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                                                                  EXECUTION COPY

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                           REVOLVING CREDIT AGREEMENT
                                    (2002-1B)

                           Dated as of March 28, 2002

                                     between

                            WILMINGTON TRUST COMPANY,

                       not in its individual capacity but
                         solely as Subordination Agent,
                          as agent and trustee for the
                  American Trans Air 2002-1B Pass Through Trust

                                   as Borrower

                                       and

                            AIG MATCHED FUNDING CORP.

                              as Liquidity Provider

                                   Relating to

                 American Trans Air 2002-1B Pass Through Trust,
                                 Series 2002-1B
              10.699% American Trans Air Pass Through Certificates,
                                 Series 2002-1B

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                                Table of Contents

<TABLE>
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                                                                                                 ----
<S>                                                                                             <C>
Article 1 DEFINITIONS..............................................................................1
        Section 1.1 Certain Defined Terms..........................................................1

Article 2 AMOUNT AND TERMS OF THE COMMITMENT.......................................................7
        Section 2.1 The Advances...................................................................7
        Section 2.2 Making the Advances............................................................7
        Section 2.3 Fees...........................................................................9
        Section 2.4 Adjustments or Termination of the Maximum Commitment...........................9
        Section 2.5 Repayments of Interest Advances or the Final Advance..........................10
        Section 2.6 Repayments of Provider Advances...............................................10
        Section 2.7 Payments to the Liquidity Provider Under the Intercreditor Agreement..........11
        Section 2.8 Book Entries..................................................................11
        Section 2.9 Payments from Available Funds Only............................................11
        Section 2.10 Non-Extension Advance........................................................12

Article 3 OBLIGATIONS OF THE BORROWER.............................................................12
        Section 3.1 Increased Costs...............................................................12
        Section 3.2 Capital Adequacy..............................................................13
        Section 3.3 Payments Free of Deductions...................................................14
        Section 3.4 Payments......................................................................14
        Section 3.5 Computations..................................................................14
        Section 3.6 Payment on Non-Business Days..................................................15
        Section 3.7 Interest......................................................................15
        Section 3.8 Replacement of Borrower.......................................................16
        Section 3.9 Funding Loss Indemnification..................................................16
        Section 3.10 Illegality...................................................................17

Article 4 CONDITIONS PRECEDENT....................................................................17
        Section 4.1 Conditions Precedent to Effectiveness of Section 2.1..........................17
        Section 4.2 Conditions Precedent to Borrowing.............................................18

Article 5 COVENANTS...............................................................................19
        Section 5.1 Affirmative Covenants of the Borrower.........................................19
        Section 5.2 Negative Covenants of the Borrower............................................19

Article 6 LIQUIDITY EVENTS OF DEFAULT.............................................................20
        Section 6.1 Liquidity Events of Default...................................................20

Article 7 MISCELLANEOUS...........................................................................20
        Section 7.1 Amendments, Etc...............................................................20
        Section 7.2 Notices, Etc..................................................................20
        Section 7.3 No Waiver; Remedies...........................................................21
</TABLE>

                                        i

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<TABLE>
<CAPTION>
<S>                                                                                             <C>
        Section 7.4 Further Assurances............................................................21
        Section 7.5 Indemnification; Survival of Certain Provisions...............................21
        Section 7.6 Limitations on Liability......................................................22
        Section 7.7 Costs, Expenses and Taxes.....................................................23
        Section 7.8 Binding Effect; Participations................................................23
        Section 7.9 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

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

EXHIBIT A  Form of Class B Guarantee Agreement
</TABLE>

                                       ii

<PAGE>

                           REVOLVING CREDIT AGREEMENT
                                    (2002-1B)

       This REVOLVING CREDIT AGREEMENT dated as of March 28, 2002, 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 B Trust (as defined
below) (the "Borrower"), and AIG MATCHED FUNDING CORP., a Delaware Corporation
("AIG" or the "Liquidity Provider").

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

       WHEREAS, pursuant to the Class B Trust Agreement (such term and all other
capitalized terms used in these recitals having the meanings set forth or
referred to in Section 1.1), the Class B Trust is issuing the Class B
Certificates;

       WHEREAS, the Borrower, in order to support the timely payment of a
portion of the interest on the Class B 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;

       WHEREAS, the Company, the Subordination Agent, the Escrow Agent, the
Liquidity Provider, the Depositary and certain other parties concurrently
herewith are entering into a Delayed Funding Implementation Agreement, dated as
of the date hereof pursuant to which the parties agree to supplement and modify
the Operative Agreements; and

       WHEREAS, the Liquidity Provider has requested American International
Group, Inc. (the "LP Guarantor") to execute a guarantee in the form in Exhibit A
hereto providing for the full and unconditional guarantee of the Liquidity
Provider's payment obligations under this Agreement (the "Class B Guarantee
Agreement").

       NOW, THEREFORE, in consideration of the premises, the parties hereto
agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

       Section 1.1 Certain Defined Terms.

       (a) Definitions. As used in this Agreement and unless otherwise expressly
indicated, or unless the context clearly requires otherwise, the following
capitalized terms shall have the following respective meanings for all purposes
of this Agreement:

<PAGE>

       "Additional Certificates" has the meaning assigned to such term in the
Delayed Funding Implementation Agreement.

       "Additional Cost" has the meaning assigned to such term in Section 3.1.

       "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 assigned to such term in
Section 3.7(g).

       "Applicable Margin" means (x) with respect to any Unpaid Advance or
Applied Provider Advance, 2.25%, or (y) with respect to any Unapplied Provider
Advance, 0.65 %.

       "Applied Downgrade Advance" has the meaning assigned to such term in
Section 2.6(a).

       "Applied Non-Extension Advance" has the meaning assigned to such term in
Section 2.6(a).

       "Applied Provider Advance" has the meaning assigned to such term in
Section 2.6(a).

       "Base Rate" means a fluctuating interest rate per annum in effect from
time to time, which rate per annum shall on any day be equal to (a) the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York or if such rate is not so published for
any day that is a Business Day, the average of the quotations for such day for
such transactions received by the Liquidity Provider from three Federal funds
brokers of recognized standing selected by it, plus (b) one-quarter of one
percent (1/4 of 1%).

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

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

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

       "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 Indianapolis,
Indiana, or New York, New York, or, so long as any Class B Certificate is
outstanding, the city and state in which the Class B Trustee, the Borrower or
any Loan Trustee maintains its Corporate Trust Office or receives or disburses
funds, and, if the applicable Business Day relates to any Advance or other
amount bearing interest based on the LIBOR Rate, on which dealings are carried
on in the London interbank market.

                                        2

<PAGE>

       "Certificate Purchase Agreement" means the two Certificate Purchase
Agreements, each dated March 26, 2002 among the Company and Amtran and Nyala
Funding LLC or PK AirFinance US, Inc., respectively, relating to the purchase of
the Class A Certificates and the Class B Certificates, respectively, in each
case as amended, supplemented or otherwise modified from time to time in
accordance with its terms.

       "Class B Guarantee Agreement" has the meaning assigned to such term in
the recital of parties to this Agreement.

       "Class B Guarantee Event" has the meaning assigned to such term in
Section 2.02(c).

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

       "Depositary" means IntesaBCI, S.p.A., acting through its New York Branch.

       "Deposit Agreement" means, prior to the Delayed Funding Date (as defined
in the Delayed Funding Implementation Agreement), the Deposit Agreement (Class
B) dated March 28, 2002 between Wells Fargo Bank Northwest N.A., as Escrow Agent
and IntesaBCI, S.p.A., acting through its New York Branch, as Depositary,
pertaining to the Class B Certificates, and on and after the Delayed Funding
Date, such Deposit Agreement (to the extent of any payment to be made by the
Depositary thereunder on or after the Delayed Funding Date) and the Delayed
Deposit Agreement (Class B) dated March 28, 2002 between Wells Fargo Bank
Northwest N.A., as Escrow Agent and IntesaBCI, S.p.A., New York Branch, as
Depositary, in each case, 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 2.2(c).

       "Effective Date" has the meaning specified in Section 4.1. The delivery
of the certificate of the Liquidity Provider contemplated by Section 4.1 (e)
shall be conclusive evidence that the Effective Date has occurred.

       "Excluded Taxes" means (i) Taxes imposed on the overall net income of the
Liquidity Provider or of its Principal Office, and (ii) Excluded Withholding
Taxes.

       "Excluded Withholding Taxes" means (i) withholding Taxes imposed by the
United States except to the extent that such United States withholding Taxes are
imposed as a result of any change in applicable law after the date hereof
(excluding from change in applicable law for this purpose a change in an
applicable treaty or other change in law affecting the applicability of a
treaty), or in the case of a successor Liquidity Provider (including a
transferee of an Advance) or Principal Office, after the date on which such
successor Liquidity Provider obtains its interest or on which the Principal
Office is changed, and (ii) 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 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.

                                       3
<PAGE>

       "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 any Taxes.

       "Expiry Date" means December 5, 2014.

       "Final Advance" means an Advance made pursuant to Sections 2.2(d) and
6.1.

       "Intercreditor Agreement" means the Intercreditor Agreement dated the
date hereof, among the Trustees, the Liquidity Provider, the liquidity provider
under each Liquidity Facility (other than this Agreement) 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 2.2(a).

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

       (i)   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 B Cash Collateral
   Account for the purpose of paying interest on the Class B Certificates as
   contemplated by Section 2.6(a) hereof and, in either case, ending on the next
   Regular Distribution Date; and

       (ii)  each subsequent period commencing on the last day of the
   immediately preceding Interest Period and ending on but excluding the next
   Regular Distribution Date.

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

       "LIBOR Rate" means, with respect to any Interest Period, (i) the rate per
annum appearing on display page 3750 (British Bankers Association - LIBOR) of
the Dow Jones Markets Service (or any successor or substitute therefor) at
approximately 11:00 A.M. (London time) two Business Days before the first day of
such Interest Period, as the rate for dollar deposits with a maturity comparable
to such Interest Period, or (ii) if the rate calculated pursuant to clause (i)
above is not available, the average (rounded upwards, if necessary, to the next
higher 1/16 of 1%) of the rates per annum at which deposits in dollars are
offered for the relevant Interest Period by three banks of recognized standing
selected by the Liquidity Provider in the London interbank market at
approximately 11:00 A.M. (London time) two Business Days before the first day of
such Interest Period in an amount approximately equal to the principal amount of
the LIBOR Advance to which such Interest Period is to apply and for a period of
time comparable to such Interest Period.

       "Liquidity Event of Default" means the occurrence of either (a) the
Acceleration of all of the Equipment Notes or (b) an ATA Bankruptcy Event.

                                       4
<PAGE>

       "Liquidity Indemnitee" means (i) the Liquidity Provider, (ii) the LP
Guarantor, (iii) each Affiliate of the Liquidity Provider, (iv) the respective
directors, officers, employees and agents of the Liquidity Provider, the LP
Guarantor and their Affiliates, and (v) the successors and permitted assigns of
the persons described in clauses (i) to (iv), inclusive.

       "Liquidity Provider" shall mean AIG Matched Funding Corp., a Delaware
corporation, and its successors and permitted assigns.

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

       "Maximum Available Commitment" shall mean, subject to the proviso
contained in the third sentence of Section 2.2(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 that following a Provider
Advance or a Final Advance, the Maximum Available Commitment shall be zero.

       "Maximum Commitment" means, for any day, the lesser of (x) $5,229,541 and
(y) the Required Amount on such day, provided that if a Downgrade Advance is
made prior to the Delayed Funding Date (as defined in the Delayed Funding
Implementation Agreement), for the purpose of determining the amount of such
Downgrade Advance only, the Maximum Commitment shall be $9,662,940.

       "Non-Excluded Taxes" has the meaning specified in Section 3.3.

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

       "Notice of Borrowing" has the meaning specified in Section 2.2(e).

       "Notice of Replacement Subordination Agent" has the meaning specified in
Section 3.8.

       "Private Placement Memorandum" means the Private Placement Memorandum
dated March 26, 2002 of ATA and Amtran relating to the Certificates, as such
Private Placement Memorandum may be amended or supplemented.

       "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.

       "Principal Office" means the principal office of the Liquidity Provider
presently located in Westport, Connecticut, or such other principal office as
the Liquidity Provider from time to time shall notify the Borrower as its
principal office hereunder; provided that the Liquidity Provider shall not
change its Principal Office to a Principal Office outside the United States of
America except in accordance with Section 3.1, 3.2 or 3.3 hereof.

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

                                       5
<PAGE>

       "Regulatory Change" has the meaning assigned to such term in Section 3.1.

       "Replenishment Amount" has the meaning assigned to such term in Section
2.6(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 B Certificates, that would be payable on the Class B Certificates on
each of the six successive quarterly Regular Distribution Dates immediately
following such day or, if such day is a Regular Distribution Date, on such day
and the succeeding five quarterly Regular Distribution Dates, in each case
calculated on the basis of the Pool Balance of the Class B Certificates on such
day and without regard to expected future payments of principal on the Class B
Certificates.

