shall automatically reduce the
Maximum Available Commitment and the amount available to be borrowed hereunder
by subsequent Advances by the amount of such Interest Advance (subject to
reinstatement as provided in the next sentence). Upon repayment to the Liquidity
Provider in full or in part of the amount of any Interest Advance made pursuant
to this Section 2.02(a), together with accrued interest thereon (as provided
herein), the Maximum Available Commitment shall be reinstated by the amount of
such repaid Interest Advance, but not to exceed the Maximum Commitment;
provided, however, that the Maximum Available Commitment shall not be so
reinstated at any time if (i) a Liquidity Event of Default shall have occurred
and be continuing and (ii) there is a Performing Note Deficiency.

                  (b) A "Non-Extension Advance" shall be made in a single
Borrowing if this Agreement is not extended in accordance with Section 3.6(d) of
the Intercreditor Agreement (unless a Replacement Liquidity Facility to replace
this Agreement shall have been delivered to the Borrower as contemplated by said
Section 3.6(d) within the time period specified in such Section) by delivery to
the Liquidity Provider of a written and completed Notice of Borrowing in
substantially the form of Annex II attached hereto, signed by a Responsible
Officer of the

                                       6.
<PAGE>   11
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Borrower, in an amount equal to the Maximum Available Commitment at such time,
and shall be used to fund the Class C Cash Collateral Account in accordance with
said Section 3.6(d) and Section 3.6(f) of the Intercreditor Agreement.

                  (c) A "Downgrade Advance" shall be made in a single Borrowing
upon a downgrading of the Liquidity Provider's short-term unsecured debt rating
issued by either Rating Agency below the applicable Threshold Rating (as
provided for in Section 3.6(c) of the Intercreditor Agreement) unless a
Replacement Liquidity Facility shall have been delivered to the Borrower in
accordance with said Section 3.6(c), by delivery to the Liquidity Provider of a
written and completed Notice of Borrowing in substantially the form of Annex
III, signed by a Responsible Officer of the Borrower, in an amount equal to the
Maximum Available Commitment at such time, and shall be used to fund the Class C
Cash Collateral Account in accordance with said Section 3.6(c) and Section
3.6(f) of the Intercreditor Agreement. Upon such downgrading, the Liquidity
Provider shall promptly deliver notice thereof to the Borrower, the Trustee and
America West.

                  (d) A "Final Advance" shall be made in a single Borrowing upon
the receipt by the Borrower of a Termination Notice from the Liquidity Provider
pursuant to Section 6.01, by delivery to the Liquidity Provider of a written and
completed Notice of Borrowing in substantially the form of Annex IV, signed by a
Responsible Officer of the Borrower, in an amount equal to the Maximum Available
Commitment at such time, and shall be used to fund the Class C Cash Collateral
Account (in accordance with Section 3.6(f) and Section 3.6(i) of the
Intercreditor Agreement).

                  (e) Each Borrowing shall be made on notice in writing (a
"Notice of Borrowing") in substantially the form required by Section 2.02(a),
2.02(b), 2.02(c) or 2.02(d), as the case may be, given by the Borrower to the
Liquidity Provider. If a Notice of Borrowing is delivered by the Borrower in
respect of any Borrowing no later than 12:00 noon (New York time) on a Business
Day, upon satisfaction of the conditions precedent set forth in Section 4.02
with respect to a requested Borrowing, the Liquidity Provider shall, before 4:00
p.m. (New York time) on the date of such Borrowing or on such later Business Day
specified by the Borrower in such Notice of Borrowing, make available for the
account of its Lending Office, in U.S. dollars and in immediately available
funds, the amount of such Borrowing to be paid to the Borrower in accordance
with its payment instructions. If a Notice of Borrowing is delivered by the
Borrower in respect of any Borrowing after 12:00 noon (New York time) on a
Business Day, upon satisfaction of the conditions precedent set forth in Section
4.02 with respect to a requested Borrowing, the Liquidity Provider shall, before
11:00 a.m. (New York time) on the first Business Day following the day of
receipt of such Notice of Borrowing or on such later Business Day specified by
the Borrower in such Notice of Borrowing, make available to the Borrower, in
accordance with its payment instructions, in U.S. dollars and in immediately
available funds, the amount of such Borrowing. Payments of proceeds of a
Borrowing shall be made by wire transfer of immediately available funds to the
Borrower in accordance with such wire transfer instructions as the Borrower
shall furnish from time to time to the Liquidity Provider for such purpose. Each
Notice of Borrowing shall be irrevocable and binding on the Borrower. Each
Notice of Borrowing shall be effective upon delivery of a copy thereof to the
Liquidity Provider's New York Branch at the address specified in Section 7.02.

                                       7.
<PAGE>   12
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  (f) Upon the making of any Advance requested pursuant to a
Notice of Borrowing in accordance with the Borrower's payment instructions, the
Liquidity Provider shall be fully discharged of its obligation hereunder with
respect to such Notice of Borrowing, and the Liquidity Provider shall not
thereafter be obligated to make any further Advances hereunder in respect of
such Notice of Borrowing to the Borrower or to any other Person. If the
Liquidity Provider makes an Advance requested pursuant to a Notice of Borrowing
before 11:00 a.m. (New York time) on the second Business Day after the date of
payment specified in said Section 2.02(e), the Liquidity Provider shall have
fully discharged its obligations hereunder with respect to such Advance and an
event of default shall not have occurred hereunder. Following the making of any
Advance pursuant to Section 2.02(b), Section 2.02(c) or Section 2.02(d) to fund
the Class C Cash Collateral Account, the Liquidity Provider shall have no
interest in or rights to the Class C Cash Collateral Account, such Advance or
any other amounts from time to time on deposit in the Class C Cash Collateral
Account; provided, however, that the foregoing shall not affect or impair the
obligations of the Subordination Agent to make the distributions contemplated by
Section 3.6(e) or (f) of the Intercreditor Agreement and provided further, that
the foregoing shall not affect or impair the rights of the Liquidity Provider to
provide written instructions with respect to the investment and reinvestment of
the Cash Collateral Accounts to the extent provided in Section 2.2(b) of the
Intercreditor Agreement. By paying to the Borrower proceeds of Advances
requested by the Borrower in accordance with the provisions of this Agreement,
the Liquidity Provider makes no representation as to, and assumes no
responsibility for, the correctness or sufficiency for any purpose of the amount
of the Advances so made and requested.

         Section 2.03 Fees. The Borrower agrees to pay to the Liquidity Provider
the fees set forth in the Fee Letter.

         Section 2.04 Automatic Adjustments and Termination of the Maximum
Commitment.

                  (a) Automatic Adjustments. Promptly following each date on
which the Required Amount is (1) reduced as a result of a reduction in the Pool
Balance of the Class C Certificates or otherwise, (2) increased as a result of
an increase in the Stated Interest Rate or (3) subsequent to such increase
described in clause (2), reduced pursuant to the definition of "Stated Interest
Rate" the Maximum Commitment shall automatically be reduced or increased, as the
case may be, to an amount equal to the Required Amount (as calculated by the
Borrower). The Borrower shall give notice of any such automatic reduction or
increase, as the case may be, of the Maximum Commitment to the Liquidity
Provider within two Business Days thereof. The failure by the Borrower to
furnish any such notice shall not affect such automatic reduction or increase of
the Maximum Commitment.

                  (b) Termination. Upon the making of any Provider Advance or
Final Advance hereunder or the occurrence of the Termination Date, the
obligation of the Liquidity Provider to make further Advances hereunder shall
automatically and irrevocably terminate, and the Borrower shall not be entitled
to request any further Borrowing hereunder.

         Section 2.05 Repayments of Interest Advances or the Final Advance.
Subject to Sections 2.06, 2.07 and 2.09, the Borrower hereby agrees, without
notice of an Advance or demand for repayment from the Liquidity Provider (which
notice and demand are hereby waived

                                       8.
<PAGE>   13
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

by the Borrower), to pay, or to cause to be paid, to the Liquidity Provider on
each date on which the Liquidity Provider shall make an Interest Advance or the
Final Advance, an amount equal to (a) the amount of such Advance (any such
Advance, until repaid, is referred to herein as an "Unpaid Advance"), plus (b)
interest on the amount of each such Unpaid Advance as provided in Section 3.07;
provided, however, that if (i) the Liquidity Provider shall make a Provider
Advance at any time after making one or more Interest Advances which shall not
have been repaid in accordance with this Section 2.05 or (ii) this Liquidity
Facility shall become a Downgraded Facility or Non-Extended Facility at any time
when unreimbursed Interest Advances have reduced the Maximum Available
Commitment to zero, then such Interest Advances shall cease to constitute Unpaid
Advances and shall be deemed to have been changed into an Applied Downgrade
Advance or an Applied Non-Extension Advance, as the case may be, for all
purposes of this Agreement (including, for the purpose of determining when such
Interest Advance is required to be repaid to the Liquidity Provider in
accordance with Section 2.06 and for the purposes of Section 2.06(b)). The
Borrower and the Liquidity Provider agree that the repayment in full of each
Interest Advance and Final Advance on the date such Advance is made is intended
to be a contemporaneous exchange for new value given to the Borrower by the
Liquidity Provider.

         Section 2.06 Repayments of Provider Advances.

                  (a) Amounts advanced hereunder in respect of a Provider
Advance shall be deposited in the Class C Cash Collateral Account, invested and
withdrawn from the Class C Cash Collateral Account as set forth in Sections
3.6(c), (d) and (f) of the Intercreditor Agreement. The Borrower agrees to pay
to the Liquidity Provider, on each Regular Distribution Date, commencing on the
first Regular Distribution Date after the making of a Provider Advance, interest
on the principal amount of any such Provider Advance as provided in Section
3.07; provided, however, that amounts in respect of a Provider Advance withdrawn
from the Class C Cash Collateral Account for the purpose of paying interest on
the Class C Certificates in accordance with Section 3.6(f) of the Intercreditor
Agreement (the amount of any such withdrawal being (y) in the case of a
Downgrade Advance, an "Applied Downgrade Advance" and (z) in the case of a
Non-Extension Advance, an "Applied Non-Extension Advance" and, together with an
Applied Downgrade Advance, an "Applied Provider Advance") shall thereafter
(subject to Section 2.06(b)) be treated as an Interest Advance under this
Agreement for purposes of determining the Applicable Liquidity Rate for interest
payable thereon; and provided, further, that if, following the making of a
Provider Advance, the Liquidity Provider delivers a Termination Notice to the
Borrower pursuant to Section 6.01, such Provider Advance shall thereafter be
treated as a Final Advance under this Agreement for purposes of determining the
Applicable Liquidity Rate for interest payable thereon and the obligation for
repayment thereof. Subject to Sections 2.07 and 2.09 hereof, immediately upon
the withdrawal of any amounts from the Class C Cash Collateral Account on
account of a reduction in the Required Amount, the Borrower shall repay to the
Liquidity Provider a portion of the Provider Advances in a principal amount
equal to the amount of such reduction, plus interest on the principal amount
prepaid as provided in Section 3.07.

                  (b) At any time when an Applied Provider Advance (or any
portion thereof) is outstanding, upon the deposit in the Class C Cash Collateral
Account of any amount pursuant to clause third of Section 2.4(b) of the
Intercreditor Agreement, clause third of Section 3.2 of the

                                       9.
<PAGE>   14
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Intercreditor Agreement or clause fourth of Section 3.3 of the Intercreditor
Agreement (any such amount being a "Replenishment Amount") for the purpose of
replenishing or increasing the balance thereof up to the amount of the Required
Amount at such time, (i) the aggregate outstanding principal amount of all
Applied Provider Advances (and of Provider Advances treated as an Interest
Advance for purposes of determining the Applicable Liquidity Rate for interest
payable thereon) shall be automatically reduced by the amount of such
Replenishment Amount and (ii) the principal amount of all outstanding Unapplied
Provider Advances shall be automatically increased by the amount of such
Replenishment Amount.

                  (c) Upon the provision of a Replacement Liquidity Facility in
replacement of this Agreement in accordance with Section 3.6(e) of the
Intercreditor Agreement, amounts remaining on deposit in the Class C Cash
Collateral Account after giving effect to any Applied Provider Advance on the
date of such replacement shall be reimbursed to the Liquidity Provider, but only
to the extent such amounts are necessary to repay in full to the Liquidity
Provider all amounts owing to it hereunder.

         Section 2.07 Payments to the Liquidity Provider Under the Intercreditor
Agreement. In order to provide for payment or repayment to the Liquidity
Provider of any amounts hereunder, the Intercreditor Agreement provides that
amounts available and referred to in Articles II and III of the Intercreditor
Agreement, to the extent payable to the Liquidity Provider pursuant to the terms
of the Intercreditor Agreement (including, without limitation, Section 3.6(f) of
the Intercreditor Agreement), shall be paid to the Liquidity Provider in
accordance with the terms thereof. Amounts so paid to the Liquidity Provider
shall be applied by the Liquidity Provider to Liquidity Obligations then due and
payable in the order of priority required by the applicable provisions of
Articles II and III of the Intercreditor Agreement or, if not provided for in
the Intercreditor Agreement, then in such manner as the Liquidity Provider shall
deem appropriate.

         Section 2.08 Book Entries. The Liquidity Provider shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower resulting from Advances made from time to time and
the amounts of principal and interest payable hereunder and paid from time to
time in respect thereof; provided, however, that the failure by the Liquidity
Provider to maintain such account or accounts shall not affect the obligations
of the Borrower in respect of Advances.

         Section 2.09 Payments from Available Funds Only. All payments to be
made by the Borrower under this Agreement shall be made only from amounts
received by it that constitute Scheduled Payments or Special Payments or
payments under Section 7.1 or 9.1, as the case may be, of any Participation
Agreement and Section 6 of the Note Purchase Agreement, and only to the extent
that the Borrower shall have sufficient income or proceeds therefrom to enable
the Borrower to make payments in accordance with the terms hereof after giving
effect to the priority of payments provisions set forth in the Intercreditor
Agreement. The Liquidity Provider agrees that it shall look solely to such
amounts to the extent available for distribution to it as provided in the
Intercreditor Agreement and this Agreement and that the Borrower, in its
individual capacity, is not personally liable to it for any amounts payable or
liability under this Agreement except as expressly provided in this Agreement or
the Intercreditor Agreement. Amounts on deposit in the Class C Cash Collateral
Account shall be available to the Borrower to

                                      10.
<PAGE>   15
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

make payments under this Agreement only to the extent and for the purposes
expressly contemplated in Section 3.6(f) of the Intercreditor Agreement.

         Section 2.10 Extension of Expiry Date. No earlier than the 60th day and
no later than the 40th day prior to the then effective Expiry Date (unless such
Expiry Date is on or after the date that is 15 days after the Final Legal
Distribution Date for the Class C Certificates), the Borrower shall request that
the Liquidity Provider extend the Expiry Date to the earlier of (i) the date
that is 15 days after the Final Legal Distribution Date for the Class C
Certificates and (ii) the date that is the day immediately preceding the 364th
day occurring after the last day of the Consent Period (as hereinafter defined).
Whether or not the Borrower has made such request, the Liquidity Provider shall
advise the Borrower, no earlier than the 40th day (or, if earlier, the date of
the Liquidity Provider's receipt of such request, if any, from the Borrower) and
no later than the 25th day prior to the then effective Expiry Date (such period
the "Consent Period"), whether, in its sole discretion, it agrees to so extend
the Expiry Date. If the Liquidity Provider advises the Borrower on or before the
date on which the Consent Period ends that such Expiry Date shall not be so
extended, or fails to irrevocably and unconditionally advise the Borrower on or
before the date on which the Consent Period ends that such Expiry Date shall be
so extended (and, in each case, if the Liquidity Provider shall not have been
replaced in accordance with Section 3.6(e) of the Intercreditor Agreement), the
Borrower shall be entitled on and after the date on which the Consent Period
ends (but prior to the then effective Expiry Date) to request a Non-Extension
Advance in accordance with Section 2.02(b) and Section 3.6(d) of the
Intercreditor Agreement.

                                    ARTICLE 3

                           OBLIGATIONS OF THE BORROWER

         Section 3.01 Increased Costs. The Borrower shall pay to the Liquidity
Provider from time to time such amounts as may be necessary to compensate the
Liquidity Provider for any costs incurred by the Liquidity Provider which are
attributable to its making or maintaining any Advances hereunder or its
obligation to make any such Advances hereunder, or any reduction in any amount
receivable by the Liquidity Provider under this Agreement or the Intercreditor
Agreement in respect of any such Advances 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, or municipal, or any foreign laws or regulations, or the
adoption or making after such date of any interpretation, regulation, directive,
guideline, requirement or request whether or not having the force of law, by any
court or governmental or monetary authority charged with the interpretation or
administration thereof (a "Regulatory Change"), which: (1) changes the basis of
taxation of any amounts payable to the Liquidity Provider under this Agreement
in respect of any such Advances or such obligation (other than Taxes); or (2)
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, the Liquidity Provider (including any such
Advances or such obligation or any deposits referred to in the definition of
LIBOR or related definitions). The Liquidity Provider agrees to use reasonable
efforts (consistent with its internal policy and applicable legal and regulatory
restrictions) to change the jurisdiction of its Lending Office if making such
change would avoid the need for, or reduce the amount of, any amount payable
under this

                                      11.
<PAGE>   16
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Section 3.01 that may thereafter accrue and would not, in the reasonable
judgment of the Liquidity Provider, be otherwise disadvantageous to the
Liquidity Provider.

         The Liquidity Provider shall notify the Borrower of any event occurring
after the date of this Agreement that shall entitle the Liquidity Provider to
compensation pursuant to this Section 3.01 as promptly as practicable after it
obtains knowledge thereof and determines to request such compensation, which
notice shall describe in reasonable detail the calculation of the amounts owed
under this Section 3.01; provided, that if the Liquidity Provider fails to give
such notice within 180 days after it obtains such knowledge, the Liquidity
Provider shall, with respect to any costs resulting from such event, only be
entitled to payment under this Section 3.01 for costs incurred from and after
the date 180 days prior to the date the Liquidity Provider does give such
notice. Determinations by the Liquidity Provider for purposes of this Section
3.01 of the effect of any Regulatory Change on its costs of making or
maintaining Advances or on amounts receivable by it in respect of Advances, and
of the additional amounts required to compensate the Liquidity Provider in
respect of any Additional Costs, shall be prima facie evidence of the amount
owed under this Section 3.01.

         Notwithstanding the preceding two paragraphs, the Liquidity Provider
and the Subordination Agent agree that any permitted assignee or participant of
the initial Liquidity Provider that is not a bank shall not be entitled to the
benefits of the preceding two paragraphs (but without limiting the provisions of
Section 7.08 hereof).

         Section 3.02 Capital Adequacy. If (1) compliance with any judicial,
administrative or other governmental interpretation of any law or regulation or
(2) compliance by the Liquidity Provider or any corporation controlling the
Liquidity Provider with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law) has the effect
of requiring an increase in the amount of capital required or expected to be
maintained by the Liquidity Provider or any corporation controlling the
Liquidity Provider, and such increase is based upon the Liquidity Provider's
obligations hereunder and other similar obligations, the Borrower shall pay to
the Liquidity Provider such additional amount as shall be reasonably allocable
to the Liquidity Provider's obligations to the Borrower hereunder. The Liquidity
Provider agrees to use reasonable efforts (consistent with applicable legal and
regulatory restrictions) to change the jurisdiction of its Lending Office if
making such change would avoid the need for, or reduce the amount of, any amount
payable under this Section 3.02 that may thereafter accrue and would not, in the
reasonable judgment of the Liquidity Provider, be otherwise disadvantageous to
the Liquidity Provider.

         The Liquidity Provider shall notify the Borrower of any event occurring
after the date of this Agreement that shall entitle the Liquidity Provider to
compensation pursuant to this Section 3.02 as promptly as practicable after it
obtains knowledge thereof and determines to request such compensation, which
notice shall describe in reasonable detail the calculation of the amounts owed
under this Section 3.02; provided, that if the Liquidity Provider fails to give
such notice within 180 days after it obtains such knowledge, the Liquidity
Provider shall, with respect to any costs resulting from such event, only be
entitled to payment under this Section 3.02 for costs incurred from and after
the date 180 days prior to the date the Liquidity Provider does give such
notice. Determinations by the Liquidity Provider for purposes of this Section
3.02 of the effect of any increase in the amount of capital required to be
maintained by the Liquidity

                                      12.
<PAGE>   17
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Provider and of the amount allocable to the Liquidity Provider's obligations to
the Borrower hereunder shall be prima facie evidence of the amounts owed under
this Section 3.02.

         Notwithstanding the preceding two paragraphs, the Liquidity Provider
and the Subordination Agent agree that any permitted assignee or participant of
the initial Liquidity Provider that is not a bank shall not be entitled to the
benefits of the preceding two paragraphs (but without limiting the provisions of
Section 7.08 hereof).

         Section 3.03 Payments Free of Deductions.

                  (a) All payments made by the Borrower under this Agreement
shall be made free and clear of, and without reduction for or on account of, any
Taxes, excluding Excluded Taxes (such non-excluded taxes being referred to
herein, collectively, as "Non-Excluded Taxes"). If any Non-Excluded Taxes are
required to be withheld or deducted from any amounts payable to the Liquidity
Provider under this Agreement, the Borrower shall (i) within the time prescribed
therefor by applicable law pay to the appropriate governmental or taxing
authority the full amount of any such Non-Excluded Taxes (and any additional
Non-Excluded Taxes in respect of the payment required under clause (ii) below)
and make such reports or returns in connection therewith at the time or times
and in the manner prescribed by applicable law, and (ii) pay to the Liquidity
Provider an additional amount which (after deduction of all such Non-Excluded
Taxes) shall be sufficient to yield to the Liquidity Provider the full amount
which would have been received by it had no such withholding or deduction been
made. Within 30 days after the date of each payment hereunder, the Borrower
shall furnish to the Liquidity Provider the original or a certified copy of (or
other documentary evidence of) the payment of the Non-Excluded Taxes applicable
to such payment. The Liquidity Provider agrees to use reasonable efforts
(consistent with applicable legal and regulatory restrictions) to change the
jurisdiction of its Lending Office if making such change would avoid the need
for, or reduce the amount of, any such additional amounts that may thereafter
accrue and would not, in the reasonable judgment of the Liquidity Provider, be
otherwise materially disadvantageous (as determined by the Liquidity Provider)
to the Liquidity Provider or require the Liquidity Provider to incur any cost or
expenses for which it is not indemnified by the Borrower. The Liquidity Provider
shall deliver to the Borrower such certificates and documents as may be
reasonably requested by the Borrower and required by applicable law and as may
be legally delivered by the Liquidity Provider to establish that payments
hereunder are exempt from (or entitled to a reduced rate of) withholding Tax.

                  (b) All payments (including, without limitation, Advances)
made by the Liquidity Provider under this Agreement shall be made free and clear
of, and without reduction for or on account of, any Taxes. If any Taxes are
required to be withheld or deducted from any amounts payable to the Borrower
under this Agreement, the Liquidity Provider shall (i) within the time
prescribed therefor by applicable law pay to the appropriate governmental or
taxing authority the full amount of any such Taxes (and any additional Taxes in
respect of the additional amounts payable under clause (ii) hereof) and make
such reports or returns in connection therewith at the time or times and in the
manner prescribed by applicable law, and (ii) pay to the Borrower an additional
amount which (after deduction of all such Taxes) shall be sufficient to yield to
the Borrower the full amount which would have been received by it had no such
withholding or deduction been made. Within 30 days after the date of each
payment hereunder,

                                      13.
<PAGE>   18
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

the Liquidity Provider shall furnish to the Borrower the original or a certified
copy of (or other documentary evidence of) the payment of the Taxes applicable
to such payment.

                  (c) If any exemption from, or reduction in the rate of, any
Taxes is reasonably available to the Borrower to establish that payments under
this Agreement are exempt from (or entitled to a reduced rate of) tax, the
Borrower shall deliver to the Liquidity Provider such form or forms and such
other evidence of the eligibility of the Borrower for such exemption or
reduction as the Liquidity Provider may reasonably identify to the Borrower as
being required as a condition to exemption from, or reduction in the rate of,
any Taxes.

         Section 3.04 Payments. The Borrower shall make or cause to be made each
payment to the Liquidity Provider under this Agreement so as to cause the same
to be received by the Liquidity Provider not later than 1:00 P.M. (New York City
time) on the day when due. The Borrower shall make all such payments in lawful
money of the United States of America, to the Liquidity Provider in immediately
available funds, by wire transfer to The Chase Manhattan Bank, New York, ABA No.
021000021, Account Name: Westdeutsche Landesbank Girozentrale, New York Branch,
Account No. 9201-06-0663, ref: GSF/Transportation, America West Airlines
2001-1C, Attention: Phil Green.

         Section 3.05 Computations. All computations of interest based on the
Base Rate shall be made on the basis of a year of 365 or 366 days, as the case
may be, and all computations of interest based on the LIBOR shall be made on the
basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest is payable.

         Section 3.06 Payment on Non-Business Days. Whenever any payment to be
made hereunder 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 no additional
interest shall be due as a result (and if so made, shall be deemed to have been
made when due). If any payment in respect of interest on an Advance is so
deferred to the next succeeding Business Day, such deferral shall not delay the
commencement of the next Interest Period for such Advance (if such Advance is a
LIBOR Advance) or reduce the number of days for which interest shall be payable
on such Advance on the next interest payment date for such Advance.

         Section 3.07 Interest.

                  (a) Subject to Section 2.09, the Borrower shall pay, or shall
cause to be paid, without duplication, interest on (i) the unpaid principal
amount of each Advance from and including the date of such Advance (or, in the
case of an Applied Provider Advance, from and including the date on which the
amount thereof was withdrawn from the Class C Cash Collateral Account to pay
interest on the Class C Certificates) to but excluding the date such principal
amount shall be paid in full (or, in the case of an Applied Provider Advance,
the date on which the Class C Cash Collateral Account is fully replenished in
respect of such Advance) and (ii) any other amount due hereunder (whether fees,
commissions, expenses or other amounts or to the extent permitted by applicable
law, installments of interest on Advances or any such other amount) which is not
paid when due (whether at stated maturity, by acceleration or otherwise) from
and including the due date thereof to but excluding the date such amount is paid
in full, in

                                      14.
<PAGE>   19
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

each such case, at a fluctuating interest rate per annum for each day equal to
the Applicable Liquidity Rate (as defined below) for such Advance or such other
amount as in effect for such day, but in no event at a rate per annum greater
than the maximum rate permitted by applicable law; provided, however, that, if
at any time the otherwise applicable interest rate as set forth in this Section
3.07 shall exceed the maximum rate permitted by applicable law, then any
subsequent reduction in such interest rate shall not reduce the rate of interest
payable pursuant to this Section 3.07 below the maximum rate permitted by
applicable law until the total amount of interest accrued equals the amount of
interest that would have accrued if such otherwise applicable interest rate as
set forth in this Section 3.07 had at all times been in effect. Nothing
contained in this Section 3.07 shall require the Borrower to pay any amount
under this Section 3.07 other than to the extent the Borrower shall have funds
available therefor.

                  (b) Each Advance shall be either a Base Rate Advance or a
LIBOR Advance as provided in this Section or Section 3.10. Each such Advance
shall be a Base Rate Advance for the period from the date of its borrowing to
(but excluding) the third Business Day following the Liquidity Provider's
receipt of the Notice of Borrowing for such Advance. Thereafter, such Advance
shall be a LIBOR Advance; provided, however, that the Borrower (at the direction
of the Controlling Party, so long as the Liquidity Provider is not the
Controlling Party) may (x) convert the Final Advance into a Base Rate Advance on
the last day of an Interest Period for such Advance by giving the Liquidity
Provider no less than four Business Days' prior written notice of such election
or (y) elect to maintain the Final Advance as a Base Rate Advance by not
requesting a conversion of the Final Advance to a LIBOR Advance under Clause (5)
of the applicable Notice of Borrowing (or, if such Final Advance is deemed to
have been made, without delivery of a Notice of Borrowing pursuant to Section
2.06, by requesting, prior to 11:00 A.M. (New York time) on the first Business
Day following the Borrower's receipt of the applicable Termination Notice, that
such Final Advance not be converted from a Base Rate Advance to a LIBOR
Advance).

                  (c) Each LIBOR Advance shall bear interest during each
Interest Period at a rate per annum equal to LIBOR for such Interest Period plus
the Applicable Margin for such LIBOR Advance, payable in arrears on the last day
of such Interest Period and, in the event of the payment of principal of such
LIBOR Advance on a day other than such last day, on the date of such payment (to
the extent of interest accrued on the amount of principal repaid).

                  (d) Each Base Rate Advance shall bear interest at a rate per
annum equal to the Base Rate plus the Applicable Margin for such Base Rate
Advance, payable in arrears on each Regular Distribution Date and, in the event
of the payment of principal of such Base Rate Advance on a day other than a
Regular Distribution Date, on the date of such payment (to the extent of
interest accrued on the amount of principal repaid).

                  (e) Each amount not paid when due hereunder (whether fees,
commissions, expenses or other amounts or, to the extent permitted by applicable
law, installments of interest on Advances but excluding Advances) shall bear
interest at a rate per annum equal to the Base Rate plus 2.50% per annum.

                                      15.
<PAGE>   20
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  (f) Each change in the Base Rate shall become effective
immediately. The rates of interest specified in this Section 3.07 with respect
to any Advance or other amount shall be referred to as the "Applicable Liquidity
Rate."

         Section 3.08 Replacement of Borrower. Subject to Section 5.02, from
time to time and subject to the successor Borrower's meeting the eligibility
requirements set forth in Section 6.9 of the Intercreditor Agreement applicable
to the Subordination Agent, upon the effective date and time specified in a
written and completed Notice of Replacement Subordination Agent in substantially
the form of Annex VI (a "Notice of Replacement Subordination Agent") delivered
to the Liquidity Provider by the then Borrower, the successor Borrower
designated therein shall be substituted for as the Borrower for all purposes
hereunder.

         Section 3.09 Funding Loss Indemnification. The Borrower shall pay to
the Liquidity Provider, upon the request of the Liquidity Provider, such amount
or amounts as shall be sufficient (in the reasonable opinion of the Liquidity
Provider) to compensate it for any loss, cost, or expense incurred by reason of
the liquidation or redeployment of deposits or other funds acquired by the
Liquidity Provider to fund or maintain any LIBOR Advance (but excluding loss of
anticipated profits) incurred as a result of:

                  (1) Any repayment of a LIBOR Advance on a date other than the
         last day of the Interest Period for such Advance; or

                  (2) Any failure by the Borrower to borrow a LIBOR Advance on
         the date for borrowing specified in the relevant notice under Section
         2.02.

         Section 3.10 Illegality. Notwithstanding any other provision in this
Agreement, if any change in any applicable law, rule or regulation, or any
change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by the Liquidity Provider (or its Lending
Office) with any request or directive (whether or not having the force of law)
of any such authority, central bank or comparable agency shall make it unlawful
or impossible for the Liquidity Provider (or its Lending Office) to maintain or
fund its LIBOR Advances, then upon notice to the Borrower by the Liquidity
Provider, the outstanding principal amount of the LIBOR Advances shall be
converted to Base Rate Advances (a) immediately upon demand of the Liquidity
Provider, if such change or compliance with such request, in the judgment of the
Liquidity Provider, requires immediate repayment; or (b) at the expiration of
the last Interest Period to expire before the effective date of any such change
or request.

