Common use of INSURANCE AGAINST LOSS OR DAMAGE TO THE AIRCRAFT OR THE ENGINES Clause in Contracts

INSURANCE AGAINST LOSS OR DAMAGE TO THE AIRCRAFT OR THE ENGINES. 1. Except as provided in paragraph 2 of this Section B, and subject to the provisions of Section D hereof permitting self-insurance, the Company shall at all times carry and maintain or cause to be carried and maintained in effect with insurers or reinsurers of recognized responsibility (i) "all risk" aircraft hull insurance covering the Aircraft and the Engines, (ii) fire, transit and extended coverage of Engines and Parts while removed from the Aircraft and not replaced by similar components, and (iii) war risk and allied perils insurance, including governmental confiscation and expropriation (other than by the government of registry of the Aircraft) and hijacking insurance (collectively, "WAR RISK INSURANCE") as contained in London form LSW 555B or its substantive equivalent, or in the case that such insurance is maintained through the FAA, Chapter 443 of Ttile 49 of the United States Code as in effect on September 1, 2004; provided, further, that the foregoing insurance shall at all times while the Engines are subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section D) in the aggregate applicable to all the Engines not less than the Stipulated Loss Value of the Engines, and that when any Engine is installed on an Aircraft, the agreed value of that Aircraft under the relevant policy shall be automatically increased by the amount of the Stipulated Loss Value of such Engine. All losses will be adjusted with the insurers by the Company (giving due regard to the interest of the Security Trustee). However, in the event an Event of Default has occurred and is continuing, all losses will be adjusted among the Company, the insurers and the Security Trustee. As between the Security Trustee and the Company, the insurance payments for any property damage loss to any Engine not constituting an Event of Loss with respect thereto shall be paid, to the extent such proceeds are not paid by the insurer(s) directly to the person effecting the repair, as follows: all proceeds less than or equal to the Threshold Amount shall be paid to the Company (or any Permitted Lessee if directed by the Company), and all proceeds greater than the Threshold Amount shall be paid to the Security Trustee, to be held as collateral security for the Obligations, and applied to reimburse the Company for accomplishing repairs and/or replacements as required, or to pay suppliers directly for such repairs and/or replacements as directed by the Company (or any Permitted Lessee if directed by the Company). In the case of any payment to the Security Trustee (other than in respect of an Event of Loss of an Engine), the Security Trustee shall, upon receipt of evidence reasonably satisfactory to it that the damage giving rise to such payment shall have been repaired or that such payment shall then be required to pay for repairs then being made, pay the amount of such payment, and any interest or income earned thereon, to the Company or its order. 2. During any period that an Aircraft or an Engine is on the ground and not in operation, the Company may carry or cause to be carried, in lieu of the insurance required by paragraph 1 above, and subject to the self-insurance to the extent permitted by Section D hereof, insurance otherwise conforming with the provisions of said paragraph 1 except that the scope of the risks and the type of insurance shall be consistent with industry practice for airlines operating only similar-sized equipment on similar routes the same as from time to time applicable to aircraft and engines owned or leased and operated by the Company (or any Permitted Lessee) of the same or similar type which comprise the Company's (or such Permitted Lessee's) fleet similarly on the ground and not in operation, provided that, subject to the self-insurance to the extent permitted by Section D hereof, the Company shall maintain or cause to be maintained insurance against risk of loss or damage to each Engine in an amount at least equal to the Stipulated Loss Value of such Engine during such period that such Engine is on the ground and not in operation.