       "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 B Certificates have been paid in full (or
provision has been made for such payment in accordance with the Intercreditor
Agreement and the Trust Agreements) 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 of
a Termination Notice from the Liquidity Provider pursuant to Section 6.1 hereof;
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.

       "Transferee" has the meaning assigned to such term in Section 7.8(b).

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

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

       "Unpaid Advance" has the meaning assigned to such term in Section 2.5.

       (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", "Amtran", "ATA", "ATA Bankruptcy Event",
   "Certificates", "Class A Certificates", "Class B Cash Collateral Account",
   "Class B Certificates", "Class B Trust", "Class B Trust Agreement", "Class B
   Trustee", "Closing Date", "Controlling Party", "Corporate Trust Office",
   "Delayed Funding Implementation Agreement", "Downgraded Facility", "Equipment
   Notes", "Escrow Agent", "Escrow and

                                       6
<PAGE>

   Paying Agent Agreement", "Fee Letter", "Final Legal Distribution Date",
   "Financing Agreement", "Indenture", "Liquidity Facility", "Liquidity
   Obligations", "Loan Trustee", "Moody's", "Non-Extended Facility", "Note
   Purchase Agreement", "Operative Agreements", "Participation Agreement",
   "Performing Equipment Note", "Person", "Pool Balance", "Regular Distribution
   Date", "Replacement Liquidity Facility", "Responsible Officer", "Standard &
   Poor's", "Scheduled Payment", "Series B Equipment Notes", "Special Payment",
   "Stated Interest Rate", "Subordination Agent", "Taxes", "Threshold Rating",
   "Trust", "Trust Agreements" and "Trustee".

       (c) Interpretation. Each Scheduled Payment with respect to the Class B
Certificates shall be deemed to be comprised of interest and principal
components, with the interest component equaling interest accrued at the Stated
Interest Rate for the Class B Certificates from (i) the later of (x) the date of
the issuance thereof and (y) the most recent but preceding Regular Distribution
Date to (ii) the Regular Distribution Date on which such Scheduled Payment is
being made, such interest to be considered payable in arrears on such Regular
Distribution Date and to be calculated and allocated in the same manner as
interest on the Series B Equipment Notes.

                                   ARTICLE 2

                       AMOUNT AND TERMS OF THE COMMITMENT

       Section 2.1 The 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 City time) on the Expiry Date (unless
the obligations of the Liquidity Provider shall be earlier terminated in
accordance with the terms of Section 2.4(b)) in an aggregate amount at any time
outstanding not to exceed the Maximum Commitment.

       Section 2.2 Making the Advances.

       (a) Interest Advances shall be made in one or more Borrowings by delivery
to the Liquidity Provider of one or more written and completed Notices of
Borrowing in substantially the form of Annex I attached hereto, signed by a
Responsible Officer of the Borrower, in an amount not exceeding the Maximum
Available Commitment at such time and shall be used solely for the payment when
due of the interest on the Class B 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 of all
or any part of the amount of any Interest Advance made pursuant to this Section
2.2(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

                                       7
<PAGE>

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 the
Liquidity Provider gives notice of termination of this Agreement pursuant to
Section 2.10 of this Agreement and Section 3.6(d) of the Intercreditor Agreement
(unless a Replacement Liquidity Facility to replace this Agreement shall have
been previously delivered to the Borrower in accordance with said Section
3.6(d)) 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 Borrower, in an amount equal to the Maximum Available
Commitment at such time, and shall be used to fund the Class B 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 (i) a
downgrading of the Liquidity Provider's short-term debt rating issued by Moody's
below the applicable Threshold Rating or (ii) upon a downgrading of the LP
Guarantor's short term debt rating issued by Standard & Poor's below the
applicable Threshold Rating or if the Class B Guarantee Agreement ceases to be
in full force and effect, becomes invalid or unenforceable or the LP Guarantor
denies its liability thereunder (any such occurrence described in clause (ii), a
"Class B Guarantee Event") unless a Replacement Liquidity Facility to replace
this Agreement shall have been previously delivered to the Borrower in
accordance with Section 3.6(c) of the Intercreditor Agreement, by delivery to
the Liquidity Provider of a written and completed Notice of Borrowing in
substantially the form of Annex III attached hereto, 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 B Cash Collateral Account in
accordance with said Section 3.6(c) and Section 3.6(f) of the Intercreditor
Agreement.

       (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 6.1 hereof by delivery to the Liquidity Provider of a written and
completed Notice of Borrowing in substantially the form of Annex IV attached
hereto, 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 B Cash Collateral Account (in accordance with Sections 3.6(f) and 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 2.2(a), 2.2(b), 2.2(c)
or 2.2(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 1:00 p.m. (New York City time) on a Business Day, upon
satisfaction of the conditions precedent set forth in Section 4.2 with respect
to a requested Borrowing, the Liquidity Provider shall make available to
the Borrower, in accordance with its payment instructions, the amount of such
Borrowing in U.S. dollars and immediately available funds, before 4:00 p.m. (New
York City time) on such Business Day or on such later Business Day specified in
such Notice of Borrowing. If a Notice of Borrowing is delivered by the Borrower
in respect of any Borrowing after 1:00 p.m. (New York City time) on a Business
Day, upon satisfaction of the conditions precedent set forth in Section 4.2 with
respect to a requested Borrowing, the Liquidity Provider shall make available to

                                       8
<PAGE>

the Borrower, in accordance with its payment instructions, the amount of such
Borrowing in U.S. dollars and in immediately available funds, before 4:00 p.m.
(New York City time) on the first Business Day next 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. 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. The Liquidity
Provider acknowledges and confirms that there are no grace periods applicable to
its obligations to make Advances in accordance with this Section 2.2.

       (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. Following the making of any
Advance pursuant to Section 2.2(b), (c) or (d) hereof to fund the Class B Cash
Collateral Account, the Liquidity Provider shall have no interest in or rights
to the Class B Cash Collateral Account, such Advance or any other amounts from
time to time on deposit in the Class B Cash Collateral Account; provided 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. 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 2.3 Fees. The Borrower agrees to pay to the Liquidity Provider
the fees set forth in the Fee Letter.

       Section 2.4 Adjustments or Termination of the Maximum Commitment.

       (a) Automatic Adjustments. Promptly following each date on which the
Required Amount is (i) reduced as a result of a reduction in the Pool Balance of
the Class B Certificates or otherwise, (ii) increased as a result of an increase
in the Stated Interest Rate, or (iii) subsequent to an increase described in
clause (ii), 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 adjustment of the Maximum
Commitment to the Liquidity Provider (with a copy to Amtran) 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.

                                       9
<PAGE>

       Section 2.5 Repayments of Interest Advances or the Final Advance. Subject
to Sections 2.6, 2.7 and 2.9 hereof, the Borrower hereby agrees, without notice
of an Advance or demand for repayment from the Liquidity Provider (which notice
and demand are hereby waived 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 3.7 hereof; provided 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 2.5 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 converted into an
Applied Downgrade Advance or an Applied Non-Extension Advance, as the case may
be, for all purposes of this Agreement (including, without limitation, for the
purpose of determining when such Interest Advance is required to be repaid to
the Liquidity Provider in accordance with Section 2.6 and for the purposes of
Section 2.6(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 2.6 Repayments of Provider Advances.

       (a) Amounts advanced hereunder in respect of a Provider Advance shall be
deposited in the Class B Cash Collateral Account, invested and withdrawn from
the Class B 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 3.7;
provided, however, that amounts in respect of a Provider Advance withdrawn from
the Class B Cash Collateral Account for the purpose of paying interest on the
Class B 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 2.6(b)) be treated as an Interest Advance under this
Agreement for purposes of determining the Applicable Liquidity Rate for interest
payable thereon; provided further, however, that if, following the making of a
Provider Advance, the Liquidity Provider delivers a Termination Notice to the
Borrower pursuant to Section 6.1 hereof, 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. Subject to Sections
2.7 and 2.9 hereof, immediately upon the withdrawal of any amounts from the
Class B 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 3.7 hereof.

                                       10
<PAGE>

       (b) At any time when an Applied Provider Advance (or any portion thereof)
is outstanding, upon the deposit in the Class B 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 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 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 aggregate
outstanding principal amount of all 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 B 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 2.7 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 accordance with the Intercreditor Agreement or, if not provided for
in the Intercreditor Agreement, then in such manner as the Liquidity Provider
shall deem appropriate.

       Section 2.8 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 2.9 Payments from Available Funds Only. All payments to be made
by the Borrower under this Agreement shall be made only from the amounts
received by it that constitute Scheduled Payments, Special Payments or payments
under Section 7 (Owned Aircraft) or Section 9 (Leased Aircraft) of the
Participation Agreements 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 will 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

                                       11
<PAGE>

or liability under this Agreement except as expressly provided in this
Agreement, the Intercreditor Agreement or any Participation Agreement. Amounts
on deposit in the Class B Cash Collateral Account shall be available to the
Borrower to 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 Non-Extension Advance. At any time after the second
anniversary of the date of this Agreement, the Liquidity Provider may, at its
option notify the Borrower and ATA of the early termination of this Agreement,
specifying the date of early termination, which shall be not earlier than the
40th day after the date of such notice (the "Early Termination Date"). If on or
prior to the 15th day prior to the Early Termination Date there shall not have
been delivered to the Borrower a Replacement Liquidity Facility as provided in
Section 3.6(e) of the Intercreditor Agreement, the Borrower shall be entitled on
and after such 15th day (but prior to the Early Termination Date) to request a
Non-Extension Advance in accordance with Section 2.2(b) hereof and Section
3.6(d) of the Intercreditor Agreement.

                                   ARTICLE 3

                           OBLIGATIONS OF THE BORROWER

       Section 3.1 Increased Costs. Subject to the Fee Letter, the Borrower
shall pay to the Liquidity Provider, upon demand by the Liquidity Provider (such
demand to be made not later than 180 days after a Responsible Officer of the
Liquidity Provider obtains actual knowledge of any event referred to in clause
(1) or (2) below), such amounts as may be necessary to compensate the Liquidity
Provider for any increased costs incurred by the Liquidity Provider which are
attributable to its making or maintaining any LIBOR 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, municipal, or foreign laws or regulations (including Regulation
D), or the adoption or making after the date of this Agreement of any
interpretations, directives, or requirements applying to a class of banks
including the Liquidity Provider under any U.S. federal, state, municipal, or
any foreign laws or regulations (whether or not having the force of law) by any
court, central bank or monetary authority charged with the interpretation or
administration thereof (a "Regulatory Change"), which: (1) changes the basis of
taxation of any amounts payable to the Liquidity Provider under this Agreement
in respect of any such Advances (other than Excluded 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 any
deposits referred to in the definition of LIBOR Rate or related definitions);
provided that if such demand for payment is made after such 180-day period, the
Borrower shall be obligated to pay such amounts only with respect to such
increased cost actually incurred or effected on or after the 180th day prior to
the date of such demand. The Liquidity Provider agrees to use reasonable efforts
(consistent with applicable legal and regulatory restrictions) to change the
jurisdiction of

                                       12
<PAGE>

its Principal Office if making such change would avoid the need for, or reduce
the amount of, any amount payable under this Section 3.1 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 agrees that if it shall make a demand for payment
of additional amounts under this Section 3.1, the Borrower shall have the right
to obtain a Replacement Liquidity Facility in replacement of this Agreement in
accordance with Section 3.6(e) of the Intercreditor Agreement provided that such
replacement would eliminate or reduce the obligation of the Borrower to pay such
additional amounts. The Liquidity Provider will notify the Borrower of any event
occurring after the date of this Agreement that will entitle the Liquidity
Provider to compensation pursuant to this Section 3.1 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. Determinations by the Liquidity Provider for purposes
of this Section 3.1 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.

       Section 3.2 Capital Adequacy. Subject to the Fee Letter, if (1) the
adoption, after the date hereof, of any applicable governmental law, rule or
regulation regarding capital adequacy, (2) any change, after the date hereof, in
the interpretation or administration of any such law, rule or regulation by any
central bank or other governmental authority charged with the interpretation or
administration thereof or (3) compliance by the Liquidity Provider or any
corporation controlling the Liquidity Provider with any applicable guideline or
request of general applicability, issued after the date hereof, by any central
bank or other governmental authority (whether or not having the force of law)
that constitutes a change of the nature described in clause (2), has the effect
of requiring an increase in the amount of capital required 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 and has the effect of reducing the rate of return
on the Liquidity Provider's capital as a consequence of issuing or maintaining
its commitment hereunder or its funding or maintaining Advances to a level below
that which the Liquidity Provider could have achieved but for such adoption,
change or compliance (taking into consideration the Liquidity Provider's
policies with respect to capital adequacy) by an amount deemed by the Liquidity
Provider to be material, then, upon demand by the Liquidity Provider, the
Borrower shall pay to the Liquidity Provider from time to time such additional
amount or amounts as are necessary to compensate the Liquidity Provider for such
portion of such increase 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 Principal Office if making such
change would avoid the need for, or reduce the amount of, any amount payable
under this Section that may thereafter accrue and would not, in the reasonable
judgment of the Liquidity Provider, be otherwise materially disadvantageous to
the Liquidity Provider.