                                      16.
<PAGE>   21
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                    ARTICLE 4

                              CONDITIONS PRECEDENT

         Section 4.01 Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which the following conditions precedent have
been satisfied or waived:

                  (a) The Liquidity Provider shall have received on or before
the Closing Date each of the following, and in the case of each document
delivered pursuant to paragraphs (i), (ii) and (iii), in form and substance
satisfactory to the Liquidity Provider:

                           (i) This Agreement duly executed on behalf of the
         Borrower;

                           (ii) The Intercreditor Agreement duly executed on
         behalf of each of the parties thereto (other than the Liquidity
         Provider);

                           (iii) Fully executed copies of each of the Operative
         Agreements executed and delivered on or before the Closing Date (other
         than this Agreement and the Intercreditor Agreement);

                           (iv) A copy of the Offering Memorandum and specimen
         copies of the Class C Certificates;

                           (v) An executed copy of each opinion, document,
         instrument and certificate delivered on or before the Closing Date
         pursuant to the Class C Trust Agreement, the Intercreditor Agreement,
         the Note Purchase Agreement and the other Operative Agreements entered
         into on or prior to the date hereof (together with, in the case of each
         such opinion, other than the opinion of counsel for the Underwriters,
         either addressed to the Liquidity Provider or accompanied by a letter
         from the counsel rendering such opinion to the effect that the
         Liquidity Provider is entitled to rely on such opinion as of its date
         as if it were addressed to the Liquidity Provider);

                           (vi) Evidence that there shall have been made and
         shall be in full force and effect, all filings, recordings and/or
         registrations, and there shall have been given or taken any notice or
         other similar action as may be reasonably necessary or, to the extent
         reasonably requested by the Liquidity Provider, reasonably advisable,
         in order to establish, perfect, protect and preserve the right, title
         and interest, remedies, powers, privileges, liens and security
         interests of, or for the benefit of, the Trustee and the Liquidity
         Provider created by the Operative Agreements executed and delivered on
         or before the Closing Date;

                           (vii) An agreement from America West, pursuant to
         which America West agrees to provide copies of quarterly financial
         statements and audited annual financial statements to the Liquidity
         Provider (which obligations may be satisfied by the furnishing of
         America West's Form 10Q and 10K), in each case, only to the extent that
         America West is obligated to provide such information pursuant to
         Section 8.2.1 of the

                                      17.
<PAGE>   22
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

         Leases (related to Leased Aircraft) or to Section 4.08 of the
         Indentures (related to Owned Aircraft) to the parties thereto; and

                           (viii) Such other documents, instruments, opinions
         and approvals as the Liquidity Provider shall have reasonably
         requested.

                  (b) The following statements shall be true on and as of the
Effective Date:

                           (i) The representations and warranties in the Note
         Purchase Agreement and each of the Participation Agreements entered
         into on or prior to the date hereof are true and correct on and as of
         the Effective Date as though made on and as of the Effective Date;

                           (ii) No event has occurred and is continuing, or
         would result from the entering into of this Agreement or the making of
         any Advance, which constitutes a Liquidity Event of Default; and

                           (iii) There has been no material adverse change in
         the financial condition or results of operations of America West and
         its subsidiaries taken as a whole since December 31, 2000.

                  (c) The Liquidity Provider shall have received payment in full
of all fees and other sums required to be paid to or for the account of the
Liquidity Provider on or prior to the Effective Date.

                  (d) All conditions precedent to the issuance of the
Certificates under the Trust Agreements shall have been satisfied or waived, all
conditions precedent to the effectiveness of the other Liquidity Facility shall
have been satisfied or waived, and all conditions precedent to the purchase of
the Certificates by the Initial Purchasers under the Purchase Agreement shall
have been satisfied (unless any of such conditions precedent shall have been
waived by the Initial Purchasers).

                  (e) The Borrower shall have received a certificate, dated the
date hereof, signed by a duly authorized representative of the Liquidity
Provider, certifying that all conditions precedent to the effectiveness of
Section 2.01 have been satisfied or waived.

         Section 4.02 Conditions Precedent to Borrowing. The obligation of the
Liquidity Provider to make an Advance on the occasion of each Borrowing shall be
subject to the conditions precedent that the Effective Date shall have occurred
and, prior to the date of such Borrowing, the Borrower shall have delivered a
Notice of Borrowing which conforms to the terms and conditions of this Agreement
and has been completed as may be required by the relevant form of the Notice of
Borrowing for the type of Advances requested.

                                      18.
<PAGE>   23
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                    ARTICLE 5

                                    COVENANTS

         Section 5.01 Affirmative Covenants of the Borrower. So long as any
Advance shall remain unpaid or the Liquidity Provider shall have any Maximum
Commitment hereunder or the Borrower shall have any obligation to pay any amount
to the Liquidity Provider hereunder, the Borrower shall, unless the Liquidity
Provider shall otherwise consent in writing:

                  (a) Performance of Agreements. Punctually pay or cause to be
paid all amounts payable by it under this Agreement and the other Operative
Agreements and observe and perform in all material respects the conditions,
covenants and requirements applicable to it contained in this Agreement and the
other Operative Agreements.

                  (b) Reporting Requirements. Furnish to the Liquidity Provider
with reasonable promptness, such other information and data with respect to the
transactions contemplated by the Operative Agreements as from time to time may
be reasonably requested by the Liquidity Provider; and permit the Liquidity
Provider, upon reasonable notice, to inspect the Borrower's books and records
with respect to such transactions and to meet with officers and employees of the
Borrower to discuss such transactions.

                  (c) Certain Operative Agreements. Furnish to the Liquidity
Provider with reasonable promptness any Operative Agreement entered into after
the date hereof.

         Section 5.02 Negative Covenants of the Borrower. So long as any Advance
shall remain unpaid or the Liquidity Provider shall have any Maximum Commitment
hereunder or the Borrower shall have any obligation to pay any amount to the
Liquidity Provider hereunder, the Borrower shall not appoint or permit or suffer
to be appointed any successor Borrower without the written consent of the
Liquidity Provider, which consent shall not be unreasonably withheld or delayed.

                                    ARTICLE 6

                           LIQUIDITY EVENTS OF DEFAULT

         Section 6.01 Liquidity Events of Default. If (a) any Liquidity Event of
Default has occurred and is continuing and (b) there is a Performing Note
Deficiency, the Liquidity Provider may, in its discretion, deliver to the
Borrower a Termination Notice, the effect of which shall be to cause (i) the
obligation of the Liquidity Provider to make Advances hereunder to expire on the
fifth Business Day after the date on which such Termination Notice is received
by the Borrower, (ii) the Borrower to promptly request, and the Liquidity
Provider to promptly make, a Final Advance in accordance with Section 2.02(d)
and Section 3.6(i) of the Intercreditor Agreement, (iii) all other outstanding
Advances to be automatically converted into Final Advances for purposes of
determining the Applicable Liquidity Rate for interest payable thereon, and (iv)
subject to Sections 2.07 and 2.09, all Advances (including, without limitation,
any Provider Advance and Applied Provider Advance), any accrued interest thereon
and any other amounts outstanding hereunder to become immediately due and
payable to the Liquidity Provider.

                                      19.
<PAGE>   24
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                    ARTICLE 7

                                  MISCELLANEOUS

         Section 7.01 Amendments, Etc. No amendment or waiver of any provision
of this Agreement, nor consent to any departure by the Borrower therefrom, shall
in any event be effective unless the same shall be in writing and signed by the
Liquidity Provider, and, in the case of an amendment, the Borrower, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

         Section 7.02 Notices, Etc. Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including sent by telecopier):

                  Borrower:                 Wilmington Trust Company
                                            Rodney Square North
                                            1100 North Market Street
                                            Wilmington, DE  19890-0001
                                            Attention:  Corporate Trust
                                            Administration

                                            Telephone: 302-651-1000
                                            Telecopy: 302-651-8882

                  Liquidity Provider:       Westdeutsche Landesbank Girozentrale
                                            New York Branch
                                            1211 Avenue of the Americas
                                            New York, New York  10036
                                            Business/Credit Contact
                                            Attention:  Transportation Finance
                                            Global Structured Finance/Americas

                                            Telephone:     212-852-6115
                                            Telecopy:      212-869-7634

                                            Operations Contact

                                            Attention:     Philip Green
                                                           Loan Administration

                                            Telephone:     212-852-6113
                                            Telecopy:      212-302-7946

or, as to each of the foregoing, at such other address as shall be designated by
such Person in a Written Notice to the others. All such notices and
communications shall be effective (i) if given by telecopier, when transmitted
to the telecopier number specified above with receipt confirmed, (ii) if given
by mail, when deposited in the mails addressed as specified above, and (iii) if
given by other means, when delivered at the address specified above, except that
Written Notices to the Liquidity Provider pursuant to the provisions of Articles
II and III shall not be effective until

                                      20.
<PAGE>   25
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

received by the Liquidity Provider, subject to the last sentence of Section
2.02(e). A copy of all notices delivered hereunder to either party shall in
addition be delivered to each of the parties to the Participation Agreements at
their respective addresses set forth therein.

         Section 7.03 No Waiver; Remedies. No failure on the part of the
Liquidity Provider to exercise, and no delay in exercising, any right under this
Agreement shall operate as a waiver thereof; nor shall any single or partial
exercise of any right under this Agreement preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

         Section 7.04 Further Assurances. The Borrower agrees to do such further
acts and things and to execute and deliver to the Liquidity Provider such
additional assignments, agreements, powers and instruments as the Liquidity
Provider may reasonably require or deem advisable to carry into effect the
purposes of this Agreement and the other Operative Agreements or to better
assure and confirm unto the Liquidity Provider its rights, powers and remedies
hereunder and under the other Operative Agreements.

         Section 7.05 Indemnification; Survival of Certain Provisions. The
Liquidity Provider shall be indemnified hereunder to the extent and in the
manner described in Section 7.1 or 9.1, as the case may be, of any Participation
Agreement and Section 6(c) of the Note Purchase Agreement. In addition, the
Borrower agrees to indemnify, protect, defend and hold harmless the Liquidity
Provider from, against and in respect of, and shall pay on demand, all Expenses
of any kind or nature whatsoever (other than any Expenses of the nature
described in Section 3.01, 3.02 or 7.07 hereof or in the Fee Letter (regardless
of whether indemnified against pursuant to said Sections or in such Fee Letter))
that may be imposed, incurred by or asserted against any Liquidity Indemnitee,
in any way relating to, resulting from, or arising out of or in connection with
any action, suit or proceeding by any third party against such Liquidity
Indemnitee and relating to this Agreement, the Intercreditor Agreement, the Fee
Letter or any Participation Agreement; provided, however, that the Borrower
shall not be required to indemnify, protect, defend and hold harmless any
Liquidity Indemnitee in respect of any Expense of such Liquidity Indemnitee to
the extent such Expense is (i) attributable to the gross negligence or willful
misconduct of such Liquidity Indemnitee or any other Liquidity Indemnitee, (ii)
ordinary and usual operating overhead expense or (iii) attributable to the
failure by such Liquidity Indemnitee or any other Liquidity Indemnitee to
perform or observe any agreement, covenant or condition on its part to be
performed or observed in this Agreement, the Intercreditor Agreement, the Fee
Letter or any other Operative Agreement to which it is a party. The indemnities
contained in Section 6(c) of the Note Purchase Agreement and Section 7.1 or 9.1,
as the case may be, of any Participation Agreement and the provisions of
Sections 3.01, 3.02, 3.03, 3.09, 7.05 and 7.07 shall survive the termination of
this Agreement.

         Section 7.06 Liability of the Liquidity Provider.

                  (a) Neither the Liquidity Provider nor any of its officers,
directors, employees or affiliates shall be liable or responsible for: (i) the
use which may be made of the Advances or any acts or omissions of the Borrower
or any beneficiary or transferee in connection therewith; (ii) the validity,
sufficiency or genuineness of documents, or of any endorsement thereon, even if
such documents should prove to be in any or all respects invalid, insufficient,
fraudulent or

                                      21.
<PAGE>   26
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

forged; or (iii) the making of Advances by the Liquidity Provider against
delivery of a Notice of Borrowing and other documents which do not comply with
the terms hereof; provided, however, that the Borrower shall have a claim
against the Liquidity Provider, and the Liquidity Provider shall be liable to
the Borrower, to the extent of any damages suffered by the Borrower which were
the result of (A) the Liquidity Provider's willful misconduct or negligence in
determining whether documents presented hereunder comply with the terms hereof,
or (B) any breach by the Liquidity Provider of any of the terms of this
Agreement, including, but not limited to, the Liquidity Provider's failure to
make lawful payment hereunder after the delivery to it by the Borrower of a
Notice of Borrowing complying with the terms and conditions hereof.

                  (b) Neither the Liquidity Provider nor any of its officers,
employees, directors or Affiliates shall be liable or responsible in any respect
for (i) any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with this
Agreement or any Notice of Borrowing delivered hereunder, or (ii) any action,
inaction or omission which may be taken by it in good faith, absent willful
misconduct or negligence (in which event the extent of the Liquidity Provider's
potential liability to the Borrower shall be limited as set forth in the
preceding paragraph), in connection with this Agreement or any Notice of
Borrowing.

         Section 7.07 Costs, Expenses and Taxes. The Borrower agrees to pay, or
cause to be paid (A) on the Effective Date and on such later date or dates on
which the Liquidity Provider shall make demand, all reasonable out-of-pocket
costs and expenses of the Liquidity Provider in connection with the preparation,
negotiation, execution, delivery, filing and recording of this Agreement, any
other Operative Agreement and any other documents which may be delivered in
connection with this Agreement, including, without limitation, the reasonable
fees and expenses of outside counsel for the Liquidity Provider and (B) on
demand, all reasonable costs and expenses of the Liquidity Provider (including
reasonable counsel fees and expenses) in connection with (i) the enforcement of
this Agreement or any other Operative Agreement, (ii) the modification or
amendment of, or supplement to, this Agreement or any other Operative Agreement
or such other documents which may be delivered in connection herewith or
therewith (whether or not the same shall become effective) or (iii) any action
or proceeding relating to any order, injunction, or other process or decree
restraining or seeking to restrain the Liquidity Provider from paying any amount
under this Agreement, the Intercreditor Agreement or any other Operative
Agreement or otherwise affecting the application of funds in the Class C Cash
Collateral Account. In addition, the Borrower shall pay any and all recording,
stamp and other similar taxes and fees payable or determined to be payable in
connection with the execution, delivery, filing and recording of this Agreement
any other Operative Agreement and such other documents, and agrees to save the
Liquidity Provider harmless from and against any and all liabilities with
respect to or resulting from any delay in paying or omission to pay such taxes
or fees.

         Section 7.08 Binding Effect; Participations.

                  (a) This Agreement shall be binding upon and inure to the
benefit of the Borrower and the Liquidity Provider and their respective
successors and assigns, except that neither the Liquidity Provider (except as
otherwise provided in this Section 7.08) nor the Borrower (except as
contemplated by Section 3.08) shall have the right to assign its rights or

                                      22.
<PAGE>   27
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

obligations hereunder or any interest herein without the prior written consent
of the other party, subject to the requirements of Section 7.08(b). The
Liquidity Provider may grant participations herein or in any of its rights
hereunder and under the other Operative Agreements to such Persons (other than
America West or any of its Affiliates) as the Liquidity Provider may in its sole
discretion select, subject to the requirements of Section 7.08(b). No such
participation by the Liquidity Provider, however, shall relieve the Liquidity
Provider of its obligations hereunder. In connection with any participation or
any proposed participation, the Liquidity Provider may disclose to the
participant or the proposed participant any information that the Borrower is
required to deliver or to disclose to the Liquidity Provider pursuant to this
Agreement. The Borrower acknowledges and agrees that the Liquidity Provider's
source of funds may derive in part from its participants. Accordingly,
references in this Agreement and the other Operative Agreements to
determinations, reserve and capital adequacy requirements, increased costs,
reduced receipts and the like as they pertain to the Liquidity Provider shall be
deemed also to include those of each of its participants that are banks
(subject, in each case, to the maximum amount that would have been incurred by
or attributable to the Liquidity Provider directly if the Liquidity Provider,
rather than the participant, had held the interest participated other than a
result of a change in law following the date of any participation).

                  (b) If, pursuant to Section 7.08(a) above, the Liquidity
Provider sells any participation in this Agreement to any bank or other entity
(each, a "Participating Institution"), then, concurrently with the effectiveness
of such participation, the Participating Institution shall (i) represent to the
Liquidity Provider (for the benefit of the Liquidity Provider and the Borrower)
either (A) that it is incorporated under the laws of the United States or a
state thereof or (B) that under applicable law and treaties, no taxes shall be
required to be withheld by the Borrower or the Liquidity Provider with respect
to any payments to be made to such Participating Institution in respect of this
Agreement, (ii) furnish to the Liquidity Provider and the Borrower either (x) a
statement that it is incorporated under the laws of the United States or a state
thereof or (y) if it is not so incorporated, two copies of a properly completed
United States Internal Revenue Service Form W-8ECI or Form W-8BEN, as
appropriate, or other applicable form, certificate or document prescribed by the
Internal Revenue Service certifying, in each case, such Participating
Institution's entitlement to a complete exemption from United States federal
withholding tax in respect to any and all payments to be made hereunder, and
(iii) agree (for the benefit of the Liquidity Provider and the Borrower) to
provide the Liquidity Provider and the Borrower a new Form W-8ECI or Form
W-8BEN, as appropriate, (A) on or before the date that any such form expires or
becomes obsolete or (B) after the occurrence of any event requiring a change in
the most recent form previously delivered by it and prior to the immediately
following due date of any payment by the Borrower hereunder, certifying in the
case of a Form W-8BEN or Form W-8ECI that such Participating Institution is
entitled to a complete exemption from United States federal withholding tax on
payments under this Agreement. Unless the Borrower has received forms or other
documents reasonably satisfactory to it (and required by applicable law) from
the Participating Institution indicating that payments hereunder are not subject
to United States federal withholding tax, the Borrower shall withhold taxes as
required by law from such payments at the applicable statutory rate without any
obligation to make additional payments under Section 3.03.

                  (c) Notwithstanding the other provisions of this Section 7.08,
the Liquidity Provider may assign and pledge all or any portion of the Advances
owing to it to any Federal

                                      23.
<PAGE>   28
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Reserve Bank or the United States Treasury as collateral security pursuant to
Regulation A of the Board of Governors of the Federal Reserve System and any
Operating Circular issued by such Federal Reserve Bank, provided that any
payment in respect of such assigned Advances made by the Borrower to the
Liquidity Provider in accordance with the terms of this Agreement shall satisfy
the Borrower's obligations hereunder in respect of such assigned Advance to the
extent of such payment. No such assignment shall release the Liquidity Provider
from its obligations hereunder.

         Section 7.09 Severability. Any provision of this Agreement which is
prohibited, unenforceable or not authorized in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or non-authorization without invalidating the remaining
provisions hereof or affecting the validity, enforceability or legality of such
provision in any other jurisdiction.

         Section 7.10 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF (OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW)) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

         Section 7.11 Submission to Jurisdiction; Waiver of Jury Trial; Waiver
of Immunity.

                  (a) Each of the parties hereto hereby irrevocably and
unconditionally:

                           (i) submits for itself and its property in any legal
         action or proceeding relating to this Agreement or any other Operative
         Agreement, or for recognition and enforcement of any judgment in
         respect hereof or thereof, to the non-exclusive general jurisdiction of
         the courts of the State of New York, the courts of the United States of
         America for the Southern District of New York, and the appellate courts
         from any thereof;

                           (ii) consents that any such action or proceeding may
         be brought in such courts, and waives any objection that it may now or
         hereafter have to the venue of any such action or proceeding in any
         such court or that such action or proceeding was brought in an
         inconvenient court and agrees not to plead or claim the same;

                           (iii) agrees that service of process in any such
         action or proceeding may be effected by mailing a copy thereof by
         registered or certified mail (or any substantially similar form of
         mail), postage prepaid, to each party hereto at its address set forth
         in Section 7.02, or at such other address of which the Liquidity
         Provider shall have been notified pursuant thereto; and

                           (iv) agrees that nothing herein shall affect the
         right to effect service of process in any other manner permitted by law
         or shall limit the right to sue in any other jurisdiction.

                                      24.
<PAGE>   29
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                  (b) THE BORROWER AND THE LIQUIDITY PROVIDER EACH HEREBY AGREE
TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS
BEING ESTABLISHED, including, without limitation, contract claims, tort claims,
breach of duty claims and all other common law and statutory claims. The
Borrower and the Liquidity Provider each warrant and represent that it has
reviewed this waiver with its legal counsel, and that it knowingly and
voluntarily waives its jury trial rights following consultation with such legal
counsel. THIS WAIVER IS IRREVOCABLE, AND CANNOT BE MODIFIED EITHER ORALLY OR IN
WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

                  (c) The Liquidity Provider hereby waives any immunity it may
have from the jurisdiction of the courts of the United States or of any State
and waives any immunity any of its properties located in the United States may
have from attachment or execution upon a judgment entered by any such court
under the United States Foreign Sovereign Immunities Act of 1976 or any similar
successor legislation.

         Section 7.12 Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto on separate
counterparts, each of which counterpart, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together, shall
constitute but one and the same Agreement.

         Section 7.13 Entirety. This Agreement and the other Operative
Agreements constitute the entire agreement of the parties hereto with respect to
the subject matter hereof and supersedes all prior understandings and agreements
of such parties.

         Section 7.14 Headings. Section headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.

         Section 7.15 LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES. EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE OBLIGATIONS OF THE LIQUIDITY
PROVIDER TO MAKE ADVANCES HEREUNDER, AND THE BORROWER'S RIGHTS TO DELIVER
NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER, SHALL BE
UNCONDITIONAL AND IRREVOCABLE, AND SHALL BE PAID OR PERFORMED, IN EACH CASE
STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

         Section 7.16 Transfer. The Liquidity Provider hereby acknowledges and
consents to the Transfer contemplated by the Assignment and Assumption
Agreement.

                                      25.
<PAGE>   30
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

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

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   Subordination Agent and Trustee, as Borrower

                                   By:   /s/ Anita Dallago
                                            Name:    Anita Dallago
                                            Title:   Financial Services Officer

                                   WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                                   NEW YORK BRANCH
                                   as Liquidity Provider

                                   By:   /s/ Brigitte Thieme
                                            Name:    Brigitte Thieme
                                            Title:   Managing Director

                                   By:   /s/ Alfred Heynen
                                            Name:    Alfred Heynen
                                            Title:   Associate Director

<PAGE>   31
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                                                      Annex I to
                                                      Revolving Credit Agreement

                      INTEREST ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to Westdeutsche Landesbank
Girozentrale (the "Liquidity Provider"), with reference to the Revolving Credit
Agreement (2001-1C), dated as of May __, 2001, between the Borrower and the
Liquidity Provider (the "Liquidity Agreement"; the terms defined therein and not
otherwise defined herein being used herein as therein defined or referenced),
that:

                  (1) The Borrower is the Subordination Agent under the
         Intercreditor Agreement.

                  (2) The Borrower is delivering this Notice of Borrowing for
         the making of an Interest Advance by the Liquidity Provider to be used,
         subject to clause (3)(v) below, for the payment of interest on the
         Class C Certificates which was payable on _____________________ (the
         "Distribution Date") in accordance with the terms and provisions of the
         Class C Trust Agreement and the Class C Certificates, which Advance is
         requested to be made on _______________. The Interest Advance should be
         transferred to account __________.

                  (3) The amount of the Interest Advance requested hereby (i) is
         $__________, to be applied in respect of the payment of interest which
         was due and payable on the Class C Certificates on such Distribution
         Date, (ii) does not include any amount with respect to the payment of
         principal of, or premium on, the Class C Certificate, the Class G
         Certificates or the Class D Certificates, or interest on the Class G
         Certificates or the Class D Certificates, (iii) was computed in
         accordance with the provisions of the Class C Certificates, the Class C
         Trust Agreement and the Intercreditor Agreement (a copy of which
         computation is attached hereto as Schedule I), (iv) does not exceed the
         Maximum Available Commitment on the date hereof, (v) does not include
         any amount of interest which was due and payable on the Class C
         Certificates on such Distribution Date but which remains unpaid due to
         the failure of the Depositary to pay any amount of accrued interest on
         the Deposits on such Distribution Date, and (vi) has not been and is
         not the subject of a prior or contemporaneous Notice of Borrowing.

                  (4) Upon receipt by or on behalf of the Borrower of the amount
         requested hereby, (a) the Borrower shall apply the same in accordance
         with the terms of Section 3.6(b) of the Intercreditor Agreement, (b) no
         portion of such amount shall be applied by the Borrower for any other
         purpose and (c) no portion of such amount until so applied shall be
         commingled with other funds held by the Borrower.

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, the making of the Interest Advance as requested by this Notice of
Borrowing shall automatically reduce, subject to reinstatement in accordance
with the terms of the Liquidity Agreement, the Maximum Available Commitment by
an amount equal to the amount of the Interest Advance

                                      I-1
<PAGE>   32
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

requested to be made hereby as set forth in clause (i) of paragraph (3) of this
Notice of Borrowing and such reduction shall automatically result in
corresponding reductions in the amounts available to be borrowed pursuant to a
subsequent Advance.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the ____ day of ______________, ____.

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   Subordination Agent, as Borrower

                                   By:
                                         Name:
                                         Title:

                                      I-2
<PAGE>   33
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

                 [Insert Copy of Computations in accordance with
                     Interest Advance Notice of Borrowing]

                                      I-3
<PAGE>   34
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                                                     Annex II to
                                                      Revolving Credit Agreement

                    NON-EXTENSION ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to Westdeutsche Landesbank
Girozentrale (the "Liquidity Provider"), with reference to the Revolving Credit
Agreement (2001-1C), dated as of May __, 2001, between the Borrower and the
Liquidity Provider (the "Liquidity Agreement"; the terms defined therein and not
otherwise defined herein being used herein as therein defined or referenced),
that:

                  (1) The Borrower is the Subordination Agent under the
         Intercreditor Agreement.

                  (2) The Borrower is delivering this Notice of Borrowing for
         the making of the Non-Extension Advance by the Liquidity Provider to be
         used for the funding of the Class C Cash Collateral Account in
         accordance with Section 3.6(d) of the Intercreditor Agreement, which
         Advance is requested to be made on __________, ____. The Non-Extension
         Advance should be transferred to ____________.

                  (3) The amount of the Non-Extension Advance requested hereby
         (i) is $_______________.__, which equals the Maximum Available
         Commitment on the date hereof and is to be applied in respect of the
         funding of the Class C Cash Collateral Account in accordance with
         Section 3.6(d) of the Intercreditor Agreement, (ii) does not include
         any amount with respect to the payment of the principal of, or premium
         on, the Class C Certificates, the Class G Certificates or the Class D
         Certificates, or interest on the Class G Certificates or the Class D
         Certificates, (iii) was computed in accordance with the provisions of
         the Class C Certificates, the Class C Trust Agreement and the
         Intercreditor Agreement (a copy of which computation is attached hereto
         as Schedule I), and (iv) has not been and is not the subject of a prior
         or contemporaneous Notice of Borrowing under the Liquidity Agreement.

                  (4) Upon receipt by or on behalf of the Borrower of the amount
         requested hereby, (a) the Borrower will deposit such amount in the
         Class C Cash Collateral Account and apply the same in accordance with
         the terms of Section 3.6(d) of the Intercreditor Agreement, (b) no
         portion of such amount shall be applied by the Borrower for any other
         purpose and (c) no portion of such amount until so applied shall be
         commingled with other funds held by the Borrower.

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Non-Extension Advance as requested by this
Notice of Borrowing shall automatically and irrevocably terminate the obligation
of the Liquidity Provider to make further Advances under the Liquidity
Agreement; and (B) following the making by the Liquidity Provider of the
Non-Extension Advance requested by this Notice of Borrowing, the Borrower shall
not be entitled to request any further Advances under the Liquidity Agreement.

                                      II-1
<PAGE>   35
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the ____ day of _________, ____.

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   Subordination Agent, as Borrower

                                   By:
                                         Name:
                                         Title:

                                      II-2
<PAGE>   36
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                       SCHEDULE I TO NON-EXTENSION ADVANCE
                               NOTICE OF BORROWING
                 [Insert copy of computations in accordance with
                   Non-Extension Advance Notice of Borrowing]

                                      II-3
<PAGE>   37
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                                                    Annex III to
                                                      Revolving Credit Agreement

                      DOWNGRADE ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to Westdeutsche Landesbank
Girozentrale (the "Liquidity Provider"), with reference to the Revolving Credit
Agreement (2001-1C) dated as of May __, 2001, between the Borrower and the
Liquidity Provider (the "Liquidity Agreement"; the terms defined therein and not
otherwise defined herein being used herein as therein defined or referenced),
that:

                  (1) The Borrower is the Subordination Agent under the
         Intercreditor Agreement.

                  (2) The Borrower is delivering this Notice of Borrowing for
         the making of the Downgrade Advance by the Liquidity Provider to be
         used for the funding of the Class C Cash Collateral Account in
         accordance with Section 3.6(c) of the Intercreditor Agreement by reason
         of the downgrading of the short-term unsecured debt rating of the
         Liquidity Provider issued by either Rating Agency below the Threshold
         Rating, which Advance is requested to be made on ______________. The
         Downgrade Advance should be transferred to __________.

                  (3) The amount of the Downgrade Advance requested hereby (i)
         is $________, which equals the Maximum Available Commitment on the date
         hereof and is to be applied in respect of the funding of the Class C
         Cash Collateral Account in accordance with Section 3.6(c) of the
         Intercreditor Agreement, (ii) does not include any amount with respect
         to the payment of principal of, or premium on, the Class C
         Certificates, the Class G Certificates, or the Class D Certificates, or
         interest on the Class G Certificates or the Class D Certificates, (iii)
         was computed in accordance with the provisions of the Class C
         Certificates, the Class C Trust Agreement and the Intercreditor
         Agreement (a copy of which computation is attached hereto as Schedule
         1), and (iv) has not been and is not the subject of a prior or
         contemporaneous Notice of Borrowing under the Liquidity Agreement.

                  (4) Upon receipt by or on behalf of the Borrower of the amount
         requested hereby, (a) the Borrower shall deposit such amount in the
         Class C Cash Collateral Account and apply the same in accordance with
         the terms of Section 3.6(c) of the Intercreditor Agreement, (b) no
         portion of such amount shall be applied by the Borrower for any other
         purpose and (c) no portion of such amount until so applied shall be
         commingled with other funds held by the Borrower.

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Downgrade Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity Agreement; and
(B) following the making by the Liquidity Provider of the

                                     III-1
<PAGE>   38
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

Downgrade Advance requested by this Notice of Borrowing, the Borrower shall not
be entitled to request any further Advances under the Liquidity Agreement.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the _____ day of _________, _____.

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   Subordination Agent, as Borrower

                                   By:
                                         Name:
                                         Title:

                                     III-2
<PAGE>   39
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

                 [Insert Copy of Computations in accordance with
                     Downgrade Advance Notice of Borrowing]

                                     III-3
<PAGE>   40
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                                                     Annex IV to
                                                      Revolving Credit Agreement

                        FINAL ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to Westdeutsche Landesbank
Girozentrale (the "Liquidity Provider"), with reference to the Revolving Credit
Agreement (2001-1C), dated as of May __, 2001, between the Borrower and the
Liquidity Provider (the "Liquidity Agreement"); the terms defined therein and
not otherwise defined herein being used herein as therein defined or
referenced), that:

                  (1) The Borrower is the Subordination Agent under the
         Intercreditor Agreement.

                  (2) The Borrower is delivering this Notice of Borrowing for
         the making of the Final Advance by the Liquidity Provider to be used
         for the funding of the Class C Cash Collateral Account in accordance
         with Section 3.6(i) of the Intercreditor Agreement by reason of the
         receipt by the Borrower of a Termination Notice from the Liquidity
         Provider with respect to the Liquidity Agreement, which Advance is
         requested to be made on _______________.

