Kelley School of Business Presentation ATA Holdings Corp

Kelley School of Business Presentation ATA Holdings Corp. Doug Doster Strategic Planner January 28 th, 2003

Northwest’s Non-Stop North American Routes

Legacy Hub and Spoke Carriers Next Generation Low Fare Carriers

American Trans Air Cost Advantage Allows ATA To Offer Lower Fares Q 3 2002 Major Airline Unit Cost (Cents per Available Seat Mile) CASM (cents) Yr/Yr Change (10%) (3%) (6%) (2%) (1%) (2%) (5%) (11%) (5%) (2%) ATA’s CASM is one fifth lower than the average CASM of the top 9 major airlines Rates exclude special charges 5

American Trans Air • ATA’s fleet was one of the oldest in the industry Industry Fleet Age Average Aircraft Age • With the new aircraft order, ATA’s fleet is becoming the most modern in the industry Rapid Fleet Modernization will Improve Cost Structure Note: Assumes other carriers add/subtract aircraft at a rate that maintains fleet age Source: Deutsche Bank Alex. Brown 9/19/02 U. S. Fleet and Capacity Update 6

American Trans Air 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. 5 M 1986 ATA begins Scheduled service, total revenues of $185 M 1993 ATA completes initial public offering on the NASDAQ 1999 Revenues exceed $1. 1 B, making ATA the 11 th 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 receives approval for and funds $165 M government guaranteed loan 2002 ATA begins its 30 th year of operations 7

American Trans Air ATA Company Profile • 30 Years in Business - Operating Profits in all but 3 years • Leading Market Share in Scheduled and Charter Service - # 1 Airline at Chicago Midway and Indianapolis (Passengers) - # 1 US Charter Airline (Revenue) - # 1 Military Passenger Airline (Tied on Revenue) • Re-fleeting to new aircraft with order for (40) B 737 -800, (12) B 757300 aircraft and (1) B 757 -200 aircraft - Youngest schedule service fleet of any major airline • Affordable Fare and Low-Cost Business Strategy • Top Tier Financial Performance • 10 th Largest Major Airline in the US - $1. 3 B in Revenue in 2002 8

American Trans Air • ATA’s revenue diversity has benefited its performance since the 9/11 terrorist attacks ATA’s Revenue Sources 2002 Airline Capacity Other Charter Indianapolis Military Scheduled Service Hawaii Chicago. Midway 9

American Trans Air • ATA leads the majors in scheduled service passenger growth for the past 5 years Scheduled Service Growth Leads Industry Majors 5 Year Passenger Growth Enplaned Passengers – 2002 (12 Months ended June) versus 1997 (12 Months ended June) Source: Form 41 10

American Trans Air ATA is the #1 Carrier in Chicago-Midway Note: Chicago-Midway market share based on September 2002 enplanements 11

American Trans Air ATA is the #1 Carrier in Indianapolis Note: Indianapolis market share based on September 2002 enplanements 12

American Trans Air An Honestly Different Airline • Simplified Fee Structure - Administrative / change fee reduced to $50 Reaffirm current standby policy allowing same day travel at no charge Reaffirm a policy that maintains ticket value when not used Reaffirm no advance purchase, no minimum stay requirements Top domestic fares capped at $299 each way • New ad campaign emphasizing customer value • Announced loyalty / frequent flyer program (September 30, 2002) - Builds customer loyalty / repeat customers - Creates no liability beyond 11/30/04 when current program expires (Other programs continually build liability until miles are used) - Drives consumers to internet - the most cost-efficient form of distribution 13

American Trans Air ATSB Loan Provides Liquidity • $168 M loan guaranteed by the Air Transportation Stabilization Board • Approved in September 2002, funded in November • Out of the approximately 15 airlines that applied for federally guaranteed loans, ATA is one of only three airlines to close an ATSB loan • Collateralized by aircraft, aviation parts, general equipment, and receivables • Six year term, amortizes after 12 months 14

Strategic Planning Profile American Trans Air FINANCE MARKETING Proforma Financials Market Analysis Strategic Planning Presentations, Financial Releases, Industry - Function as special projects / internal consulting group -Opportunity to work with other departments - Direct Exposure to upperlevel management on Process critical projects Diagrams, Labor - Team Oriented Negotiations Comparisons INVESTOR RELATIONS OPERATIONS 15

American Trans Air Research Strategic Planning Process Analysis/ Modeling Understanding Communication • Internet • Economic modeling • Group sessions • Simplify • Libraries • Regression • Brainstorming • Encapsulate • Proprietary databases • Risk Adjustment • Hypothesis testing • Present • Excel • Trade press • Access • SEC information 16

American Trans Air Career Path Vice President MBA / Law School Manager Sr. Strategic Planner Financial Analyst Staff Director Staff Management – Strategic Planning – Finance – Marketing – IS – Tour Operator or Clerical Operations Management – Maintenance – Flight Operations – Airport Services – Customer Services 17

American Trans Air ATA Kelley School of Business Alumni Ken Wolff CFO and Executive Vice President Jack Schultz Director, Accounting Sean Frick Director, Strategic Planning Brian Wilson Senior Operations Analyst Doug Doster Strategic Planner Peter Tamulonis Operations Analyst Ryan Poeppelman Financial Analyst 18

American Trans Air Creation • Developed according to GAAP ATA’s “Five” Year Business Plan Input • Begin with aircraft Output • Detailed Financial Statements (Income • Historical unit Statement, Balance • Regression Analysis utilization, revenue, and Sheet, Statement of performed to determine expenses applied to Cash Flows, etc. ) cost and balance sheet create income statement • Detailed Operating drivers • Income statement Statistics (Departures, • Historical data from flows into balance sheet Passengers, Seat Miles, 1997 to present input and cash flow etc. ) into model and updated statements monthly • Meaningful Metrics • Adjust for unique and Ratios (RASM, • Formatting and transactions and CASM, EBITDAR, printing macros management input Debt to Equity, etc. ) Uses • 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 19

AMERICAN TRANS AIR