                                       13
<PAGE>

       The Liquidity Provider agrees that if it shall make a demand for payment
of additional amounts under this Section 3.2 the Borrower shall have the right
to obtain a Replacement Liquidity Facility in replacement of this Agreement in
accordance with Section 3.6(c) of the Intercreditor Agreement provided that such
replacement would eliminate or reduce the obligation of the Borrower to pay such
additional amounts. The Liquidity Provider will notify the Borrower of any event
occurring after the date of this Agreement that will entitle the Liquidity
Provider to compensation pursuant to this Section 3.2 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. Determinations by the Liquidity Provider for purposes
of this Section 3.2 of the effect of any increase in the amount of capital
required to be maintained by the Liquidity 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.

       Section 3.3 Payments Free of Deductions. 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 present or future stamp or other taxes,
levies, imposts, duties, charges, fees, deductions, withholdings, restrictions
or conditions of any nature whatsoever now or hereafter imposed, levied,
collected, withheld or assessed, excluding Excluded Taxes (such non-excluded
taxes being referred to herein, collectively, as "Non-Excluded Tax" and,
individually, as a "Non-Excluded Tax"). If any Non-Excluded Taxes are required
to be withheld from any amounts payable to the Liquidity Provider under this
Agreement, the amounts so payable to the Liquidity Provider shall be increased
to the extent necessary to yield to the Liquidity Provider (after payment of all
Non-Excluded Taxes and taxes imposed on the receipt of such increase) interest
or any other such amounts payable under this Agreement at the rates or in the
amounts specified in this Agreement. The Liquidity Provider agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to change the jurisdiction of its Principal 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 disadvantageous to the Liquidity Provider.
The Liquidity Provider is duly organized and validly existing as a corporation
under the laws of the State of Delaware.

       Section 3.4 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 account of AIG Matched Funding Corp. at
Bank of New York, New York, CHIPS ABA 001, ABA 021000018, SWIFT IRVTUS3N,
Ultimate Beneficiary Account # 8900416130/UID 376460, Reference: American Trans
Air Pass Through Trust, Series 2002-1B.

       Section 3.5 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 Rate shall be made on
the basis of a year of 360 days, in each

                                       14
<PAGE>

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 3.6 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 or reduce the number
of days for which interest will be payable on such Advance on the next interest
payment date for such Advance.

       Section 3.7 Interest.

       (a) Subject to Section 2.9, 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 B Cash Collateral Account to pay interest
on the Class B 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 B 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 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 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 3.7 shall exceed the maximum rate permitted by applicable law, then any
subsequent reduction in such interest rate will not reduce the rate of interest
payable pursuant to this Section 3.7 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 3.7 had at all times been in effect.

       (b) Each Advance (including, without limitation, each outstanding
Unapplied Provider Advance) will be either a Base Rate Advance or a LIBOR
Advance as provided in this Section. Each such Advance will 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 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

                                       15
<PAGE>

pursuant to Section 2.6, by requesting, prior to 11:00 a.m. on the first
Business Day immediately 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 the LIBOR Rate 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). Each change in the Base Rate shall become effective
immediately.

       (e) [intentionally omitted]

       (f) 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 2.00% until paid.

       (g) The rates of interest specified in this Section 3.7 with respect to
any Advance or other amount shall be referred to as the "Applicable Liquidity
Rate".

       Section 3.8 Replacement of Borrower. 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 attached
hereto (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 3.9 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:

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

       (b) Any failure by the Borrower to borrow a LIBOR Advance on the date for
   borrowing specified in the relevant notice under Section 2.2.

                                       16
<PAGE>

       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
Principal 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 Principal 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.

                                   ARTICLE 4

                              CONDITIONS PRECEDENT

       Section 4.1 Conditions Precedent to Effectiveness of Section 2.1. Section
2.1 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), each in form and substance
   satisfactory to the Liquidity Provider:

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

           (ii) the Intercreditor Agreement and the Delayed Funding
       Implementation Agreement duly executed on behalf of each of the parties
       thereto;

           (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) and each Guaranty (as defined
       in each Participation Agreement) entered into on or prior to the date
       hereof;

           (iv) a copy of the Private Placement Memorandum and a specimen copy
       of the Class B Certificate;

           (v) an executed copy of each document, instrument, certificate and
       opinion delivered on or before the Closing Date pursuant to the Class B
       Trust Agreement, the Intercreditor Agreement, the Participation
       Agreements and the other Operative Agreements entered into on or prior to
       the date hereof (in the case of each such opinion 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);

                                       17
<PAGE>

           (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
       Trustees, the Borrower and the Liquidity Provider created by the
       Operative Agreements executed and delivered on or prior to the Closing
       Date;

           (vii) a letter from Amtran agreeing to provide to the Liquidity
       Provider the periodic financial reports referred to in Section 8.04 of
       the Trust Agreements and agreeing to cause the Company to deliver to the
       Liquidity Provider with respect to any Participation Agreement or
       Financing Agreement executed and delivered after the date hereof, the
       certificate referred to in Section 2(b) of the Note Purchase Agreement;
       and

           (viii) such other documents, instruments, opinions and approvals
       pertaining to the transactions contemplated hereby or by the other
       Operative Agreements as the Liquidity Provider shall have reasonably
       requested.

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

       (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, and all conditions
precedent to the purchase of the Certificates on the Closing Date under the
Certificate Purchase Agreements shall have been satisfied (unless any of such
conditions precedent shall have been waived by the respective purchasers
thereunder).

       (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 2.1
have been satisfied or waived.

       Section 4.2 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>

                                    ARTICLE 5

                                    COVENANTS

       Section 5.1 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 will, unless the Liquidity Provider
shall otherwise consent in writing:

       (1) Performance of This and Other 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.

       (2) 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.

       (3) Certain Operative Agreements. Furnish to the Liquidity Provider with
   reasonable promptness, such Operative Agreements entered into after the date
   hereof as from time to time may be reasonably requested by the Liquidity
   Provider.

       Section 5.2 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 will not without the prior written
consent of the Liquidity Provider:

       (a) Amendments. Modify, amend or supplement, or give any consent to any
   modification, amendment or supplement or make any waiver with respect to, any
   provision of any Operative Agreement that could reasonably have a negative
   impact on the Liquidity Provider, except for any supplemental agreement to
   the Trust Agreements provided for in Section 9.01 thereof and except as
   provided in the Delayed Funding Implementation Agreement.

       (b) Borrower. Appoint or permit or suffer to be appointed any successor
   Borrower without the prior written approval of the Liquidity Provider (which
   approval shall not be unreasonably withheld or delayed).

                                       19
<PAGE>

                                    ARTICLE 6

                           LIQUIDITY EVENTS OF DEFAULT

       Section 6.1 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 2.2(d)
hereof 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 2.7 and 2.9 hereof, 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.

                                    ARTICLE 7

                                  MISCELLANEOUS

       Section 7.1 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 or of a waiver by the
Borrower, the Borrower, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.
Notwithstanding any provision of this Agreement, upon and simultaneously with
the issuance of the Additional Certificates, this Agreement shall be forthwith
amended as provided for in the Delayed Funding Implementation Agreement, without
any need for further action on the part of any party hereto and without any
consent of any of the holders of the Certificates.

       Section 7.2 Notices, Etc. Except as otherwise expressly provided herein,
all notices and other communications provided for hereunder shall be in writing
(including telecopier and mailed or delivered or 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) 636 - 4140

                                       20
<PAGE>

    Liquidity Provider:

    prior to April 7, 2002            AIG Matched Funding Corp.
                                      100 Nyala Farm
                                      Westport, CT 06880

                                      Attention: Chief Financial Officer
                                      Telecopy: (203) 222-4780
                                      Reference: American Trans Air Pass Through
                                                 Trust 2002-1B

    on or after April 7, 2002         AIG Matched Funding Corp.
                                      50 Danbury Road
                                      Wilton, CT 06894-4444

                                      Attention: Chief Financial Officer
                                      Telecopy: (203) 222-4780
                                      Reference: American Trans Air Pass Through
                                                 Trust 2002-1B

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, and (ii) 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 hereof
shall not be effective until received by the Liquidity Provider. 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 7.3 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 7.4 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 7.5 Indemnification; Survival of Certain Provisions. The
Liquidity Provider shall be indemnified hereunder to the extent and in the
manner described in Section 7 of the Participation Agreements for Owned Aircraft
or Section 9 of the Participation Agreements

                                       21
<PAGE>

for Leased Aircraft and Section 6 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 Sections 3.1, 3.2 or 7.7 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 Fee Letter, the Intercreditor
Agreement or any Financing 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 7 of the Participation Agreements for Owned Aircraft or Section 9 of the
Participation Agreements for Leased Aircraft, and the provisions of Sections
3.1, 3.2, 3.3, 3.9, 7.5 and 7.7 hereof, shall survive the termination of this
Agreement.

       Section 7.6 Limitations on Liability.

       (1) Neither the Liquidity Provider nor any of its officers, employees,
directors 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 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 strictly complying with the terms and conditions hereof.

       (2) 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 immediately
preceding paragraph), in connection with this Agreement or any Notice of
Borrowing.

                                       22
<PAGE>

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

       Section 7.7 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 (including, without limitation, the reasonable fees and
expenses of outside counsel for the Liquidity Provider) 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 and (B)
on demand, all reasonable costs and expenses (including reasonable counsel fees
and expenses) of the Liquidity Provider 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 B 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 7.8 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 7.8) nor (except as contemplated by Section 3.8) the Borrower shall have
the right to assign its rights or obligations hereunder or any interest herein
without the prior written consent of the other party, subject to the
requirements of Section 7.8(b). Notwithstanding anything to the contrary
contained herein, at any time, the Liquidity Provider may, at its option,
arrange for a Replacement Liquidity Facility to replace this Liquidity Facility
in accordance with Section 3.6(e) of the Intercreditor Agreement; provided that
such replacement will not result in any increased costs payable by the Trust.
The Liquidity Provider may grant participations herein or in any of its rights
hereunder

                                       23
<PAGE>

(including, without limitation, funded participations and participations in
rights to receive interest payments hereunder) and under the other Operative
Agreements to such Persons (other than ATA or its Affiliates) as the Liquidity
Provider may in its sole discretion select, subject to the requirements of
Section 7.8(b). No such participation by the Liquidity Provider, however, will
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
(other than ATA or its Affiliates). Accordingly, references in this Agreement
and the other Operative Agreements to determinations, reserve and capital
adequacy requirements, increased costs, reduced receipts, additional amounts due
pursuant to Section 3.3 and the like as they pertain to the Liquidity Provider
shall be deemed also to include those of each of its participants (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).

       (b) If, pursuant to subsection (a) above, the Liquidity Provider sells
any participation in this Agreement to any bank or other entity (each, a
"Transferee"), then, concurrently with the effectiveness of such participation,
the Transferee 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 will be required to be withheld with
respect to any payments to be made to such Transferee 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 Transferee's entitlement
to a complete exemption from United States federal withholding tax with 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 Transferee 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) indicating that payments hereunder are not
subject to United States federal withholding tax, the Borrower will withhold
taxes as required by law from such payments at the applicable statutory rate.

       (c) Notwithstanding the other provisions of this Section 7.8, the
Liquidity Provider may assign and pledge all or any portion of the Advances
owing to it to any Federal 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

                                       24
<PAGE>

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 7.9 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 nonauthorization 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 LAW OF THE STATE OF NEW YORK.

       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 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;

       (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 7.2 hereof, 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.

       (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

                                       25
<PAGE>

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.

       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 counterparts, 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, the Intercreditor Agreement and
the other Operative Agreements to which the Liquidity Provider is a party
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.

                                      * * *

                                       26
<PAGE>

       IN WITNESS WHEREOF, the parties 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, as agent and
                                          trustee for the Class B Trust, as
                                          Borrower

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

                                          AIG MATCHED FUNDING CORP.
                                          as Liquidity Provider

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

                                       27
<PAGE>

                                                                      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 AIG Matched Funding Corp. (the
"Liquidity Provider"), with reference to the Revolving Credit Agreement
(2002-1B) dated as of March 28, 2002, between the Borrower and the Liquidity
Provider (as amended, supplemented or otherwise modified from time to time in
accordance with its terms, 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 for
       the payment of the interest on the Class B Certificates which was payable
       on _______________________________ (the "Distribution Date") in
       accordance with the terms and provisions of the Class B Trust Agreement
       and the Class B Certificates, which Advance is requested to be made on
       ________________.