                  (3) The amount of the Final Advance requested hereby (i) is
         $_____________, which equals the Maximum Available Commitment on the
         date hereof and is to be applied in respect of the funding of the Class
         C Cash Collateral Account in accordance with Section 3.6(i) of the
         Intercreditor Agreement, (ii) does not include any amount with respect
         to the payment of principal of, or premium on the Class C Certificates,
         the Class G Certificates or the Class D Certificates, or interest on
         the Class G Certificates or the Class D Certificates, (iii) was
         computed in accordance with the provisions of the Class C Certificates,
         the Class C Trust Agreement and the Intercreditor Agreement (a copy of
         which computation is attached hereto as Schedule I), and (iv) has not
         been and is not the subject of a prior or contemporaneous Notice of
         Borrowing.

                  (4) Upon receipt by or on behalf of the Borrower of the amount
         requested hereby, (a) the Borrower shall deposit such amount in the
         Class C Cash Collateral Account and apply the same in accordance with
         the terms of Section 3.6(i) of the Intercreditor Agreement, (b) no
         portion of such amount shall be applied by the Borrower for any other
         purpose and (c) no portion of such amount until so applied shall be
         commingled with other funds held by the Borrower.

                  (5) The Borrower hereby requests that the Advance requested
         hereby be a Base Rate Advance [and that such Base Rate Advance be
         converted into a LIBOR Advance on the third Business Day following your
         receipt of this notice.](1)

------------------
(1)    Bracketed language may be included at Borrower's option.

                                      IV-1
<PAGE>   41
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Final Advance as requested by this Notice of
Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity Agreement; and
(B) following the making by the Liquidity Provider of the Final Advance
requested by this Notice of Borrowing, the Borrower shall not be entitled to
request any further Advances under the Liquidity Agreement.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the _____ day of ___________, _____.

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   Subordination Agent, as Borrower

                                   By:
                                         Name:
                                         Title:

                                      IV-2
<PAGE>   42
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

                 [Insert Copy of Computations in accordance with
                       Final Advance Notice of Borrowing]

                                      IV-3
<PAGE>   43
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Square
Wilmington, DE  19890-0001

Attention: Corporate Trust Administration

Re:      Revolving Credit Agreement (2001-1C), dated as of May __, 2001, between
         Wilmington Trust Company, as Subordination Agent, as agent and trustee
         for the America West Airlines 2001-1C Pass Through Trust, as Borrower,
         and Westdeutsche Landesbank Girozentrale, New York Branch (the
         "Liquidity Agreement")

Ladies and Gentlemen:

         You are hereby notified that pursuant to Section 6.01 of the Liquidity
Agreement, by reason of the occurrence of a Liquidity Event of Default and the
existence of a Performing Note Deficiency (each as defined therein), we are
giving this notice to you in order to cause (i) our obligations to make Advances
(as defined therein) under such Liquidity Agreement to terminate on the fifth
Business Day after the date on which you receive this notice and (ii) you to
request a Final Advance under the Liquidity Agreement pursuant to Section 3.6(i)
of the Intercreditor Agreement (as defined in the Liquidity Agreement) as a
consequence of your receipt of this notice.

         THIS NOTICE IS THE "NOTICE OF TERMINATION" PROVIDED FOR UNDER THE
LIQUIDITY AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY
AGREEMENT SHALL TERMINATE ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU
RECEIVE THIS NOTICE.

                                      V-1
<PAGE>   44
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                             Very truly yours,

                                             WESTDEUTSCHE LANDESBANK
                                             GIROZENTRALE, NEW YORK BRANCH, as
                                             Liquidity Provider

                                             By:
                                                  Name:
                                                  Title:

                                             By:
                                                  Name:
                                                  Title:

cc:      Wilmington Trust Company,
         as Class C Trustee

                                      V-2
<PAGE>   45
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

                                                                     Annex VI to
                                                      Revolving Credit Agreement

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

                                     [Date]

Attention:

Re:      Revolving Credit Agreement (2001-1C), dated as of May __, 2001, between
         Wilmington Trust Company, as Subordination Agent, as agent and trustee
         for the America West Airlines 2001-1C Pass Through Trust, as Borrower,
         and Westdeutsche Landesbank Girozentrale (the "Liquidity Agreement")

Ladies and Gentlemen:

         For value received, the undersigned hereby irrevocably transfers to:

                                                     [Name of Transferee]

                                                     [Address of Transferee]

all rights and obligations of the undersigned as Borrower and Subordination
Agent under the Liquidity Agreement referred to above. The transferee has
succeeded the undersigned as Borrower and Subordination Agent under the
Intercreditor Agreement referred to in the first paragraph of the Liquidity
Agreement, pursuant to the terms of Section 8.1 of the Intercreditor Agreement.

         By this transfer, all rights of the undersigned as Borrower and
Subordination Agent under the Liquidity Agreement are transferred to the
transferee and the transferee shall hereafter have the sole rights and
obligations as Borrower and Subordination Agent thereunder. The undersigned
shall pay any costs and expenses of such transfer, including, but not limited
to, transfer taxes or governmental charges.

                                      VI-1
<PAGE>   46
                                          [REVOLVING CREDIT AGREEMENT (2001-1C)]

We ask that this transfer be effective as of ____________, ____.

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   Subordination Agent, as Borrower

                                   By:
                                         Name:
                                         Title:

                                      VI-2<PAGE>   1
                                  EXHIBIT 4.12

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

                             INTERCREDITOR AGREEMENT
                                    (2001-1)

                                   Dated as of
                                  May 17, 2001
                                      AMONG

                            WILMINGTON TRUST COMPANY,
                         not in its individual capacity
                         but solely as Trustee under the
                America West Airlines Pass Through Trust 2001-1G,
                America West Airlines Pass Through Trust 2001-1C
                                       and
                America West Airlines Pass Through Trust 2001-1D

                      WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                       ACTING THROUGH ITS NEW YORK BRANCH,
                          as Class G Liquidity Provider
                                       and
                          as Class C Liquidity Provider

                           AMBAC ASSURANCE CORPORATION
                               as Policy Provider

                                       AND

                            WILMINGTON TRUST COMPANY,
                      not in its individual capacity except
                        as expressly set forth herein but
                    solely as Subordination Agent and Trustee

--------------------------------------------------------------------------------
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
<S>                                                                                                                <C>
ARTICLE I  DEFINITIONS...........................................................................................    2

   SECTION 1.1.  DEFINITIONS.....................................................................................    2

ARTICLE II  TRUST ACCOUNTS; CONTROLLING PARTY....................................................................   24

   SECTION 2.1.  AGREEMENT TO TERMS OF SUBORDINATION; PAYMENTS FROM MONIES RECEIVED ONLY.........................   24
   SECTION 2.2.  TRUST ACCOUNTS..................................................................................   24
   SECTION 2.3.  DEPOSITS TO THE COLLECTION ACCOUNT AND SPECIAL PAYMENTS ACCOUNT.................................   26
   SECTION 2.4.  DISTRIBUTIONS OF SPECIAL PAYMENTS...............................................................   26
   SECTION 2.5.  DESIGNATED REPRESENTATIVES......................................................................   29
   SECTION 2.6.  CONTROLLING PARTY...............................................................................   30

ARTICLE III  RECEIPT, DISTRIBUTION AND APPLICATION OF AMOUNTS RECEIVED...........................................   31

   SECTION 3.1.  WRITTEN NOTICE OF DISTRIBUTION..................................................................   31
   SECTION 3.2.  DISTRIBUTION OF AMOUNTS ON DEPOSIT IN THE COLLECTION ACCOUNT....................................   34
   SECTION 3.3.  DISTRIBUTION OF AMOUNTS ON DEPOSIT FOLLOWING A TRIGGERING EVENT.................................   36
   SECTION 3.4.  OTHER PAYMENTS..................................................................................   38
   SECTION 3.5.  PAYMENTS TO THE TRUSTEES, LIQUIDITY PROVIDERS AND POLICY PROVIDER...............................   39
   SECTION 3.6.  LIQUIDITY FACILITIES............................................................................   39
   SECTION 3.7.  THE POLICY......................................................................................   45

ARTICLE IV  EXERCISE OF REMEDIES.................................................................................   49

   SECTION 4.1.  DIRECTIONS FROM THE CONTROLLING PARTY...........................................................   49
   SECTION 4.2.  REMEDIES CUMULATIVE.............................................................................   50
   SECTION 4.3.  DISCONTINUANCE OF PROCEEDINGS...................................................................   51
   SECTION 4.4.  RIGHT OF CERTIFICATEHOLDERS TO RECEIVE PAYMENTS NOT TO BE IMPAIRED..............................   51
   SECTION 4.5.  UNDERTAKING FOR COSTS...........................................................................   51

ARTICLE V  DUTIES OF THE SUBORDINATION AGENT; AGREEMENTS OF TRUSTEES, ETC........................................   52

   SECTION 5.1.  NOTICE OF INDENTURE EVENT OF DEFAULT OR TRIGGERING EVENT........................................   52
   SECTION 5.2.  INDEMNIFICATION.................................................................................   52
   SECTION 5.3.  NO DUTIES EXCEPT AS SPECIFIED IN INTERCREDITOR AGREEMENT........................................   52
   SECTION 5.4.  NOTICE FROM THE LIQUIDITY PROVIDERS AND TRUSTEES................................................   53

ARTICLE VI  THE SUBORDINATION AGENT..............................................................................   53

   SECTION 6.1.  AUTHORIZATION; ACCEPTANCE OF TRUSTS AND DUTIES..................................................   53
   SECTION 6.2.  ABSENCE OF DUTIES...............................................................................   53
   SECTION 6.3.  NO REPRESENTATIONS OR WARRANTIES AS TO DOCUMENTS................................................   53
   SECTION 6.4.  NO SEGREGATION OF MONIES; NO INTEREST...........................................................   54
   SECTION 6.5.  RELIANCE; AGENTS; ADVICE OF COUNSEL.............................................................   54
   SECTION 6.6.  CAPACITY IN WHICH ACTING........................................................................   54
   SECTION 6.7.  COMPENSATION....................................................................................   54
   SECTION 6.8.  MAY BECOME CERTIFICATEHOLDER....................................................................   55
   SECTION 6.9.  SUBORDINATION AGENT REQUIRED; ELIGIBILITY.......................................................   55
   SECTION 6.10.  MONEY TO BE HELD IN TRUST......................................................................   55

ARTICLE VII  INDEMNIFICATION OF SUBORDINATION AGENT..............................................................   55

   SECTION 7.1.  SCOPE OF INDEMNIFICATION........................................................................   55

ARTICLE VIII  SUCCESSOR SUBORDINATION AGENT......................................................................   56

   SECTION 8.1.  REPLACEMENT OF SUBORDINATION AGENT; APPOINTMENT OF SUCCESSOR....................................   56
</TABLE>

                                       i
<PAGE>   3
<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----
<S>                                                                                                                <C>
ARTICLE IX  SUPPLEMENTS AND AMENDMENTS...........................................................................   57

   SECTION 9.1.  AMENDMENTS, WAIVERS, ETC........................................................................   57
   SECTION 9.2.  SUBORDINATION AGENT PROTECTED...................................................................   57
   SECTION 9.3.  EFFECT OF SUPPLEMENTAL AGREEMENTS...............................................................   59
   SECTION 9.4.  NOTICE TO RATING AGENCIES.......................................................................   59

ARTICLE X  MISCELLANEOUS.........................................................................................   59

   SECTION 10.1.  TERMINATION OF INTERCREDITOR AGREEMENT.........................................................   59
   SECTION 10.2.  INTERCREDITOR AGREEMENT FOR BENEFIT OF TRUSTEES, LIQUIDITY PROVIDERS, THE POLICY
   PROVIDER AND SUBORDINATION AGENT..............................................................................   59
   SECTION 10.3.  NOTICES........................................................................................   60
   SECTION 10.4.  SEVERABILITY...................................................................................   61
   SECTION 10.5.  NO ORAL MODIFICATIONS OR CONTINUING WAIVERS....................................................   61
   SECTION 10.6.  SUCCESSORS AND ASSIGNS.........................................................................   61
   SECTION 10.7.  HEADINGS.......................................................................................   62
   SECTION 10.8.  COUNTERPART FORM...............................................................................   62
   SECTION 10.9.  SUBORDINATION..................................................................................   62
   SECTION 10.10.  GOVERNING LAW.................................................................................   63
   SECTION 10.11.  SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL; WAIVER OF IMMUNITY..........................   63
</TABLE>

                                       ii
<PAGE>   4
                             INTERCREDITOR AGREEMENT

                  INTERCREDITOR AGREEMENT dated as of May 17, 2001, among
WILMINGTON TRUST COMPANY, a Delaware banking corporation ("WTC"), not in its
individual capacity but solely as Trustee of each Trust (each as defined below);
WESTDEUTSCHE LANDESBANK GIROZENTRALE, a German banking institution organized
under the laws of the State of North Rhine-Westphalia, Germany, acting through
its New York branch, as Class G Liquidity Provider and Class C Liquidity
Provider; AMBAC ASSURANCE CORPORATION, a Wisconsin domiciled stock insurance
company, as Policy Provider; and WILMINGTON TRUST COMPANY, not in its individual
capacity except as expressly set forth herein, but solely as Subordination Agent
and trustee hereunder (in such capacity, together with any successor appointed
pursuant to Article VIII hereof, the "Subordination Agent").

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

                  WHEREAS, pursuant to each Indenture (i) in the case of each
Aircraft that is owned by America West at the time such Indenture is entered
into (the "Owned Aircraft"), America West will issue on a recourse basis three
series of Equipment Notes to finance the purchase of such Aircraft, and (ii) in
the case of each Aircraft that is leased to America West pursuant to a related
Lease at the time such Indenture is entered into (the "Leased Aircraft"), the
related Owner Trustee will issue on a nonrecourse basis three series of
Equipment Notes to finance the purchase of such Aircraft;

                  WHEREAS, pursuant to the Financing Agreements, each Trust will
acquire Equipment Notes having an interest rate equal to the interest rate
applicable to the Certificates to be issued by such Trust;

                  WHEREAS, pursuant to each Trust Agreement, the Trust created
thereby proposes to issue a single class of Certificates (a "Class") bearing the
interest rate and having the final distribution date described in such Trust
Agreement on the terms and subject to the conditions set forth therein;

                  WHEREAS, pursuant to the Purchase Agreement, the Initial
Purchasers propose to purchase the Certificates issued by each Trust in the
aggregate face amount set forth opposite the name of such Trust on Schedule I
thereto on the terms and subject to the conditions set forth therein;

                  WHEREAS, the Liquidity Provider proposes to enter into two
separate revolving credit agreements (each such agreement, a "Liquidity
Facility") with the Subordination Agent, as agent for the Trustee of the Class G
Trust and the Class C Trust, respectively, for the benefit of the
Certificateholders of each such Trust;

                  WHEREAS, the Policy Provider proposes to enter into the Policy
Provider Agreement providing for the issuance by the Policy Provider of the
Policy for the benefit of the Class G Trustee and Class G Certificateholders;
and
<PAGE>   5
                  WHEREAS, it is a condition precedent to the obligations of the
Initial Purchasers under the Purchase Agreement that the Subordination Agent,
the Trustees, the Liquidity Provider and the Policy Provider agree to the terms
of subordination set forth in this Agreement in respect of each Class of
Certificates, and the Subordination Agent, the Trustees, the Liquidity Provider
and the Policy Provider, by entering into this Agreement, hereby acknowledge and
agree to such terms of subordination and the other provisions of this Agreement.

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

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.1. Definitions. For all purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires:

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

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

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

                  (4) the term "including" shall mean "including without
         limitation".

                  "Acceleration" means, with respect to the amounts payable in
respect of the Equipment Notes issued under any Indenture, such amounts becoming
immediately due and payable by declaration or otherwise. "Accelerate",
"Accelerated" and "Accelerating" have meanings correlative to the foregoing.

                  "Additional Payment" means the payment of any Break Amount (as
such term is defined in the applicable Indentures) and/or premium (including any
redemption premium) in respect of the Equipment Notes.

                  "Accrued Class G Interest" has the meaning specified in
Section 3.7(a).

                  "Adjusted Expected Distributions" means, with respect to the
Certificates of any Trust on any Current Distribution Date, the sum of (x)
accrued and unpaid interest on such Certificates (excluding interest, if any,
payable with respect to the Deposits related to such Trust) and (y) the greater
of:

                                       2
<PAGE>   6
                  (A) the difference between (x) the Pool Balance of such
         Certificates as of the immediately preceding Distribution Date (or, if
         the Current Distribution Date is the first Distribution Date, the
         original aggregate face amount of the Certificates of such Trust) and
         (y) the Pool Balance of such Certificates as of the Current
         Distribution Date calculated on the basis that (i) the principal of the
         Non-Performing Equipment Notes held in such Trust has been paid in full
         and such payments have been distributed to the holders of such
         Certificates, (ii) the principal of the Performing Equipment Notes held
         in such Trust has been paid when due (but without giving effect to any
         Acceleration of Performing Equipment Notes) and such payments have been
         distributed to the holders of such Certificates and (iii) the principal
         of any Equipment Notes formerly held in such Trust that have been sold
         pursuant to the terms hereof has been paid in full and such payments
         have been distributed to the holders of such Certificates, but without
         giving effect to any reduction in the Pool Balance as a result of any
         distribution attributable to Deposits occurring after the immediately
         preceding Distribution Date (or, if the Current Distribution Date is
         the first Distribution Date, occurring after the initial issuance of
         the Certificates of such Trust), and

                  (B) the amount of the excess, if any, of (i) the Pool Balance
         of such Class of Certificates as of the immediately preceding
         Distribution Date (or, if the Current Distribution Date is the first
         Distribution Date, the original aggregate face amount of the
         Certificates of such Trust), less the amount of the Deposits for such
         Class of Certificates as of such preceding Distribution Date (or, if
         the Current Distribution Date is the first Distribution Date, the
         original aggregate amount of the Deposits for such Class of
         Certificates) other than any portion of such Deposits thereafter used
         to acquire Equipment Notes pursuant to the Note Purchase Agreement,
         over (ii) the Aggregate LTV Collateral Amount for such Class of
         Certificates for the Current Distribution Date;

provided that, until the date of the initial LTV Appraisals, clause (B) shall
not apply.

                  For purposes of calculating Adjusted Expected Distributions
with respect to the Certificates of any Trust, any Additional Payment paid on
the Equipment Notes held in such Trust that has not been distributed to the
Certificateholders of such Trust (other than such Additional Payment or a
portion thereof applied to the payment of interest on the Certificates of such
Trust or the reduction of the Pool Balance of such Trust) shall be added to the
amount of Adjusted Expected Distributions.

                  "Advance", with respect to any Liquidity Facility, means any
Advance as defined in such Liquidity Facility.

                  "Affiliate" means, with respect to any Person, any other
Person directly or indirectly controlling, controlled by or under common control
with such Person. For the 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 the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                                       3
<PAGE>   7
                  "Aggregate LTV Collateral Amount" for any Class of
Certificates for any Distribution Date means the sum of the applicable LTV
Collateral Amounts for each Leased Aircraft and Owned Aircraft, minus the Pool
Balance for each Class of Certificates, if any, senior to such Class, after
giving effect to any distribution of principal on such Distribution Date with
respect to such senior Class or Classes.

                  "Aircraft" means, with respect to each Indenture, the
"Aircraft" referred to therein.

                  "America West" means America West Airlines, Inc., a Delaware
corporation, and its successors and assigns.

                  "America West Bankruptcy Event" means the occurrence and
continuation of any of the following:

                  (a) America West 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 America West shall admit in
         writing its inability to pay its debts generally as they come due, or
         shall make a general assignment for the benefit of creditors, or
         America West shall file a voluntary petition in bankruptcy or a
         voluntary petition or an answer seeking reorganization, liquidation or
         other relief in a case under any bankruptcy laws or other insolvency
         laws (as in effect at such time) or an answer admitting the material
         allegations of a petition filed against America West in any such case,
         or America West 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 America West shall seek an agreement,
         composition, extension or adjustment with its creditors under such
         laws, or America West's board of directors shall adopt a resolution
         authorizing corporate action in furtherance of any of the foregoing; or

                  (b) an order, judgment or decree shall be entered by any court
         of competent jurisdiction appointing, without the consent of America
         West, a receiver, trustee or liquidator of America West or of
         substantially all of its property, or substantially all of the property
         of America West shall be sequestered, or granting any other relief in
         respect of America West as a debtor under any bankruptcy laws or other
         insolvency laws (as in effect at such time), 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

                  (c) a petition against America West 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 America West, any court
         of competent jurisdiction assumes jurisdiction, custody or control of
         America West or of any substantial part of its property and such
         jurisdiction, custody or control remains in force unrelinquished,
         unstayed and unterminated for a period of 90 days.

                                       4
<PAGE>   8
                  "America West Provisions" has the meaning specified in Section
9.1(a).

                  "Appraisal" means a fair market value appraisal (which may be
a "desktop" appraisal) performed by any Appraiser or any other nationally
recognized aircraft appraiser on the basis of an arm's-length transaction
between an informed and willing purchaser under no compulsion to buy and an
informed and willing seller under no compulsion to sell and both having
knowledge of all relevant facts.

                  "Appraised Current Market Value" of any Leased Aircraft or
Owned Aircraft means the lower of the average and the median of the three most
recent Appraisals of such Aircraft.

                  "Appraisers" means Aircraft Information Services, Inc.,
AvSolutions, Inc., and Morten Beyer and Agnew, Inc.

                  "Assignment and Assumption Agreements" means each of the
Assignment and Assumption Agreements to be executed between a Trustee and
trustee of the relevant Successor Trust in accordance with the relevant Trust
Agreement, as the same may be amended, modified or supplemented from time to
time.

                  "Available Amount" means, with respect to any Liquidity
Facility on any drawing date, an amount equal to (a) the Stated Amount of such
Liquidity Facility at such time, less (b) the aggregate amount of each Interest
Drawing honored by the Liquidity Provider under such Liquidity Facility on or
prior to such date which has not been reimbursed or reinstated as provided in
Section 3.6(g) hereof as of such date; provided that, following a Downgrade
Drawing, a Non-Extension Drawing or a Final Drawing under such Liquidity
Facility, the Available Amount of such Liquidity Facility shall be zero.

                  "Business Day" means any day other than a Saturday or Sunday
or a day on which commercial banks are required or authorized to close in
Phoenix, Arizona, New York, New York, or, so long as any Certificate is
outstanding, the city and state in which any Trustee, the Subordination Agent or
any Loan Trustee maintains its Corporate Trust Office or receives and disburses
funds, and that, solely with respect to draws under any Liquidity Facility, also
is a "Business Day" as defined in such Liquidity Facility.

                  "Cash Collateral Account" means the Class G Cash Collateral
Account or the Class C Cash Collateral Account, as applicable.

                  "Certificate" means a Class G Certificate, a Class C
Certificate or a Class D Certificate, as applicable.

                  "Certificateholder" means any holder of one or more
Certificates.

                  "Class" has the meaning assigned to such term in the
preliminary statements to this Agreement.

                                       5
<PAGE>   9
                  "Class C Cash Collateral Account" means an Eligible Deposit
Account in the name of the Subordination Agent maintained at an Eligible
Institution, which shall be the Subordination Agent if it shall so qualify, into
which all amounts drawn under the Class C Liquidity Facility pursuant to Section
3.6(c), 3.6(d) or 3.6(i) shall be deposited.

                  "Class C Certificateholder" means, at any time, any holder of
one or more Class C Certificates.

                  "Class C Certificates" means the certificates issued by the
Class C Trust, substantially in the form of Exhibit A to the Class C Trust
Agreement, and authenticated by the Class C Trustee, representing fractional
undivided interests in the Class C Trust, and any certificates issued in
exchange therefor or replacement thereof pursuant to the terms of the Class C
Trust Agreement and/or the Registration Rights Agreement (including, without
limitation, any Exchange Certificates (as defined in the Class C Trust
Agreement).

                  "Class C Liquidity Facility" means, initially, the Revolving
Credit Agreement dated as of the date hereof, between the Subordination Agent,
as agent and trustee for the Class C Trustee, and the initial Class C Liquidity
Provider, and, from and after the replacement of such Agreement pursuant hereto,
the Replacement Liquidity Facility therefor, if any, in each case as amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

                  "Class C Liquidity Provider" means Westdeutsche Landesbank
Girozentrale, acting through its New York branch, together with any Replacement
Liquidity Provider which has issued a Replacement Liquidity Facility to replace
any Class C Liquidity Facility pursuant to Section 3.6(e).

                  "Class C Trust" means (i) prior to the Transfer, the America
West Airlines Pass Through Trust 2001-1C-O created and administered pursuant to
the Class C Trust Agreement and (ii) after the Transfer, the America West
Airlines Pass Through Trust 2001-1C-S created and administered pursuant to the
Class C Trust Agreement.

                  "Class C Trust Agreement" means (i) prior to the Transfer, the
Pass Through Trust Agreement, dated as of the date hereof, between America West
and the Class C Trustee, governing the creation and administration of the
America West Airlines Pass Through Trust 2001-1C-O and the issuance of the Class
C Certificates, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, and (ii) after the Transfer, the
Pass Through Trust Agreement entered into between America West and the Class C
Trustee, governing the creation and administration of the America West Airlines
Pass Through Trust 2001-1C-S and the issuance of the Class C Certificates, as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with its terms.

                  "Class C Trustee" means WTC, not in its individual capacity
except as expressly set forth in the Class C Trust Agreement, but solely as
trustee under the Class C Trust Agreement, together with any successor trustee
appointed pursuant thereto.

                  "Class D Certificateholder" means, at any time, any holder of
one or more Class D Certificates.

                                       6
<PAGE>   10
                  "Class D Certificates" means the certificates issued by the
Class D Trust, substantially in the form of Exhibit A to the Class D Trust
Agreement, and authenticated by the Class D Trustee, representing fractional
undivided interests in the Class D Trust, and any certificates issued in
exchange therefor or replacement thereof pursuant to the terms of the Class D
Trust Agreement and/or the Registration Rights Agreement (including, without
limitation, any Exchange Certificates (as defined in the Class D Trust
Agreement)) and any pass through certificates designated as "Class D" issued
after the date hereof by a pass through trust created by America West in
connection with any re-issuance of Series D Equipment Notes.

                  "Class D Trust" means (i) prior to the Transfer, the America
West Airlines Pass Through Trust 2001-1D-O created and administered pursuant to
the Class D Trust Agreement and (ii) after the Transfer, the America West
Airlines Pass Through Trust 2001-1D-S created and administered pursuant to the
Class D Trust Agreement.

                  "Class D Trust Agreement" means (i) prior to the Transfer, the
Pass Through Trust Agreement, dated as of the date hereof, between America West
and the Class D Trustee, governing the creation and administration of the
America West Airlines Pass Through Trust 2001-1D-O and the issuance of the Class
D Certificates, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, and (ii) after the Transfer, the
Pass Through Trust Agreement entered into between America West and the Class D
Trustee, governing the creation and administration of the America West Airlines
Pass Through Trust 2001-1D-S and the issuance of the Class D Certificates, as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with its terms.

                  "Class D Trustee" means WTC, not in its individual capacity
except as expressly set forth in the Class D Trust Agreement, but solely as
trustee under the Class D Trust Agreement, together with any successor trustee
appointed pursuant thereto.

                  "Class G Cash Collateral Account" means an Eligible Deposit
Account in the name of the Subordination Agent maintained at an Eligible
Institution, which shall be the Subordination Agent if it shall so qualify, into
which all amounts drawn under the Class G Liquidity Facility pursuant to Section
3.6(c), 3.6(d) or 3.6(i) shall be deposited.

                  "Class G Certificateholder" means, at any time, any holder of
one or more Class G Certificates.

                  "Class G Certificates" means the certificates issued by the
Class G Trust, substantially in the form of Exhibit A to the Class G Trust
Agreement, and authenticated by the Class G Trustee, representing fractional
undivided interests in the Class G Trust, and any certificates issued in
exchange therefor or replacement thereof pursuant to the terms of the Class G
Trust Agreement and/or the Registration Rights Agreement (including, without
limitation, any Exchange Certificates (as defined in the Class G Trust
Agreement).

                  "Class G Deposits" means the Deposits with respect to the
Class G Certificates.

                                       7
<PAGE>   11
                  "Class G Liquidity Facility" means, initially, the Revolving
Credit Agreement dated as of the date hereof, between the Subordination Agent,
as agent and trustee for the Class G Trustee, and the initial Class G Liquidity
Provider, and, from and after the replacement of such Agreement pursuant hereto,
the Replacement Liquidity Facility therefor, if any, in each case as amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

                  "Class G Liquidity Provider" means Westdeutsche Landesbank
Girozentrale, acting through its New York branch, together with any Replacement
Liquidity Provider which has issued a Replacement Liquidity Facility to replace
any Class G Liquidity Facility pursuant to Section 3.6(e).

                  "Class G Paying Agent Account" means the Paying Agent Account
as defined in the Escrow and Paying Agent Agreement relating to the Class G
Certificates.

                  "Class G Trust" means (i) prior to the Transfer, the America
West Airlines Pass Through Trust 2001-1G-O created and administered pursuant to
the Class G Trust Agreement and (ii) after the Transfer, the America West
Airlines Pass Through Trust 2001-1G-S created and administered pursuant to the
Class G Trust Agreement.

                  "Class G Trust Agreement" means (i) prior to the Transfer, the
Pass Through Trust Agreement, dated as of the date hereof, between America West
and the Class G Trustee, governing the creation and administration of the
America West Airlines Pass Through Trust 2001-1G-O and the issuance of the Class
G Certificates, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, and (ii) after the Transfer, the
Pass Through Trust Agreement entered into between America West and the Class G
Trustee, governing the creation and administration of the America West Airlines
Pass Through Trust 2001-1G-S and the issuance of the Class G Certificates, as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with its terms.

                  "Class G Trustee" means WTC, not in its individual capacity
except as expressly set forth in the Class G Trust Agreement, but solely as
trustee under the Class G Trust Agreement, together with any successor trustee
appointed pursuant thereto.

                  "Closing Date" means May 17, 2001.

                  "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and the Treasury Regulations promulgated thereunder.

                  "Collateral" has the meaning assigned to such term in the
Owned Aircraft Indentures.

                  "Collection Account" means the Eligible Deposit Account
established by the Subordination Agent pursuant to Section 2.2 which the
Subordination Agent shall make deposits in and withdrawals from in accordance
with this Agreement.

                  "Controlling Party" means the Person entitled to act as such
pursuant to the terms of Section 2.6.

                                       8
<PAGE>   12
                  "Corporate Trust Office" means, with respect to any Trustee,
the Subordination Agent or any Loan Trustee, the office of such Person in the
city at which, at any particular time, its corporate trust business shall be
principally administered.

                  "Current Distribution Date" means a Distribution Date
specified as a reference date for calculating the Expected Distributions or the
Adjusted Expected Distributions with respect to the Certificates of any Trust as
of such Distribution Date.

                  "Delivery Period Expiry Date" means the earlier of (a) August
30, 2002, or, if the Equipment Notes relating to all the New Aircraft (or
Substitute Aircraft in lieu thereof) have not been purchased by the Trusts on or
prior to such date due to any reason beyond the control of America West and not
occasioned by America West's fault or negligence, November 30, 2002 and (b) the
date on which Equipment Notes with respect to all New Aircraft (or Substitute
Aircraft in lieu thereof) have been purchased by the Trusts in accordance with
the Note Purchase Agreement.

