January 28th, 2003

Kelley School of Business Presentation

ATA Holdings Corp.

Doug DosterStrategic Planner

Northwest’s Non-Stop North American Routes

Legacy Hub and Spoke Carriers

Next Generation Low Fare Carriers

American Trans Air

5

Q3 2002 Major Airline Unit Cost (Cents per Available Seat Mile)

Cost Advantage Allows ATA To Offer Lower Fares

7.8

8.9

9.2

9.8

10.2

10.4

10.9

7.6

7.4

11.0

Southwest

ATA

America West

Continental

Northwest

Delta

Alaska

American

United

US Air

Yr/Yr Change

(2%)

(5%)

(11%)

(5%)

(2%)

(1%)

(2%)

(6%)

(3%)

(10%)

ATA’s CASM is one fifth lower than the average CASM of the top 9 major airlines

CASM (cents)

Rates exclude special charges

American Trans Air

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Industry Fleet Age

Rapid Fleet Modernization will Improve Cost Structure• 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

Note: Assumes other carriers add/subtract aircraft at a rate that maintains fleet ageSource: Deutsche Bank Alex. Brown 9/19/02 U.S. Fleet and Capacity Update

20.1

16.5

10.6 10.49.8

9.2 8.88.2 8.1

6.55.5

17.2

0

5

10

15

20

25

Northwest

ATA (12/3

1/00)

AirTra

nDelt

a

Amer

ican

Amer

ica W

est

US Airw

ays

Southwes

t

Alask

a

United

Continen

tal

ATA (12/3

1/02)

Ave

rage

Air

craf

t A

ge

American Trans Air

7

History of ATA1973 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

American Trans Air

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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

American Trans Air

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2002 Airline Capacity

ATA’s Revenue Sources• ATA’s revenue diversity has

benefited its performance since the 9/11 terrorist attacks

77%71%

4%

12%

11%

14%

11%

0%

20%

40%

60%

80%

100%

2002 ASMs ASMs by Gateway

Ava

ilabl

e Se

at M

iles

MilitaryHawaii

Indianapolis

Charter

Chicago- Midway

Scheduled Service

Other

American Trans Air

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5 Year Passenger Growth

Scheduled Service Growth Leads Industry Majors• ATA leads the majors in

scheduled service passenger growth for the past 5 years

28%

12%8%

4%0%

-8%-12% -14%

-18%

60%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

ATA

Southwes

t

Alaska

Continen

tal

Ameri

can

Ameri

ca W

est

North

west

Delta

US Airw

ays

United

Per

cent

age

Gro

wth

Enplaned Passengers – 2002 (12 Months ended June) versus 1997 (12 Months ended June)

Source: Form 41

American Trans Air

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ATA and Southwest Midway Airport Market Share

0%

10%

20%

30%

40%

50%

60%M

ar-9

8

Jun-

98Se

p-98

Dec

-98

Mar

-99

Jun-

99

Sep-

99D

ec-9

9M

ar-0

0

Jun-

00

Sep-

00D

ec-0

0M

ar-0

1

Jun-

01Se

p-01

Dec

-01

Mar

-02

Jun-

02

Sep-

02

Mid

way

Mar

ket

Sh

are

- E

np

lan

emen

ts

ATA

Southwest

ATA is the #1 Carrier in Chicago-Midway

Note: Chicago-Midway market share based on September 2002 enplanements

American Trans Air

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ATA is the #1 Carrier in Indianapolis

Note: Indianapolis market share based on September 2002 enplanements

10%

12%12%13%13%13%

16%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

ATA US Airways Delta United Northwest American Southwest

Ind

ian

apol

is M

ark

et S

har

e -

En

pla

nm

ents

American Trans Air

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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

American Trans Air

14

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

American Trans Air

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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

Strategic Planning Profile

Proforma

Financials

FINANCE

Process

Diagrams,

Labor

Negotiations

OPERATIONS

Market

Analysis

MARKETING

Presentations,

Financial Releases,

Industry

Comparisons

INVESTOR

RELATIONS

American Trans Air

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Strategic Planning Process

Research

• Internet

• Libraries

• Proprietary databases

• Trade press

• SEC information

Analysis/Modeling

• Economic modeling

• Regression

• Risk Adjustment

• Excel

• Access

Understanding

• Group sessions

• Brainstorming

• Hypothesis testing

Communication

• Simplify

• Encapsulate

• Present

American Trans Air

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Career PathVice President

Director

Strategic Planner

Staff

Clerical Operations Management– Maintenance– Flight Operations– Airport Services– Customer Services

Manager

MBA / Law School

Staff Management– Strategic Planning– Finance– Marketing– IS– Tour Operator

or

Sr. Strategic Planner

Financial Analyst

American Trans Air

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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

American Trans Air

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ATA’s “Five” Year Business Plan

Input Output Uses

• 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

• 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

Creation

• 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

AMERICAN TRANS AIR