             (3) The amount of the Interest Advance requested hereby (i) is
       $_______ , to be applied in respect of the payment of the interest which
       was due and payable on the Class B Certificates on the Distribution Date,
       (ii) does not include any amount with respect to the payment of principal
       of, or premium on, the Class B Certificates, or principal of, or interest
       or premium on the Class A Certificates, (iii) was computed in accordance
       with the provisions of the Class B Certificates, the Class B 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 B 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 will 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 requested to be made
hereby as set forth in clause (i) of paragraph (3) of this Certificate and such

<PAGE>

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:

                                        2

<PAGE>

               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

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

<PAGE>

                                                                        Annex II
                                                      Revolving Credit Agreement

                    NON-EXTENSION ADVANCE NOTICE OF BORROWING

             The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to AIG Matched Funding Corp. (the
"Liquidity Provider"), with reference to the Revolving Credit Agreement
(2002-1B) dated as of March 28, 2002, between the Borrower and the Liquidity
Provider (as amended, supplemented or otherwise modified from time to time in
accordance with its terms, 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 B Cash Collateral Account in accordance with
       Section 3.6(d) of the Intercreditor Agreement, which Advance is requested
       to be made on ____________.

             (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 B 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 B Certificates,
       or principal of, or interest or premium on the Class A Certificates,
       (iii) was computed in accordance with the provisions of the Class B
       Certificates, the Class B 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
       B 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.

<PAGE>

             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:

                                        2

<PAGE>

             SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

                 [Insert Copy of computations in accordance with
                   Non-Extension Advance Notice of Borrowing]

<PAGE>

                                                                    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 AIG Matched Funding Corp. (the
"Liquidity Provider"), with reference to the Revolving Credit Agreement
(2002-1B) dated as of March 28, 2002, between the Borrower and the Liquidity
Provider (as amended, supplemented or otherwise modified from time to time in
accordance with its terms, 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 B Cash Collateral Account in accordance with
       Section 3.6(c) of the Intercreditor Agreement by reason of (i) the
       downgrading of the short-term debt rating of the Liquidity Provider
       issued by Moody's below the applicable Threshold Rating or (ii) the
       occurrence of a Class B Guarantee Event, which Advance is requested to be
       made on ___________, _________.

             (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 B 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 the principal of, or premium on, the Class B Certificates, or
       principal of, or interest or premium on the Class A Certificates, (iii)
       was computed in accordance with the provisions of the Class B
       Certificates, the Class B 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
       B 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 Downgrade Advance
requested by this Notice of Borrowing, the Borrower shall not be entitled to
request any further Advances under the Liquidity Agreement.

<PAGE>

             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:

                                        2

<PAGE>

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

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

<PAGE>

                                                                     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 AIG Matched Funding Corp. (the
"Liquidity Provider"), with reference to the Revolving Credit Agreement
(2002-1B) dated as of March 28, 2002, between the Borrower and the Liquidity
Provider (as amended, supplemented or otherwise modified from time to time in
accordance with its terms, 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 B 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 B 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 B Certificates, or principal
       of, or interest or premium on the Class A Certificates, (iii) was
       computed in accordance with the provisions of the Class B Certificates,
       the Class B 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 will deposit such amount in the Class
       B 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].*

------------------
* Bracketed language is optional.

<PAGE>

             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.

                                      * * *

                                        2

<PAGE>

             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:

                                        3

<PAGE>

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

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

<PAGE>

                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                                 [Date]

Wilmington Trust Company,
  as Subordination Agent, as Borrower
Rodney Square North
1100 North Market Square
Wilmington, DE 19890-0001

Attention: Corporate Trust Administration

      Re:    Revolving Credit Agreement dated as of March 28, 2002, between
             Wilmington Trust Company, as Subordination Agent, as agent and
             trustee for the American Trans Air Pass Through Trust, Series
             2002-1B, as Borrower, and AIG Matched Funding Corp. (as amended,
             supplemented or otherwise modified from time to time in accordance
             with its terms, the "Liquidity Agreement")

Ladies and Gentlemen:

             You are hereby notified that pursuant to Section 6.1 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.

<PAGE>

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

                                                 Very truly yours,

                                                 AIG Matched Funding Corp.,
                                                 as Liquidity Provider

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

cc:    Wilmington Trust Company,
            as Class B Trustee

                                       2

<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

             Revolving Credit Agreement dated as of March 28, 2002, between
Wilmington Trust Company, as Subordination Agent, as agent and trustee for the
American Trans Air Pass Through Trust, 2002-1B, as Borrower, and AIG Matched
Funding Corp. (as amended, supplemented or otherwise modified from time to time
in accordance with its terms, the "Liquidity Agreement")

Ladies and Gentlemen:

             For value received, the undersigned beneficiary hereby irrevocably
transfers to:

                             -----------------------
                              (Name of Transferee)

                             -----------------------
                              (Name of Transferee)

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

<PAGE>

             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:

                                        2

<PAGE>

                                                                    Exhibit A to
                                                      Revolving Credit Agreement

                       FORM OF CLASS B GUARANTEE AGREEMENT<PAGE>
                                                                  EXECUTION COPY

                             INTERCREDITOR AGREEMENT

                                   Dated as of

                                 March 28, 2002

                                      AMONG

                            WILMINGTON TRUST COMPANY,

                         not in its individual capacity
                         but solely as Trustee under the
                  American Trans Air 2002-1A Pass Through Trust
                                       and
                 American Trans Air 2002-1B Pass Through Trust,

                            AIG MATCHED FUNDING CORP.

                          as Class A Liquidity Provider
                         and Class B Liquidity Provider,

                                       AND

                            WILMINGTON TRUST COMPANY,

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

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

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

ARTICLE II  TRUST ACCOUNTS; CONTROLLING PARTY....................................................................20

         SECTION 2.1  Agreement to Terms of Subordination; Payments from Monies Received Only....................20
         SECTION 2.2  Trust Accounts.............................................................................21
         SECTION 2.3  Deposits to the Collection Account and Special Payments Account............................22
         SECTION 2.4  Distributions of Special Payments..........................................................22
         SECTION 2.5  Designated Representatives.................................................................25
         SECTION 2.6  Controlling Party..........................................................................26

ARTICLE III  RECEIPT, DISTRIBUTION AND APPLICATION OF............................................................27

         SECTION 3.1.  Written Notice of Distribution............................................................27
         SECTION 3.2.  Distribution of Amounts on Deposit in the Collection Account..............................29
         SECTION 3.3.  Distribution of Amounts on Deposit Following a Triggering Event...........................31
         SECTION 3.4  Other Payments.............................................................................33
         SECTION 3.5.  Payments to the Trustees and the Liquidity Providers......................................33
         SECTION 3.6.  Liquidity Facilities......................................................................33

ARTICLE IV  EXERCISE OF REMEDIES.................................................................................39

         SECTION 4.1.  Directions from the Controlling Party.....................................................39
         SECTION 4.2.  Remedies Cumulative.......................................................................40
         SECTION 4.3.  Discontinuance of Proceedings.............................................................40
         SECTION 4.4.  Right of Certificateholders to Receive Payments Not to Be Impaired........................41
         SECTION 4.5.  Undertaking for Costs.....................................................................41

ARTICLE V  DUTIES OF THE SUBORDINATION AGENT; AGREEMENTS OF TRUSTEES, ETC........................................41

         SECTION 5.1.  Notice of Indenture Default or Triggering Event...........................................41
         SECTION 5.2.  Indemnification...........................................................................42
         SECTION 5.3.  No Duties Except as Specified in Intercreditor Agreement..................................42
         SECTION 5.4.  Notice from the Liquidity Providers and Trustees..........................................42

ARTICLE VI  THE SUBORDINATION AGENT..............................................................................43

         SECTION 6.1.  Authorization; Acceptance of Trusts and Duties............................................43
         SECTION 6.2.  Absence of Duties.........................................................................43
         SECTION 6.3.  No Representations or Warranties as to Documents..........................................43
         SECTION 6.4.  No Segregation of Monies; No Interest.....................................................43
         SECTION 6.5.  Reliance; Agents; Advice of Counsel.......................................................44
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                             <C>
         SECTION 6.6.  Capacity in Which Acting..................................................................44
         SECTION 6.7.  Compensation..............................................................................44
         SECTION 6.8.  May Become Certificateholder..............................................................45
         SECTION 6.9.  Subordination Agent Required; Eligibility.................................................45
         SECTION 6.10.  Money to Be Held in Trust................................................................45

ARTICLE VII  INDEMNIFICATION OF SUBORDINATION AGENT..............................................................45

         SECTION 7.1.  Indemnification...........................................................................45

ARTICLE VIII  SUCCESSOR SUBORDINATION AGENT......................................................................46

         SECTION 8.1.  Replacement of Subordination Agent; Appointment of Successor..............................46

ARTICLE IX  SUPPLEMENTS AND AMENDMENTS...........................................................................47

         SECTION 9.1.  Amendments, Waivers, Etc..................................................................47
         SECTION 9.2.  Subordination Agent Protected.............................................................49
         SECTION 9.3.  Effect of Supplemental Agreements.........................................................49
         SECTION 9.4.  Notice to Rating Agency...................................................................50

ARTICLE X  MISCELLANEOUS.........................................................................................50

         SECTION 10.1.  Termination of Intercreditor Agreement...................................................50
         SECTION 10.2.  Intercreditor Agreement for Benefit of Trustees, Liquidity Providers and
                              Subordination Agent................................................................50
         SECTION 10.3.  Notices..................................................................................50
         SECTION 10.4.  Severability.............................................................................51
         SECTION 10.5.  No Oral Modifications or Continuing Waivers..............................................52
         SECTION 10.6.  Successors and Assigns...................................................................52
         SECTION 10.7.  Headings.................................................................................52
         SECTION 10.8.  Counterpart Form.........................................................................52
         SECTION 10.9.  Subordination............................................................................52
         SECTION 10.10.  GOVERNING LAW...........................................................................54
         SECTION 10.11.  Submission to Jurisdiction; Waiver of Jury Trial........................................54
         SECTION 10.12.  Transfer................................................................................54
         SECTION 10.13.  Subordination Agent's Liability.........................................................55
</TABLE>

                                       ii

<PAGE>

                             INTERCREDITOR AGREEMENT
                             -----------------------

         INTERCREDITOR AGREEMENT dated as of March 28, 2002, 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), AIG
Matched Funding Corp., a Delaware corporation, as Class A Liquidity Provider and
Class B Liquidity Provider, and WTC, 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 ATA at the time such Indenture is entered into (the "Owned
Aircraft"), ATA will issue on a recourse basis two series of Equipment Notes to
finance the purchase of such Aircraft and (ii) in the case of each Aircraft that
is leased to ATA 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 two 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, the Company and Amtran have entered into two Certificate
Purchase Agreements (together, as amended, supplemented or otherwise modified in
accordance with their terms, the "Certificate Purchase Agreements"), each dated
as of March 26, 2002 with Nyala Funding LLC (the "Class A Purchaser") and PK
AirFinance US, Inc. (the "Class B Purchaser"), respectively, providing for the
purchase of the Class A Certificates and the Class B Certificates, respectively;

         WHEREAS, the Company, Amtran, the Trustee, the Subordination Agent, the
Escrow Agent, the Liquidity Provider, the Paying Agent, the Class A Purchaser
and the Class B Purchaser concurrently herewith are entering into a Delayed
Funding Implementation Agreement, dated as of the date hereof (the "Delayed
Funding Implementation Agreement"), pursuant to which the parties thereto agree
to supplement and modify the Operative Agreements, as defined therein;

         WHEREAS, the initial Liquidity Provider proposes to enter into the
Class A Liquidity Facility and the Class B Liquidity Facility with the
Subordination Agent, as agent for the respective Trustee of each of the two
Trusts, for the benefit of the Certificateholders of such Trust;

<PAGE>
                                       2

         WHEREAS, American International Group, Inc. will guarantee, pursuant to
two separate guarantee agreements dated as of the date hereof (each, a
"Guarantee Agreement") the payment obligations of AIG-MF under the Class A
Liquidity Facility and the Class B Liquidity Facility, respectively;

         WHEREAS, it is a condition precedent to the purchase of the Class A
Certificates by the Class A Purchaser and of the Class B Certificates by the
Class B Purchaser that the Subordination Agent, the Trustees, and the Liquidity
Providers agree to the terms of subordination set forth in this Agreement in
respect of each Class of Certificates, and the Subordination Agent, the Trustees
and the Liquidity Providers, 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

         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",
"Accelerating" and "Accelerated" have meanings correlative to the foregoing.

<PAGE>
                                       3

         "Adjusted Expected Distributions" means with respect to the
Certificates of any Trust on any Current Distribution Date the sum of (x) the
amount of 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:

         (A) 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 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 for all of the
Aircraft, clause (B) above shall not apply.

         For purposes of calculating Adjusted Expected Distributions with
respect to the Certificates of any Trust, any premium paid on the Equipment
Notes held in such Trust which has not been distributed to the
Certificateholders of such Trust (other than such premium 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 Advances
as defined in such Liquidity Facility.

<PAGE>

                                       4

         "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.

         "Aggregate LTV Collateral Amount" means, for any Class of Certificates
for any Distribution Date, 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, but in no event an amount less than zero.

         "AIG" means American International Group, Inc., a Delaware corporation,
and its successors and permitted assigns.

