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February 3, 2003

Kelley School of Business Presentation ATA Holdings Corp. Sean Frick Director, Financial Analysis & Strategic Planning. February 3, 2003. Northwest’s Non-Stop North American Routes. Next Generation Low Fare Carriers. Legacy Hub and Spoke Carriers.

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February 3, 2003

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  1. Kelley School of Business Presentation ATA Holdings Corp. Sean Frick Director, Financial Analysis & Strategic Planning February 3, 2003

  2. Northwest’s Non-Stop North American Routes

  3. Next Generation Low Fare Carriers Legacy Hub and Spoke Carriers

  4. Cost Advantage Allows ATA To Offer Lower Fares Q4 2003 Airline Unit Cost (Cents per Available Seat Mile)

  5. ATA Outperforms Industry Q3 2003 ATA Performance vs. Major Airlines Source: Company Press Releases

  6. ATA’s fleet was one of the oldest in the industry • With the new aircraft order, ATA’s fleet is becoming the most modern in the industry Rapid Fleet Modernization will Improve Cost Structure Industry Fleet Age Source: Other airlines’ data from “U.S. Airlines Fleet Report” Deutsche Bank. October 1, 2003

  7. History of ATA 1973 J. George Mikelsons founds Ambassadair Travel Club in Indianapolis 1978 Deregulation of U.S. Airlines 1981 ATA begins Charter service, total revenues of $30.5M 1986 ATA begins Scheduled service, total revenues of $185M 1993 ATA completes initial public offering on the NASDAQ 1999 Revenues exceed $1.1B, making ATA the 11th US major airline 2000 ATA completes transaction for 50 new fully financed aircraft 2001 ATA begins successfully implementing new fleet and opens new Midway Terminal 2002 ATA opens new international terminal in Midway 2003 ATA earns first annual profit since 9-11 2004 ATA successfully restructures its debt and lease obligations

  8. ATA Company Profile • 30th Year of Business • Leading Market Share in Scheduled and Charter Service • # 1 Airline at Chicago-Midway and Indianapolis • # 1 US Charter Airline • # 1 Military Passenger Airline • Re-fleeting to new 737 and 757 aircraft • Youngest scheduled service fleet of any major airline • Affordable Fare and Low-Cost Business Strategy • 10th Largest Major Airline in the US • $1.5B in Revenue in 2003

  9. ATA’s revenue diversity has benefited its performance since the 9/11 terrorist attacks ATA’s Revenue Sources 2003 Airline Capacity Other Military Indianapolis Charter Hawaii Scheduled Service Chicago Midway

  10. ATA leads the majors in scheduled service passenger growth for the past 5 years Scheduled Service Growth Leads Industry Majors 5 Year Passenger Growth Source: Form 41 data Enplaned Passengers – 2003 (12 Months ended July) versus 1998 (12 Months ended July)

  11. ATA is the #1 Carrier in Chicago-Midway and Indianapolis

  12. ATA’s Scheduled Service Product • Curbside check-in • E-ticketing self service check-in • Online boarding pass print-out capability • Electronic Gate Readers • Advanced Seat Assignment • Comfortable leather seating • Minimum 32” seat pitch • 25% increased capacity in new overhead bin • design • 100% fresh air circulation (B737-800) • Quiet in-cabin experience • Improved quality of in-flight entertainment • PAVE program to show targeted short spots based on aircraft routing • Recent full-length movies on longer flights updated monthly

  13. FINANCE MARKETING Pro Forma Financials Market Analysis Strategic Planning • Functions as special projects / • internal consulting group • Opportunity to work • with other departments • Direct Exposure to upper- • level management on • critical projects • - Team Oriented Process Diagrams, Labor Negotiations Presentations, Financial Releases, Industry Comparisons INVESTOR RELATIONS OPERATIONS Strategic Planning Profile

  14. Research Analysis/ Modeling Understanding Communication • Internet • Libraries • Proprietary • databases • Trade press • SEC information • Economic modeling • Regression • Risk Adjustment • Excel • Access • Group sessions • Brainstorming • Hypothesis testing • Simplify • Encapsulate • Present Strategic Planning Process

  15. Vice President Director MBA / Law School Manager Sr. Strategic Planner • Staff Management • Strategic Planning • Finance • Marketing • IS Strategic Planner Staff or Clerical • Operations Management • Maintenance • Flight Operations • Airport Services • Customer Services Career Path Financial Analyst

  16. ATA Kelley School of Business Alumni

  17. ATA’s “Five” Year Business Plan Creation Input Output Uses • Developed according to GAAP • Regression Analysis performed to determine cost and balance sheet drivers • Historical data from 1997 to present input into model and updated monthly • Formatting and printing macros • Begin with aircraft • Historical unit utilization, revenue, and expenses applied to create income statement • Income statement flows into balance sheet and cash flow statements • Adjust for unique transactions and management input • Detailed Financial Statements (Income Statement, Balance Sheet, Statement of Cash Flows, etc.) • Detailed Operating Statistics (Departures, Passengers, Seat Miles, etc.) • Meaningful Metrics and Ratios (RASM, CASM, EBITDAR, Debt to Equity, etc.) • Special Projects (Aircraft Acquisition Deal, Privatization, Government Loan Application) • Supporting the Management Decision Making Process (Asset Allocation, Cost Control, Liquidity Analysis) • Debt covenants • Valuable source for historical information

  18. ATA Airlines, Inc.

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