                  "Deposit Agreement" shall mean, with respect to any Class, the
Deposit Agreement pertaining to such Class dated as of the date hereof between
the Escrow Agent, and the Depositary, as the same may be amended, modified or
supplemented from time to time in accordance with the terms thereof.

                  "Depositary" means Citibank, N.A., a national banking
association, as depositary under each Deposit Agreement, or its successors and
assigns.

                  "Deposits" with respect to any Class, shall have the meaning
set forth in the Deposit Agreement pertaining to such Class.

                  "Designated Representatives" means the Subordination Agent
Representatives, the Trustee Representatives and the Provider Representatives
identified under Section 2.5.

                  "Disposition" has the meaning assigned to such term in Section
3.7(c).

                  "Distribution Date" means a Regular Distribution Date or a
Special Distribution Date.

                  "Dollars" or "$" means United States dollars.

                  "Downgrade Drawing" has the meaning assigned to such term in
Section 3.6(c).

                  "Downgraded Facility" has the meaning assigned to such term in
Section 3.6(c).

                  "Drawing" means an Interest Drawing, a Final Drawing, a
Non-Extension Drawing or a Downgrade Drawing, as the case may be.

                  "EBO Date" shall mean the date set forth on Schedule 1 to the
Lease as the "EBO Date".

                                       9
<PAGE>   13
                  "Election Distribution Date" has the meaning assigned to such
term in Section 3.7(c).

                  "Eligible Deposit Account" means either (a) a segregated
account with an Eligible Institution or (b) a segregated trust account with the
corporate trust department of a depository institution organized under the laws
of the United States of America or any one of the states thereof or the District
of Columbia (or any U.S. branch of a foreign bank), having corporate trust
powers and acting as trustee for funds deposited in such account, so long as any
of the securities of such depository institution has a long-term unsecured debt
rating from each Rating Agency of at least A2 or its equivalent. An Eligible
Deposit Account may be maintained with a Liquidity Provider so long as such
Liquidity Provider is an Eligible Institution; provided that such Liquidity
Provider shall have waived all rights of set-off and counterclaim with respect
to such account.

                  "Eligible Institution" means (a) the corporate trust
department of the Subordination Agent or any Trustee, as applicable, or (b) a
depository institution organized under the laws of the United States of America
or any one 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 each Rating
Agency of at least A2 or its equivalent.

                  "Eligible Investments" means (a) investments in obligations
of, or guaranteed by, the United States Government having maturities no later
than 90 days following the date of such investment, (b) investments in open
market commercial paper of any corporation incorporated under the laws of the
United States of America or any state thereof with a short-term unsecured debt
rating issued by Moody's and Standard & Poor's of at least P-1 and A-1,
respectively, having maturities no later than 90 days following the date of such
investment or (c) investments in negotiable certificates of deposit, time
deposits, banker's acceptances, commercial paper or other direct obligations of,
or obligations guaranteed by, commercial banks organized under the laws of the
United States or of any political subdivision thereof (or any U.S. branch of a
foreign bank) with short-term unsecured debt ratings of at least P-1 by Moody's
and A-1 by Standard & Poor's, having maturities no later than 90 days following
the date of such investment; provided, however, that (x) all Eligible
Investments that are bank obligations shall be denominated in U.S. dollars; and
(y) the aggregate amount of Eligible Investments at any one time that are bank
obligations issued by any one bank shall not be in excess of 5% of such bank's
capital surplus; provided further that (1) any investment of the types described
in clauses (a), (b) and (c) above may be made through a repurchase agreement in
commercially reasonable form with a bank or other financial institution
qualifying as an Eligible Institution so long as such investment is held by a
third party custodian also qualifying as an Eligible Institution, and (2) all
such investments set forth in clause (a), (b) or (c) above mature no later than
the Business Day immediately preceding the next Regular Distribution Date;
provided further, however, that in the case of any Eligible Investment issued by
a domestic branch of a foreign bank, the income from such investment shall be
from sources within the United States for purposes of the Code. Notwithstanding
the foregoing, no investment of the types described in clause (b) above which is
issued or guaranteed by America West or any of its Affiliates, and no investment
in the obligations of any one bank in excess of $10,000,000, shall be an
Eligible Investment unless

                                       10
<PAGE>   14
written approval has been obtained from the Policy Provider and a Ratings
Confirmation shall have been received with respect to the making of such
investment.

                  "Equipment Notes" means, at any time, the Series G Equipment
Notes, the Series C Equipment Notes and the Series D Equipment Notes,
collectively, and in each case, any Equipment Notes issued in exchange therefor
or replacement thereof pursuant to the terms of the Indentures.

                  "Escrow Agent" means WTC, as escrow agent under each Escrow
and Paying Agent Agreement, together with its successors in such capacity.

                  "Escrow and Paying Agent Agreement" shall mean, with respect
to any Class, the Escrow and Paying Agent Agreement pertaining to such Class
dated as of the date hereof between the Escrow Agent, the Initial Purchasers,
the Trustee for such Class and the Paying Agent, as the same may be amended,
modified or supplemented from time to time in accordance with the terms thereof.

                  "Escrow Receipts" has the meaning assigned to such term in the
Escrow and Paying Agent Agreement for the Class G Trust.

                  "Excess Interest Policy Drawing" has the meaning assigned to
such term in Section 3.7(c).

                  "Excess Reimbursement Obligations" means, (a) in the event of
any Policy Provider Election, the portion of the Policy Provider Obligations
that represents, when added to that portion of any Liquidity Obligations that
represents, interest on the Series G Equipment Note in respect of which the
Policy Provider Election has been made in excess of 24 months of interest at the
interest rate applicable to such Equipment Note and (b) any interest on the
Liquidity Obligations in respect of the Class G Liquidity Facility and Class C
Liquidity Facility paid by the Policy Provider to the Liquidity Provider from
and after the end of the 24-month period referred to in Section 3.7(c) hereof.

                  "Expected Distributions" means, with respect to the
Certificates of any Trust on any Current Distribution Date, the sum of (x)
accrued and unpaid interest on such Certificates (excluding interest, if any,
payable with respect to the Deposits related to such Trust) and (y) the
difference between (A) the Pool Balance of such Certificates as of the
immediately preceding Distribution Date (or, if the Current Distribution Date is
the first Distribution Date, the original aggregate face amount of the
Certificates of such Trust), and (B) the Pool Balance of such Certificates as of
the Current Distribution Date calculated on the basis that (i) the principal of
the Equipment Notes held in such Trust has been paid when due (whether at stated
maturity, upon redemption, prepayment, purchase, Acceleration or otherwise) and
such payments have been distributed to the holders of such Certificates and (ii)
the principal of any Equipment Notes formerly held in such Trust that have been
sold pursuant to the terms hereof has been paid in full and such payments have
been distributed to the holders of such Certificates, but without giving effect
to any reduction in the Pool Balance as a result of any distribution
attributable to Deposits occurring after the immediately preceding Distribution
Date (or, if the Current Distribution Date is the first Distribution Date,
occurring after the initial issuance of the Certificates of such Trust).

                                       11
<PAGE>   15
For purposes of calculating Expected Distributions with respect to the
Certificates of any Trust, any Additional Payment paid on the Equipment Notes
held in such Trust which has not been distributed to the Certificateholders of
such Trust (other than such Additional Payment or a portion thereof applied to
the payment of interest on the Certificates of such Trust or the reduction of
the Pool Balance of such Trust) shall be added to the amount of such Expected
Distributions.

                  "Expiry Date" with respect to any Liquidity Facility, shall
have the meaning set forth in such Liquidity Facility.

                  "Fee Letter" means the Fee Letter dated as of the date hereof
among America West, Westdeutsche Landesbank Girozentrale, acting through its New
York branch, and the Subordination Agent with respect to the initial Liquidity
Facilities and any fee letter entered into among America West, the Subordination
Agent and any Replacement Liquidity Provider.

                  "Final Distributions" means, with respect to the Certificates
of any Trust on any Distribution Date, the sum of (x) the aggregate amount of
all accrued and unpaid interest on such Certificates (excluding interest, if
any, payable with respect to the Deposits relating to such Trust) and (y) the
Pool Balance of such Certificates as of the immediately preceding Distribution
Date (less the amount of the Deposits for such Class of Certificates as of such
preceding Distribution Date other than any portion of such Deposits thereafter
used to acquire Equipment Notes pursuant to the Note Purchase Agreement). For
purposes of calculating Final Distributions with respect to the Certificates of
any Trust, any Additional Payment paid on the Equipment Notes held in such Trust
which has not been distributed to the Certificateholders of such Trust (other
than such Additional Payment or a portion thereof applied to the payment of
interest on the Certificates of such Trust or the reduction of the Pool Balance
of such Trust) shall be added to the amount of such Final Distributions.

                  "Final Drawing" has the meaning assigned to such term in
Section 3.6(i).

                  "Final Legal Distribution Date" means (i) with respect to the
Class G Certificates, October 2, 2022, (ii) with respect to the Class C
Certificates, October 2, 2008 and (iii) with respect to the Class D
Certificates, October 2, 2005.

                  "Financing Agreement" means each of the Participation
Agreements and the Note Purchase Agreement.

                  "Indenture" means each of the Trust Indentures entered into by
the Loan Trustee, and the Owner Trustee or America West, pursuant to the Note
Purchase Agreement, in each case as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms.

                  "Indenture Event of Default" means, with respect to any
Indenture, any Event of Default (as such term is defined in such Indenture)
thereunder.

                                       12
<PAGE>   16
                  "Initial Purchasers" means Salomon Smith Barney Inc., Deutsche
Banc Alex. Brown Inc., Mizuho International plc, Banc One Capital Markets, Inc.
and Tokyo-Mitsubishi International plc.

                  "Interest Drawing" has the meaning assigned to such term in
Section 3.6(a).

                  "Interest Payment Date" means, with respect to any Liquidity
Facility, the final day of each Interest Period thereunder.

                  "Interest Period" with respect to any Liquidity Facility, has
the meaning assigned to such term in such Liquidity Facility.

                  "Investment Earnings" means investment earnings on funds on
deposit in the Trust Accounts net of losses and investment expenses of the
Subordination Agent in making such investments.

                  "Last Payment Date" has the meaning assigned to such term in
Section 3.7(c).

                  "Lease" means, with respect to each Indenture pertaining to a
Leased Aircraft, the "Lease" referred to therein.

                  "Leased Aircraft" has the meaning assigned to such term in the
preliminary statements of this Agreement.

                  "Leased Aircraft Indenture" means, with respect to each Leased
Aircraft, the Indenture pertaining thereto.

                  "Lending Office" means, with respect to any Liquidity
Facility, the office of the Liquidity Provider thereunder, presently located at
New York, New York or such other office as such Liquidity Provider from time to
time shall notify the applicable Trustee as its "Lending Office" under any such
Liquidity Facility; provided that such Liquidity Provider shall not change its
Lending Office to a Lending Office outside the United States of America except
in accordance with Section 3.01, 3.02 or 3.03 of any such Liquidity Facility.

                  "Lien" means any mortgage, pledge, lien, charge, claim,
disposition of title, encumbrance, lease, sublease, sub-sublease or security
interest of any kind, including, without limitation, any thereof arising under
any conditional sales or other title retention agreement.

                  "Liquidity Event of Default" with respect to any Liquidity
Facility, has the meaning assigned to such term in such Liquidity Facility.

                  "Liquidity Expenses" means all Liquidity Obligations other
than (i) the amount of any Drawings under the Liquidity Facilities and (ii) any
interest accrued on any Liquidity Obligations.

                  "Liquidity Facilities" means, at any time, the Class G
Liquidity Facility or the Class C Liquidity Facility.

                                       13
<PAGE>   17
                  "Liquidity Obligations" means all principal, interest, fees
and other amounts owing to the Liquidity Providers under the Liquidity
Facilities, Section 9.1 of the Participation Agreements or the Fee Letter.

                  "Liquidity Provider" means, at any time, any Class G Liquidity
Provider or any Class C Liquidity Provider, as applicable.

                  "Loan Trustee" means, with respect to any Indenture, the
mortgagee thereunder.

                  "LTV Appraisals" has the meaning assigned to such term in
Section 4.1(a).

                  "LTV Collateral Amount" of any Leased Aircraft or Owned
Aircraft for any Class of Certificates means, as of any Distribution Date, the
lesser of (i) the LTV Ratio for such Class of Certificates multiplied by the
Appraised Current Market Value of such Aircraft (or with respect to any such
Aircraft which has suffered an Event of Loss under and as defined in the
relevant Lease (in the case of a Leased Aircraft) or Indenture (in the case of
an Owned Aircraft), the amount of the insurance proceeds paid to the related
Loan Trustee in respect thereof to the extent then held by such Loan Trustee
(and/or on deposit in the Special Payments Account) or payable to such Loan
Trustee in respect thereof) and (ii) the outstanding principal amount of the
Equipment Notes secured by such Aircraft after giving effect to any principal
payments of such Equipment Notes on or before such Distribution Date.

                  "LTV Ratio" means for the Class G Certificates, 53%, for the
Class C Certificates, 62% and for the Class D Certificates, 72%.

                  "Material Adverse Tax Event" has the meaning assigned to such
term in Section 17.3(a)(4) of the Lease.

                  "Minimum Sale Price" means, with respect to any Aircraft or
the Equipment Notes issued in respect of such Aircraft, at any time, the lesser
of (a) 75% of the Appraised Current Market Value of such Aircraft and (b) the
aggregate outstanding principal amount of such Equipment Notes, plus accrued and
unpaid interest thereon.

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

                  "New Aircraft" has the meaning ascribed to the term "Aircraft"
in the Note Purchase Agreement.

                  "Non-Controlling Party" means, at any time, any of the
Trustees, the Liquidity Provider or the Policy Provider which is not the
Controlling Party at such time.

                  "Non-Extended Facility" has the meaning assigned to such term
in Section 3.6(d).

                  "Non-Extension Drawing" has the meaning assigned to such term
in Section 3.6(d).

                                       14
<PAGE>   18
                  "Non-Performing Equipment Note" means an Equipment Note issued
pursuant to an Indenture that is not a Performing Equipment Note.

                  "Note Purchase Agreement" means the Note Purchase Agreement
dated as of the date hereof, among America West, each Trustee, the Escrow Agent,
the Subordination Agent and the Paying Agent.

                  "Notice for Payment" means a Notice of Nonpayment as such term
is defined in the Policy.

                  "Notice of Avoided Payment" has the meaning assigned to such
term in the Policy.

                  "Officer's Certificate" of any Person means a certification
signed by a Responsible Officer of such Person.

                  "Operative Agreements" means this Agreement, the Liquidity
Facilities, the Policy, the Policy Provider Agreement, the Indentures, the Trust
Agreements, the Purchase Agreement, the Financing Agreements, the Leases, the
Fee Letter, the Equipment Notes and the Certificates, together with all exhibits
and schedules included with any of the foregoing.

                  "Order" has the meaning assigned to such term in the Policy.

                  "Outstanding" means, when used with respect to each Class of
Certificates, as of the date of determination, all Certificates of such Class
theretofore authenticated and delivered under the related Trust Agreement,
except:

                  (i) Certificates of such Class theretofore canceled by the
         Registrar (as defined in such Trust Agreement) or delivered to the
         Trustee thereunder or such Registrar for cancellation;

                  (ii) Certificates of such Class for which money in the full
         amount required to make the final distribution with respect to such
         Certificates pursuant to Section 11.01 of such Trust Agreement has been
         theretofore deposited with the related Trustee in trust for the holders
         of such Certificates as provided in Section 4.01 of such Trust
         Agreement pending distribution of such money to such Certificateholders
         pursuant to such final distribution payment; and

                  (iii) Certificates of such Class in exchange for or in lieu of
         which other Certificates have been authenticated and delivered pursuant
         to such Trust Agreement;

provided, however, that in determining whether the holders of the requisite
Outstanding amount of such Certificates have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, any Certificates
owned by America West or any of its Affiliates shall be disregarded and deemed
not to be Outstanding, except that, in determining whether such Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Certificates that such Trustee knows to be so
owned shall be so

                                       15
<PAGE>   19
disregarded. Certificates so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
applicable Trustee the pledgee's right so to act with respect to such
Certificates and that the pledgee is not America West or any of its Affiliates.

                  "Overdue Scheduled Payment" means any Scheduled Payment which
is not in fact received by the Subordination Agent within five days after the
Scheduled Payment Date relating thereto.

                  "Owned Aircraft" has the meaning assigned to such term in the
preliminary statements of this Agreement.

                  "Owned Aircraft Indenture" means, with respect to each Owned
Aircraft, the Indenture pertaining to such Aircraft.

                  "Owner Trustee" means, with respect to any Indenture
pertaining to a Leased Aircraft, the Owner Trustee (as defined therein) not in
its individual capacity but solely as trustee under the related owner trust
agreement, together with any successor trustee appointed pursuant to such owner
trust agreement.

                  "Participation Agreement" means, with respect to each
Indenture, the "Participation Agreement" referred to therein.

                  "Payee" has the meaning assigned to such term in Section
2.4(e).

                  "Paying Agent" means WTC, as paying agent under each Escrow
and Paying Agent Agreement, together with its successors in such capacity.

                  "Performing Equipment Note" means an Equipment Note issued
pursuant to an Indenture with respect to which no payment default has occurred
and is continuing (without giving effect to any Acceleration); provided that in
the event of a bankruptcy proceeding under Title 11 of the United States Code
(the "Bankruptcy Code") under which America West is a debtor, any payment
default existing during the 60-day period under Section 1110(a)(2)(A) of the
Bankruptcy Code (or such longer period as may apply under Section 1110(b) of the
Bankruptcy Code or as may apply for the cure of such payment default under
Section 1110(a)(2)(B) of the Bankruptcy Code) shall not be taken into
consideration until the expiration of the applicable period.

                  "Performing Note Deficiency" means any time that less than 65%
of the then aggregate outstanding principal amount of all Equipment Notes are
Performing Equipment Notes.

                  "Person" means any individual, corporation, partnership, joint
venture, association, limited liability company, joint-stock company, trust,
trustee, unincorporated organization or government or any agency or political
subdivision thereof.

                                       16
<PAGE>   20
                  "Policy" means the Ambac Certificate Guarantee Insurance
Policy No. AB0455BE, together with the Certificate Guaranty Insurance Policy
Endorsement attached thereto, issued as of the Closing Date, as amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

                  "Policy Account" means the Eligible Deposit Account
established by the Subordination Agent pursuant to Section 2.2(a)(iii).

                  "Policy Drawing" means any payment of a claim under the
Policy.

                  "Policy Expenses" means all amounts (including amounts in
respect of expenses or indemnities) due to the Policy Provider under the Policy
Provider Agreement or the Financing Agreements other than (i) the amount of any
Excess Reimbursement Obligations, (ii) any Policy Drawing, (iii) any interest
accrued on any Policy Provider Obligations and (iv) reimbursement of and
interest on the Liquidity Obligations in respect of the Liquidity Facilities
paid by the Policy Provider to any Liquidity Provider; provided that if, at the
time of determination, a Policy Provider Default exists, Policy Expenses shall
not include any indemnity payments owed to the Policy Provider.

                  "Policy Provider" means Ambac Assurance Corporation.

                  "Policy Provider Agreement" means the Insurance and Indemnity
Agreement dated as of the date hereof among the Subordination Agent, as agent
and trustee for the Class G Trustee, America West and the Policy Provider as
amended, supplemented or otherwise modified from time to time in accordance with
its terms.

                  "Policy Provider Default" shall mean the occurrence of any of
the following events (a) the Policy Provider fails to make a payment required
under the Policy in accordance with its terms and such failure remains
unremedied for 2 Business Days following the delivery of Written Notice of such
failure to the Policy Provider or (b) the Policy Provider (i) files any petition
or commences any case or proceeding under any provisions of any federal or state
law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (ii) makes a general assignment for the benefit of its creditors
or (iii) has an order for relief entered against it under any federal or state
law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization that is final and nonappealable, or (c) a court of competent
jurisdiction, the Wisconsin Department of Insurance or another competent
regulatory authority enters a final and nonappealable order, judgment or decree
(i) appointing a custodian, trustee, agent or receiver for the Policy Provider
or for all or any material portion of its property or (ii) authorizing the
taking of possession by a custodian, trustee, agent or receiver of the Policy
Provider (or taking of possession of all or any material portion of the Policy
Provider's property).

                  "Policy Provider Election" has the meaning assigned to such
term in Section 3.7(c).

                  "Policy Provider Obligations" means all reimbursement and
other amounts, including, without limitation, fees and indemnities (to the
extent not included in Policy Expenses), due to the Policy Provider under the
Policy Provider Agreement but shall not include

                                       17
<PAGE>   21
any interest on Policy Drawings except, if the Class G Liquidity Provider has
failed to honor any Interest Drawing in accordance with Section 2.02(e) of the
Class G Liquidity Facility, interest on any Policy Drawing made to cover the
shortfall attributable to such failure in an amount equal to the amount of
interest that would have accrued on such Interest Drawing if such Interest
Drawing had been made in accordance with Section 2.02(e) of the Class G
Liquidity Facility at the interest rate applicable to such Interest Drawing
until such Policy Drawing has been repaid in full, up to a maximum of three such
Policy Drawings.

                  "Policy Provider Rating" shall mean the respective ratings by
each of the Ratings Agencies of the Policy Provider's financial strength in
respect of the Policy.

                  "Policy Provider Threshold Rating" shall mean a Policy
Provider Rating of Aaa by Moody's and AAA by Standard & Poor's.

                  "Pool Balance" means, with respect to each Trust or the
Certificates issued by any Trust, as of any date, (i) the original aggregate
face amount of the Certificates of such Trust less (ii) the aggregate amount of
all payments made in respect of the Certificates of such Trust or in respect of
Deposits relating to such Trust other than payments made in respect of interest
or Additional Payment thereon or reimbursement of any costs and expenses in
connection therewith. The Pool Balance for each Trust or for the Certificates
issued by any Trust as of any Distribution Date shall be computed after giving
effect to any special distribution with respect to unused Deposits, payment of
principal of the Equipment Notes, payments under the Policy (other than in
respect of interest on the Certificates) or payment with respect to other Trust
Property held in such Trust and the distribution thereof to be made on that
date.

                  "Preference Amount" has the meaning assigned to such term in
the Policy.

                  "Prior Funds" means, with respect to any Distribution Date,
any amounts received by the Escrow Agent in the Class G Paying Agent Account in
respect of accrued interest on the Class G Deposits, any Drawing paid under the
Class G Liquidity Facility in respect of interest due on the Class G
Certificates on such Distribution Date and any withdrawal of funds from the
Class G Cash Collateral Account in respect of such interest.

                  "Proceeding" means any suit in equity, action at law or other
judicial or administrative proceeding.

                  "Provider Incumbency Certificate" has the meaning assigned to
such term in Section 2.5(c).

                  "Provider Representatives" has the meaning assigned to such
term in Section 2.5(c).

                  "PTC Event of Default" means, with respect to each Trust
Agreement, the failure to pay within 10 Business Days of the due date thereof:
(i) the outstanding Pool Balance of the applicable Class of Certificates on the
Final Legal Distribution Date for such Class or (ii) interest due on such
Certificates on any Distribution Date (unless the Subordination Agent shall have
made an Interest Drawing, or a withdrawal from the Cash Collateral Account, or
in the case of

                                       18
<PAGE>   22
the Class G Trust Agreement, a drawing under the Policy, with respect thereto in
an aggregate amount sufficient to pay such interest and shall have distributed
such amount to the Trustee entitled thereto).

                  "Purchase Agreement" means the Purchase Agreement dated May
10, 2001 among the Initial Purchasers and America West, relating to the purchase
of the Certificates by the Initial Purchasers, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

                  "Rating Agencies" means, collectively, at any time, each
nationally recognized rating agency which shall have been requested to rate the
Certificates and which shall then be rating the Certificates. The initial Rating
Agencies will be Moody's and Standard & Poor's.

                  "Ratings Confirmation" means, with respect to any action
proposed to be taken, a written confirmation from each of the Rating Agencies
that such action would not result in (i) a reduction of the rating for any Class
of Certificates below the then current rating for such Class of Certificates
such ratings as determined (without regard to the Policy in respect of the Class
G Certificates) or (ii) a withdrawal or suspension of the rating of any Class of
Certificates.

                  "Registration Rights Agreement" means the Exchange and
Registration Rights Agreement dated as of the date hereof, among the Initial
Purchasers, the Trustees and America West, as amended, supplemented or otherwise
modified from time to time in accordance with its terms.

                  "Regular Distribution Dates" means each April 2 and October 2,
commencing on October 2, 2001; provided, however, that, if any such day shall
not be a Business Day, the related distribution shall be made on the next
succeeding Business Day without additional interest.

                  "Replacement Liquidity Facility" means, for any Liquidity
Facility, an irrevocable revolving credit agreement (or agreements) in
substantially the form of the replaced Liquidity Facility, including
reinstatement provisions, or in such other form (which may include a letter of
credit) as shall permit the Rating Agencies to confirm in writing their
respective ratings then in effect for the related Certificates (before
downgrading of such ratings, if any, as a result of the downgrading of the
applicable Liquidity Provider and, in the case of the Class G Liquidity Facility
only, be consented to by the Policy Provider, which consent shall not be
unreasonably withheld or delayed, in a face amount (or in an aggregate face
amount) equal to the amount of interest payable on the Certificates of such
Trust (at the Stated Interest Rate for such Trust, and without regard to
expected future principal payments) on the three Regular Distribution Dates
following the date of replacement of such Liquidity Facility and issued by a
Person (or Persons) having unsecured short-term debt ratings issued by both
Rating Agencies which are equal to or higher than the Threshold Rating. Without
limitation of the form that a Replacement Liquidity Facility otherwise may have
pursuant to the preceding sentence, a Replacement Liquidity Facility for any
Class of Certificates may have a stated expiration date earlier than 15 days
after the Final Legal Distribution Date of such Class of Certificates so long as
such Replacement Liquidity Facility provides for a Non-Extension Drawing as
contemplated by Section 3.6(d) hereof.

                                       19
<PAGE>   23
                  "Replacement Liquidity Provider" means a Person (or Persons)
who issues a Replacement Liquidity Facility.

                  "Required Amount" means, with respect to each Liquidity
Facility, or the Cash Collateral Account, for any Class, for any day, the sum of
the aggregate amount of interest, calculated at the rate per annum equal to the
Stated Interest Rate for the related Class of Certificates, that would be
payable on such Class of Certificates on each of the three successive Regular
Distribution Dates immediately following such day or, if such day is a Regular
Distribution Date, on such day and the succeeding two Regular Distribution
Dates, in each case calculated on the basis of the Pool Balance of such Class of
Certificates on such date and without regard to expected future payments of
principal on such Class of Certificates. The Pool Balance for purposes of the
definition of Required Amount with respect to the Class G Liquidity Facility
shall, in the event of any Policy Provider Election, be deemed to be reduced by
the amount (if positive) by which (a) the then outstanding principal balance of
each Series G Equipment Note in respect of which such Policy Provider Election
has been made shall exceed (b) the amount of any Policy Drawings previously paid
by the Policy Provider in respect of principal on such Series G Equipment Note.

                  "Responsible Officer" means (i) with respect to the
Subordination Agent and each of the Trustees, any officer in the corporate trust
administration department of the Subordination Agent or such Trustee or any
other officer customarily performing functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his knowledge of and familiarity
with a particular subject, (ii) with respect to each Liquidity Provider, any
authorized officer of such Liquidity Provider, and (iii) with respect to the
Policy Provider, any authorized officer of the Policy Provider.

                  "Scheduled Payment" means, with respect to any Equipment Note,
(i) any payment of principal or interest on such Equipment Note (other than an
Overdue Scheduled Payment) due from the obligor thereon or (ii) any payment of
interest on the corresponding Class of Certificates with funds drawn under any
Liquidity Facility or the Policy, which payment represents the installment of
principal at the stated maturity of such installment of principal on such
Equipment Note, the payment of regularly scheduled interest accrued on the
unpaid principal amount of such Equipment Note, or both; provided that any
payment of principal of, Additional Payment, if any, or interest resulting from
the redemption or purchase of any Equipment Note shall not constitute a
Scheduled Payment.

                  "Scheduled Payment Date" means, with respect to any Scheduled
Payment, the date on which such Scheduled Payment is scheduled to be made.

                  "Section 2.4(b) Fraction" has the meaning assigned to such
term in Section 2.4(b).

                  "Series C Equipment Notes" means the 8.37% Series C Equipment
Notes issued pursuant to any Indenture by the related Owner Trustee or America
West, as the case may be, and authenticated by the Loan Trustee thereunder, and
any such Equipment Notes issued in exchange therefor or replacement thereof
pursuant to the terms of such Indenture.

                                       20
<PAGE>   24
                  "Series D Equipment Notes" means the Six-Month LIBOR + 3.20%
Series D Equipment Notes issued pursuant to any Indenture by the related Owner
Trustee or America West, as the case may be, and authenticated by the Loan
Trustee thereunder, and any such equipment notes issued in exchange therefor or
replacement thereof or re-issued, in each case, pursuant to the terms of such
Indenture.

                  "Series G Equipment Notes" means the 7.10% Series G Equipment
Notes issued pursuant to any Indenture by the related Owner Trustee or America
West, as the case may be, and authenticated by the Loan Trustee thereunder, and
any such Equipment Notes issued in exchange therefor or replacement thereof
pursuant to the terms of such Indenture.

                  "Six-Month LIBOR" has the meaning assigned to such term in the
applicable Indentures.

                  "Special Distribution Date" means with respect to any Special
Payment: (i) the date chosen by the Subordination Agent pursuant to Section
2.4(a) for the distribution of such Special Payment in accordance with this
Agreement, whether distributed pursuant to Section 2.4 or Section 3.3 hereof or
(ii) the date chosen by the Subordination Agent pursuant to Section 3.7(b),
3.7(c) or Section 3.7(e), as the case may be, for the distribution of such
Special Payment in accordance with the provisions thereof.

                  "Special Payment" means any payment (other than a Scheduled
Payment) in respect of, or any proceeds of, any Equipment Note or Trust
Indenture Estate or Collateral.

                  "Special Payments Account" means the Eligible Deposit Account
created pursuant to Section 2.2 as a sub-account to the Collection Account.

                  "Standard & Poor's" means Standard & Poor's Ratings Services,
a division of The McGraw-Hill Companies, Inc.

                  "Stated Amount" with respect to any Liquidity Facility, means
the Maximum Commitment (as defined in such Liquidity Facility) of the applicable
Liquidity Provider thereunder.

                  "Stated Expiration Date" has the meaning specified in Section
3.6(d).

                  "Stated Interest Rate" means (i) with respect to the Class G
Certificates, 7.10% per annum, (ii) with respect to the Class C Certificates,
8.37% per annum and (iii) with respect to the Class D Certificates for each
applicable interest period, Six-Month LIBOR for such interest period plus 3.20%
per annum, plus, in each case, solely in the event no Registration Event (as
defined in the Registration Rights Agreement) occurs on or prior to the 210th
day after the Closing Date, an additional margin equal to 0.50% per annum, from
and including such 210th day (provided that any such additional margin shall
cease to be in effect from and including the earlier of (i) the date on which
such Registration Event occurs and (ii) the date on which there ceases to be any
Registrable Certificates (as defined in the Registration Rights Agreement));
provided that if the Shelf Registration Statement (as defined in the
Registration Rights

                                       21
<PAGE>   25
Agreement) ceases to be effective at any time during the period specified by
Section 2(b)(B) of the Registration Rights Agreement for more than 60 days,
whether or not consecutive, during any 12-month period, the Stated Interest Rate
shall be increased by 0.50% per annum from the 61st day of the applicable
12-month period such Shelf Registration Statement ceases to be effective until
such time as the Shelf Registration Statement again becomes effective (or, if
earlier, the end of the period specified by Section 2(b)(B) of the Registration
Rights Agreement).