         "AIG-MF" means AIG Matched Funding Corp., a Delaware corporation, and
its successors and permitted assigns.

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

         "Amtran" means Amtran, Inc., an Indiana corporation, and its successors
and permitted assigns.

         "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
LTV Appraisals of such Aircraft.

         "Appraisers" means Aircraft Information Services, Inc., Morten Beyer
and Agnew, Inc. and Simat, Helliesen and Eichner, Inc.

         "ATA" means American Trans Air, Inc., an Indiana corporation, and its
successors and permitted assigns.

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

         (a) the commencement of an involuntary case or other proceeding in
     respect of ATA in an involuntary case under the federal bankruptcy laws, as
     now or hereafter constituted, or any other applicable federal or state
     bankruptcy, insolvency or other similar law in the United States or seeking
     the appointment of a receiver, liquidator, assignee, custodian, trustee,
     sequestrator (or similar official) of ATA or for all or substantially all
     of its property, or seeking the winding-up or liquidation of its affairs
     and the continuation of any such case or other proceeding undismissed and
     unstayed for a period of ninety (90) consecutive days or an order, judgment
     or decree shall be entered in

<PAGE>
                                       5

     any proceeding by any court of competent jurisdiction appointing, without
     the consent of ATA, a receiver, trustee or liquidator of ATA, or of any
     substantial part of its property, or sequestering any substantial part of
     the property of ATA and any such order, judgment or decree or appointment
     or sequestration shall be final or shall remain in force undismissed,
     unstayed or unvacated for a period of ninety (90) days after the date of
     entry thereof; or

         (b) the commencement by ATA of a voluntary case under the federal
     bankruptcy laws, as now constituted or hereafter amended, or any other
     applicable federal or state bankruptcy, insolvency or other similar law in
     the United States, or the consent by ATA to the appointment of or taking
     possession by a receiver, liquidator, assignee, trustee, custodian,
     sequestrator (or other similar official) of ATA or for all or substantially
     all of its property, or ATA shall admit in writing its inability to pay its
     debts generally as they come due, or the making by ATA of any assignment
     for the benefit of creditors or the taking by ATA of any corporate action
     to authorize any of the foregoing.

         "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 Indianapolis,
Indiana, 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, solely
with respect to draws under any Liquidity Facility, that is also a "Business
Day" as defined in such Liquidity Facility.

         "Cash Collateral Account" means the Class A Cash Collateral Account or
the Class B Cash Collateral Account, as applicable.

         "Certificate" means a Class A Certificate or a Class B Certificate, as
applicable.

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

         "Certificate Purchase Agreements" has the meaning assigned to such term
in the preliminary statements to this Agreement.

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

         "Class A 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 A Liquidity Facility pursuant to Section 3.6(c), 3.6(d) or
3.6(i) shall be deposited.

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

         "Class A Certificates" means the certificates issued by the Class A
Trust, substantially in the form of Exhibit A to the Class A Trust Agreement,
and authenticated by the

<PAGE>
                                       6

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

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

         "Class A 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 A Trustee, and the initial Class A 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 A Liquidity Provider" means AIG Matched Funding Corp., together
with any Replacement Liquidity Provider which has issued a Replacement Liquidity
Facility to replace any Class A Liquidity Facility pursuant to Section 3.6(e).

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

         "Class A Trust" means American Trans Air 2002-1A Pass Through Trust
created and administered pursuant to the Class A Trust Agreement.

         "Class A Trust Agreement" means the Pass Through Trust Agreement dated
as of March 28, 2002, among ATA, Amtran and the Class A Trustee governing the
creation and administration of American Trans Air 2002-1A Pass Through Trust and
the issuance of the Class A Certificates, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

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

         "Class B 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 B Liquidity Facility pursuant to Section 3.6(c), 3.6(d) or
3.6(i) shall be deposited.

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

         "Class B Certificates" means the certificates issued by the Class B
Trust, substantially in the form of Exhibit A to the Class B Trust Agreement,
and authenticated by the Class B Trustee, representing fractional undivided
interests in the Class B Trust, and any certificates issued in exchange therefor
or in replacement thereof pursuant to the terms of the

<PAGE>
                                       7

Class B Trust Agreement and/or the Registration Rights Agreement (including,
without limitation, any Exchange Certificates (as defined in the Class B Trust
Agreement)).

         "Class B 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 B Trustee, and the initial Class B 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 B Liquidity Provider" means AIG Matched Funding Corp., together
with any Replacement Liquidity Provider which has issued a Replacement Liquidity
Facility to replace any Class B Liquidity Facility pursuant to Section 3.6(e).

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

         "Class B Trust" means American Trans Air 2002-1B Pass Through Trust
created and administered pursuant to the Class B Trust Agreement.

         "Class B Trust Agreement" means the Pass Through Trust Agreement dated
as of March 28, 2002 among ATA, Amtran and the Class B Trustee governing the
creation and administration of the American Trans Air 2002-1B Pass Through Trust
and the issuance of the Class B Certificates, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

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

         "Class C Certificates" means pass through certificates, if any, issued
by the Class C Trust representing fractional undivided interests in the Class C
Trust.

         "Class C Trust" means the American Trans Air 2002-1C Pass Through
Trust, if and when established.

         "Closing Date" means March 28, 2002.

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

         "Collateral" has the meaning assigned to such term in the 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.

<PAGE>
                                       8

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

         "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 Adjusted Expected Distributions or Expected
Distributions with respect to the Certificates of any Trust as of such
Distribution Date.

         "Delayed Funding Implementation Agreement" has the meaning assigned to
such term in the preliminary statements to this Agreement.

         "Delivery Period Expiry Date" means the earlier of (a) September 29,
2002, and (b) the date on which Equipment Notes with respect to all 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 each Class, prior to
the Delayed Funding Date (as defined in the Delayed Funding Implementation
Agreement), the Deposit Agreement pertaining to such Class dated the date hereof
between the Escrow Agent and the Depositary, and on and after the Delayed
Funding Date, such Deposit Agreement (to the extent of any payment to be made by
the Depositary thereunder on or after the Delayed Funding Date) and the Delayed
Deposit Agreement pertaining to such Class dated the date hereof between the
Escrow Agent and the Depositary, in each case, as the same may be amended,
modified or supplemented from time to time in accordance with the terms thereof
and shall include any Replacement Deposit Agreement (as defined in the Note
Purchase Agreement).

         "Depositary" means IntesaBCI S.p.A, acting through its New York Branch,
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.

         "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).

<PAGE>
                                       9

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

         "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 the Rating Agency and Standard and Poor's of at least A-3 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 the Rating
Agency and Standard & Poor's of at least A-3 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,
(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
issuer 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, or (d)
investments in any U.S. money market fund registered under the Investment
Company Act of 1940, as amended, which has been issued the highest rating in its
category by Moody's and Standard & Poor's that invests solely in obligations
described in clause (a) above; 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 clause (a), (b) or (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 clauses (a), (b) and (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

<PAGE>
                                       10

United States for purposes of the Code. Notwithstanding the foregoing, no
investment of the types described in clause (b) or (c) above which is issued or
guaranteed by ATA or Amtran or any of their respective Affiliates shall be an
Eligible Investment.

         "Equipment Notes" means, at any time, the Series A Equipment Notes and
the Series B 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 Wells Fargo Bank Northwest, National Association,
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 the
date hereof among the Escrow Agent, the Trustee for such Class, the Paying Agent
and the Class A Purchaser or the Class B Purchaser, as the case may be, as the
same may be amended, modified or supplemented from time to time in accordance
with the terms thereof.

         "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 or 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 the 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). For purposes of
calculating Expected Distributions with respect to the Certificates of any
Trust, any premium paid on the Equipment Notes held in such Trust which has not
been distributed to the Certificateholders of such Trust (other than such
premium 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.

<PAGE>
                                       11

         "Fee Letter" means the Fee Letter dated as of the date hereof among AIG
Matched Funding Corp., ATA and the Subordination Agent with respect to the
initial Liquidity Facilities and any fee letter entered into among the
Subordination Agent, ATA and any Replacement Liquidity Provider, in each case as
it may be amended, supplemented or otherwise modified from time to time.

         "Final Distributions" means, with respect to the Certificates of any
Trust on any Distribution Date, the sum of (a) 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 (b) 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 premium paid on the Equipment Notes held in such Trust which has
not been distributed to the Certificateholders of such Trust (other than such
premium 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, for the Class A Certificates,
November 20, 2014 and for the Class B Certificates, August 20, 2009.

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

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

         "Guarantee Event" has the meaning assigned to such term in Section
3.6(c),

         "Indenture" means each of the Trust Indenture and Mortgages entered
into by the Loan Trustee, and the Owner Trustee or ATA, 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 Default" means, with respect to any Indenture, a Mortgage
Event of Default under (and as defined in) any Indenture relating to a Leased
Aircraft or an Event of Default under (and as defined in) an Indenture relating
to an Owned Aircraft.

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

<PAGE>
                                       12

         "Interest Payment Date" means, with respect to any Liquidity Facility,
each date on which interest is due and payable under Section 3.7(c) or 3.7(d) of
such Liquidity Facility on a Downgrade Drawing, Non-Extension Drawing or Final
Drawing.

         "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.

         "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.

         "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
principal amount of any Drawings under the Liquidity Facilities and (ii) any
interest accrued on any Liquidity Obligations.

         "Liquidity Facility" means, at any time, the Class A Liquidity Facility
or the Class B Liquidity Facility, as applicable.

         "Liquidity Obligations" means all principal, interest, fees and other
amounts owing to the Liquidity Providers under the Liquidity Facilities, the Fee
Letter, Section 7 of the Participation Agreements for Owned Aircraft or Section
9 of the Participation Agreements for Leased Aircraft.

         "Liquidity Provider" means, at any time, the Class A Liquidity Provider
or the Class B Liquidity Provider, as applicable.

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

         "LTV Appraisal" means a current fair market appraisal (which may be a
"desktop" appraisal) performed by any Appraiser or any other nationally
recognized appraiser on the basis of an arm's-length transaction between an
informed and willing purchaser under no compulsion

<PAGE>
                                       13

to buy and an informed and willing seller under no compulsion to sell and both
having knowledge of all relevant facts.

         "LTV Collateral Amount" of any Leased Aircraft or Owned Aircraft for
any Class of Certificates means, on 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 A Certificates, 51% and for the Class B
Certificates, 66%.

         "Maximum Available Commitment" with respect to any Liquidity Facility,
has the meaning assigned to such term in such Liquidity Facility.

         "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.

         "Non-Controlling Party" means, at any time, any Trustee or Liquidity
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).

         "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 ATA, Amtran, each Trustee, the Escrow Agent, the
Subordination Agent and the Paying Agent, as the same may be amended, modified
or supplemented from time to time in accordance with the terms thereof.

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

<PAGE>
                                       14

         "Operative Agreements" means this Agreement, the Liquidity Facilities,
the Escrow and Paying Agent Agreements, the Deposit Agreements, the Indentures,
the Trust Agreements, the Certificate Purchase Agreements, the Delayed Funding
Implementation Agreement, the Financing Agreements, the Leases, the
Participation Agreements, the Fee Letter, the Equipment Notes and the
Certificates, together with all exhibits and schedules included with any of the
foregoing and each of the other documents and instruments referred to in the
definitions of "Operative Agreements" contained in the Leases or the
Indenture(s) with respect to Owned Aircraft.

         "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 cancelled 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 Amtran, ATA or any of their 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 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 Amtran, ATA or any of
their 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 to this Agreement.

<PAGE>
                                       15

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

         "Owner Participant" with respect to each Leased Aircraft, has the
meaning provided in the Lease relating thereto.

         "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 Wilmington Trust Company, 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 involving ATA under Title 11 of the United
States Code (the "Bankruptcy Code"), (i) any payment default occurring before
the date of the order for relief for such proceedings shall not be taken into
consideration 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) (the "Section 1110 Period"), (ii) any payment default occurring
after the date of the order of relief in such proceeding shall not be taken into
consideration if such payment default is cured under Section 1110(a)(2)(B) of
the Bankruptcy Code before the later of (A) 30 days after the date of such
default or (B) the expiration of the Section 1110 Period and (iii) any payment
default occurring after the Section 1110 period will not be taken into
consideration if such payment default is cured before the end of the grace
period, if any, set forth in the related Indenture.

         "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.

         "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

<PAGE>
                                       16

premium 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, any payment of principal
of the Equipment Notes or payment with respect to other Trust Property held in
such Trust and the distribution thereof to be made on that date.

         "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 with respect
thereto in an aggregate amount sufficient to pay such interest and shall have
distributed such amount to the Trustee entitled thereto).

         "Rating Agency" means, at any time, a nationally recognized rating
agency which shall have been requested to rate the Certificates and which shall
then be rating the Certificates. Initially, the Rating Agency shall be Moody's.

         "Rating Confirmation" means, with respect to any action proposed to be
taken, a written confirmation from the Rating Agency 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 or (ii) a withdrawal or
suspension of the rating of any Class of Certificates.