INSURANCE AGAINST LOSS OR DAMAGE TO THE AIRCRAFT OR THE ENGINES. 1. Except as provided in paragraph 2 of this Section B, B and subject to the provisions of Section D hereof permitting self-insuranceadditional agreement between the Company and the Secured Party set forth in Schedule 3 to the Loan Agreement, the Company shall at all times carry and maintain or cause to be carried and maintained in effect with insurers or reinsurers of recognized responsibility (i) "”all risk" ” aircraft hull insurance covering the Aircraft and the Engines, (ii) fire, transit and extended coverage of Engines and Parts while removed from the Aircraft and not replaced by similar components, and (iii) war risk and allied perils insurance, including governmental confiscation and expropriation (other than by the government of registry of the Aircraft) and hijacking insurance (collectively, "WAR RISK INSURANCE") “War Risk Insurance”); as contained in London form LSW 555B or its substantive equivalent, ; or in the case that such insurance is maintained through the FAA, Chapter 443 of Ttile Title 49 of the United States Code as in effect on September January 1, 20042005; provided, further, that the foregoing insurance shall at all times while the Engines are subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section D) in the aggregate applicable to all the Engines not less than the Stipulated Loss Termination Value of the Engines, and that when any Engine is installed on an Aircraft, the agreed value of that Aircraft under the relevant policy shall be automatically increased by the amount of the Stipulated Loss Termination Value of such Engine. All losses will be adjusted with the insurers by the Company (giving due regard to the interest of the Security TrusteeAdditional Insureds). However, in the event an Event of Default has occurred and is continuing, all losses will be adjusted among the Company, the insurers and the Security TrusteeSecured Party. As between the Security Trustee Secured Party and the Company, the insurance payments for any property damage loss to any Engine not constituting an Event of Loss with respect thereto shall be paid, to the extent such proceeds are not paid by the insurer(s) directly to the person effecting the repair, as follows: all proceeds payments in respect of losses less than or equal to the Threshold Amount shall be paid to the Company (or any Permitted Lessee if directed by the Company), and all proceeds payments with respect to losses greater than the Threshold Amount shall be paid to the Security TrusteeSecured Party, to be held as collateral security for the Obligations, and applied to reimburse the Company for accomplishing repairs and/or replacements as required, or to pay suppliers directly for such repairs and/or replacements as directed by the Company (or any Permitted Lessee if directed by the Company). In the case of any payment to the Security Trustee Secured Party (other than in respect of an Event of Loss of an Engine), the Security Trustee Secured Party shall, upon receipt of evidence reasonably satisfactory to it that the damage giving rise to such payment shall have been repaired or that such payment shall then be required to pay for repairs then being made, pay the amount of such payment, and any interest or income earned thereon, to the Company or its order. 2. During any period that an Aircraft or an Engine is on the ground and not in operation, the Company may carry or cause to be carried, in lieu of the insurance required by paragraph 1 above, and subject to the self-insurance to the extent permitted by Section D hereof, insurance otherwise conforming with the provisions of said paragraph 1 except that the scope of the risks and the type of insurance shall be consistent with industry practice for airlines operating only similar-sized equipment on similar routes the same as from time to time applicable to aircraft and engines owned or leased and operated by the Company (or any Permitted Lessee) of the same or similar type which comprise the Company's ’s (or such Permitted Lessee's’s) fleet similarly on the ground and not in operation, provided that, subject to the self-insurance to the extent permitted by Section D hereof, the Company shall maintain or cause to be maintained insurance against risk of loss or damage to each Engine in an amount at least equal to the Stipulated Loss Termination Value of such Engine during such period that such Engine is on the ground and not in operation.

