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January 28th, 2003

Kelley School of Business Presentation ATA Holdings Corp. Doug Doster Strategic Planner. January 28th, 2003. Northwest’s Non-Stop North American Routes. Next Generation Low Fare Carriers. Legacy Hub and Spoke Carriers. Cost Advantage Allows ATA To Offer Lower Fares.

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January 28th, 2003

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  1. Kelley School of Business Presentation ATA Holdings Corp. Doug Doster Strategic Planner January 28th, 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 Q3 2002 Major Airline Unit Cost (Cents per Available Seat Mile) Yr/Yr Change CASM (cents) (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. 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 Average Aircraft Age 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. 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 receives approval for and funds $165 M government guaranteed loan 2002 ATA begins its 30th year of operations

  7. 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) B737-800, (12) B757-300 aircraft and (1) B757-200 aircraft • Youngest schedule service fleet of any major airline • Affordable Fare and Low-Cost Business Strategy • Top Tier Financial Performance • 10th Largest Major Airline in the US • $1.3B in Revenue in 2002

  8. 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 Hawaii Scheduled Service Chicago- Midway

  9. 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. ATA is the #1 Carrier in Chicago-Midway Note: Chicago-Midway market share based on September 2002 enplanements

  11. ATA is the #1 Carrier in Indianapolis Note: Indianapolis market share based on September 2002 enplanements

  12. 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. ATSB Loan Provides Liquidity • $168M 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. FINANCE MARKETING Proforma Financials Market Analysis Strategic Planning • Function 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

  15. 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

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

  17. ATA Kelley School of Business Alumni

  18. 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

  19. AMERICAN TRANS AIR

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