         "Registration Rights Agreement" means the Registration Rights Agreement
dated as of March 26, 2002, among the Investors (as defined therein), the
Trustees, Amtran and ATA, as amended, supplemented or otherwise modified from
time to time in accordance with its terms.

         "Regular Distribution Dates" means each February 20, May 20, August 20
and November 20, commencing on May 20, 2002; 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 Trust, a revolving
credit agreement issued by a Replacement Liquidity Provider in substantially the
form of the replaced Liquidity Facility for such Trust, including reinstatement
provisions or in such other form (which may include a letter of credit) as shall
permit the Rating Agency to confirm in writing its rating

<PAGE>
                                       17

then in effect for each Class of Certificates (before the downgrading of such
rating, if any, as a result of the downgrading of the replaced Liquidity
Provider) in a face amount equal to the Required Amount for such Liquidity
Facility and issued by a Replacement Liquidity Provider, provided that, if a
form of Liquidity Facility that is not substantially in the form of the replaced
Liquidity Facility is to be used, ATA shall have received a satisfactory opinion
of tax counsel satisfactory to ATA with respect to such form of Replacement
Liquidity Facility (and a copy of such opinion shall be furnished to the
Subordination Agent).

         "Replacement Liquidity Provider" means a Person having a short-term
unsecured debt rating (or, as applicable, a short-term corporate credit rating)
issued by the Rating Agency or Standard & Poor's which is equal to or higher
than the Threshold Rating who issues a Replacement Liquidity Facility.

         "Required Amount" means, with respect to each Liquidity Facility, or
the Cash Collateral Account related thereto, 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 six successive Regular
Distribution Dates immediately following such day or, if such day is a Regular
Distribution Date, on such day and the succeeding five 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.

         "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 the Liquidity Provider, any authorized officer of
such Liquidity 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, 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, premium, 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).

<PAGE>
                                       18

         "Series A Equipment Notes" means the 8.328% Series A Equipment Notes
issued pursuant to each Indenture by the related Owner Trustee or ATA, as the
case may be, and authenticated by the Loan Trustee thereunder, and any such
secured certificate issued in exchange therefor or replacement thereof pursuant
to the terms of such Indenture.

         "Series B Equipment Notes" means the 10.699% Series B Equipment Notes
issued pursuant to each Indenture by the related Owner Trustee or ATA, as the
case may be, and authenticated by the Loan Trustee thereunder, and any such
secured certificate issued in exchange therefor or replacement thereof pursuant
to the terms of such Indenture.

         "Series C Equipment Notes" means equipment notes, if any, issued
pursuant to any Indenture by the related Owner Trustee or ATA, as the case may
be, and authenticated by the Loan Trustee thereunder, and designated as "Series
C" thereunder, and any such equipment notes issued in exchange therefor or
replacement thereof pursuant to the terms of such Indenture.

         "Special Distribution Date" means with respect to any Special Payment,
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; 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,
whether pursuant to Section 2.4 or Section 3.3.

         "Special Payment" means any payment (other than a Scheduled Payment) in
respect of, or any proceeds of, any Equipment Note, Trust Indenture Estate or
Collateral (as defined in each Indenture), including Overdue Scheduled Payments,
payments in respect of the redemption or repurchase of any Equipment Note, and
payments in respect of the sale of any Equipment Note to the related Owner
Trustee or Owner Participant (in the case of a Leased Aircraft) or any other
Person.

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

         "Stated Expiration Date" has the meaning assigned to it in Section
3.6(d).

         "Stated Interest Rate" means (i) with respect to the Class A
Certificates, 8.328% per annum and, (ii) with respect to the Class B
Certificates, 10.699% per annum, plus, in each case, an additional margin of
0.50% per annum for any period required by the Registration Rights Agreement.

<PAGE>
                                       19

         "Subordination Agent" has the meaning assigned to it in the preamble 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.

         "Tax" and "Taxes" mean any and all taxes, fees, levies, duties,
tariffs, imposts, and other charges of any 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 or other charges 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 and similar
charges; taxes or other charges in the nature of excise, withholding, ad
valorem, stamp, transfer, value added, taxes on goods and services, gains taxes,
license, registration and documentation fees, customs duties, tariffs, and
similar charges.

         "Threshold Rating" means the short-term unsecured debt rating of P-1 by
Moody's or the short-term corporate credit rating of A-1 by Standard & Poor's,
as the case may be.

         "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.

         "Triggering Event" means (x) the occurrence of an Indenture 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,
or a failure to pay at final maturity, all of the outstanding Equipment Notes or
(z) the occurrence of an ATA Bankruptcy Event.

         "Trust" means either of the Class A Trust or the Class B Trust.

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

         "Trust Agreement" means either of the Class A Trust Agreement or the
Class B Trust Agreement.

<PAGE>
                                       20

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

         "Trustee" means either of the Class A Trustee or the Class B 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).

         "Written Notice" means, from the Subordination Agent, any Trustee or
any Liquidity 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 preamble to this
Agreement.

                                   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 or as provided in Section 2.4(b), 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 or payments
under Section 7 of the Participation Agreements for Owned Aircraft and Section 9
of the Participation Agreements for Leased Aircraft or payments under Section 6
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

<PAGE>
                                       21

which it is a party, 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 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 and the Liquidity Providers, and (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 and the Liquidity Providers. 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
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
Liquidity Provider 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 any then specified Special Distribution Date,
as the case may be, next following the date of such investment; provided,
however, that following the making of a Downgrade Drawing or Non-Extension
Drawing, the Subordination Agent shall invest and reinvest such amounts in
Eligible Investments at the direction of ATA (or, if and to the extent so
specified to the Subordination Agent by ATA 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 Eligible Investments 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, the provisions of 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

<PAGE>
                                       22

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). 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
and the Liquidity Providers, 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 Rating Agency may consent) establish a new Collection
Account, Special Payments 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 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.

         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 in the
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 and the Liquidity Providers. The
Subordination Agent shall promptly calculate the amount of the redemption or
purchase of Equipment Notes or the amount of any Overdue Scheduled Payment or
the proceeds of Equipment Notes 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 first Business Day which follows the later to occur of (x) the 15th day
after the date of such Written Notice or (y) the date the Subordination Agent
receives 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.

<PAGE>
                                       23

         (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 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 accrued, due and unpaid Liquidity Expenses then in arrears ("past
     due amounts") plus (B) the product of (x) the aggregate amount of all
     accrued, but not due and unpaid Liquidity Expenses not in arrears to such
     Special Distribution Date multiplied by (y) a fraction (the "Section 2.4(b)
     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 ("accrued amounts"),
     shall be distributed to the Liquidity Providers 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 owed
     to each Liquidity Provider;

         second, such amount as shall be required to pay (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 shall be distributed to the Liquidity
     Providers pro rata on the basis of the amount of such Liquidity Obligations
     owed to each Liquidity Provider;

         third, such amount as shall be required (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 Maximum Available Commitment 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 (A) nor subclause (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 amount of any unreimbursed
     Interest Drawings under such Liquidity Facility shall be distributed to the
     Liquidity Providers pro rata on the basis of the amount of such Liquidity
     Obligations owed to each Liquidity Provider;

<PAGE>
                                       24

         fourth, if, with respect to any particular Liquidity Facility, any
     amounts are to be distributed pursuant to either subclause (A) or (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 Class A Certificates on such Special
     Distribution Date shall be distributed to the Class A Trustee;

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

         seventh, if Class C Certificates are issued, such amount as shall be
     required to pay in full "Expected Distributions" (to be defined in a manner
     equivalent to the definition for other Classes of Certificates) to the
     holders of Class C Certificates on such Special Distribution Date shall be
     distributed to the Class C Trustee; and

         eighth, 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) At any time following the occurrence of a Triggering Event (whether or
not continuing), the Subordination Agent shall make distributions of amounts on
deposit in the Special Payments Account on account of the redemption, prepayment
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.

<PAGE>
                                       25

         (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. 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, Amtran or ATA in respect of
any Trustee, any Liquidity Provider, any Paying Agent, any Depositary or any
Escrow Agent (collectively, the "Payees") and (ii) any compensation (including,
without limitation, any fees payable to any Liquidity Provider under Section
2.03 of any Liquidity Facility) received by it from the Owner Participant, the
Owner Trustee, Amtran or ATA 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 and
each Trustee, and from time to time thereafter may furnish to each Liquidity
Provider and each Trustee, at the Subordination Agent's discretion, or upon any
Liquidity Provider's or any 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 and each 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.

         (c) With the delivery of this Agreement, each Liquidity Provider shall
furnish to the Subordination Agent, and from time to time thereafter may furnish
to the Subordination Agent, at such Liquidity 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 certifying
as to the incumbency and specimen signatures of any officer, attorney-in-fact,
agent or

<PAGE>
                                       26

other designated representative of such Liquidity Provider respectively (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 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.

         SECTION 2.6 Controlling Party. (a) The Trustees and the Liquidity
Providers hereby agree that, with respect to any Indenture at any given time,
the Loan Trustee thereunder will be directed (i) in taking, or refraining from
taking, any action under such Indenture or with respect to the Equipment Notes
issued thereunder, so long as no Indenture Event of Default has occurred and is
continuing thereunder, by the holders of at least a majority of the outstanding
principal amount of such Equipment Notes (provided that, for so long as the
Subordination Agent is the registered holder of such Equipment Notes, the
Subordination Agent shall act with respect to this clause (i) in accordance with
the directions of the Trustees of Trusts for which the related Trust Properties
include, in the aggregate, a majority of outstanding principal amount of such
Equipment Notes), and (ii) after the occurrence and during the continuance of an
Indenture Default thereunder, in taking, or refraining from taking, any action
under such Indenture or with respect to such Equipment Notes, including
exercising remedies thereunder (including Accelerating the Equipment Notes
issued thereunder or foreclosing the Lien created thereunder on the Aircraft
securing such Equipment Notes), by the Subordination Agent as directed by the
Controlling Party.

         (b) The Person who shall be the "Controlling Party" with respect to any
Indenture shall be: (x) the Class A Trustee so long as the Final Distribution on
the Class A Certificates has not been made; and (y) upon payment of the Final
Distributions to the Class A Certificateholders, the Class B Trustee. For
purposes of giving effect to the foregoing provisions of Section 2.6(a) 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 if 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.

         (c) Notwithstanding the foregoing, at any time after 18 months from the
earliest to occur of (i) the date on which the entire Maximum Available
Commitment under any

<PAGE>
                                       27

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, the Liquidity Provider, if any, with the highest
outstanding amount of Liquidity Obligations then owed to it and not then in
default in its obligations to make any Drawing under any Liquidity Facility
shall have the right to elect, by Written Notice to the Subordination Agent 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.

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

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

         (iii) 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 Section 2.4(b), as the case may be, hereof; and

<PAGE>
                                       28

         (iv) Each Trustee shall set forth the amounts to be paid in accordance
     with clause "eighth" 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 A Certificates, the Class A Trustee shall
     set forth the amounts to be paid in accordance with clauses "first" and
     "sixth" (to reimburse payments made by the Class A Certificateholders
     pursuant to subclause (iii) of clause "first" and subclause (iii) of clause
     "sixth" of Section 3.3 hereof) and "seventh" of Section 3.3 hereof;

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

         (iii) 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 (iii) of clause "first" and clauses "second",
     "third", "fourth" and "fifth" of Section 3.3 hereof; and

         (iv) 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 or a Liquidity 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 Sections 2.4, 3.2, 3.3 or
3.7 hereof, as applicable, and, in the case of a Liquidity Provider, its
commitment under the related Liquidity Facility, 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 or any Liquidity Provider pursuant to paragraphs
(a) through (c) above and shall have no

<PAGE>
                                       29

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 or a Liquidity Provider,
as applicable, pursuant to Sections 3.1(a), 3.1(b) or 3.1(c) 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
"eighth" of Section 2.4(b) or clauses "first" through "ninth" of Section 3.2 and
clauses "first" through "ninth" of Section 3.3, as the case may be, 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 or any Trustee shall request, 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 (provided that for the avoidance of doubt, any amounts received by the
Trustee by noon on a Regular Distribution Date shall be distributed on such
Regular Distribution Date and in no event later than the immediately succeeding
Business Day):

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

<PAGE>
                                       30

         second, such amount as shall be required to pay 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) shall be
     distributed to the Liquidity Providers pro rata on the basis of the amount
     of such Liquidity Obligations owed to each Liquidity Provider;

         third, such amount as shall be required (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 Maximum Available Commitment 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 (A) nor subclause (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 then due under such Liquidity Facility (other than amounts
     payable pursuant to clause "first" or "second" of this Section 3.2);

         fourth, if, with respect to any particular Liquidity Facility, any
     amounts are to be distributed pursuant to either subclause (A) or (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 A Certificates on such
     Distribution Date shall be distributed to the Class A Trustee;