                  "Subordination Agent" has the meaning assigned to it in the
preliminary statements to this Agreement.

                  "Subordination Agent Incumbency Certificate" has the meaning
assigned to such term in Section 2.5(a).

                  "Subordination Agent Representatives" has the meaning assigned
to such term in Section 2.5(a).

                  "Substitute Aircraft" shall have the meaning set forth in the
Note Purchase Agreement.

                  "Successor Trusts" means, collectively, America West Airlines
Pass Through Trust 2001-1G-S, America West Airlines Pass Through Trust 2001-1C-S
and America West Airlines Pass Through Trust 2001-1D-S.

                  "Tax" and "Taxes" mean any and all taxes, levies, duties,
tariffs, imposts, and other charges of a similar kind (together with any and all
interest, penalties, loss, damage, liability, expense, additions to tax and
additional amounts or costs incurred or imposed with respect thereto) imposed or
otherwise assessed by the United States of America or by any state, local or
foreign government (or any subdivision or agency thereof) or other taxing
authority, including, without limitation: taxes on or with respect to income,
franchises, windfall or other profits, gross receipts, property, sales, use,
capital stock, payroll, employment, social security, workers' compensation,
unemployment compensation, or net worth; taxes in the nature of excise,
withholding, ad valorem, stamp, transfer, non-recoverable value added, taxes on
goods and services and gains taxes.

                  "Termination Notice" with respect to any Liquidity Facility
has the meaning assigned to such term in such Liquidity Facility.

                  "Threshold Rating" means the short-term unsecured debt rating
of P-1 by Moody's and A-1 by Standard & Poor's for each Liquidity Provider.

                  "Transfer" means, with respect to any particular Trust, the
transfers contemplated by the Assignment and Assumption Agreement with respect
to such Trust.

                  "Treasury Regulations" means regulations, including proposed
or temporary regulations, promulgated under the Code. References herein to
specific provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

                                       22
<PAGE>   26
                  "Triggering Event" means (x) the occurrence of an Indenture
Event of Default under all of the Indentures resulting in a PTC Event of Default
with respect to the most senior Class of Certificates then Outstanding, (y) the
Acceleration of all of the outstanding Equipment Notes (provided that, with
respect to the period prior to the Delivery Period Expiry Date, the aggregate
principal balance of such Equipment Notes is in excess of $100 million) or (z)
the occurrence of an America West Bankruptcy Event.

                  "Trust" means either of the Class G Trust, the Class C Trust
or the Class D Trust.

                  "Trust Accounts" has the meaning assigned to such term in
Section 2.2(a).

                  "Trust Agreement" means any of the Class G Trust Agreement,
the Class C Trust Agreement or the Class D Trust Agreement.

                  "Trust Indenture Estate" has the meaning assigned to such term
in the Leased Aircraft Indentures.

                  "Trust Property" with respect to any Trust, has the meaning
set forth in the Trust Agreement for such Trust.

                  "Trustee" means any of the Class G Trustee, the Class C
Trustee or the Class D Trustee.

                  "Trustee Incumbency Certificate" has the meaning assigned to
such term in Section 2.5(b).

                  "Trustee Representatives" has the meaning assigned to such
term in Section 2.5(b).

                  "Unindemnified Tax" means (i) any Tax imposed on the net
income, net worth or capital, any franchise Tax or similar doing business Tax of
the Subordination Agent (other than any such Tax imposed as a result of the
Company's assumption of the Equipment Notes pursuant to the purchase of an
Aircraft on an EBO Date or a Material Adverse Tax Event, and (ii) any
withholding Tax imposed by the United States (including, without limitation, any
withholding Tax imposed by the United States which is imposed or increased as a
result of the Subordination Agent's failing to deliver to the Company any
certificate or document necessary to establish that payments under this
Agreement are exempt from withholding Tax).

                  "Written Notice" means, from the Subordination Agent, any
Trustee, Liquidity Provider or the Policy Provider, a written instrument
executed by the Designated Representative of such Person. An invoice delivered
by a Liquidity Provider pursuant to Section 3.1 in accordance with its normal
invoicing procedures shall constitute Written Notice under such Section.

                  "WTC" has the meaning assigned to such term in the recital of
parties to this Agreement.

                                       23
<PAGE>   27
                                   ARTICLE II

                        TRUST ACCOUNTS; CONTROLLING PARTY

                  SECTION 2.1. Agreement to Terms of Subordination; Payments
from Monies Received Only. (a) Each Trustee hereby acknowledges and agrees to
the terms of subordination and distribution set forth in this Agreement in
respect of each Class of Certificates and agrees to enforce such provisions and
cause all payments in respect of the Equipment Notes and the Liquidity
Facilities to be applied in accordance with the terms of this Agreement. In
addition, each Trustee hereby agrees to cause the Equipment Notes purchased by
the related Trust to be registered in the name of the Subordination Agent or its
nominee, as agent and trustee for such Trustee, to be held in trust by the
Subordination Agent solely for the purpose of facilitating the enforcement of
the subordination and other provisions of this Agreement.

                  (b) Except as otherwise expressly provided in the next
succeeding sentence of this Section 2.1, all payments to be made by the
Subordination Agent hereunder shall be made only from amounts received by it
that constitute Scheduled Payments, Special Payments, payments under Section 9.1
of the Participation Agreements or payments under Sections 6 and 7 of the Note
Purchase Agreement, and only to the extent that the Subordination Agent shall
have received sufficient income or proceeds therefrom to enable it to make such
payments in accordance with the terms hereof. Each of the Trustees and the
Subordination Agent hereby agrees and, as provided in each Trust Agreement, each
Certificateholder, by its acceptance of a Certificate, each Liquidity Provider,
by entering into the Liquidity Facility to which it is a party, and the Policy
Provider, by entering into the Policy Provider Agreement, has agreed to look
solely to such amounts to the extent available for distribution to it as
provided in this Agreement and to the relevant Deposits and that none of the
Trustees, Owner Trustees, Loan Trustees, Owner Participants nor the
Subordination Agent or WTC is personally liable to any of them for any amounts
payable or any liability under this Agreement, any Trust Agreement, any
Liquidity Facility, the Policy Provider Agreement or such Certificate, except
(in the case of the Subordination Agent) as expressly provided herein or (in the
case of the Trustees) as expressly provided in each Trust Agreement or (in the
case of the Owner Trustees and the Loan Trustees) as expressly provided in any
Operative Agreement.

                  SECTION 2.2. Trust Accounts. (a) Upon the execution of this
Agreement, the Subordination Agent shall establish and maintain in its name (i)
the Collection Account as an Eligible Deposit Account, bearing a designation
clearly indicating that the funds deposited therein are held in trust for the
benefit of the Trustees, the Certificateholders, the Liquidity Providers and the
Policy Provider, (ii) as a sub-account in the Collection Account, the Special
Payments Account as an Eligible Deposit Account, bearing a designation clearly
indicating that the funds deposited therein are held in trust for the benefit of
the Trustees, the Certificateholders, the Liquidity Providers and the Policy
Provider, and (iii) the Policy Account as an Eligible Deposit Account bearing a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Class G Trustee and the Class G Certificateholders.
The Subordination Agent shall establish and maintain the Cash Collateral
Accounts pursuant to and under the circumstances set forth in Section 3.6(f)
hereof. Upon such establishment and

                                       24
<PAGE>   28
maintenance under Section 3.6(f) hereof, the Cash Collateral Accounts shall,
together with the Collection Account, constitute the "Trust Accounts" hereunder.

                  (b) Funds on deposit in the Trust Accounts shall be invested
and reinvested by the Subordination Agent in Eligible Investments selected by
the Subordination Agent if such investments are reasonably available and have
maturities no later than the earlier of (i) 90 days following the date of such
investment and (ii) the Business Day immediately preceding the Regular
Distribution Date or the date of the related distribution pursuant to Section
2.4 hereof, as the case may be, next following the date of such investment;
provided, however, that following the making of a Downgrade Drawing or a
Non-Extension Drawing under any Liquidity Facility, the Subordination Agent
shall invest and reinvest such amounts in Eligible Investments at the direction
of America West (or, if and to the extent so specified to the Subordination
Agent by America West with respect to any Liquidity Facility, the Liquidity
Provider with respect to such Liquidity Facility); provided further, however,
that upon the occurrence and during the continuation of a Triggering Event, the
Subordination Agent shall invest and reinvest such amounts in accordance with
the written instructions of the Controlling Party. Unless otherwise expressly
provided in this Agreement (including, without limitation, with respect to
Investment Earnings on amounts on deposit in the Cash Collateral Accounts,
Section 3.6(f) hereof), any Investment Earnings shall be deposited in the
Collection Account when received by the Subordination Agent and shall be applied
by the Subordination Agent in the same manner as the other amounts on deposit in
the Collection Account are to be applied and any losses shall be charged against
the principal amount invested, in each case net of the Subordination Agent's
reasonable fees and expenses in making such investments. The Subordination Agent
shall not be liable for any loss resulting from any investment, reinvestment or
liquidation required to be made under this Agreement other than by reason of its
willful misconduct or gross negligence. Eligible Investments and any other
investment required to be made hereunder shall be held to their maturities
except that any such investment may be sold (without regard to its maturity) by
the Subordination Agent without instructions whenever such sale is necessary to
make a distribution required under this Agreement. Uninvested funds held
hereunder shall not earn or accrue interest.

                  (c) The Subordination Agent shall possess all right, title and
interest in all funds on deposit from time to time in the Trust Accounts and in
all proceeds thereof (including all income thereon, except as otherwise
expressly provided herein with respect to Investment Earnings). The Trust
Accounts shall be held in trust by the Subordination Agent under the sole
dominion and control of the Subordination Agent for the benefit of the Trustees,
the Certificateholders, the Liquidity Providers and the Policy Provider, as the
case may be. If, at any time, any of the Trust Accounts ceases to be an Eligible
Deposit Account, the Subordination Agent shall within 10 Business Days (or such
longer period, not to exceed 30 calendar days, to which the Policy Provider and
each Rating Agency may consent) establish a new Collection Account, Special
Payments Account, Policy Account or Cash Collateral Account, as the case may be,
as an Eligible Deposit Account and shall transfer any cash and/or any
investments to such new Collection Account, Special Payments Account, Policy
Account or Cash Collateral Account, as the case may be. So long as WTC is an
Eligible Institution, the Trust Accounts shall be maintained with it as Eligible
Deposit Accounts.

                                       25
<PAGE>   29
                  SECTION 2.3. Deposits to the Collection Account and Special
Payments Account. (a) The Subordination Agent shall, upon receipt thereof,
deposit in the Collection Account all Scheduled Payments received by it (other
than any Scheduled Payment which by the express terms hereof is to be deposited
to the Policy Account or a Cash Collateral Account).

                  (b) The Subordination Agent shall, on each date when one or
more Special Payments are made to the Subordination Agent as holder of the
Equipment Notes, deposit in the Special Payments Account the aggregate amount of
such Special Payments.

                  SECTION 2.4. Distributions of Special Payments. (a) Notice of
Special Payment. Except as provided in Section 2.4(e) below, upon receipt by the
Subordination Agent, as registered holder of the Equipment Notes, of any notice
of a Special Payment (or, in the absence of any such notice, upon receipt by the
Subordination Agent of a Special Payment), the Subordination Agent shall
promptly give notice thereof to each Trustee, the Liquidity Providers and the
Policy Provider. The Subordination Agent shall promptly calculate the amount of
the redemption or purchase of Equipment Notes, the amount of any Overdue
Scheduled Payment or the proceeds of Equipment Notes, the Trust Indenture Estate
or Collateral, as the case may be, comprising such Special Payment under the
applicable Indenture or Indentures and shall promptly send to each Trustee a
Written Notice of such amount and the amount allocable to each Trust. Such
Written Notice shall also set the distribution date for such Special Payment (a
"Special Distribution Date"), which shall be the Business Day which immediately
follows the later to occur of (x) the 15th day after the date of such Written
Notice or (y) the date the Subordination Agent has received or expects to
receive such Special Payment. Amounts on deposit in the Special Payments Account
shall be distributed in accordance with Sections 2.4(b) and 2.4(c) hereof, as
applicable.

                  (b) Redemptions and Purchases of Equipment Notes. (i) So long
as no Triggering Event shall have occurred (whether or not continuing), the
Subordination Agent shall make distributions pursuant to this Section 2.4(b) of
amounts on deposit in the Special Payments Account on account of the redemption,
purchase (including, without limitation, a purchase resulting from a sale of the
Equipment Notes permitted by Article IV hereof) or prepayment of all (or any
series) of the Equipment Notes issued pursuant to an Indenture on the Special
Distribution Date for such Special Payment in the following order of priority:

                  first, such amount as shall be required to pay (A) the
         aggregate amount of all past due Liquidity Expenses and Policy Expenses
         ("past due amounts") plus (B) the product of (x) the aggregate amount
         of all accrued and unpaid (but not past due) Liquidity Expenses and
         Policy Expenses to such Special Distribution Date multiplied by (y) a
         fraction, the numerator of which is the aggregate outstanding principal
         amount of Equipment Notes being redeemed, purchased or prepaid on such
         Special Distribution Date and the denominator of which is the aggregate
         outstanding principal amount of all Equipment Notes (the "Section
         2.4(b) Fraction")("accrued amounts"), shall be distributed to the
         relevant Liquidity Providers and the Policy Provider first in
         satisfaction of any past due amounts and then in satisfaction of the
         accrued amounts, in each case, pro rata on the basis of the amount of
         Liquidity Expenses and Policy Expenses, owed to each Liquidity Provider
         and the Policy Provider;

                                       26
<PAGE>   30
                  second, such amount as shall be required to pay (i) (A) all
         accrued and unpaid interest (including interest accrued and unpaid on
         any Interest Drawing or any Applied Provider Advance (as defined in any
         Liquidity Facility)) then in arrears on all Liquidity Obligations plus
         (B) the product of (x) the aggregate amount of all accrued and unpaid
         interest on all Liquidity Obligations not in arrears to such Special
         Distribution Date (at the rate provided in the applicable Liquidity
         Facility) multiplied by (y) the Section 2.4(b) Fraction (in each case
         determined after application of the proceeds of any Excess Interest
         Policy Drawing or other payment by the Policy Provider to the
         applicable Liquidity Provider in respect of any interest on Interest
         Drawings in accordance with the provisions of Section 2.6(c)), (ii)(A)
         all accrued and unpaid interest then in arrears on any Policy Drawings
         made in respect of any shortfall attributable to a failure by the Class
         G Liquidity Provider to honor an Interest Drawing in respect of the
         Class G Certificates (as more fully provided in the definition of
         "Policy Provider Obligations") plus (B) the product of (x) the
         aggregate amount of all accrued and unpaid interest on such Policy
         Drawings not in arrears to such Special Distribution Date multiplied by
         (y) the Section 2.4(b) Fraction, and (iii) if the Policy Provider has
         elected pursuant to the proviso to Section 2.6(c) to pay to each
         Liquidity Provider all outstanding Drawings and interest thereon owing
         to such Liquidity Provider under the applicable Liquidity Facility, the
         product of (x) the amount of such payment made to such Liquidity
         Provider attributable to interest accrued on such Drawings multiplied
         by (y) the Section 2.4(b) Fraction, shall be distributed to the
         Liquidity Providers and the Policy Provider pro rata on the basis of
         the amount of such Liquidity Obligations owed to each Liquidity
         Provider and the amount of such unreimbursed Policy Provider
         Obligations payable under this clause "second" to the Policy Provider;

                  third, such amount as shall be required (i)(A) if any Cash
         Collateral Account had been previously funded as provided in Section
         3.6(f), to fund such Cash Collateral Account up to its Required Amount
         shall be deposited in such Cash Collateral Account, (B) if any
         Liquidity Facility shall become a Downgraded Facility or a Non-Extended
         Facility at a time when unreimbursed Interest Drawings under such
         Liquidity Facility have reduced the Available Amount thereunder to
         zero, to deposit into the related Cash Collateral Account an amount
         equal to such Cash Collateral Account's Required Amount shall be
         deposited in such Cash Collateral Account, and (C) if, with respect to
         any particular Liquidity Facility, neither subclause (i)(A) nor
         subclause (i)(B) of this clause "third" are applicable, to pay or
         reimburse the Liquidity Provider in respect of such Liquidity Facility
         in an amount equal to the product of (x) the amount of any unreimbursed
         Interest Drawings (net of any and all payments made by the Policy
         Provider to the Liquidity Provider with respect to the principal of any
         Interest Drawing under such Liquidity Facility) under such Liquidity
         Facility multiplied by (y) the Section 2.4(b) Fraction and (ii) if the
         Policy Provider has elected pursuant to the proviso to Section 2.6(c)
         to pay to each Liquidity Provider all outstanding Drawings and interest
         thereon owing to such Liquidity Provider under the applicable Liquidity
         Facility, the product of (x) the amount of such payment made to such
         Liquidity Provider in respect of principal of Drawings under such
         Liquidity Facility multiplied by (y) the Section 2.4(b) Fraction, shall
         be distributed to such Liquidity Provider, pro rata on the basis of the
         amounts of all such deficiencies and/or unreimbursed Interest Drawings
         in respect of

                                       27
<PAGE>   31
         each Liquidity Provider and the amount of such unreimbursed Policy
         Provider Obligations payable under this clause "third" to the Policy
         Provider;

                  fourth, if, with respect to any particular Liquidity Facility,
         any amounts are to be distributed pursuant to either subclause (i)(A)
         or (i)(B) of clause "third" above, then the Liquidity Provider with
         respect to such Liquidity Facility shall be paid the excess of (x) the
         aggregate outstanding amount of unreimbursed Advances (whether or not
         then due) under such Liquidity Facility over (y) the Required Amount
         for the relevant Class, pro rata on the basis of such amounts in
         respect of each Liquidity Provider;

                  fifth, if, and only if, Series G Equipment Notes are being
         redeemed, purchased or prepaid on such Special Distribution Date, such
         amount as shall be required to pay in full Expected Distributions to
         the holders of Class G Certificates on such Special Distribution Date
         shall be distributed to the Class G Trustee;

                  sixth, such amount as shall be required to pay the Policy
         Provider all Policy Provider Obligations then due to the Policy
         Provider under the Policy Provider Agreement (other than amounts
         payable pursuant to clauses "first", "second" and "third" of this
         Section 2.4 and any Excess Reimbursement Obligations) shall be paid to
         the Policy Provider;

                  seventh, if, and only if, Series C Equipment Notes are being
         redeemed, purchased or prepaid on such Special Distribution Date, such
         amount as shall be required to pay in full Expected Distributions to
         the holders of Class C Certificates on such Special Distribution Date
         shall be distributed to the Class C Trustee;

                  eighth, such amounts as shall be required to pay any Excess
         Reimbursement Obligations to the Policy Provider;

                  ninth, if, and only if, Series D Equipment Notes are being
         redeemed, purchased or prepaid on such Special Distribution Date, such
         amounts as shall be required to pay in full Expected Distributions to
         the holders of the Class D Certificates on such Special Distribution
         Date shall be distributed to the Class D Trustee; and

                  tenth, the balance, if any, of such Special Payment shall be
         transferred to the Collection Account for distribution in accordance
         with Section 3.2 hereof.

For the purposes of this Section 2.4(b)(i), clause (x) of the definition of
"Expected Distributions" shall be deemed to read as follows: "(x) accrued, due
and unpaid interest on such Certificates together with (without duplication)
accrued and unpaid interest on a portion of such Certificates equal to the
outstanding principal amount of the Equipment Notes held in such Trust and being
redeemed, purchased or prepaid (immediately prior to such redemption, purchase
or prepayment), in each case excluding interest, if any, payable with respect to
the Deposits related to such Trust".

                  (ii) Upon and after the occurrence of a Triggering Event
(whether or not continuing), the Subordination Agent shall make distributions
pursuant to this Section 2.4(b) of

                                       28
<PAGE>   32
amounts on deposit in the Special Payments Account on account of the redemption
or purchase of all of the Equipment Notes issued pursuant to an Indenture on the
Special Distribution Date for such Special Payment in accordance with Section
3.3 hereof.

                  (c) Other Special Payments. Except as provided in clause (e)
below, any amounts on deposit in the Special Payments Account other than in
respect of amounts to be distributed pursuant to Section 2.4(b) shall be
distributed on the Special Distribution Date therefor in accordance with Article
III hereof.

                  (d) Investment of Amounts in Special Payments Account. Any
amounts on deposit in the Special Payments Account prior to the distribution
thereof pursuant to Section 2.4(b) or (c) shall be invested in accordance with
Section 2.2(b). Investment Earnings on such investments shall be distributed in
accordance with Section 2.4(b) or (c), as the case may be.

                  (e) Certain Payments. Except as otherwise provided in Section
2.4(b), 3.2 or 3.3 (as the case may be), the Subordination Agent will distribute
promptly upon receipt thereof (i) any indemnity payment or expense reimbursement
received by it from the Owner Participant, the Owner Trustee or America West in
respect of any Trustee, any Liquidity Provider, any Policy Provider, any Paying
Agent, any Depositary or any Escrow Agent (collectively, the "Payees") and (ii)
any compensation received by it from the Owner Participant, the Owner Trustee or
America West under any Operative Agreement in respect of any Payee, directly to
the Payee entitled thereto.

                  SECTION 2.5. Designated Representatives. (a) With the delivery
of this Agreement, the Subordination Agent shall furnish to each Liquidity
Provider, the Policy Provider and each Trustee, and from time to time thereafter
may furnish to each Liquidity Provider, the Policy Provider and each Trustee, at
the Subordination Agent's discretion, or upon any Liquidity Provider's, the
Policy Provider's or Trustee's request (which request shall not be made more
than one time in any 12-month period), a certificate (a "Subordination Agent
Incumbency Certificate") of a Responsible Officer of the Subordination Agent
certifying as to the incumbency and specimen signatures of the officers of the
Subordination Agent and the attorney-in-fact and agents of the Subordination
Agent (the "Subordination Agent Representatives") authorized to give Written
Notices on behalf of the Subordination Agent hereunder. Until each Liquidity
Provider, the Policy Provider and Trustee receives a subsequent Subordination
Agent Incumbency Certificate, it shall be entitled to rely on the last
Subordination Agent Incumbency Certificate delivered to it hereunder.

                  (b) With the delivery of this Agreement, each Trustee shall
furnish to the Subordination Agent, and from time to time thereafter may furnish
to the Subordination Agent, at such Trustee's discretion, or upon the
Subordination Agent's request (which request shall not be made more than one
time in any 12-month period), a certificate (a "Trustee Incumbency Certificate")
of a Responsible Officer of such Trustee certifying as to the incumbency and
specimen signatures of the officers of such Trustee and the attorney-in-fact and
agents of such Trustee (the "Trustee Representatives") authorized to give
Written Notices on behalf of such Trustee hereunder. Until the Subordination
Agent receives a subsequent Trustee Incumbency Certificate, it shall be entitled
to rely on the last Trustee Incumbency Certificate delivered to it hereunder.

                                       29
<PAGE>   33
                  (c) With the delivery of this Agreement, each Liquidity
Provider and the Policy Provider shall furnish to the Subordination Agent, and
from time to time thereafter may furnish to the Subordination Agent, at such
Liquidity Provider's or Policy Provider's discretion, or upon the Subordination
Agent's request (which request shall not be made more than one time in any
12-month period), a certificate (each a "Provider Incumbency Certificate") of
any Responsible Officer of such Liquidity Provider or Policy Provider certifying
as to the incumbency and specimen signatures of any officer, attorney-in-fact,
agent or other designated representative of such Liquidity Provider or Policy
Provider (in each case the "Provider Representatives" and, together with the
Subordination Agent Representatives and the Trustee Representatives, the
"Designated Representatives") authorized to give Written Notices on behalf of
such Liquidity Provider or Policy Provider hereunder. Until the Subordination
Agent receives a subsequent Provider Incumbency Certificate, it shall be
entitled to rely on the last Provider Incumbency Certificate delivered to it
hereunder by the relevant Liquidity Provider or the Policy Provider.

                  SECTION 2.6. Controlling Party. (a) Except as provided in
Section 2.6(c) and 9.1(b) hereof, the Trustees, the Liquidity Providers and the
Policy Provider hereby agree that, with respect to any Indenture at any given
time, the Loan Trustee thereunder will be directed by the Controlling Party.

                  (b) The Person who shall be the "Controlling Party" with
respect to any Indenture shall be: (x) the Policy Provider until the Final
Distribution on the Class G Certificates has been made and no Policy Provider
Obligations remain outstanding, or, if any Policy Provider Default shall have
occurred and be continuing, the Class G Trustee until the payment of the Final
Distribution to the holders of the Class G Certificates, and thereafter, (y) the
Class C Trustee, until the Final Distribution on the Class C Certificates has
been made, and thereafter, (z) the Class D Trustee; provided, that if the Policy
Provider makes a payment in full on a Policy Drawing in respect of a Preference
Amount after the payment of the Final Distributions to the Class G
Certificateholders, so long as no Policy Provider Default has occurred and is
continuing, the Policy Provider will be the Controlling Party until no Policy
Provider Obligations remain outstanding, and thereafter, the Class C Trustee
until the Final Distribution on the Class C Certificates has been made, and
thereafter, the Class D Trustee. For purposes of giving effect to the foregoing
provisions of Section 2.6(a) above and this Section 2.6(b), the Trustees (other
than the Controlling Party) irrevocably agree (and the Certificateholders (other
than the Certificateholders represented by the Controlling Party) shall be
deemed to agree by virtue of their purchase of Certificates) that the
Subordination Agent, as record holder of the Equipment Notes, shall exercise its
voting rights in respect of the Equipment Notes as directed by the Controlling
Party and any vote so exercised shall be binding upon the Trustees and all
Certificateholders.

                  The Subordination Agent shall give written notice to all of
the other parties to this Agreement promptly upon a change in the identity of
the Controlling Party. Each of the parties hereto agrees that it shall not
exercise any of the rights of the Controlling Party at such time as it is not
the Controlling Party hereunder; provided, however, that nothing herein
contained shall prevent or prohibit any Non-Controlling Party from exercising
such rights as shall be specifically granted to such Non-Controlling Party
hereunder and under the other Operative Agreements.

                                       30
<PAGE>   34
                  (c) Notwithstanding the foregoing, at any time after 18 months
from the earliest to occur of (i) the date on which the entire Available Amount
under any Liquidity Facility shall have been drawn (for any reason other than a
Downgrade Drawing or a Non-Extension Drawing) and remain unreimbursed, (ii) the
date on which the entire amount of any Downgrade Drawing or Non-Extension
Drawing under any Liquidity Facility shall have become and remain "Applied
Downgrade Advances" or "Applied Non-Extension Advances", as the case may be,
under and as defined in such Liquidity Facility and (iii) the date on which all
Equipment Notes shall have been Accelerated (provided that, with respect to the
period prior to the Delivery Period Expiry Date, such Equipment Notes have an
aggregate outstanding principal balance of in excess of $100 million), the
Liquidity Provider with the highest outstanding amount of Liquidity Obligations
owed to it (so long as such Liquidity Provider has not defaulted in its
obligation to make any Drawing under any Liquidity Facility) shall have the
right to elect, by Written Notice to the Subordination Agent, the Policy
Provider and each of the Trustees, to become the Controlling Party hereunder
with respect to any Indenture at any time from and including the last day of
such 18-month period; provided, however, that if within 15 Business Days after
its receipt of any such written notice from such Liquidity Provider the Policy
Provider pays to the Class G Liquidity Provider and the Class C Liquidity
Provider all outstanding Drawings under each Liquidity Facility together with
accrued interest thereof (as so determined) in respect of the Class G Liquidity
Facility and the Class C Liquidity Facility, respectively, then, the Policy
Provider rather than such Liquidity Provider shall be the Controlling Party so
long as no Policy Provider Default has occurred and is continuing (otherwise
such Liquidity Provider, if it so elects and if Liquidity Obligations owing to
it remain outstanding, or, if it does not so elect or if no such Liquidity
Obligations remain outstanding, the Class G Trustee, shall become the
Controlling Party).

                  (d) The exercise of remedies by the Controlling Party under
this Agreement shall be expressly limited by Section 4.1(a)(ii) hereof.

                  (e) The Controlling Party shall not be entitled to require or
obligate any Non-Controlling Party to provide funds necessary to exercise any
right or remedy hereunder.

                                   ARTICLE III

                      RECEIPT, DISTRIBUTION AND APPLICATION
                               OF AMOUNTS RECEIVED

                  SECTION 3.1. Written Notice of Distribution. (a) No later than
3:00 P.M. (New York City time) on the Business Day immediately preceding each
Regular Distribution Date (or Special Distribution Date for purposes of Section
2.4(b) hereof, as the case may be), each of the following Persons shall deliver
to the Subordination Agent a Written Notice setting forth the following
information as at the close of business on such Business Day:

                        (i) With respect to the Class G Certificates, the Class
         G Trustee shall separately set forth the amounts to be paid in
         accordance with clause "fifth" of Section 3.2 or 2.4(b), as the case
         may be, hereof;

                                       31
<PAGE>   35
                        (ii) With respect to the Class C Certificates, the Class
         C Trustee shall separately set forth the amounts to be paid in
         accordance with clause "seventh" of Section 2.4(b) or 3.2, as the case
         may be, hereof;

                        (iii) With respect to the Class D Certificates, the
         Class D Trustee shall separately set forth the amounts to be paid in
         accordance with clause "ninth" of Section 2.4(b) or 3.2, as the case
         may be, hereof;

                        (iv) With respect to each Liquidity Facility, the
         Liquidity Provider thereunder shall separately set forth the amounts to
         be paid to it in accordance with clauses "first", "second", "third" and
         "fourth" of Section 3.2 or 2.4(b), as the case may be, hereof;

                        (v) The Policy Provider shall set forth the amounts to
         be paid to it in accordance with clauses "first", "second", "third",
         "sixth" and "eighth" of Section 3.2 or 2.4(b), as the case may be,
         hereof; and

                        (vi) Each Trustee shall set forth the amounts to be paid
         in accordance with clause "ninth" of Section 3.2 hereof.

The notices required under this Section 3.1(a) may be in the form of a schedule
or similar document provided to the Subordination Agent by the parties
referenced therein or by any one of them, which schedule or similar document may
state that, unless there has been a prepayment of the Certificates, such
schedule or similar document is to remain in effect until any substitute notice
or amendment shall be given to the Subordination Agent by the party providing
such notice.

                  (b) Following the occurrence of a Triggering Event, the
Subordination Agent shall request the following information from the following
Persons, and each of the following Persons shall, upon the request of the
Subordination Agent, deliver a Written Notice to the Subordination Agent setting
forth for such Person the following information:

                     (i) With respect to the Class G Certificates, the Class G
         Trustee shall separately set forth the amounts to be paid in accordance
         with clauses "first" (to reimburse payments made by the Class G
         Certificateholders pursuant to subclause (iv) of clause "first" and
         subclauses (ii) and (iii) of clause "sixth" of Section 3.3 hereof) and
         "seventh" of Section 3.3 hereof;

                     (ii) With respect to the Class C Certificates, the Class C
         Trustee shall separately set forth the amounts to be paid in accordance
         with clauses "first" and "sixth" (to reimburse payments made by the
         Class C Certificateholders pursuant to subclause (iv) of clause "first"
         and subclauses (ii) and (iii) of clause "sixth" of Section 3.3 hereof)
         and "ninth" of Section 3.3 hereof;

                     (iii) With respect to the Class D Certificates, the Class D
         Trustee shall separately set forth the amounts to be paid in accordance
         with clauses "first" and "sixth" (to reimburse payments made by the
         Class D Certificateholders pursuant to subclause (iv)

                                       32
<PAGE>   36
         of clause "first" and subclauses (ii) and (iii) of clause "sixth" of
         Section 3.2 hereof) and clause "eleventh" of Section 3.3 hereof;

                     (iv) With respect to each Liquidity Facility, the Liquidity
         Provider thereunder shall separately set forth the amounts to be paid
         to it in accordance with subclause (iv) of clause "first" of Section
         3.3 hereof, subclause (i) of clause "second" and clauses "third",
         "fourth" and "fifth" of Section 3.3 hereof;

                     (v) The Policy Provider shall separately set forth amounts
         to be paid to it in accordance with subclauses (iii) and (iv) of clause
         "first" of Section 3.3 hereof, subclause (ii) of clause "second",
         subclauses (ii) and (iii) of clause "third", subclause (ii) of clause
         "fourth", clause "eighth" and clause "tenth" of Section 3.3 hereof; and

                     (vi) Each Trustee shall set forth the amounts to be paid in
         accordance with clause "sixth" of Section 3.3 hereof.

