September 12th, 2002

Kelley School of Business Presentation

ATA Holdings Corp.

Sean FrickManager,

Strategic Planning

Northwest’s Non-Stop North American Routes

Legacy Hub and Spoke Carriers

Next Generation Low Fare Carriers

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Q1 2002 Major Airline Unit Cost (Cents per Available Seat Mile)

Cost Advantage Allows ATA To Offer Lower Fares

9.5

9.7

9.7

10.1

10.5

11.3

11.4

7.3

7.0

12.9

ATA*

Southwest

America West

Northwest

Continental

Alaska

Delta

American

United

US Air

Yr/Yr Change

(12%)

(5%)

11%

(3%)

(3%)

1%

0%

0%

(1%)

8%

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

CASM (cents)

* Excludes the operations of tour operator subsidiary

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Scheduled Service Performance vs. Major Airlines (Q1 2002 vs. Q1 2001)

ATA Outperforms Industry In Downturn

Source: Company Press ReleasesNote: Table shows scheduled service only when information is available.

Revenue RASM Yield Load Factor Operating Margin EBITDA Margin CASMChange Change Change Point Change Point Change Point Change Change

ATA -1.8% -8.4% -5.1% -2.5% 3.5% -1.4% -12.5%AirTran -8.0% -18.5% -13.3% -4.2% -12.2% -14.1% -7.7%Alaska -2.8% -3.1% -5.5% 1.3% -0.8% -0.2% 0.9%America West -20.9% -8.2% -9.5% 0.9% -22.5% -8.2% 10.8%American -11.5% -14.0% -15.9% 1.5% -17.5% -15.2% 0.4%Continental -18.8% -10.1% -14.6% 3.6% -12.5% -6.9% -2.6%Delta -25.0% -10.7% -14.9% 1.8% -11.0% -8.1% 0.0%Frontier -1.4% -11.9% -8.9% -2.0% -3.1% -1.6% -9.2%Northwest -17.7% -6.9% -10.5% 2.9% 0.0% 1.3% -3.0%Southwest -12.1% -15.5% -9.7% -4.4% -10.8% -9.5% -4.9%United -27.6% -11.0% -15.5% 3.9% -12.8% -8.7% -0.9%US Air -26.9% -9.9% -14.1% 2.3% -11.5% -11.2% 7.7%

ATA Rank 2nd 4th 1st 10th 1st 3rd 1st

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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 2/4/02 U.S. Fleet and Capacity Update

20.5

11.3 11.2 10.810.2 10.0 9.9

8.0 8.07.3

6.6

17.2

0

5

10

15

20

25

Northwest

ATA (12/3

1/00)Delt

a

US Airw

ays

Amer

ican

United

Amer

ica W

est

TWA

Continen

tal

Alask

a

Southwes

t

ATA (6/30/0

2)

Ave

rage

Air

craf

t A

ge

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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

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ATA Company Profile

• 29 Years in Business

- 27 Years of Operating Profits

• 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

- Estimated $1.4B in Revenue in 2002

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2001 Airline Capacity

ATA’s Revenue Sources

71% 67%

5%

16%

13%

18%

10%

0%

20%

40%

60%

80%

100%

2001 ASMs ASMs by Gateway

Ava

ilabl

e S

eat

Mile

s

Military

Hawaii

Indianapolis

Other

Charter

Chicago Midway

Scheduled Service

• ATA’s revenue diversity has benefited its performance since the 9/11 terrorist attacks

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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

26%

20%

15%

8%6% 5% 4%

-2%

47%

39%

-5%

5%

15%

25%

35%

45%

55%P

erce

ntag

e G

row

th

Source: Form 41 data

Enplaned Passengers – 2001 (12 Months ended September) versus 1996 (12 Months ended September)

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

Indianapolis RPM Share

Others13%

United10%

Southwest11%

US Airways12%

American13%

Northwest11%

Delta13%

ATA17%

ATA vs. Southwest Midway Market Share

0%

10%

20%

30%

40%

50%

60%

Jan-

98

May

-98

Sep-98

Jan-

99

May

-99

Sep-99

Jan-

00

May

-00

Sep-00

Jan-

01

May

-01

Sep-01

Jan-

02

May

-02

Mid

way

Mar

ket

Sh

are

- E

np

lan

emen

ts

ATA

Southwest

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• Curbside check-in• E-ticketing self service check-in• Online boarding pass print-out capability• Electronic Gate Readers

•Advanced Seat Assignment•Comfortable leather seating•32” seat pitch vs. 30” on 727 •25% increased capacity in new overhead bin

design•100% fresh air circulation (B737-800)•Quiet in-cabin experience

• Low cost brand-name hot catering introduced on longer flights

• 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

ATA’s Scheduled Service Product

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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

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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

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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

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ATA Kelley School of Business Alumni

Ken Wolff CFO and Executive Vice President

Chet Fuller Vice President, Flight Operations Productivity and Analysis

Jack Schultz Director, Accounting

Sean Frick Manager, Strategic Planning

Brian Wilson Senior Operations Analyst

Doug Doster Strategic Planner

Peter Tamulonis Operations Analyst

Ryan Poeppelman Financial Analyst

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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