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

         seventh, if Class C Certificates are issued, such amount as shall be
     required to pay in full "Expected Distributions" (to be defined in a manner
     equivalent to the definition for other Classes of Certificates) to the
     holders of Class C Certificates on such Distribution Date shall be
     distributed to the Class C Trustee; and

         eighth, 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

<PAGE>
                                       31

     Agreements, as the case may be, shall be distributed to the Subordination
     Agent and such Trustee; and

         ninth, the balance, if any, of any such payment 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 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 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 securing such Equipment Notes, 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, and (iii)
     any Liquidity 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 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 (iii) above;

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

         third, such amount remaining as shall be required to pay 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)
     shall be distributed to the Liquidity Providers pro rata on the basis of
     the amount of such Liquidity Obligations owed to each Liquidity Provider;

         fourth, such amount remaining as shall be required (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

<PAGE>
                                       32

     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 Maximum Available Commitment 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 (A) nor subclause (B) of this clause "fourth"
     are applicable, to pay in full the outstanding amount of all Liquidity
     Obligations then due under such Liquidity Facility (other than amounts
     payable pursuant to clause "second" or "third" of this Section 3.3), shall
     be distributed to such Liquidity Provider, pro rata on the basis of the
     amounts of all such deficiencies and/or unreimbursed Liquidity Obligations
     in respect of each Liquidity Provider;

         fifth, if, with respect to any particular Liquidity Facility, any
     amounts are to be distributed pursuant to either subclause (A) or (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;

         sixth, such amount as shall be required to reimburse or pay (i) the
     Subordination Agent for any Tax (other than Taxes imposed on compensation
     paid hereunder), 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 Taxes imposed on
     compensation paid under the applicable Trust Agreement), 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 A Certificates shall be
     distributed to the Class A Trustee;

<PAGE>
                                       33

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

         ninth, if Class C Certificates are issued, such amount as is required
     to pay in full "Adjusted Expected Distributions" (to be defined in a manner
     equivalent to the definition for other Classes of Certificates) on the
     Class C Certificates shall be distributed to the Class C Trustee;

         tenth, such amount remaining shall be retained in the Collection
     Account until the immediately succeeding Distribution Date; and

         eleventh, if all Classes of Certificates shall have been paid in full,
     such amount remaining shall be distributed to the Certificateholders of the
     related Trust.

         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(c) only, each reference in
clause "eighth" 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 "sixth" of Section 3.2 to "Distribution Date" shall be deemed
to refer to such Scheduled Payment Date.

         SECTION 3.5. Payments to the Trustees and the Liquidity Providers. Any
amounts distributed hereunder to any Liquidity Provider shall be paid to such
Liquidity Provider by wire transfer of funds to the address such Liquidity
Provider shall provide to the Subordination Agent. The Subordination Agent shall
provide a Written Notice of any such transfer to the applicable Liquidity
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

<PAGE>
                                       34

Subordination Agent shall not have sufficient funds for the payment of any
amounts due and owing in respect of accrued interest on the Class A Certificates
or the Class B Certificates (at the Stated Interest Rate for such Class of
Certificates), then, prior to 1:00 p.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 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 Maximum Available Commitment 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 A
Liquidity Facility and all amounts withdrawn by the Subordination Agent from the
Class A Cash Collateral Account, and payable in each case to the Class A Trustee
on behalf of the Class A Certificateholders, shall be promptly distributed to
the Class A Trustee and (ii) all payments received by the Subordination Agent in
respect of an Interest Drawing under the Class B Liquidity Facility and all
amounts withdrawn by the Subordination Agent from the Class B Cash Collateral
Account, and payable in each case to the Class B Trustee on behalf of the Class
B Certificateholders, shall be promptly distributed to the Class B Trustee.

         (c) Downgrade Drawings. If at any time (i) the short-term unsecured
debt rating of any Liquidity Provider other than AIG-MF issued by the Rating
Agency or Standard & Poor's is lower than the applicable Threshold Rating or in
the case of AIG-MF, the short-term unsecured debt rating of AIG-MF issued by the
Rating Agency is lower than the applicable Threshold Rating or (ii) so long as
AIG-MF is the Liquidity Provider, the short-term unsecured debt rating of AIG
issued by Standard & Poor's is lower than the applicable Threshold Rating or the
related Guarantee Agreement ceases to be in full force and effect, becomes
invalid or unenforceable or AIG denies its liability thereunder (any such
occurrence described in clause (ii), a "Guarantee Event"), within 10 days after
such downgrading or Guarantee Event (but no later than the expiration date of
the Liquidity Facility issued by the relevant Liquidity Provider (the
"Downgraded Facility")), such Liquidity Provider may arrange, or the
Subordination Agent (in consultation with ATA), 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 10th 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.

<PAGE>
                                       35

         (d) Non-Extension Drawings. At any time after the second anniversary of
the date of this Agreement, the Liquidity Provider of a Liquidity Facility with
respect to any Class of Certificates may, at its option, notify the
Subordination Agent and ATA of the early termination of such Liquidity Facility
pursuant to Section 2.10 of such Liquidity Facility, (a "Non-Extended
Facility"), specifying the date of early termination, which shall be not earlier
than the 40th day after the date of such notice (the "Early Termination Date").
If on or prior to the 15th day prior to the Early Termination Date there shall
not have been delivered to the Borrower a Replacement Liquidity Facility as
provided in Section 3.6(e) hereof, the Subordination Agent shall, on such 15th
day (or as soon as possible thereafter), in accordance with and to the extent
permitted by the terms of the Non-Extended Facility, request a drawing under
such Non-Extended 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. At any time, the
Subordination Agent may, at its option, in consultation with ATA, arrange for a
Replacement Liquidity Facility to replace the Liquidity Facility for any Class
of Certificates; provided that the initial Liquidity Provider may only be
replaced in whole and not in part with respect to all Liquidity Facilities and
may not be replaced (except as provided in any other section of this Agreement)
unless there shall have become due to the initial Liquidity Provider amounts
pursuant to Section 3.1, 3.2 or 3.3 of the Liquidity Facilities and the
replacement of the initial Liquidity Provider would reduce or eliminate the
obligation to pay such amounts. In any such consultation, the Subordination
Agent shall accept the recommendations of ATA, in the absence of a good faith
reason not to do so. Notwithstanding anything to the contrary contained herein,
at any time, the initial Liquidity Provider may, at its option, arrange for a
Replacement Liquidity Facility to replace its Liquidity Facility, provided that
such replacement will not result in any increased costs payable by the related
Trust. If such Replacement Liquidity Facility is provided at any time after a
Downgrade Drawing or a 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. No such Replacement Liquidity Facility executed in
connection therewith shall become effective and no such Replacement Liquidity
Facility shall be deemed a "Liquidity Facility" under the Operative Agreements,
unless and until (i) the conditions referred to in the immediately following
paragraph shall have been satisfied and (ii) if such Replacement Liquidity
Facility shall materially adversely affect the rights, remedies, interests or
obligations of the Class A Certificateholders or the Class B Certificateholders
under any of the Operative Agreements, the applicable Trustee shall have
consented, in writing, to the execution and issuance of such Replacement
Liquidity Facility.

         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 the Rating Agency that such
Replacement Liquidity Facility will not cause a reduction of the rating then in
effect for any Class of Certificates by such Rating Agency (without regard to
the rating of any Liquidity Provider being replaced pursuant to Section 3.6(c)
or 3.6(d) hereof, (y) pay all Liquidity Obligations then owing to the replaced
Liquidity

<PAGE>
                                       36

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, it being
understood that no Replacement Liquidity Facility shall become effective (other
than insofar as necessary to permit the repayment of amounts owed to the
replaced Liquidity Provider) until all amounts owed to the replaced Liquidity
Provider have been paid) 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.
Upon satisfaction of the conditions set forth in this Section 3.6(e), (i) the
replaced Liquidity Facility shall terminate and (ii) such 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 A
Liquidity Facility or the Class B Liquidity Facility pursuant to Section 3.6(c),
3.6(d) or a Final Drawing shall be made as provided in the Liquidity Facility,
amounts so drawn shall be deposited by the Subordination Agent in the Class A
Cash Collateral Account or the Class B Cash Collateral Account, respectively.
Amounts so deposited shall be invested in Eligible Investments in accordance
with Section 2.2(b) hereof. Investment Earnings on amounts on deposit in the
Cash Collateral Accounts shall be deposited in the Collection Account prior to
giving effect to the distributions below on each Distribution Date after any
such amounts are deposited in any Cash Collateral Account. The Subordination
Agent shall deliver a written statement to ATA and the respective Liquidity
Provider to be paid one day prior to each 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
     on the Class A Certificates (at the Stated Interest Rate for the Class A
     Certificates) from any other source, withdraw from the Class A Cash
     Collateral Account, and pay to the Class A Trustee an amount equal to the
     lesser of (x) an amount which, when added to the amount of interest payable
     by the Depositary on the Deposits with respect to the Class A Certificates
     on such Distribution Date, equals the amount necessary to pay accrued and
     unpaid interest (at the Stated Interest Rate for the Class A Certificates)
     on such Class A Certificates and (y) the amount on deposit in the Class A
     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
     on the Class B Certificates (at the Stated Interest Rate for the Class B
     Certificates) from any other source, withdraw from the Class B Cash
     Collateral Account, and pay to the Class B Trustee an amount equal

<PAGE>
                                       37

     to the lesser of (x) an amount which, when added to the amount of interest
     payable by the Depositary on the Deposits with respect to the Class B
     Certificates on such Distribution Date, equals the amount necessary to pay
     accrued and unpaid interest (at the Stated Interest Rate for the Class B
     Certificates) on such Class B Certificates and (y) the amount on deposit in
     the Class B Cash Collateral Account;

         (iii) on each date on which the Pool Balance of the Class A Trust shall
     have been reduced by payments made to the Class A 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 A Cash Collateral Account such amount
     as is necessary so that, after giving effect to the reduction of the Pool
     Balance on such date (including any such reduction resulting from a prior
     withdrawal of amounts on deposit in the Class A Cash Collateral Account on
     such date), the Required Amount (with respect to the Class A Liquidity
     Facility) will be on deposit in the Class A Cash Collateral Account and
     shall first, pay such amount to the Class A Liquidity Provider until the
     Liquidity Obligations (with respect to the Class A Certificates) shall have
     been paid in full, and second, deposit any remaining amount in the
     Collection Account;

         (iv) on each date on which the Pool Balance of the Class B Trust shall
     have been reduced by payments made of the Class B 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 B Cash Collateral Account such amount
     as is necessary so that, after giving effect to the reduction of the Pool
     Balance on such date (including any such reduction resulting from a prior
     withdrawal of amounts on deposit in the Class B Cash Collateral Account on
     such date), the Required Amount (with respect to the Class B Liquidity
     Facility) will be on deposit in the Class B Cash Collateral Account and
     shall first, pay such amount to the Class B Liquidity Provider until the
     Liquidity Obligations (with respect to the Class B Certificates) shall have
     been paid in full, and second, deposit any remaining amount in the
     Collection Account;

         (v) if a Replacement Liquidity Facility for any Class of 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 any
     Class of 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

<PAGE>
                                       38

     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 the
Liquidity Facility for any Trust, upon the reimbursement of the applicable
Liquidity Provider for all or any part of the amount of such Interest Drawing,
together with any accrued interest thereon, the Maximum Available Commitment 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 (i) 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 under such Liquidity
Facility or (y) a Final Drawing shall have occurred under such Liquidity
Facility. In the event that under any particular Liquidity Facility funds (i)
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 any time when unreimbursed
Interest Drawings have reduced the Maximum Available Commitment 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 under such Liquidity
Facility shall be deposited in such Cash Collateral Account as provided in
clause "third" of Section 2.4(b)(i), 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.

         (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 and to the extent permitted by 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) Adjustment of Stated Amount. Promptly following each date on which
the Required Amount of the Liquidity Facility for a Class of Certificates is
adjusted in accordance with the terms of such Liquidity Facility, the
Subordination Agent shall, if any such Liquidity Facility provides for
adjustments of the Stated Amount of such Liquidity Facility and if such
adjustments are not automatic, request such Liquidity Provider for such Class of
Certificates to adjust such Stated Amount to an amount equal to the Required
Amount with respect to such Liquidity Facility (as calculated by the
Subordination Agent after giving effect to the event leading to such
adjustment). Each such request shall be made in accordance with the provisions
of the applicable Liquidity Facility.

<PAGE>
                                       39

         (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 Certificates of any Class, will be
distributed to the Trustee for such Class of Certificates notwithstanding
Sections 2.4, 3.2, 3.3 and 3.6(h) hereof.

                                   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 Default under any
Indenture, the Controlling Party shall direct the Subordination Agent which
shall in turn 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 Default with respect thereto, the Controlling
Party may 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.

         (ii) Subject to the Owner Trustees' and the Owner Participants' rights,
     if any, set forth in the Indentures with respect to the 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 ATA 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
     ATA 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
     ATA under such Lease before giving effect to such adjustment, in each case,
     using the weighted average interest rate of the Equipment Notes then
     outstanding 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 Default (and
     before the occurrence of

<PAGE>
                                       40

     a Triggering Event) commission LTV 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 LTV
     Appraisals for 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 any 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 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 Controlling Party
or 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
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

<PAGE>
                                       41

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 or any Liquidity
Provider 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
or Liquidity Provider.