                  (c) At such time as a Trustee, a Liquidity Provider or the
Policy Provider shall have received all amounts owing to it (and, in the case of
a Trustee, the Certificateholders for which it is acting) pursuant to Section
2.4, 3.2, 3.3 or 3.7 hereof, as applicable, and, in the case of a Liquidity
Provider or the Policy Provider, its commitment or obligations under the related
Liquidity Facility or the Policy, as the case may be, shall have terminated or
expired, such Person shall, by a Written Notice, so inform the Subordination
Agent and each other party to this Agreement.

                  (d) As provided in Section 6.5 hereof, the Subordination Agent
shall be fully protected in relying on any of the information set forth in a
Written Notice provided by any Trustee, any Liquidity Provider or the Policy
Provider pursuant to paragraphs (a) through (c) above and shall have no
independent obligation to verify, calculate or recalculate any amount set forth
in any Written Notice delivered in accordance with such paragraphs.

                  (e) Any Written Notice delivered by a Trustee, a Liquidity
Provider, the Policy Provider or the Subordination Agent, as applicable,
pursuant to Section 3.1(a), 3.1(b), 3.1(c) or 3.7 hereof, if made prior to 10:00
A.M. (New York City time) on any Business Day shall be effective on the date
delivered (or if delivered later on a Business Day or if delivered on a day
which is not a Business Day shall be effective as of the next Business Day).
Subject to the terms of this Agreement, the Subordination Agent shall as
promptly as practicable comply with any such instructions; provided, however,
that any transfer of funds pursuant to any instruction received after 10:00 A.M.
(New York City time) on any Business Day may be made on the next succeeding
Business Day.

                  (f) In the event the Subordination Agent shall not receive
from any Person any information set forth in paragraph (a) or (b) above which is
required to enable the Subordination Agent to make a distribution to such Person
pursuant to Section 2.4(b), 3.2 or 3.3 hereof, the Subordination Agent shall
request such information and, failing to receive any such information, the
Subordination Agent shall not make such distribution(s) to such Person. In such
event, the Subordination Agent shall make distributions pursuant to clauses
"first" through "ninth" of Section 2.4(b), clauses "first" through "tenth" of
Section 3.2 and clauses "first"

                                       33
<PAGE>   37
through "eleventh" of Section 3.3 to the extent it shall have sufficient
information to enable it to make such distributions, and shall continue to hold
any funds remaining, after making such distributions, until the Subordination
Agent shall receive all necessary information to enable it to distribute any
funds so withheld.

                  (g) On such dates (but not more frequently than monthly) as
any Liquidity Provider, the Policy Provider or any Trustee shall request, but in
any event automatically at the end of each calendar quarter, the Subordination
Agent shall send to such party a written statement reflecting all amounts on
deposit with the Subordination Agent pursuant to Section 3.1(f) hereof.

                  SECTION 3.2. Distribution of Amounts on Deposit in the
Collection Account. Except as otherwise provided in Sections 2.4, 3.1(f), 3.3,
3.4 and 3.6(b), amounts on deposit in the Collection Account (or, in the case of
any amount described in Section 2.4(c), on deposit in the Special Payments
Account) shall be promptly distributed on each Regular Distribution Date (or, in
the case of any amount described in Section 2.4(c), on the Special Distribution
Date thereof) in the following order of priority and in accordance with the
information provided to the Subordination Agent pursuant to Section 3.1(a)
hereof:

                  first, such amount as shall be required to pay (i) all accrued
         and unpaid Liquidity Expenses owed to each Liquidity Provider and (ii)
         all accrued and unpaid Policy Expenses owed to the Policy Provider,
         shall be distributed to each Liquidity Provider and the Policy Provider
         pro rata on the basis of the amount of Liquidity Expenses and Policy
         Expenses owed to each Liquidity Provider and the Policy Provider;

                  second, such amount as shall be required to pay (i) the
         aggregate amount of interest accrued and unpaid on all Liquidity
         Obligations (at the rate, or in the amount, provided in the applicable
         Liquidity Facility) (determined after the application of the proceeds
         of any Excess Interest Policy Drawing or other payment by the Policy
         Provider to the Liquidity Provider in respect of any interest on
         Interest Drawings in accordance with the provisions of Section 2.6(c)),
         (ii) the aggregate amount of interest accrued and unpaid on any Policy
         Drawings made in respect of any shortfall attributable to a failure by
         the Liquidity Provider to honor any Interest Drawing in respect of the
         Class G Certificates (as more fully provided in the definition of
         "Policy Provider Obligations") and (iii) if the Policy Provider has
         elected pursuant to the proviso to Section 2.6(c) to pay to each
         Liquidity Provider all outstanding Drawings and interest thereon owing
         to such Liquidity Provider under the applicable Liquidity Facility, the
         amount of such payment made to such Liquidity Provider attributable to
         interest accrued on such Drawings, shall be distributed to the
         Liquidity Providers and the Policy Provider, pro rata on the basis of
         the amount of such Liquidity Obligations owed to each Liquidity
         Provider and the amount of such Policy Provider Obligations payable
         under this clause "second" to the Policy Provider;

                  third, such amount as shall be required (i)(A) if any Cash
         Collateral Account had been previously funded as provided in Section
         3.6(f), to fund such Cash Collateral Account up to its Required Amount
         shall be deposited in such Cash Collateral Account, (B) if any
         Liquidity Facility shall become a Downgraded Facility or a Non-Extended

                                       34
<PAGE>   38
         Facility at a time when unreimbursed Interest Drawings under such
         Liquidity Facility have reduced the Available Amount thereunder to
         zero, to deposit into the related Cash Collateral Account an amount
         equal to such Cash Collateral Account's Required Amount shall be
         deposited in such Cash Collateral Account, and (C) if, with respect to
         any particular Liquidity Facility, neither subclause (i)(A) nor
         subclause (i)(B) of this clause "third" is applicable, to pay or
         reimburse the Liquidity Provider in respect of such Liquidity Facility
         in an amount equal to the amount of all Liquidity Obligations (net of
         any and all payments made by the Policy Provider to the Liquidity
         Provider with respect to the principal of any Interest Drawing under
         such Liquidity Facility) then due under such Liquidity Facility (other
         than amounts payable pursuant to clause "first" or "second" of this
         Section 3.2), and (ii) if the Policy Provider has elected pursuant to
         the proviso to Section 2.6(c) to pay to each Liquidity Provider all
         outstanding Drawings and interest thereon owing to such Liquidity
         Provider under the applicable Liquidity Facility, the amount of such
         payment made to such Liquidity Provider in respect of principal of
         Drawings under such Liquidity Facility, shall be distributed to such
         Liquidity Provider and the Policy Provider, pro rata on the basis of
         the amounts of all such deficiencies and/or unreimbursed Liquidity
         Obligations in respect of each Liquidity Provider and the amount of
         such unreimbursed Policy Provider Obligations payable under this clause
         "third" to the Policy Provider;

                  fourth, if, with respect to any particular Liquidity Facility,
         any amounts are to be distributed pursuant to either subclause (i)(A)
         or (i)(B) of clause "third" above, then the Liquidity Provider with
         respect to such Liquidity Facility shall be paid the excess of (x) the
         aggregate outstanding amount of unreimbursed Advances (whether or not
         then due) under such Liquidity Facility over (y) the Required Amount
         for the relevant Class, pro rata on the basis of such amounts in
         respect of each Liquidity Provider;

                  fifth, such amount as shall be required to pay in full
         Expected Distributions to the holders of the Class G Certificates on
         such Distribution Date shall be distributed to the Class G Trustee;

                  sixth, such amount as shall be required to pay the Policy
         Provider all Policy Provider Obligations then due to the Policy
         Provider under the Policy Provider Agreement (other than amounts
         payable pursuant to clauses "first", "second" and "third" of this
         Section 3.2 and Excess Reimbursement Obligations) shall be paid to the
         Policy Provider;

                  seventh, such amount as shall be required to pay in full
         Expected Distributions to the holders of the Class C Certificates on
         such Distribution Date shall be distributed to the Class C Trustee;

                  eighth, such amount as shall be required to pay in full any
         Excess Reimbursement Obligations shall be distributed to the Policy
         Provider;

                  ninth, such amount as shall be required to pay in full
         Expected Distributions to the holders of the Class D Certificates on
         such Distribution Date shall be distributed to the Class D Trustee;

                                       35
<PAGE>   39
                  tenth, such amount as shall be required to pay in full the
         aggregate unpaid amount of fees and expenses payable as of such
         Distribution Date to the Subordination Agent and each Trustee pursuant
         to the terms of this Agreement and the Trust Agreements, as the case
         may be, shall be distributed to the Subordination Agent and such
         Trustee; and

                  eleventh, the balance, if any, of any such amount remaining
         thereafter shall be held in the Collection Account for later
         distribution in accordance with this Article III.

                  SECTION 3.3. Distribution of Amounts on Deposit Following a
Triggering Event. Except as otherwise provided in Sections 3.1(f), 3.6(b) and
3.6(k) hereof, upon the occurrence of a Triggering Event and at all times
thereafter, all funds in the Collection Account or the Special Payments Account
shall be promptly distributed (and, in any event, on each Interest Payment Date)
by the Subordination Agent in the following order of priority:

                  first, such amount as shall be required to reimburse (i) the
         Subordination Agent for any reasonable out-of-pocket costs and expenses
         actually incurred by it (to the extent not previously reimbursed) in
         the protection of, or the realization of the value of, the Equipment
         Notes or any Collateral or Trust Indenture Estate, shall be applied by
         the Subordination Agent in reimbursement of such costs and expenses,
         (ii) each Trustee for any amounts of the nature described in clause (i)
         above actually incurred by it under the applicable Trust Agreement (to
         the extent not previously reimbursed), shall be distributed to such
         Trustee, (iii) the Policy Provider for any amounts of the nature
         described in clause (i) above actually incurred by it (to the extent
         not previously reimbursed), shall be distributed to the Policy
         Provider, and (iv) any Liquidity Provider, the Policy Provider or any
         Certificateholder for payments, if any, made by it to the Subordination
         Agent or any Trustee in respect of amounts described in clause (i)
         above, shall be distributed to such Liquidity Provider, the Policy
         Provider or to the applicable Trustee for the account of such
         Certificateholder, in each such case, pro rata on the basis of all
         amounts described in clauses (i) through (iv) above;

                  second, such amount remaining as shall be required to pay (i)
         all accrued and unpaid Liquidity Expenses owed to each Liquidity
         Provider and (ii) all accrued and unpaid Policy Expenses owed to the
         Policy Provider, shall be distributed to each Liquidity Provider and
         the Policy Provider pro rata on the basis of the amount of Liquidity
         Expenses and Policy Expenses owed to each Liquidity Provider and the
         Policy Provider;

                  third, such amount remaining as shall be required to pay (i)
         the aggregate amount of interest accrued and unpaid on all Liquidity
         Obligations (at the rate, or in the amount, provided in the applicable
         Liquidity Facility) (determined after the application of the proceeds
         of any Excess Interest Policy Drawing or other payment by the Policy
         Provider to the Liquidity Provider in accordance with the provisions of
         Section 2.6(c)), (ii) the aggregate amount of interest accrued and
         unpaid on any Policy Drawings made in respect of any shortfall
         attributable to a failure by the Liquidity Provider to honor any
         Interest Drawing in respect of the Class G Certificates (as more fully
         provided in the definition of "Policy Provider Obligations") and (iii)
         if the Policy Provider has elected pursuant to the

                                       36
<PAGE>   40
         proviso to Section 2.6(c) to pay to each Liquidity Provider all
         outstanding Drawings and interest thereon owing to such Liquidity
         Provider under the applicable Liquidity Facility, the amount of such
         payment made to such Liquidity Provider attributable to interest
         accrued on such Drawings, shall be distributed to the Liquidity
         Provider and the Policy Provider pro rata on the basis of the amount of
         such Liquidity Obligations owed to Liquidity Provider and the amount of
         such Policy Provider Obligations payable under this clause "third" to
         the Policy Provider;

                  fourth, such amount remaining as shall be required (I)(A) if
         any Cash Collateral Account had been previously funded as provided in
         Section 3.6(f), unless (i) a Performing Note Deficiency exists and a
         Liquidity Event of Default shall have occurred and be continuing with
         respect to the relevant Liquidity Facility or (ii) a Final Drawing
         shall have occurred with respect to such Liquidity Facility, to fund
         such Cash Collateral Account up to its Required Amount (less the amount
         of any repayments of Interest Drawings under such Liquidity Facility
         while subclause (A)(i) above is applicable) shall be deposited in such
         Cash Collateral Account, (B) if any Liquidity Facility shall become a
         Downgraded Facility or a Non-Extended Facility at a time when
         unreimbursed Interest Drawings under such Liquidity Facility have
         reduced the Available Amount thereunder to zero, unless (i) a
         Performing Note Deficiency exists and a Liquidity Event of Default
         shall have occurred and be continuing with respect to the relevant
         Liquidity Facility or (ii) a Final Drawing shall have occurred with
         respect to such Liquidity Facility, to deposit into the related Cash
         Collateral Account an amount equal to such Cash Collateral Account's
         Required Amount (less the amount of any repayments of Interest Drawings
         under such Liquidity Facility while subclause (B)(i) above is
         applicable) shall be deposited in such Cash Collateral Account, and (C)
         if, with respect to any particular Liquidity Facility, neither
         subclause (I)(A) nor subclause (I)(B) of this clause "fourth" are
         applicable, to pay in full the outstanding amount of all Liquidity
         Obligations (net of any and all payments made by the Policy Provider to
         the Liquidity Provider) then due under such Liquidity Facility (other
         than amounts payable pursuant to clause "second" or "third" of this
         Section 3.3) and (II) if the Policy Provider has elected pursuant to
         the proviso to Section 2.6(c) to pay to each Liquidity Provider all
         outstanding Drawings and interest thereon owing to such Liquidity
         Provider under the applicable Liquidity Facility, the amount of such
         payment made to such Liquidity Provider in respect of principal of
         Drawings under such Liquidity Facility, shall be distributed to such
         Liquidity Provider and the Policy Provider, pro rata on the basis of
         the amounts of all such deficiencies and/or unreimbursed Liquidity
         Obligations in respect of each Liquidity Provider and the amount of
         such unreimbursed Policy Provider Obligations payable under this clause
         "fourth" to the Policy Provider;

                  fifth, if, with respect to any particular Liquidity Facility,
         any amounts are to be distributed pursuant to either subclause (I)(A)
         or (I)(B) of clause "fourth" above, then the Liquidity Provider with
         respect to such Liquidity Facility shall be paid the excess of (x) the
         aggregate outstanding amount of unreimbursed Advances (whether or not
         then due) under such Liquidity Facility over (y) the Required Amount
         for the relevant Class (less the amount of any repayments of Interest
         Drawings under such Liquidity Facility while subclause (I)(A)(i) or
         (I)(B)(i), as the case may be, of clause "fourth" above is applicable),
         pro rata on the basis of such amounts in respect of each Liquidity
         Provider;

                                       37
<PAGE>   41
                  sixth, such amount as shall be required to reimburse or pay
         (i) the Subordination Agent for any Tax (other than Unindemnified
         Taxes), expense, fee, charge or other loss incurred by or any other
         amount payable to the Subordination Agent in connection with the
         transactions contemplated hereby (to the extent not previously
         reimbursed), shall be applied by the Subordination Agent in
         reimbursement of such amount, (ii) each Trustee for any Tax (other than
         Unindemnified Taxes), expense, fee, charge, loss or any other amount
         payable to such Trustee under the applicable Trust Agreements (to the
         extent not previously reimbursed), shall be distributed to such
         Trustee, and (iii) each Certificateholder for payments, if any, made by
         it pursuant to Section 5.2 hereof in respect of amounts described in
         clause (i) above, shall be distributed to the applicable Trustee for
         the account of such Certificateholder, in each such case, pro rata on
         the basis of all amounts described in clauses (i) through (iii) above;

                  seventh, such amount remaining as shall be required to pay in
         full Adjusted Expected Distributions on the Class G Certificates shall
         be distributed to the Class G Trustee;

                  eighth, such amount as shall be required to pay to the Policy
         Provider all Policy Provider Obligations then due to the Policy
         Provider under the Policy Provider Agreement (other than amounts
         payable pursuant to clauses "first", "second", "third" and "fourth" of
         this Section 3.3 and Excess Reimbursement Obligations) shall be paid to
         the Policy Provider;

                  ninth, such amount remaining as shall be required to pay in
         full Adjusted Expected Distributions on the Class C Certificates shall
         be distributed to the Class C Trustee;

                  tenth, such amount remaining as shall be required to pay in
full any Excess Reimbursement Obligations shall be distributed to the Policy
Provider; and

                  eleventh, such amount remaining as shall be required to pay in
full Adjusted Expected Distributions on the Class D Certificates shall be
distributed to the Class D Trustee.

                  SECTION 3.4. Other Payments. (a) Any payments received by the
Subordination Agent for which no provision as to the application thereof is made
in this Agreement shall be distributed by the Subordination Agent (i) in the
order of priority specified in Section 3.3 hereof and (ii) to the extent
received or realized at any time after the Final Distributions for each Class of
Certificates have been made, in the manner provided in clause "first" of Section
3.3 hereof.

                  (b) Except as otherwise provided in Section 3.3 hereof, if the
Subordination Agent receives any Scheduled Payment after the Scheduled Payment
Date relating thereto, but prior to such payment becoming an Overdue Scheduled
Payment, then the Subordination Agent shall deposit such Scheduled Payment in
the Collection Account and promptly distribute such Scheduled Payment in
accordance with the priority of distributions set forth in Section 3.2 hereof;
provided that, for the purposes of this Section 3.4(b) only, each reference in
clause

                                       38
<PAGE>   42
"ninth" of Section 3.2 to "Distribution Date" shall be deemed to mean the actual
date of payment of such Scheduled Payment and each reference in clause "fifth"
or "seventh" of Section 3.2 to "Distribution Date" shall be deemed to refer to
such Scheduled Payment Date.

                  SECTION 3.5. Payments to the Trustees, Liquidity Providers and
Policy Provider. Any amounts distributed hereunder to any Liquidity Provider or
the Policy Provider shall be paid to such Liquidity Provider or Policy Provider
by wire transfer of funds to the address such Liquidity Provider or Policy
Provider shall provide to the Subordination Agent. The Subordination Agent shall
provide a Written Notice of any such transfer to the applicable Liquidity
Provider or Policy Provider, as the case may be, at the time of such transfer.
Any amounts distributed hereunder by the Subordination Agent to any Trustee
which shall not be the same institution as the Subordination Agent shall be paid
to such Trustee by wire transfer funds at the address such Trustee shall provide
to the Subordination Agent.

                  SECTION 3.6. Liquidity Facilities. (a) Interest Drawings. If
on any Distribution Date, after giving effect to the subordination provisions of
this Agreement, the Subordination Agent shall not have sufficient funds for the
payment of any amounts due and owing in respect of accrued interest on the Class
G Certificates or the Class C Certificates (at the Stated Interest Rate for such
Class of Certificates), then, prior to 10:00 a.m. (New York City time) on such
Distribution Date, the Subordination Agent shall request a drawing (each such
drawing, an "Interest Drawing") under the Liquidity Facility with respect to
such Class of Certificates (and concurrently with the making of such request,
the Subordination Agent shall give notice to the Policy Provider of such
insufficiency of funds) in an amount equal to the lesser of (i) an amount
sufficient to pay the amount of such accrued interest (at the Stated Interest
Rate for such Class of Certificates) and (ii) the Available Amount under such
Liquidity Facility, and shall pay such amount to the Trustee with respect to
such Class of Certificates in payment of such accrued interest.

                  (b) Application of Interest Drawings. Notwithstanding anything
to the contrary contained in this Agreement, (i) all payments received by the
Subordination Agent in respect of an Interest Drawing under the Class G
Liquidity Facility and all amounts withdrawn by the Subordination Agent from the
Class G Cash Collateral Account, and payable in each case to the Class G Trustee
on behalf of the Class G Certificateholders, shall be promptly distributed to
the Class G Trustee, and (ii) all payments received by the Subordination Agent
in respect of an Interest Drawing under the Class C Liquidity Facility and all
amounts withdrawn by the Subordination Agent from the Class C Cash Collateral
Account, and payable in each case to the Class C Trustee on behalf of the Class
C Certificateholders, shall be promptly distributed to the Class C Trustee,
except that if after any Distribution Date the Subordination Agent shall receive
any amount in respect of an Interest Drawing under the Class G Liquidity
Facility or a withdrawal from the Class G Cash Collateral Account to pay Accrued
Class G Interest after such Accrued Class G Interest has been fully paid by a
Policy Drawing under the Policy, such amounts shall be paid directly to the
Policy Provider as reimbursement of such Policy Drawing rather than to the Class
G Trustee on behalf of the Class G Certificateholders and shall constitute an
Interest Drawing under the Class G Liquidity Facility or a withdrawal from the
Class G Cash Collateral Account, as the case may be, hereunder.

                                       39
<PAGE>   43
                  (c) Downgrade Drawings. If at any time the short-term
unsecured debt rating of any Liquidity Provider, issued by either Rating Agency
is lower than the applicable Threshold Rating, within 10 days after such
downgrading (but not later than the expiration date of the Liquidity Facility
issued by the downgraded Liquidity Provider (the "Downgraded Facility")), such
Liquidity Provider or America West may arrange for a Replacement Liquidity
Provider to issue and deliver a Replacement Liquidity Facility to the
Subordination Agent. If a Downgraded Facility has not been replaced in
accordance with the terms of this paragraph, the Subordination Agent shall, on
such 10th day (or if such day is not a Business Day, on the next succeeding
Business Day) (or, if earlier, the expiration date of such Downgraded Facility),
request a drawing in accordance with and to the extent permitted by such
Downgraded Facility (such drawing, a "Downgrade Drawing") of all available and
undrawn amounts thereunder. Amounts drawn pursuant to a Downgrade Drawing shall
be maintained and invested as provided in Section 3.6(f) hereof. The applicable
Liquidity Provider may also arrange for a Replacement Liquidity Provider to
issue and deliver a Replacement Liquidity Facility at any time after such
Downgrade Drawing so long as such Downgrade Drawing has not been reimbursed in
full to such Liquidity Provider.

                  (d) Non-Extension Drawings. If any Liquidity Facility with
respect to the Class G Certificates or Class C Certificates is scheduled to
expire on a date (the "Stated Expiration Date") prior to the date that is 15
days after the Final Legal Distribution Date for such Class of Certificates,
then, no earlier than the 60th day and no later than the 40th day prior to the
then Stated Expiration Date, the Subordination Agent shall request that such
Liquidity Provider extend the Stated Expiration Date to the earlier of (i) the
date that is 15 days after such Final Legal Distribution Date and (ii) the date
that is 364 days after the Stated Expiration Date (unless the obligations of
such Liquidity Provider thereunder are earlier terminated in accordance with
such Liquidity Facility). Whether or not the Liquidity Provider has received
such request from the Subordination Agent, the Liquidity Provider shall advise
the Subordination Agent, no earlier than 40 days and no later than 25 days prior
to such Stated Expiration Date, whether, in its sole discretion, it agrees to so
extend the Stated Expiration Date. If on or before such 25th day, the Liquidity
Provider does not irrevocably and unconditionally advise the Subordination Agent
on or before the 25th day prior to the Stated Expiration Date then in effect
that such Stated Expiration Date shall be so extended (and such Liquidity
Facility shall not have been replaced in accordance with Section 3.6(e) hereof),
such Stated Expiration Date shall not be extended and the Subordination Agent
shall, on such 25th day (or as soon as possible thereafter), in accordance with
the terms of the expiring Liquidity Facility (a "Non-Extended Facility"),
request a drawing under such expiring Liquidity Facility (such drawing, a
"Non-Extension Drawing") of all available and undrawn amounts thereunder.
Amounts drawn pursuant to a Non-Extension Drawing shall be maintained and
invested in accordance with Section 3.6(f) hereof.

                  (e) Issuance of Replacement Liquidity Facility. (i) At any
time, America West may, at its option, with cause or without cause, arrange for
a Replacement Liquidity Facility to replace any Liquidity Facility for the Class
G Certificates or Class C Certificates (including any Replacement Liquidity
Facility provided pursuant to Section 3.6(e)(ii) hereof); provided, however,
that the initial Liquidity Provider for any Liquidity Facility shall not be
replaced by America West as a Liquidity Provider with respect to such Liquidity
Facility prior to the fifth anniversary of the Closing Date unless (A) there
shall have become due to such initial Liquidity Provider, or such initial
Liquidity Provider shall have demanded, amounts pursuant to

                                       40
<PAGE>   44
Section 3.01, 3.02 or 3.03 of any applicable Liquidity Facility and the
replacement of such initial Liquidity Provider would reduce or eliminate the
obligation to pay such amounts or America West determines in good faith that
there is a substantial likelihood that such initial Liquidity Provider will have
the right to claim any such amounts (unless such initial Liquidity Provider
waives, in writing, any right it may have to claim such amounts), which
determination shall be set forth in a certificate delivered by America West to
such initial Liquidity Provider setting forth the basis for such determination
and accompanied by an opinion of outside counsel selected by America West and
reasonably acceptable to such initial Liquidity Provider verifying the legal
conclusions, if any, of such certificate relating to such basis, provided that,
in the case of any likely claim for such amounts based upon any proposed, or
proposed change in, law, rule, regulation, interpretation, directive,
requirement, request or administrative practice, such opinion may assume the
adoption or promulgation of such proposed matter, (B) it shall become unlawful
or impossible for such initial Liquidity Provider (or its Lending Office) to
maintain or fund its LIBOR Advances as described in Section 3.10 of any
Liquidity Facility, (C) any Liquidity Facility of such initial Liquidity
Provider shall become a Downgraded Facility or a Non-Extended Facility or a
Downgrade Drawing or a Non-Extension Drawing shall have occurred under any
Liquidity Facility of such initial Liquidity Provider or (D) such initial
Liquidity Provider shall have breached any of its payment (including, without
limitation, funding) obligations under any Liquidity Facility in respect of
which it is the Liquidity Provider. If such Replacement Liquidity Facility is
provided at any time after a Downgrade Drawing or Non-Extension Drawing has been
made, all funds on deposit in the relevant Cash Collateral Account will be
returned to the Liquidity Provider being replaced.

                  (ii) If any Liquidity Provider shall determine not to extend
         any of its Liquidity Facilities in accordance with Section 3.6(d), then
         such Liquidity Provider may, at its option, arrange for a Replacement
         Liquidity Facility to replace such Liquidity Facility during the period
         no earlier than 40 days and no later than 25 days prior to the then
         effective Stated Expiration Date of such Liquidity Facility. At any
         time after a Non-Extension Drawing has been made under any Liquidity
         Facility, the Liquidity Provider thereunder may, at its option, arrange
         for a Replacement Liquidity Facility to replace the Liquidity Facility
         under which such Non-Extension Drawing has been made.

                 (iii) No Replacement Liquidity Facility arranged by America
         West or a Liquidity Provider in accordance with clause (i) or (ii)
         above or pursuant to Section 3.6(c), respectively, shall become
         effective and no such Replacement Liquidity Facility shall be deemed a
         "Liquidity Facility" under the Operative Agreements, unless and until
         (A) each of the conditions referred to in sub-clauses (iv)(x) and (z)
         below shall have been satisfied and (B) in the case of a Replacement
         Liquidity Facility arranged by a Liquidity Provider under Section
         3.6(e)(ii) or pursuant to Section 3.6(c), such Replacement Liquidity
         Facility is acceptable to America West.

                  (iv) In connection with the issuance of each Replacement
         Liquidity Facility, the Subordination Agent shall (x) prior to the
         issuance of such Replacement Liquidity Facility, obtain written
         confirmation from each Rating Agency that such Replacement Liquidity
         Facility will not cause a reduction of any rating then in effect for
         any Class of Certificates by such Rating Agency (without regard to any
         downgrading of any rating of any Liquidity Provider being replaced
         pursuant to Section 3.6(c) hereof and without

                                       41
<PAGE>   45
         regard to the Policy) and, in the case of the Class G Liquidity
         Facility only, the written consent of the Policy Provider (which
         consent shall not be unreasonably withheld or delayed), (y) pay all
         Liquidity Obligations then owing to the replaced Liquidity Provider
         (which payment shall be made first from available funds in the
         applicable Cash Collateral Account as described in clause (vii) of
         Section 3.6(f) hereof, and thereafter from any other available source,
         including, without limitation, a drawing under the Replacement
         Liquidity Facility) and (z) cause the issuer of the Replacement
         Liquidity Facility to deliver the Replacement Liquidity Facility to the
         Subordination Agent, together with a legal opinion opining that such
         Replacement Liquidity Facility is an enforceable obligation of such
         Replacement Liquidity Provider.

                   (v) Upon satisfaction of the conditions set forth in clauses
         (iii) and (iv) of this Section 3.6(e) with respect to a Replacement
         Liquidity Facility, (w) the replaced Liquidity Facility shall
         terminate, (x) the Subordination Agent shall, if and to the extent so
         requested by America West or the Liquidity Provider being replaced,
         execute and deliver any certificate or other instrument required in
         order to terminate the replaced Liquidity Facility, shall surrender the
         replaced Liquidity Facility to the Liquidity Provider being replaced
         and shall execute and deliver the Replacement Liquidity Facility and
         any associated Fee Letter, (y) each of the parties hereto shall enter
         into any amendments to this Agreement necessary to give effect to (1)
         the replacement of the applicable Liquidity Provider with the
         applicable Replacement Liquidity Provider and (2) the replacement of
         the applicable Liquidity Facility with the applicable Replacement
         Liquidity Facility and (z) the applicable Replacement Liquidity
         Provider shall be deemed to be a Liquidity Provider with the rights and
         obligations of a Liquidity Provider hereunder and under the other
         Operative Agreements and such Replacement Liquidity Facility shall be
         deemed to be a Liquidity Facility hereunder and under the other
         Operative Agreements.

                  (f) Cash Collateral Accounts; Withdrawals; Investments. In the
event the Subordination Agent shall draw all available amounts under the Class G
Liquidity Facility or the Class C Liquidity Facility pursuant to Section 3.6(c),
3.6(d) or 3.6(i) hereof, or in the event amounts are to be deposited in the
Class G Cash Collateral Account or the Class C Cash Collateral Account pursuant
to subclause (A) or (B) of clause "third" of Section 2.4(b)(i), subclause (A) or
(B) of clause "third" of Section 3.2 or subclause (A) or (B) of clause "fourth"
of Section 3.3, amounts so drawn or to be deposited, as the case may be, shall
be deposited by the Subordination Agent in the Class G Cash Collateral Account
or the Class C Cash Collateral Account, respectively. All amounts on deposit in
each Cash Collateral Account shall be invested and reinvested in Eligible
Investments in accordance with Section 2.2(b) hereof.

                  On each Interest Payment Date (or, in the case of any Special
Distribution Date occurring as contemplated in Section 2.4(b) hereof prior to
the occurrence of a Triggering Event (a "Special Payment Withdrawal"), on such
Special Distribution Date), Investment Earnings on amounts on deposit in each
Cash Collateral Account (or, in the case of any Special Payment Withdrawal, a
fraction of such Investment Earnings equal to the Section 2.4(b) Fraction) shall
be deposited in the Collection Account (or, in the case of any Special Payment
Withdrawal, the Special Payments Account) and applied on such Interest Payment
Date (or Special Distribution Date, as the case may be) in accordance with
Section 2.4, 3.2 or 3.3 (as applicable). The Subordination Agent shall deliver a
written statement to America West, the Policy Provider and

                                       42
<PAGE>   46
the Liquidity Provider one day prior to each Interest Payment Date and Special
Distribution Date setting forth the aggregate amount of Investment Earnings held
in the Cash Collateral Accounts as of such date. In addition, from and after the
date funds are so deposited, the Subordination Agent shall make withdrawals from
such account as follows:

                  (i) on each Distribution Date, the Subordination Agent shall,
         to the extent it shall not have received funds to pay accrued and
         unpaid interest due and owing on the Class G Certificates (at the
         Stated Interest Rate for the Class G Certificates) from any other
         source, withdraw from the Class G Cash Collateral Account, and pay to
         the Class G Trustee, an amount equal to the lesser of (x) an amount
         necessary to pay accrued and unpaid interest (at the Stated Interest
         Rate for the Class G Certificates) on such Class G Certificates and (y)
         the amount on deposit in the Class G Cash Collateral Account;

                 (ii) on each Distribution Date, the Subordination Agent shall,
         to the extent it shall not have received funds to pay accrued and
         unpaid interest due and owing on the Class C Certificates (at the
         Stated Interest Rate for the Class C Certificates) from any other
         source, withdraw from the Class C Cash Collateral Account, and pay to
         the Class C Trustee, an amount equal to the lesser of (x) an amount
         necessary to pay accrued and unpaid interest (at the Stated Interest
         Rate for the Class C Certificates) on such Class C Certificates and (y)
         the amount on deposit in the Class C Cash Collateral Account;

                (iii) on each date on which the Pool Balance of the Class G
         Trust shall have been reduced by payments made to the Class G
         Certificateholders pursuant to Section 2.4, 3.2 or 3.3 hereof or
         pursuant to Section 2.03 of the Escrow and Paying Agent Agreement for
         such Class, the Subordination Agent shall withdraw from the Class G
         Cash Collateral Account such amount as is necessary so that, after
         giving effect to the reduction of the Pool Balance on such date and any
         transfer of Investment Earnings from such Cash Collateral Account to
         the Collection Account or the Special Payments Account on such date, an
         amount equal to the sum of the Required Amount (with respect to the
         Class G Liquidity Facility) plus (if on a Special Distribution Date not
         coinciding with an Interest Payment Date) Investment Earnings on
         deposit in such Cash Collateral Account will be on deposit in the Class
         G Cash Collateral Account and shall first, pay such withdrawn amount to
         the Class G Liquidity Provider until the Liquidity Obligations (with
         respect to the Class G Certificates) owing to such Liquidity Provider
         shall have been paid in full, and second, deposit any remaining
         withdrawn amount in the Collection Account;

                 (iv) on each date on which the Pool Balance of the Class C
         Trust shall have been reduced by payments made to the Class C
         Certificateholders pursuant to Section 2.4, 3.2 or 3.3 hereof or
         pursuant to Section 2.03 of the Escrow and Paying Agent Agreement for
         such Class, the Subordination Agent shall withdraw from the Class C
         Cash Collateral Account such amount as is necessary so that, after
         giving effect to the reduction of the Pool Balance on such date and any
         transfer of Investment Earnings from such Cash Collateral Account to
         the Collection Account or the Special Payments Account on such date, an
         amount equal to the sum of the Required Amount (with respect to the
         Class C Liquidity Facility) plus (if such date is a Special
         Distribution Date not coinciding with an Interest Payment Date)
         Investment Earnings on deposit in such Cash Collateral Account will be
         on deposit in the Class C Cash Collateral Account and shall first, pay

                                       43
<PAGE>   47
         such withdrawn amount to the Class C Liquidity Provider until the
         Liquidity Obligations (with respect to the Class C Certificates) owing
         to such Liquidity Provider shall have been paid in full, and second,
         deposit any remaining withdrawn amount in the Collection Account;

                  (v) if a Replacement Liquidity Facility for the Class G
         Certificates or the Class C Certificates shall be delivered to the
         Subordination Agent following the date on which funds have been
         deposited into the Cash Collateral Account for such Class of
         Certificates, the Subordination Agent shall withdraw all amounts on
         deposit in such Cash Collateral Account and shall pay such amounts to
         the replaced Liquidity Provider until all Liquidity Obligations owed to
         such Person shall have been paid in full, and shall deposit any
         remaining amount in the Collection Account; and

                 (vi) following the payment of Final Distributions with respect
         to the Class G Certificates or the Class C Certificates, on the date on
         which the Subordination Agent shall have been notified by the Liquidity
         Provider for such Class of Certificates that the Liquidity Obligations
         owed to such Liquidity Provider have been paid in full, the
         Subordination Agent shall withdraw all amounts on deposit in the Cash
         Collateral Account in respect of such Class of Certificates and shall
         deposit such amount in the Collection Account.

                  (g) Reinstatement. With respect to any Interest Drawing under
any Liquidity Facility, upon the reimbursement by the Subordination Agent of the
applicable Liquidity Provider for all of the amount of such Interest Drawing,
together with any accrued interest thereon, the Available Amount of such
Liquidity Facility shall be reinstated by an amount equal to the amount of such
Interest Drawing so reimbursed to the applicable Liquidity Provider but not to
exceed the Stated Amount for such Liquidity Facility; provided, however, that
such Liquidity Facility shall not be so reinstated in part or in full at any
time if (x) both a Performing Note Deficiency exists and a Liquidity Event of
Default shall have occurred and be continuing with respect to the relevant
Liquidity Facility or (y) a Final Drawing shall have occurred with respect to
such Liquidity Facility. In the event that, with respect to any particular
Liquidity Facility, (i) funds are withdrawn from any Cash Collateral Account
pursuant to clause (i), (ii) or (iii) of Section 3.6(f) hereof or (ii) such
Liquidity Facility shall become a Downgraded Facility or a Non-Extended Facility
at a time when unreimbursed Interest Drawings under such Liquidity Facility have
reduced the Available Amount thereunder to zero, then funds received by the
Subordination Agent at any time other than (x) any time when a Liquidity Event
of Default shall have occurred and be continuing with respect to such Liquidity
Facility and a Performing Note Deficiency exists or (y) any time after a Final
Drawing shall have occurred with respect to such Liquidity Facility shall be
deposited in such Cash Collateral Account as and to the extent provided in
clause "third" of Section 2.4(b), clause "third" of Section 3.2 or clause
"fourth" of Section 3.3, as applicable, and applied in accordance with Section
3.6(f) hereof.

                  (h) Reimbursement. The amount of each drawing under the
Liquidity Facilities shall be due and payable, together with interest thereon,
on the dates and at the rates, respectively, provided in the Liquidity
Facilities.

                                       44
<PAGE>   48
                  (i) Final Drawing. Upon receipt from a Liquidity Provider of a
Termination Notice with respect to any Liquidity Facility, the Subordination
Agent shall, not later than the date specified in such Termination Notice, in
accordance with the terms of such Liquidity Facility, request a drawing under
such Liquidity Facility of all available and undrawn amounts thereunder (a
"Final Drawing"). Amounts drawn pursuant to a Final Drawing shall be maintained
and invested in accordance with Section 3.6(f) hereof.

                  (j) Reduction of Stated Amount. Promptly following each date
on which the Required Amount of the Liquidity Facility for the Class G
Certificates or Class C Certificates is reduced as a result of a reduction in
the Pool Balance with respect to such Certificates, the Stated Amount of such
Liquidity Facility shall be automatically reduced to an amount equal to the
Required Amount with respect to such Liquidity Facility (as calculated by the
Subordination Agent after giving effect to such payment).

                  (k) Relation to Subordination Provisions. Interest Drawings
under the Liquidity Facilities and withdrawals from the Cash Collateral
Accounts, in each case, in respect of interest on the Class G Certificates or
the Class C Certificates, will be distributed to the Trustee for such Class of
Certificates for distribution to Certificateholders of the related Class,
notwithstanding Sections 3.2, 3.3 and 3.6(h) hereof.

                  (l) Assignment of Liquidity Facility. The Subordination Agent
agrees not to consent to the assignment by any Liquidity Provider of any of its
rights or obligations under any Liquidity Facility or any interest therein,
unless (i) America West shall have consented to such assignment, such consent to
be within America West's sole discretion, (ii) each Rating Agency shall have
provided a Ratings Confirmation in respect of such assignment and (iii) in the
case of the Class G Liquidity Facility only, the Policy Provider shall have
consented to such assignment (which consent shall not be unreasonably withheld
or delayed), and, upon the satisfaction of (i), (ii) and (iii) (if applicable),
the Subordination Agent shall give such consent.

                  SECTION 3.7. The Policy. (a) Interest Drawings. If on any
Regular Distribution Date (other than the Final Legal Distribution Date) after
giving effect to the subordination provisions of this Agreement and to the
application of Prior Funds, the Subordination Agent does not then have
sufficient funds available for the payment of all amounts due and owing in
respect of accrued and unpaid interest on the Class G Certificates at the Stated
Interest Rate on the Pool Balance of the Class G Certificates and, without
duplication, accrued and unpaid interest on any Deposit relating to the Escrow
Receipts, in each case on such Distribution Date ("Accrued Class G Interest"),
then the Subordination Agent (i) prior to 1:00 p.m. (New York City time) on such
Distribution Date shall deliver a Notice for Payment, as provided in the Policy,
to the Policy Provider or its fiscal agent, requesting a Policy Drawing under
the Policy (for payment into the Policy Account) in an amount sufficient to
enable the Subordination Agent to pay such Accrued Class G Interest and (ii)
upon receipt shall pay such amount from the Policy Account to the Class G
Trustee in payment of such Accrued Class G Interest on such Distribution Date.

                  (b) Proceeds Deficiency Drawing. If on any Special
Distribution Date (which is not also an Election Distribution Date) established
by the Subordination Agent by reason of its receipt of a Special Payment
constituting the proceeds of any Series G Equipment Note or related Trust
Indenture Estate or Collateral, as the case may be, and if on such Special

                                       45
<PAGE>   49
Distribution Date after giving effect to the subordination provisions of this
Agreement and to the application of Prior Funds, the Subordination Agent does
not then have sufficient funds available for a reduction in the outstanding Pool
Balance of the Class G Certificates by an amount equal to the outstanding
principal amount of such Equipment Note (determined immediately prior to the
receipt of such proceeds) plus accrued and unpaid interest on the amount of such
reduction at the Stated Interest Rate for the Class G Certificates for the
period from the immediately preceding Regular Distribution Date to such Special
Distribution Date, then the Subordination Agent (i) prior to 1:00 p.m. (New York
City time) on such Special Distribution Date shall deliver a Notice for Payment,
as provided in the Policy (for payment into the Policy Account) in an amount
sufficient to enable the Subordination Agent to pay the amount of such reduction
plus such accrued and unpaid interest and (ii) upon receipt shall pay such
amount from the Policy Account to the Class G Trustee in payment of such
reduction in the outstanding Pool Balance of the Class G Certificates plus such
accrued interest on such Special Distribution Date.

                  (c) No Proceeds Drawing. If the Subordination Agent has not
received a Special Payment constituting proceeds from the sale of that Series G
Equipment Note or the related Trust Indenture Estate or Collateral (a
"Disposition"), as the case may be, during the 24-month period beginning on the
last date on which any payment was made in full on such Series G Equipment Note
(the date of such payment in full, the "Last Payment Date") as to which there
has been a failure to pay principal or that has been Accelerated subsequent to
the Last Payment Date, then on the first Business Day following the expiration
of such 24-month period, the Subordination Agent shall deliver a Notice for
Payment, as provided in the Policy, to the Policy Provider or its fiscal agent,
requesting a Policy Drawing under the Policy (for payment into the Policy
Account) in an amount equal to the then outstanding principal amount of such
Equipment Note plus accrued and unpaid interest thereon at the Stated Interest
Rate for the Class G Certificates from the immediately preceding Regular
Distribution Date to the below referred to Special Distribution Date. The
Subordination Agent shall promptly, but not less than 25 days prior to such
Business Day, send to the Class G Trustee and the Policy Provider a Written
Notice setting forth the non-receipt of any such Special Payment and
establishing such Business Day as the date for the distribution of the proceeds
of such Policy Drawing, which date shall constitute a Special Distribution Date.
No later than 1:00 p.m. (New York City time) on the specified Special
Distribution Date the Subordination Agent shall make the specified Policy
Drawing and upon its receipt of the proceeds thereof pay the amount thereof from
the Policy Account to the Class G Trustee in reduction of the outstanding Pool
Balance of the Class G Certificates together with such accrued and unpaid
interest thereon. For the avoidance of doubt, after the payment in full of such
amount under this Section 3.7(c), the Subordination Agent shall have no right to
make any further Policy Drawings under this Section 3.7(c) in respect of any
Disposition of or in respect of such Equipment Note except for Preference
Amounts as provided in Section 3.7(e).

                  Notwithstanding the foregoing, the Policy Provider has the
right at the end of any such 24-month period, so long as no Policy Provider
Default shall have occurred and be continuing to elect (the "Policy Provider
Election") instead (a) to pay on such Special Distribution Date an amount equal
to any shortfall in the scheduled principal and interest payable but not paid on
such Series G Equipment Note (without regard to the Acceleration thereof) during
such 24-month period (after giving effect to the application of funds received
from the Class G Liquidity Facility or the Class G Cash Collateral Account, in
each case attributable to such interest), (b) thereafter, on each Regular
Distribution Date until the establishment of an

                                       46
<PAGE>   50
Election Distribution Date or a Special Distribution Date referred to in clause
(c)(i) below, to permit drawings under the Policy for an amount equal to the
scheduled principal (without regard to any acceleration thereof) and interest
payments at the Stated Interest Rate for the Class G Certificates payable on
such Equipment Note on the related payment date and (c) (i) on any Business Day
(which shall be a Special Distribution Date) elected by the Policy Provider upon
20 days' Written Notice to the Subordination Agent and the Class G Trustee to
request the Subordination Agent, or (ii) following either the occurrence and
continuation of a Policy Provider Default or the Disposition of or in respect of
such Equipment Note, on any Business Day (which shall be a Special Distribution
Date) specified by the Subordination Agent upon 20 days' Written Notice to the
Class G Trustee (each such Business Day in the case of clause (ii) an "Election
Distribution Date") to permit the Subordination Agent, in each case, to make a
Policy Drawing for an amount equal to the then outstanding principal balance of
such Equipment Note less any Policy Drawings previously paid by the Policy
Provider in respect of principal of such Equipment Note and accrued and unpaid
interest on such amounts at the Stated Interest Rate for the Class G
Certificates from the immediately preceding Regular Distribution Date to such
Election Distribution Date or such Special Distribution Date, as the case may be
(after giving effect to the application of funds, if any, received on such date
from the Class G Liquidity Facility or the Class G Cash Collateral Account
attributable to such interest) and without derogation of the Policy Provider's
continuing obligations for all previous Policy Drawings that remain unpaid in
respect of such Equipment Note. The Subordination Agent shall make each such
drawing referred to in this paragraph under the Policy (for payment into the
Policy Account) no later than 1:00 p.m. (New York City time) on each such date
and upon its receipt of the proceeds thereof pay the amount thereof from the
Policy Account to the Class G Trustee in reduction of the outstanding Pool
Balance of the Class G Certificates together with such accrued and unpaid
interest thereon.

                  In addition, regardless of whether or not the Policy Provider
makes a Policy Provider Election, the Policy Provider shall, at the end of such
24-month period, honor drawings by any Liquidity Provider in respect of amounts
referred to in clause (g) of the definition of "Deficiency Amount" contained in
the Policy (each, an "Excess Interest Policy Drawing"). Each Liquidity Provider
agrees to make such Excess Interest Policy Drawings and that the proceeds
thereof shall reduce pro tanto the Liquidity Obligations owing to it. Upon the
issuance of any Replacement Liquidity Facility pursuant to Section 3.6(e), the
Policy Provider agrees to promptly deliver to the Replacement Liquidity Provider
providing such Replacement Liquidity Facility a certified copy of the Policy,
provided that the Liquidity Provider being replaced returns its certified copy
of the Policy to the Policy Provider.

                  (d) Final Policy Drawing. If on the Final Legal Distribution
Date of the Class G Certificates after giving effect to the subordination
provisions of this Agreement and to the application of Prior Funds, the
Subordination Agent does not then have sufficient funds available on such date
for the payment in full of the Final Distributions (calculated as of such date
but excluding any accrued and unpaid premium) on the Class G Certificates then
the Subordination Agent shall (i) prior to 1:00 p.m. (New York City time) on
such date deliver a Notice for Payment, as provided in the Policy, to the Policy
Provider or its fiscal agent, requesting a Policy Drawing under the Policy (for
payment into the Policy Account) in an amount equal to the minimum amount
sufficient to enable the Subordination Agent to pay the Final Distributions
(calculated as of such date but excluding any accrued and unpaid premium) on the
Class G

                                       47
<PAGE>   51
Certificates, and (ii) upon receipt pay such amount from the Policy Account to
the Class G Trustee in payment of such amount on such date.

                  (e) Avoidance Drawings. If at any time the Subordination Agent
shall have actual knowledge of the issuance of any Order, the Subordination
Agent shall promptly give notice thereof to each Trustee, the Liquidity
Providers and the Policy Provider. The Subordination Agent shall thereupon
calculate the relevant Preference Amounts resulting therefrom and shall
promptly: (a) send to the Class G Trustee a Written Notice of such amount and
(b) prior to the expiration of the Policy, deliver to the Policy Provider or its
fiscal agent a Notice of Avoided Payment, together with a copy of the
documentation required by the Policy with respect thereto, requesting a Policy
Drawing (for payment to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy and/or to the Subordination Agent for deposit into the
Policy Account, as applicable) in an amount equal to the amount of relevant
Preference Amount. To the extent that any portion of such Preference Amount is
to be paid to the Subordination Agent, such Written Notice shall also set the
date for the distribution of such portion of the proceeds of such Policy Drawing
which date shall constitute a Special Distribution Date and shall be the earlier
of three Business Days after the date of the expiration of the Policy and the
Business Day that immediately follows the 25th day after the date of such
Written Notice. No later than 1:00 p.m. (New York City time) on the specified
Special Distribution Date, the Subordination Agent shall make the specified
Policy Drawing upon its receipt of the proceeds thereof and pay the amount
thereof from the Policy Account to the Class G Trustee in reinstatement of the
Preference Amount.

                  (f) Application of Policy Drawings. Notwithstanding anything
to the contrary contained in this Agreement (including, without limitation,
Sections 2.4, 3.2 and 3.3 hereof), all payments received by the Subordination
Agent in respect of a Policy Drawing (including, without limitation, that
portion, if any, of the proceeds of a Policy Drawing for any Preference Amount
that is to be paid to the Subordination Agent and not to any receiver,
conservator, debtor-in-possession or trustee in bankruptcy as provided in the
Policy) shall be promptly paid from the Policy Account to the Class G Trustee
for distribution to the Class G Certificateholders or the holders of the Escrow
Receipts, as the case may be.

                  (g) Limitation to Outstanding Pool Balance. Notwithstanding
anything to the contrary in this Section 3.7, except as provided in Section
3.7(e), at no time shall the Subordination Agent make any Policy Drawing under
clause (b), (c) or (d) of this Section 3.7 in excess of the then outstanding
Pool Balance of the Class G Certificates and accrued and unpaid interest at the
Stated Interest Rate on the Class G Certificates. Nothing contained in this
Intercreditor Agreement shall alter or amend the liabilities, obligations,
requirements or procedures of the Policy Provider under the Policy and the
Policy Provider shall not be obligated to make payment except at the times and
in the amounts and under the circumstances expressly set forth in the Policy.

                  (h) Resubmission of Notice for Payment. If the Policy Provider
at any time informs the Subordination Agent in accordance with the Policy that a
Notice for Payment or Notice of Avoided Payment submitted by the Subordination
Agent does not meet the requirements of the Policy, the Subordination Agent
shall, as promptly as possible after being so informed, submit to the Policy
Provider an amended and revised Notice for Payment or Notice of Avoided Payment,
as the case may be, and shall pay to the Class G Trustee out of the Policy

                                       48
<PAGE>   52
Account the amount received pursuant to such amended or revised Notice for
Payment or Notice of Avoided Payment, as the case may be, when received.

                                   ARTICLE IV

                              EXERCISE OF REMEDIES

                  SECTION 4.1. Directions from the Controlling Party. (a) (i)
Following the occurrence and during the continuation of an Indenture Event of
Default under any Indenture, the Controlling Party shall direct the
Subordination Agent, which in turn shall direct the Loan Trustee under such
Indenture, in the exercise of remedies available to the holders of the Equipment
Notes issued pursuant to such Indenture, including, without limitation, the
ability to vote all such Equipment Notes in favor of Accelerating such Equipment
Notes in accordance with the provisions of such Indenture. Subject to the Owner
Trustees' and the Owner Participants' rights, if any, set forth in the
Indentures with respect to Leased Aircraft to purchase the Equipment Notes and
the provisions of the next paragraph, if the Equipment Notes issued pursuant to
any Indenture have been Accelerated following an Indenture Event of Default with
respect thereto, the Controlling Party may direct the Subordination Agent to
sell, assign, contract to sell or otherwise dispose of and deliver all (but not
less than all) of such Equipment Notes to any Person at public or private sale,
at any location at the option of the Controlling Party, all upon such terms and
conditions as it may reasonably deem advisable in accordance with applicable
law. Notwithstanding the foregoing provisions of this Section 4.1, the
Controlling Party shall not direct the Subordination Agent to (i) sell, assign,
contract to sell or otherwise dispose of such Equipment Notes (other than a sale
to the Owner Trustee or Owner Participant made in accordance with the applicable
Indenture) or (ii) direct the Loan Trustee under any Indenture to sell,
transfer, lease or otherwise dispose of the Aircraft subject to the lien of such
Indenture (clauses (i) and (ii), the "Specified Remedies") unless the
Controlling Party shall have first offered (to the extent it may do so in
compliance with the Operative Agreements and applicable law) the Class D
Certificateholders at any time after the occurrence of an Indenture Event of
Default the right to purchase all but not less than all of the Equipment Notes
under such Indenture for a purchase price equal to the amount of "Secured
Obligations" under such Indenture. Such right to purchase all but not less than
all of the Equipment Notes under such Indenture shall remain open for 10
Business Days after the receipt of the notice by the Class D Trustee from the
Controlling Party stating that there has occurred an Indenture Event of Default
and notifying the Class D Trustee of the right held by the Class D
Certificateholders under this Agreement to purchase all but not less than all of
the Equipment Notes issued under such Indenture (the "Notice"). The right to
purchase shall be deemed to have been exercised upon the receipt by the
Controlling Party of a written irrevocable commitment (the "Commitment Notice")
by the Class D Certificateholders to purchase all but not less than all of such
Equipment Notes within 10 Business Days after the receipt of the Notice. Such
Commitment Notice shall specify a date for such purchase within 15 days of the
date of such Commitment Notice. The failure on the part of the Class D
Certificateholders to deliver the Commitment Notice within such 10 Business Day
period shall constitute a waiver of its right to purchase and the Controlling
Party is under no obligation hereunder to give any further notice to the Class D
Certificateholders prior to the exercise of its Specified Remedies under the
related Indenture.

                                       49
<PAGE>   53
                  (ii) Subject to the Owner Trustees' and the Owner
Participants' rights, if any, set forth in the Indentures with respect to Leased
Aircraft to purchase the Equipment Notes, and notwithstanding the foregoing, so
long as any Certificates remain Outstanding, during the period ending on the
date which is nine months after the earlier of (x) the Acceleration of the
Equipment Notes issued pursuant to any Indenture or (y) the occurrence of an
America West Bankruptcy Event, without the consent of each Trustee, (A) no
Aircraft subject to the Lien of such Indenture or such Equipment Notes may be
sold if the net proceeds from such sale would be less than the Minimum Sale
Price for such Aircraft or such Equipment Notes, and (B) with respect to any
Leased Aircraft, the amount and payment dates of rentals payable by America West
under the Lease for such Aircraft may not be adjusted, if, as a result of such
adjustment, the discounted present value of all such rentals would be less than
75% of the discounted present value of the rentals payable by America West under
such Lease before giving effect to such adjustment, in each case, using the
weighted average interest rate of the Equipment Notes issued pursuant to such
Indenture as the discount rate.

                  (iii) At the request of the Controlling Party, the
Subordination Agent may from time to time during the continuance of an Indenture
Event of Default (and before the occurrence of a Triggering Event) commission
Appraisals with respect to the Aircraft subject to such Indenture.

                  (iv) After a Triggering Event occurs and any Equipment Note
becomes a Non-Performing Equipment Note, the Subordination Agent shall obtain
Appraisals ("LTV Appraisals") with respect to all of the Aircraft as soon as
practicable and additional LTV Appraisals on or prior to each anniversary of the
date of such initial LTV Appraisals; provided that if the Controlling Party
reasonably objects to the appraised value of the Aircraft shown in such LTV
Appraisals, the Controlling Party shall have the right to obtain or cause to be
obtained substitute LTV Appraisals (including any LTV Appraisals based upon
physical inspection of the Aircraft).

                  (b) The Controlling Party shall take such actions as it may
reasonably deem most effectual to complete the sale or other disposition of such
Aircraft or Equipment Notes. In addition, in lieu of any sale, assignment,
contract to sell or other disposition, the Controlling Party may maintain or
cause the Subordination Agent to maintain possession of such Equipment Notes and
continue to apply monies received in respect of such Equipment Notes in
accordance with Article III hereof. In addition, in lieu of such sale,
assignment, contract to sell or other disposition, or in lieu of such
maintenance of possession, the Controlling Party may, subject to the terms and
conditions of the related Indenture, instruct the Loan Trustee under such
Indenture to foreclose on the Lien on the related Aircraft or to take any other
remedial action permitted under such Indenture or under any applicable law.

                  SECTION 4.2. Remedies Cumulative. Each and every right, power
and remedy given to the Trustees, the Liquidity Providers, the Policy Provider,
the Controlling Party or the Subordination Agent specifically or otherwise in
this Agreement shall be cumulative and shall be in addition to every other
right, power and remedy herein specifically given or now or hereafter existing
at law, in equity or by statute, and each and every right, power and remedy
whether specifically herein given or otherwise existing may, subject always to
the terms and conditions hereof, be exercised from time to time and as often and
in such order as may be deemed expedient by any Trustee, any Liquidity Provider,
the Policy Provider, the Controlling Party or

                                       50
<PAGE>   54
the Subordination Agent, as appropriate, and the exercise or the beginning of
the exercise of any power or remedy shall not be construed to be a waiver of the
right to exercise at the same time or thereafter any other right, power or
remedy. No delay or omission by any Trustee, any Liquidity Provider, the Policy
Provider, the Controlling Party or the Subordination Agent in the exercise of
any right, remedy or power or in the pursuit of any remedy shall impair any such
right, power or remedy or be construed to be a waiver of any default or to be an
acquiescence therein.

                  SECTION 4.3. Discontinuance of Proceedings. In case any party
to this Agreement (including the Controlling Party in such capacity) shall have
instituted any Proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, entry or otherwise, and such Proceeding shall have
been discontinued or abandoned for any reason or shall have been determined
adversely to the Person instituting such Proceeding, then and in every such case
each such party shall, subject to any determination in such Proceeding, be
restored to its former position and rights hereunder, and all rights, remedies
and powers of such party shall continue as if no such Proceeding had been
instituted.

                  SECTION 4.4. Right of Certificateholders to Receive Payments
Not to Be Impaired. Anything in this Agreement to the contrary notwithstanding
but subject to each Trust Agreement, the right of any Certificateholder,
Liquidity Provider or the Policy Provider, respectively, to receive payments
hereunder (including without limitation pursuant to Section 2.4, 3.2 or 3.3
hereof) when due, or to institute suit for the enforcement of any such payment
on or after the applicable Distribution Date, shall not be impaired or affected
without the consent of such Certificateholder, Liquidity Provider or Policy
Provider, respectively.

                  SECTION 4.5. Undertaking for Costs. In any Proceeding for the
enforcement of any right or remedy under this Agreement or in any Proceeding
against any Controlling Party or the Subordination Agent for any action taken or
omitted by it as Controlling Party or Subordination Agent, as the case may be, a
court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys' fees and expenses,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. The provisions of
this Section do not apply to a suit instituted by the Subordination Agent, a
Liquidity Provider, the Policy Provider or a Trustee or a suit by
Certificateholders holding more than 10% of the original principal amount of any
Class of Certificates.

                                       51
<PAGE>   55
                                    ARTICLE V

                       DUTIES OF THE SUBORDINATION AGENT;
                          AGREEMENTS OF TRUSTEES, ETC.

                  SECTION 5.1. Notice of Indenture Event of Default or
Triggering Event. (a) In the event the Subordination Agent shall have actual
knowledge of the occurrence of an Indenture Event of Default or a Triggering
Event, as promptly as practicable, and in any event within 10 days after
obtaining knowledge thereof, the Subordination Agent shall transmit by mail or
courier to the Rating Agencies, the Liquidity Providers, the Policy Provider and
the Trustees notice of such Indenture Event of Default or Triggering Event,
unless such Indenture Event of Default or Triggering Event shall have been cured
or waived by the Controlling Party. For all purposes of this Agreement, in the
absence of actual knowledge on the part of a Responsible Officer, the
Subordination Agent shall not be deemed to have knowledge of any Indenture Event
of Default or Triggering Event unless notified in writing by one or more
Trustees, one or more Liquidity Providers, or the Policy Provider or one or more
Certificateholders.

                  (b) Other Notices. The Subordination Agent will furnish to
each Liquidity Provider, the Policy Provider and each Trustee, promptly upon
receipt thereof, duplicates or copies of all reports, notices, requests,
demands, certificates, financial statements and other instruments furnished to
the Subordination Agent as registered holder of the Equipment Notes or otherwise
in its capacity as Subordination Agent to the extent the same shall not have
been otherwise directly distributed to such Liquidity Provider, Policy Provider
or Trustee, as applicable, pursuant to the express provision of any other
Operative Agreement.

                  SECTION 5.2. Indemnification. The Subordination Agent shall
not be required to take any action or refrain from taking any action under
Article IV hereof unless the Subordination Agent shall have been indemnified (to
the extent and in the manner reasonably satisfactory to the Subordination Agent)
against any liability, cost or expense (including counsel fees and expenses)
which may be incurred in connection therewith. The Subordination Agent shall not
be under any obligation to take any action under this Agreement and nothing
contained in this Agreement shall require the Subordination Agent to expend or
risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder or in the exercise of any of its rights or powers
if it shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured
to it. The Subordination Agent shall not be required to take any action under
Article IV hereof, nor shall any other provision of this Agreement be deemed to
impose a duty on the Subordination Agent to take any action, if the
Subordination Agent shall have been advised by counsel that such action is
contrary to the terms hereof or is otherwise contrary to law.