         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 or a Trustee or a suit by Certificateholders holding more
than 10% of the original principal amount of any Class of Certificates.

                                    ARTICLE V

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

         SECTION 5.1. Notice of Indenture Default or Triggering Event. (a) In
the event the Subordination Agent shall have actual knowledge of the occurrence
of an Indenture 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 Agency, the Liquidity
Providers and the Trustees notice of such Indenture Default or Triggering Event,
unless such Indenture 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
Default, Performing Note Deficiency, Liquidity Event of Default or Triggering
Event unless notified in writing by one or more Trustees, one or more Liquidity
Providers or one or more Certificateholders.

         (b) Other Notices. The Subordination Agent will furnish to each
Liquidity Provider and Trustee, promptly upon receipt thereof, duplicates or
copies of all reports, notices,

<PAGE>
                                       42

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 or
Trustee, as applicable, pursuant to the express provision of any other Operative
Agreement.

         (c) Determinations and Notifications. The Subordination Agent agrees to
provide to ATA, upon its request, information in its possession concerning
amounts contained in, and returns earned on, any Cash Collateral Account and any
other information needed for ATA to determine amounts owing to any Liquidity
Provider.

         SECTION 5.2. Indemnification. The Subordination Agent shall not be
required to take any action or refrain from taking any action under Section 5.1
(other than the first sentence thereof) or 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, or refrain from taking 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 Section 5.1 (other than the first sentence of Section
5.1(a)) or 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 5.2 or 7.1 hereof) promptly take such action
as may be necessary to duly 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 a
Responsible Officer of any Liquidity Provider or any Trustee has notice of an
Indenture Default or a Triggering Event, such Liquidity Provider or Trustee, as
the case may be, shall promptly give notice thereof to all other Liquidity
Providers and Trustees and to the Subordination Agent;

<PAGE>
                                       43

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 A Trustee and the Class B Trustee hereby designates and appoints the
Subordination Agent as the agent and trustee of such Trustee under the
applicable Liquidity Facility and authorizes the Subordination Agent to enter
into the Delayed Funding Implementation Agreement, the applicable Liquidity
Facility and Fee Letter as agent and trustee for such Trustee. Each of the
Liquidity Providers 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 material 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 and the Liquidity Providers make no
representation or warranty hereunder whatsoever.

         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 or any Liquidity Provider as
provided in Articles II and III hereof or

<PAGE>
                                       44

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 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 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 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 and each of the
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 at the cost of ATA, 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
compensation, including expenses and disbursements, for all services rendered
hereunder (such compensation shall be set forth in a separate fee agreement
between ATA and WTC) 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, 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
or
<PAGE>
                                       45

Liquidity 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 of
America and shall be authorized under the laws of the United States of America
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. Indemnification. The Subordination Agent shall be
indemnified hereunder to the extent and in the manner described in Section 7 of
the Participation Agreements

<PAGE>
                                       46

for Owned Aircraft, Section 9 of the Participation Agreements for Leased
Aircraft and Section 6 of the Note Purchase Agreement. The indemnities contained
in such Sections of such agreements shall survive the termination of this
Agreement.

                                  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 and each Liquidity 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 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 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.

<PAGE>
                                       47

         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 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 successor Subordination Agent shall be effective
unless and until the Rating Agency shall have delivered a Rating Confirmation.

                                   ARTICLE IX

                           SUPPLEMENTS AND AMENDMENTS

         SECTION 9.1. Amendments, Waivers, Etc. (a) Except as provided in
Section 9.1(b), this Agreement may not be supplemented, amended or modified
without the consent of each Trustee (acting 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
and each Liquidity Provider; provided, however, that this Agreement may be
supplemented, amended or modified without the consent of any Trustee if such
supplement, amendment or modification (i) is in accordance with Section 9.1(d)
hereof and does not materially adversely affect such Trustee or the holders of
the related Class of Certificates or (ii) cures an ambiguity or inconsistency or
does not materially adversely affect such Trustee or the holders of the related
Class of Certificates. Notwithstanding the foregoing, without the consent of
each Certificateholder and each Liquidity 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), 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. 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.

         (b) Notwithstanding any provision of this Agreement, upon and
simultaneously with the issuance of the Additional Certificates (as defined in
the Delayed Funding Implementation Agreement), this Agreement shall be forthwith
amended as provided in the Delayed Funding Implementation Agreement, without any
need for further action on the part of any party hereto and without any consent
of any of the Certificateholders.

         (c) 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

<PAGE>
                                       48

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 Indenture Default shall have occurred and be
continuing with respect to such Indenture, the Subordination Agent shall request
directions from the Trustee of the Trust which holds each series of such
Equipment Notes and shall vote or consent in accordance with the directions of
such Trustee, and (ii) if any Indenture 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, reduce the amount of rent, supplemental
rent termination values, purchase price or stipulated loss values payable by ATA
under any Lease or reduce the amount of principal or interest payable by ATA
under any Equipment Note issued under any Indenture in respect of an Owned
Aircraft; and provided further that no amendment of or supplement to any
Indenture, any Lease, any Purchase Agreement, any Purchase Agreement Assignment,
any Consent and Agreement, any Engine Warranty Assignment, the Guarantee, the
Note Purchase Agreement or any Participation Agreement (the terms "Purchase
Agreement", "Purchase Agreement Assignment", "Consent and Agreement", "Engine
Warranty Assignment" and "Guarantee" having the meanings specified in the
Participation Agreements or the Note Purchase Agreement) or waiver or
modification of the terms of, or consent under, any thereof, shall, without the
consent of each Liquidity Provider, have any of the effects listed in the
proviso to Section 9.01(b) of such Indenture, if such Indenture is an Leased
Aircraft Indenture, or 10.01(b) of such Indenture if such Indenture is an Owned
Aircraft Indenture.

         (d) If with respect to any Owned Aircraft, ATA issues Class C
Certificates, this Agreement shall be amended to provide for the subordination
of such Class C Certificates to the Class A Certificates and the Class B
Certificates substantially in the same manner as the Class B Certificates are
subordinated hereunder to the Class A Certificates. The amendments to this
Agreement to give effect to the issuance of any Class C Certificates shall
include, without limitation:

         (i) the trustee of the Class C Trust shall be added as a party to this
     Agreement;

         (ii) the definitions of "Cash Collateral Account," "Certificate,"
     "Class," "Equipment Notes," "Final Legal Distribution Date," "Liquidity
     Facilities," "Liquidity Provider," "LTV Ratio" "Stated Interest Rate,"
     "Trust," "Trust Agreement," "Controlling Party" shall be revised, as
     appropriate, to reflect the issuance of Class C Certificates (and the
     subordination thereof); and

         (iii) the provisions of this Agreement governing payments with respect
     to Certificates and related notices, including, without limitation,
     Sections 2.4, 3.1, 3.2, 3.3

<PAGE>
                                       49

     and 3.6(e), shall be revised to provide for distributions on the Class C
     Certificates after payment of all relevant distributions on the Class B
     Certificates.

         If, with respect to any Aircraft, Series C Equipment Notes are issued
to any Person other than the Class C Trust, this Agreement shall be amended by
written agreement of ATA and the Subordination Agent to (i) provide for each
holder of a Series C Equipment Note to be bound by the provisions of Section
2.6(a) hereof so that the Controlling Party shall, among other things, be
entitled to direct the Loan Trustee as provided therein (and such Series C
Equipment Notes shall make effective provision therefor so as to bind each
holder thereof to such provisions of Section 2.6(a) hereof) and (ii) to revise
the definitions of "Controlling Party" and "Equipment Notes", as appropriate, to
reflect the issuance of the Series C Equipment Notes (and the prior rights, as
against the holders of such Series C Equipment Notes, of the Class A Trustee and
the Class B Trustee to be such "Controlling Party").

         Each Liquidity Provider hereby agrees and confirms that (i) it shall be
deemed to consent to the issuance of any Class C Certificates and Series C
Equipment Notes and the amendments to this Agreement made in connection
therewith in accordance with this Section 9.1 and (ii) any such issuance and
amendments shall not affect any of its respective obligations under its
Liquidity Facility or any other document relating to the Certificates to which
it is a party.

         The parties hereto agree that no amendments shall be made to this
Agreement pursuant to this Section 9.1(d) unless the Rating Agency shall have
provided written confirmation that the issuance of the Class C Certificates will
not cause a reduction of the rating then in effect for any Class of Certificates
by such Rating Agency.

         (e) Without the consent of each Liquidity Provider, the Trustee for
each Class of Certificates agrees that it will not consent to any amendment or
modification of, or grant any waiver with respect to, the Escrow and Paying
Agent Agreement to which it is a party or the Deposit Agreement with respect to
such Class.

         SECTION 9.2. Subordination Agent Protected. If, in the opinion of
counsel or 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 or any Liquidity Facility, 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

<PAGE>
                                       50

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, 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 Agency. 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 the 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
provided that there shall then be no other amounts due to the
Certificateholders, the Trustees, the Liquidity Providers and the Subordination
Agent hereunder or under the Trust Agreements, and that the commitment of the
Liquidity Providers under the Liquidity Facilities 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 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 express or implied, shall be construed to give to any Person
other than the Trustees, the Liquidity Providers 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 North Market Street
               Wilmington, DE 19890
<PAGE>
                                       51

              Facsimile:  (302) 636-4140
              Attention:  Corporate Trust Administration

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

               Wilmington Trust Company
               Rodney Square North
               1100 North Market Street
               Wilmington, DE 19890
               Facsimile:  (302) 636-4140
               Attention:  Corporate Trust Administration

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

               prior to April 7, 2002:

               AIG Matched Funding Corp.
               100 Nyala Farm
               Westport, CT 06880
               Facsimile: (203) 222-4780
               Attention: Chief Financial Officer

               on or after April 7, 2002:

               AIG Matched Funding Corp.
               50 Danbury Road
               Wilton, CT 06897-4444
               Facsimile: (203) 222-4780
               Attention: Chief Financial Officer

Whenever any notice in writing is required to be given by any Trustee, Liquidity
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.

         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

<PAGE>
                                       52

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.

         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, 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 Liquidity Providers of all Liquidity 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 or the Subordination Agent
receives any payment in respect of any obligations owing hereunder (or, in the
case of the Liquidity Providers, in respect of the Liquidity Obligations), 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

<PAGE>
                                       53

obligations (or, in the case of the Liquidity Providers, such Liquidity
Obligations) 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 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 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 (except as specifically set forth in
Section 2.4, 3.2 or 3.3) due to their status as secured creditors in any
bankruptcy, insolvency or other legal proceeding.

         (e) Each of the Trustees (on behalf of themselves and the holders of
Certificates), the Liquidity Providers 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, the Liquidity
     Obligations,

         (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, any of the Liquidity Obligations,

         (iii) renew, extend, increase, alter or exchange any amounts owing to
     it hereunder, including, in the case of the Liquidity Providers, any of the
     Liquidity Obligations, 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 or the Subordination Agent shall not prejudice the
rights or adversely affect the obligations of any other party under this
Agreement;

         (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.

<PAGE>
                                       54

         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.

         (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 located in the City 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 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 CANNOT BE MODIFIED ORALLY.

         SECTION 10.12. Transfer. Except as provided herein, no party hereto
shall be entitled to assign or otherwise transfer this Agreement (or any
interest herein) other than (in the case of the Subordination Agent or Trustee)
to a successor subordination agent or trustee, as the

<PAGE>
                                       55

case may be, and any purported assignment in violation hereof shall be void.
This Agreement shall be binding upon the parties hereto and their respective
successors and (in the case of the Subordination Agent) permitted assigns.

         SECTION 10.13. Subordination Agent's Liability. Notwithstanding
anything contained herein to the contrary, it is expressly understood and agreed
by the parties hereto that (a) this Agreement is executed and delivered by
Wilmington Trust Company in connection with its role as Pass Through Trustee and
Subordination Agent, not individually or personally but solely as Pass Through
Trustee and Subordination Agent, in the exercise of the powers and authority
conferred and vested in it under the Pass Through Trust Agreement and herein
respectively, (b) each of the representations, undertakings and agreements
herein made on the part of the Pass Through Trustee or Subordination Agent is
made and intended not as personal representations, undertakings and agreements
by Wilmington Trust Company but is made and intended for the purpose for binding
only the Pass Through Trustee or Subordination Agent, as the case may be, and
(c) under no circumstances shall Wilmington Trust Company be personally liable
for the payment of any indebtedness or expenses of the Pass Through Trustee or
Subordination Agent, or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Pass Through
Trustee or Subordination Agent under this Agreement or the other related
documents.

<PAGE>

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

                                        AIG MATCHED FUNDING CORP.
                                        as Class A Liquidity Provider and
                                        Class B Liquidity Provider

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

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

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

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