                  SECTION 5.3. No Duties Except as Specified in Intercreditor
Agreement. The Subordination Agent shall not have any duty or obligation to take
or refrain from taking any action under, or in connection with, this Agreement,
except as expressly provided by the terms of this Agreement; and no implied
duties or obligations shall be read into this Agreement against the
Subordination Agent. The Subordination Agent agrees that it will, in its
individual capacity and at its own cost and expense (but without any right of
indemnity in respect of any such cost or expense under Section 7.1 hereof)
promptly take such action as may be necessary to duly

                                       52
<PAGE>   56
discharge all Liens on any of the Trust Accounts or any monies deposited therein
which result from claims against it in its individual capacity not related to
its activities hereunder or any other Operative Agreement.

                  SECTION 5.4. Notice from the Liquidity Providers and Trustees.
If any Liquidity Provider or any Trustee has notice of an Indenture Event of
Default or a Triggering Event, such Person shall promptly give notice thereof to
all of the other parties hereto, provided, however, that no such Person shall
have any liability hereunder as a result of its failure to deliver any such
notice.

                                   ARTICLE VI

                             THE SUBORDINATION AGENT

                  SECTION 6.1. Authorization; Acceptance of Trusts and Duties.
Each of the Class G Trustee and the Class C Trustee hereby designates and
appoints the Subordination Agent as the agent and trustee of such Trustee under
the applicable Liquidity Facility (and, in the case of the Class G Trustee, the
Policy Provider Agreement) and authorizes the Subordination Agent to enter into
the applicable Liquidity Facility (and, in the case of the Class G Trustee, the
Policy Provider Agreement) as agent and trustee for such Trustee. Each of the
Liquidity Providers, the Policy Provider and the Trustees hereby designates and
appoints the Subordination Agent as the Subordination Agent under this
Agreement. WTC hereby accepts the duties hereby created and applicable to it as
the Subordination Agent and agrees to perform the same but only upon the terms
of this Agreement and agrees to receive and disburse all monies received by it
in accordance with the terms hereof. The Subordination Agent shall not be
answerable or accountable under any circumstances, except (a) for its own
willful misconduct or gross negligence (or ordinary negligence in the handling
of funds), (b) as provided in Sections 2.2 and 5.3 hereof and (c) for
liabilities that may result from the inaccuracy of any representation or
warranty of the Subordination Agent made in its individual capacity in any
Operative Agreement. The Subordination Agent shall not be liable for any error
of judgment made in good faith by a Responsible Officer of the Subordination
Agent, unless it is proved that the Subordination Agent was negligent in
ascertaining the pertinent facts.

                  SECTION 6.2. Absence of Duties. The Subordination Agent shall
have no duty to see to any recording or filing of this Agreement or any other
document, or to see to the maintenance of any such recording or filing.

                  SECTION 6.3. No Representations or Warranties as to Documents.
The Subordination Agent in its individual capacity does not make nor shall be
deemed to have made any representation or warranty as to the validity, legality
or enforceability of this Agreement or any other Operative Agreement or as to
the correctness of any statement contained in any thereof, except for the
representations and warranties of the Subordination Agent, made in its
individual capacity, under any Operative Agreement to which it is a party. The
Certificateholders, the Trustees, the Liquidity Providers and the Policy
Provider make no representation or warranty hereunder whatsoever.

                                       53
<PAGE>   57
                  SECTION 6.4. No Segregation of Monies; No Interest. Any monies
paid to or retained by the Subordination Agent pursuant to any provision hereof
and not then required to be distributed to any Trustee, any Liquidity Provider
or the Policy Provider as provided in Articles II and III hereof or deposited
into one or more Trust Accounts need not be segregated in any manner except to
the extent required by such Articles II and III and by law, and the
Subordination Agent shall not (except as otherwise provided in Section 2.2
hereof) be liable for any interest thereon; provided, however, that any payments
received or applied hereunder by the Subordination Agent shall be accounted for
by the Subordination Agent so that any portion thereof paid or applied pursuant
hereto shall be identifiable as to the source thereof.

                  SECTION 6.5. Reliance; Agents; Advice of Counsel. The
Subordination Agent shall not incur liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper believed by it to be genuine
and believed by it to be signed by the proper party or parties. As to the Pool
Balance of any Trust as of any date, the Subordination Agent may for all
purposes hereof rely on a certificate signed by any Responsible Officer of the
applicable Trustee, and such certificate shall constitute full protection to the
Subordination Agent for any action taken or omitted to be taken by it in good
faith in reliance thereon. As to any fact or matter relating to the Liquidity
Providers, the Policy Provider or the Trustees the manner of ascertainment of
which is not specifically described herein, the Subordination Agent may for all
purposes hereof rely on a certificate, signed by any Responsible Officer of the
applicable Liquidity Provider, Policy Provider or Trustee, as the case may be,
as to such fact or matter, and such certificate shall constitute full protection
to the Subordination Agent for any action taken or omitted to be taken by it in
good faith in reliance thereon. The Subordination Agent shall assume, and shall
be fully protected in assuming, that each of the Liquidity Providers, the Policy
Provider and each of the Trustees are authorized to enter into this Agreement
and to take all action to be taken by them pursuant to the provisions hereof,
and shall not inquire into the authorization of each of the Liquidity Providers,
the Policy Provider and Trustees with respect thereto. In the administration of
the trusts hereunder, the Subordination Agent may execute any of the trusts or
powers hereof and perform its powers and duties hereunder directly or through
agents or attorneys and may consult with counsel, accountants and other skilled
persons to be selected and retained by it, and the Subordination Agent shall not
be liable for the acts or omissions of any agent appointed with due care or for
anything done, suffered or omitted in good faith by it in accordance with the
advice or written opinion of any such counsel, accountants or other skilled
persons.

                  SECTION 6.6. Capacity in Which Acting. The Subordination Agent
acts hereunder solely as agent and trustee herein and not in its individual
capacity, except as otherwise expressly provided in the Operative Agreements.

                  SECTION 6.7. Compensation. The Subordination Agent shall be
entitled to reasonable compensation, including reimbursement for reasonable
expenses and disbursements, except with respect to any Unindemnified Taxes
incurred by the Subordination Agent in connection with the transactions
contemplated by this Agreement for all services rendered hereunder and shall
have a priority claim to the extent set forth in Article III hereof on all
monies collected hereunder for the payment of such compensation (other than any
Unindemnified Taxes), to the extent that such compensation shall not be paid by
others. The Subordination Agent agrees that it shall have no right against any
Trustee, Liquidity Provider or the Policy

                                       54
<PAGE>   58
Provider for any fee as compensation for its services as agent under this
Agreement. The provisions of this Section 6.7 shall survive the termination of
this Agreement.

                  SECTION 6.8. May Become Certificateholder. The institution
acting as Subordination Agent hereunder may become a Certificateholder and have
all rights and benefits of a Certificateholder to the same extent as if it were
not the institution acting as the Subordination Agent.

                  SECTION 6.9. Subordination Agent Required; Eligibility. There
shall at all times be a Subordination Agent hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America or of any State or the District of Columbia having a combined capital
and surplus of at least $100,000,000 (or the obligations of which, whether now
in existence or hereafter incurred, are fully and unconditionally guaranteed by
a corporation organized and doing business under the laws of the United States
of America, any State thereof or of the District of Columbia and having a
combined capital and surplus of at least $100,000,000), if there is such an
institution willing and able to perform the duties of the Subordination Agent
hereunder upon reasonable or customary terms. Such corporation shall be a
citizen of the United States and shall be authorized under the laws of the
United States or any State thereof or of the District of Columbia to exercise
corporate trust powers and shall be subject to supervision or examination by
federal, state or District of Columbia authorities. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of any of the aforesaid supervising or examining authorities, then,
for the purposes of this Section 6.9, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

                  In case at any time the Subordination Agent shall cease to be
eligible in accordance with the provisions of this Section, the Subordination
Agent shall resign immediately in the manner and with the effect specified in
Section 8.1.

                  SECTION 6.10. Money to Be Held in Trust. All Equipment Notes,
monies and other property deposited with or held by the Subordination Agent
pursuant to this Agreement shall be held in trust for the benefit of the parties
entitled to such Equipment Notes, monies and other property. All such Equipment
Notes, monies or other property shall be held in the Trust Department of the
institution acting as Subordination Agent hereunder.

                                   ARTICLE VII

                     INDEMNIFICATION OF SUBORDINATION AGENT

                  SECTION 7.1. Scope of Indemnification. The Subordination Agent
shall be indemnified hereunder to the extent and in the manner described in
Section 9.1 of the Participation Agreements and Section 6 of the Note Purchase
Agreement. The indemnities contained in such Sections of such agreements shall
survive the resignation or removal of the Subordination Agent and the
termination of this Agreement.

                                       55
<PAGE>   59
                                  ARTICLE VIII

                          SUCCESSOR SUBORDINATION AGENT

                  SECTION 8.1. Replacement of Subordination Agent; Appointment
of Successor. The Subordination Agent may resign at any time by so notifying
each Trustee, each Liquidity Provider and the Policy Provider. The Controlling
Party may remove the Subordination Agent for cause by so notifying the
Subordination Agent and may appoint a successor Subordination Agent. The
Controlling Party shall remove the Subordination Agent if:

                  (1) the Subordination Agent fails to comply with Section 6.9
         hereof;

                  (2) the Subordination Agent is adjudged bankrupt or insolvent;

                  (3) a receiver or other public officer takes charge of the
         Subordination Agent or its property; or

                  (4) the Subordination Agent otherwise becomes incapable of
         acting.

                  If the Subordination Agent resigns or is removed or if a
vacancy exists in the office of Subordination Agent for any reason (the
Subordination Agent in such event being referred to herein as the retiring
Subordination Agent), the Controlling Party shall promptly appoint a successor
Subordination Agent.

                  A successor Subordination Agent shall deliver (x) a written
acceptance of its appointment as Subordination Agent hereunder to the retiring
Subordination Agent and (y) a written assumption of its obligations hereunder
and under each Liquidity Facility and the Policy Provider Agreement to each
party hereto, upon which the resignation or removal of the retiring
Subordination Agent shall become effective, and the successor Subordination
Agent shall have all the rights, powers and duties of the Subordination Agent
under this Agreement. The successor Subordination Agent shall mail a notice of
its succession to the Liquidity Providers, the Policy Provider and the Trustees.
The retiring Subordination Agent shall promptly transfer its rights under each
of the Liquidity Facilities and all of the property held by it as Subordination
Agent to the successor Subordination Agent.

                  If a successor Subordination Agent does not take office within
60 days after the retiring Subordination Agent resigns or is removed, the
retiring Subordination Agent or one or more of the Trustees may petition any
court of competent jurisdiction for the appointment of a successor Subordination
Agent.

                  If the Subordination Agent fails to comply with Section 6.9
hereof (to the extent applicable), one or more of the Trustees, one or more of
the Liquidity Providers or the Policy Provider may petition any court of
competent jurisdiction for the removal of the Subordination Agent and the
appointment of a successor Subordination Agent.

                  Notwithstanding the foregoing, no resignation or removal of
the Subordination Agent shall be effective unless and until a successor has been
appointed. No appointment of a

                                       56
<PAGE>   60
successor Subordination Agent shall be effective unless and until the Rating
Agencies shall have delivered a Ratings Confirmation.

                                   ARTICLE IX

                           SUPPLEMENTS AND AMENDMENTS

                  SECTION 9.1. Amendments, Waivers, etc. (a) This Agreement may
not be supplemented, amended or modified without the consent of each Trustee
(acting, except in the case of any amendment pursuant to Section 3.6(e)(v)(y)
hereof with respect to any Replacement Liquidity Facility, or any amendment
contemplated by the last sentence of this Section 9.1(a), with the consent of
holders of Certificates of the related Class evidencing interests in the related
Trust aggregating not less than a majority in interest in such Trust or as
otherwise authorized pursuant to the relevant Trust Agreement), the
Subordination Agent, each Liquidity Provider and the Policy Provider; provided,
however, that this Agreement may be supplemented, amended or modified without
the consent of (x) any Trustee if such supplement, amendment or modification (i)
is in accordance with Section 9.1(c) hereof or (ii) cures an ambiguity or
inconsistency or does not materially adversely affect such Trustee or the
holders of the related Class of Certificates and (y) any Liquidity Provider or
the Policy Provider if such supplement, amendment or modification is in
accordance with Section 9.1(c) hereof; provided further, however, that, if such
supplement, amendment or modification (A) would (x) directly or indirectly
modify or supersede, or otherwise conflict with, Section 2.2(b), Section 3.6(e),
Section 3.6(f), Section 3.6(l), the last sentence of this Section 9.1(a), the
second sentence of Section 10.6 or this proviso (collectively, the "America West
Provisions") or (y) otherwise adversely affect the interests of a potential
Replacement Liquidity Provider or of America West with respect to its ability to
replace any Liquidity Facility or with respect to its payment obligations under
any Operative Agreement or (B) is made pursuant to the last sentence of this
Section 9.1(a) or pursuant to Section 9.1(c), then such supplement, amendment or
modification shall not be effective without the additional written consent of
America West. Notwithstanding the foregoing, without the consent of each
Certificateholder and each Liquidity Provider and the Policy Provider, no
supplement, amendment or modification of this Agreement may (i) reduce the
percentage of the interest in any Trust evidenced by the Certificates issued by
such Trust necessary to consent to modify or amend any provision of this
Agreement or to waive compliance therewith or (ii) except as provided in Section
9.1(c) or the last sentence of this Section 9.1(a), modify Section 2.4, 3.2 or
3.3 hereof, relating to the distribution of monies received by the Subordination
Agent hereunder from the Equipment Notes or pursuant to the Liquidity Facilities
or the Policy. Nothing contained in this Section shall require the consent of a
Trustee at any time following the payment of Final Distributions with respect to
the related Class of Certificates. If the Replacement Liquidity Facility for any
Liquidity Facility in accordance with Section 3.6(e) hereof is to be comprised
of more than one instrument as contemplated by the definition of the term
"Replacement Liquidity Facility", then each of the parties hereto agrees to
amend this Agreement to incorporate appropriate mechanics for multiple Liquidity
Facilities for an individual Trust.

                  (b) In the event that the Subordination Agent, as the
registered holder of any Equipment Notes, receives a request for its consent to
any amendment, modification, consent or waiver under such Equipment Notes, the
Indenture pursuant to which such Equipment Notes were issued, or the related
Lease, Participation Agreement or other related document, (i) if no

                                       57
<PAGE>   61
Indenture Event of Default shall have occurred and be continuing with respect to
such Indenture, the Subordination Agent shall request directions with respect to
each Series of such Equipment Notes from the Trustee of the Trust which holds
such series of such Equipment Notes and shall vote or consent in accordance with
the directions of such Trustee except that so long as the Final Distribution on
the Class G Certificates has not been made or any Policy Provider Obligations
remain outstanding and no Policy Provider Default shall have occurred and be
continuing, the Subordination Agent shall request directions from the Policy
Provider rather than the Class G Trustee with respect to the Series G Equipment
Notes held in the Class G Trust, and (ii) if any Indenture Event of Default
(which, in the case of any Indenture pertaining to a Leased Aircraft, has not
been cured by the applicable Owner Trustee or the applicable Owner Participant,
if applicable, pursuant to Section 4.03 of such Indenture) shall have occurred
and be continuing with respect to such Indenture, the Subordination Agent will
exercise its voting rights as directed by the Controlling Party, subject to
Sections 4.1 and 4.4 hereof; provided that no such amendment, modification or
waiver shall, without the consent of each Liquidity Provider and the Policy
Provider, reduce the amount of rent, supplemental rent or stipulated loss values
payable by America West under any Lease or reduce the amount of principal or
interest payable by America West under any Equipment Note issued under any
Indenture in respect of an Owned Aircraft.

                  (c) If, with respect to any Aircraft, Class D Certificates are
re-issued, such re-issued Class D Certificates shall be subject to all of the
provisions of this Agreement in the same manner as the initially issued Class D
Certificates, including, the subordination of such Class D Certificates to the
Class G Certificates and the Class C Certificates and the provisions relating to
priority of distributions hereunder. No such re-issuance of Class D Certificates
shall materially adversely affect any Trustee, the Liquidity Provider, the
Policy Provider or the holders of any Class of Certificates. This Agreement
shall be amended by written agreement of America West and the Subordination
Agent to give effect to the re-issuance of any Class D Certificates as follows:

                  (i) the definition of "Class D Certificates" shall be revised,
         as appropriate, to reflect such re-issuance and the definitions of
         "Final Legal Distribution Date," "LTV Ratio," and "Stated Interest
         Rate" shall be amended to specify the applicable Final Legal
         Distribution Date, LTV Ratio and Stated Interest Rate, respectively,
         for such re-issued Class D Certificates; and

                  (ii) such other provisions shall be revised as shall be
         necessary to provide for distributions on the Class D Certificates
         after payment of all relevant distributions on the Class G Certificates
         and the Class C Certificates.

                  If, with respect to any Aircraft, Series D Equipment Notes are
re-issued, this Agreement shall be amended (to the extent this Agreement does
not already so provide) by written agreement of America West and the
Subordination Agent to (i) provide for each holder of a Series D Equipment Note
to be bound by the provisions of Section 2.6 hereof so that the Controlling
Party shall, among other things, be entitled to direct the Loan Trustee as
provided therein (and such Series D Equipment Notes shall make effective
provision therefor so as to bind each holder thereof to such provisions of
Section 2.6 hereof) and (ii) to revise the definition of "Controlling Party", as
appropriate, to reflect the re-issuance of the Series D Equipment Notes (and the
prior rights, as against the holders of such Series D Equipment Notes, of the
Policy

                                       58
<PAGE>   62
Provider, Class G Trustee and the Class C Trustee to be such "Controlling
Party"). No such amendment shall materially adversely affect any Trustee, any
Liquidity Provider or the Policy Provider. Any re-issuance of Series D Equipment
Notes at any time shall require Ratings Confirmation.

                  SECTION 9.2. Subordination Agent Protected. If, in the
reasonable opinion of the institution acting as the Subordination Agent
hereunder, any document required to be executed pursuant to the terms of Section
9.1 adversely affects any right, duty, immunity or indemnity with respect to it
under this Agreement, any Liquidity Facility or the Policy, the Subordination
Agent may in its discretion decline to execute such document.

                  SECTION 9.3. Effect of Supplemental Agreements. Upon the
execution of any amendment, consent or supplement hereto pursuant to the
provisions hereof, this Agreement shall be and be deemed to be and shall be
modified and amended in accordance therewith and the respective rights,
limitations of rights, obligations, duties and immunities under this Agreement
of the parties hereto and beneficiaries hereof shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
agreement shall be and be deemed to be and shall be part of the terms and
conditions of this Agreement for any and all purposes. In executing or accepting
any supplemental agreement permitted by this Article IX, the Subordination Agent
shall be entitled to receive at its cost, and shall be fully protected in
relying upon, an opinion of counsel stating that the execution of such
supplemental agreement is authorized or permitted by this Agreement.

                  SECTION 9.4. Notice to Rating Agencies. Promptly following its
receipt of each amendment, consent, modification, supplement or waiver
contemplated by this Article IX, the Subordination Agent shall send a copy
thereof to each Rating Agency.

                                    ARTICLE X

                                  MISCELLANEOUS

                  SECTION 10.1. Termination of Intercreditor Agreement.
Following payment of Final Distributions with respect to each Class of
Certificates and the payment in full of all Liquidity Obligations to the
Liquidity Providers and all Policy Provider Obligations to the Policy Provider
and provided that there shall then be no other amounts due to the
Certificateholders, the Trustees, the Liquidity Providers, the Policy Provider
and the Subordination Agent hereunder or under the Trust Agreements, and that
the commitment of the (i) Liquidity Providers under the Liquidity Facilities and
(ii) Policy Provider under the Policy shall have expired or been terminated,
this Agreement and the trusts created hereby shall terminate and this Agreement
shall be of no further force or effect. Except as aforesaid or otherwise
provided, this Agreement and the trusts created hereby shall continue in full
force and effect in accordance with the terms hereof.

                  SECTION 10.2. Intercreditor Agreement for Benefit of Trustees,
Liquidity Providers, the Policy Provider and Subordination Agent. Subject to the
second sentence of Section 10.6 and the provisions of Sections 4.4 and 9.1,
nothing in this Agreement, whether

                                       59
<PAGE>   63
express or implied, shall be construed to give to any Person other than the
Trustees, the Liquidity Providers, the Policy Provider and the Subordination
Agent any legal or equitable right, remedy or claim under or in respect of this
Agreement.

                  SECTION 10.3. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all notices, requests, demands, authorizations,
directions, consents, waivers or documents provided or permitted by this
Agreement to be made, given, furnished or filed shall be in writing, mailed by
certified mail, postage prepaid, or by confirmed telecopy and

                  (i)      if to the Subordination Agent, addressed to at its
                           office at:

                           WILMINGTON TRUST COMPANY
                           Rodney Square North
                           1100 N. Market Street
                           Wilmington, DE  19890-0001

                           Attention:  Corporate Trust Administration
                           Telecopy:  (302) 651-8882

                  (ii)     if to any Trustee, addressed to it at its office at:

                           WILMINGTON TRUST COMPANY
                           Rodney Square North
                           1100 N. Market Street
                           Wilmington, DE  19890-0001

                           Attention:  Corporate Trust Administration
                           Telecopy:  (302) 651-8882

                  (iii)    if to the initial Liquidity Provider, addressed to it
                           at its office at:

                           Westdeutsche Landesbank Girozentrale
                           New York branch
                           1211 Avenue of the Americas
                           New York, New York 10036

                           Business/Credit Contact
                           Attention:  Transportation Finance
                                       Global Structured Finance/Americas
                           Telecopy:  212-869-7634

                           Operations Contact
                           Attention:  Philip Green
                                       Loan Administration
                           Telecopy:   212-302-7946

                                       60
<PAGE>   64
                  (iv)     if to the initial Policy Provider, addressed to it at
                           its office at:

                           Ambac Assurance Corporation
                           One State Street Plaza
                           New York, New York 10004
                           Attention: Surveillance Department
                           Telephone:  (212) 668-0340
                           Telecopy:  (212) 363-1459

                           with a copy to:
                           Attention:  General Counsel - Urgent
                           Telecopy:  (212) 208-3566

Whenever any notice in writing is required to be given by any Trustee, Liquidity
Provider, Policy Provider or the Subordination Agent to any of the other of
them, such notice shall be deemed given and such requirement satisfied when such
notice is received unless received outside of business hours, in which case on
the open of business on the next Business Day. A copy of any notice given by the
Trustee, the Liquidity Provider or the Subordination Agent shall be given to the
Policy Provider; provided that the failure to do so shall not impair the
validity of any such notice or the Policy Provider's obligations hereunder and
under the Policy. Any party hereto may change the address to which notices to
such party will be sent by giving notice of such change to the other parties to
this Agreement.

                  SECTION 10.4. Severability. Any provision of this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  SECTION 10.5. No Oral Modifications or Continuing Waivers. No
terms or provisions of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party or
other Person against whom enforcement of the change, waiver, discharge or
termination is sought and any other party or other Person whose consent is
required pursuant to this Agreement and any waiver of the terms hereof shall be
effective only in the specific instance and for the specific purpose given.

                  SECTION 10.6. Successors and Assigns. All covenants and
agreements contained herein shall be binding upon, and inure to the benefit of,
each of the parties hereto and the successors and assigns of each, all as herein
provided. In addition, the America West Provisions shall inure to the benefit of
America West and its successors and assigns, and (without limitation of the
foregoing) America West is hereby constituted, and agreed to be, an express
third party beneficiary of the America West Provisions. Upon the occurrence of
the Transfers contemplated by the Assignment and Assumption Agreements, the
Trustee of each Class shall (without any further act) be deemed to have
transferred all of its rights, title and interest in and to this Agreement to
the trustee of the Successor Trust of the same Class and, thereafter, the
trustee of each Successor Trust shall be deemed to be the "Trustee" of such
Successor Trust with the rights and obligations of a "Trustee" hereunder and
under the other

                                       61
<PAGE>   65
Operative Agreements and each reference to a Trust of any Class herein shall be
deemed a reference to the Successor Trust of such Class.

                  SECTION 10.7. Headings. The headings of the various Articles
and Sections herein and in the table of contents hereto are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

                  SECTION 10.8. Counterpart Form. This Agreement may be executed
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same agreement.

                  SECTION 10.9. Subordination. (a) As between the Liquidity
Providers and the Policy Provider, on the one hand, and the Trustees and the
Certificateholders, on the other hand, and as among the Trustees, this Agreement
shall be a subordination agreement for purposes of Section 510 of the United
States Bankruptcy Code, as amended from time to time.

                  (b) Notwithstanding the provisions of this Agreement, if prior
to the payment in full to the (i) Liquidity Providers of all Liquidity
Obligations then due and payable and (ii) Policy Provider of all Policy Provider
Obligations then due and payable, any party hereto shall have received any
payment or distribution in respect of Equipment Notes or any other amount under
the Indentures or other Operative Agreements which, had the subordination
provisions of this Agreement been properly applied to such payment, distribution
or other amount, would not have been distributed to such Person, then such
payment, distribution or other amount shall be received and held in trust by
such Person and paid over or delivered to the Subordination Agent for
application as provided herein.

                  (c) If any Trustee, any Liquidity Provider, the Policy
Provider or the Subordination Agent receives any payment in respect of any
obligations owing hereunder (or, in the case of the Liquidity Providers or the
Policy Provider, in respect of the Liquidity Obligations or the Policy Provider
Obligations, as the case may be), which is subsequently invalidated, declared
preferential, set aside and/or required to be repaid to a trustee, receiver or
other party, then, to the extent of such payment, such obligations (or, in the
case of the Liquidity Providers or the Policy Provider, such Liquidity
Obligations or Policy Provider Obligations, as the case may be) intended to be
satisfied shall be revived and continue in full force and effect as if such
payment had not been received.

                  (d) The Trustees (on behalf of themselves and the holders of
Certificates), the Liquidity Providers, the Policy Provider and the
Subordination Agent confirm that the payment priorities specified in Sections
2.4, 3.2 and 3.3 shall apply in all circumstances, notwithstanding the fact that
the obligations owed to the Trustees and the holders of Certificates are secured
by certain assets and the Liquidity Obligations and Policy Provider Obligations
may not be so secured. The Trustees expressly agree (on behalf of themselves and
the holders of Certificates) not to assert priority over the holders of
Liquidity Obligations or Policy Provider Obligations (except as specifically set
forth in Sections 2.4, 3.2 or 3.3) due to their status as secured creditors in
any bankruptcy, insolvency or other legal proceeding.

                                       62
<PAGE>   66
                  (e) Each of the Trustees (on behalf of themselves and the
holders of Certificates), the Liquidity Providers, the Policy Provider and the
Subordination Agent may take any of the following actions without impairing its
rights under this Agreement:

                  (i) obtain a Lien on any property to secure any amounts owing
         to it hereunder, including, in the case of the Liquidity Providers and
         the Policy Provider, the Liquidity Obligations or the Policy Provider
         Obligations, as the case may be,

                  (ii) obtain the primary or secondary obligation of any other
         obligor with respect to any amounts owing to it hereunder, including,
         in the case of the Liquidity Providers and the Policy Provider, any of
         the Liquidity Obligations or the Policy Provider Obligations, as the
         case may be,

                  (iii) renew, extend, increase, alter or exchange any amounts
         owing to it hereunder, including, in the case of the Liquidity
         Providers and the Policy Provider, any of the Liquidity Obligations or
         the Policy Provider Obligations, as the case may be, or release or
         compromise any obligation of any obligor with respect thereto,

                  (iv) refrain from exercising any right or remedy, or delay in
         exercising such right or remedy, which it may have, or

                  (v) take any other action which might discharge a subordinated
         party or a surety under applicable law;

provided, however, that the taking of any such actions by any of the Trustees,
the Liquidity Providers, the Policy Provider or the Subordination Agent shall
not prejudice the rights or adversely affect the obligations of any other party
under this Agreement.

                  SECTION 10.10. Governing Law. THIS AGREEMENT SHALL IN ALL
RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

                  SECTION 10.11. Submission to Jurisdiction; Waiver of Jury
Trial; Waiver of Immunity. (a) Each of the parties hereto hereby irrevocably and
unconditionally:

                   (i) submits for itself and its property in any legal action
         or proceeding relating to this Agreement or any other Operative
         Agreement, or for recognition and enforcement of any judgment in
         respect hereof or thereof, to the nonexclusive general jurisdiction of
         the courts of the State of New York, the courts of the United States of
         America for the Southern District of New York, and the appellate courts
         from any thereof;

                  (ii) consents that any such action or proceeding may be
         brought in such courts, and waives any objection that it may now or
         hereafter have to the venue of any such action or proceeding in any
         such court or that such action or proceeding was brought in an
         inconvenient court and agrees not to plead or claim the same;

                                       63
<PAGE>   67
                 (iii) agrees that service of process in any such action or
         proceeding may be effected by mailing a copy thereof by registered or
         certified mail (or any substantially similar form of mail), postage
         prepaid, to each party hereto at its address set forth in Section 10.3
         hereof, or at such other address of which the other parties shall have
         been notified pursuant thereto; and

                  (iv) agrees that nothing herein shall affect the right to
         effect service of process in any other manner permitted by law or shall
         limit the right to sue in any other jurisdiction.

                  (b) EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE
SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED,
including, without limitation, contract claims, tort claims, breach of duty
claims and all other common law and statutory claims. Each of the parties
warrants and represents that it has reviewed this waiver with its legal counsel,
and that it knowingly and voluntarily waives its jury trial rights following
consultation with such legal counsel. THIS WAIVER IS IRREVOCABLE, AND CANNOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

                  (c) Each Liquidity Provider hereby waives any immunity it may
have from the jurisdiction of the courts of the United States of America or any
State and waives any immunity any of its properties located in the United States
of America may have from attachment or execution upon a judgment entered by any
such court under the United States Foreign Sovereign Immunities Act of 1976 or
any similar successor legislation.

                                       64
<PAGE>   68
                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective officers thereunto duly
authorized, as of the day and year first above written, and acknowledge that
this Agreement has been made and delivered in the City of New York, and this
Agreement has become effective only upon such execution and delivery.

                                  WILMINGTON TRUST COMPANY,
                                       not in its individual capacity but solely
                                       as Trustee for each of the Trusts

                                  By  /s/ W. Chris Sponenberg
                                    --------------------------------------------
                                       Name:     W. Chris Sponenberg
                                       Title:    Assistant Vice President

                                  WESTDEUTSCHE LANDESBANK
                                  GIROZENTRALE, acting through its New York
                                       branch,
                                       as Class G Liquidity Provider and Class C
                                       Liquidity Provider

                                  By  /s/ Brigitte Thieme
                                    --------------------------------------------
                                       Name:     Brigitte Thieme
                                       Title:    Managing Director

                                  By  /s/ Alfred Heynen
                                    --------------------------------------------
                                       Name:     Alfred Heynen
                                       Title:    Associate Director

                                  AMBAC ASSURANCE CORPORATION,
                                       as Policy Provider

                                  By  /s/ David B. Nemschoff
                                    --------------------------------------------
                                       Name:     David B. Nemschoff
                                       Title:    Managing Director

                                  WILMINGTON TRUST COMPANY,
                                       not in its individual
                                       capacity except as
                                       expressly set forth
                                       herein but solely as
                                       Subordination Agent
                                       and trustee

                                  By  /s/ W. Chris Sponenberg
                                    --------------------------------------------
                                       Name:     W. Chris Sponenberg
                                       Title:    Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]