INSURANCE AGAINST LOSS OR DAMAGE TO THE AIRCRAFT OR THE ENGINES. 1. Except as provided in paragraph 2 of this Section B, and subject to the provisions of Section D hereof permitting self-insurance, the Company shall at all times carry and maintain or cause to be carried and maintained in effect with insurers or reinsurers of recognized responsibility (i) "all risk" aircraft hull insurance covering the Aircraft and the Engines, (ii) fire, transit and extended coverage of Engines and Parts while removed from the Aircraft and not replaced by similar components, and (iii) war risk and allied perils insurance, including governmental confiscation and expropriation (other than by the government of registry of the Aircraft) and hijacking insurance (collectively, "WAR RISK INSURANCE") as contained in London form LSW 555B or its substantive equivalent, equivalent or in the case that such insurance coverage is maintained through the FAA, Chapter 443 of Ttile Title 49 of the United States Code as in effect on September 1, 2004; provided, further, that the foregoing insurance shall at all times while the Engines are subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section D) in the aggregate applicable to all the Engines not less than the Stipulated Loss Value of the Engines, and that when any Engine is installed on an Aircraft, the agreed value of that Aircraft under the relevant policy shall be automatically increased by the amount of the Stipulated Loss Value of such Engine. All losses will be adjusted with the insurers by the Company (giving due regard to the interest of the Security Trustee). However, in the event that an Event of Default has occurred and is continuing, all losses will be adjusted among the Company, the insurers and the Senior Trustee (if the Lien of the Senior Mortgage shall not then have been discharged) and the Security TrusteeTrustee (if the Lien of the Senior Mortgage shall then have been discharged). As between the Security Trustee and the Company, the insurance payments for any property damage loss to any Engine not constituting an Event of Loss with respect thereto shall be paid, to the extent such proceeds are not paid by the insurer(s) directly to the person effecting the repair, as follows: all proceeds less than or equal to the Threshold Amount shall be paid to the Company (or any Permitted Lessee if directed by the Company), and all proceeds greater than the Threshold Amount shall be paid to the Senior Trustee (if the Lien of the Senior Mortgage shall not then have been discharged) and to the Security TrusteeTrustee (if the Lien of the Senior Mortgage shall then have been discharged), to be held as collateral security for the Obligations, and applied to reimburse the Company for accomplishing repairs and/or replacements as required, or to pay suppliers directly for such repairs and/or replacements as directed by the Company (or any Permitted Lessee if directed by the Company). In the case of any payment to the Security Trustee (other than in respect of an Event of Loss of an Engine), the Security Trustee shall, upon receipt of evidence reasonably satisfactory to it that the damage giving rise to such payment shall have been repaired or that such payment shall then be required to pay for repairs then being made, pay the amount of such payment, and any interest or income earned thereon, to the Company or its order. 2. During any period that an Aircraft or an Engine is on the ground and not in operation, the Company may carry or cause to be carried, in lieu of the insurance required by paragraph 1 above, and subject to the self-insurance to the extent permitted by Section D hereof, insurance otherwise conforming with the provisions of said paragraph 1 except that the scope of the risks and the type of insurance shall be consistent with industry practice for airlines operating only similar-sized equipment on similar routes the same as from time to time applicable to aircraft and engines owned or leased and operated by the Company (or any Permitted Lessee) of the same or similar type which comprise the Company's (or such Permitted Lessee's) fleet similarly on the ground and not in operation, provided that, subject to the self-insurance to the extent permitted by Section D hereof, the Company shall maintain or cause to be maintained insurance against risk of loss or damage to each Engine in an amount at least equal to the Stipulated Loss Value of such Engine during such period that such Engine is on the ground and not in operation.

INSURANCE AGAINST LOSS OR DAMAGE TO THE AIRCRAFT OR THE ENGINES. 1. Except as provided in paragraph 2 of this Section B, B and subject to the provisions of Section D hereof permitting self-insuranceadditional agreement between the Company and the Secured Party set forth in Schedule II to the Indemnity Agreement, the Company shall at all times carry and maintain or cause to be carried and maintained in effect with insurers or reinsurers of recognized responsibility (i) "”all risk" ” aircraft hull insurance covering the Aircraft and the Engines, (ii) fire, transit and extended coverage of Engines and Parts while removed from the Aircraft and not replaced by similar components, and (iii) war risk and allied perils insurance, including governmental confiscation and expropriation (other than by the government of registry of the Aircraft) and hijacking insurance (collectively, "WAR RISK INSURANCE") “War Risk Insurance”); as contained in London form LSW 555B or its substantive equivalent, ; or in the case that such insurance is maintained through the FAA, Chapter 443 of Ttile Title 49 of the United States Code as in effect on September January 1, 20042005; provided, further, that the foregoing insurance shall at all times while the Engines are subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section D) in the aggregate applicable to all the Engines not less than the Stipulated Loss Termination Value of the Engines, and that when any Engine is installed on an Aircraft, the agreed value of that Aircraft under the relevant policy shall be automatically increased by the amount of the Stipulated Loss Termination Value of such Engine. All losses will be adjusted with the insurers by the Company (giving due regard to the interest of the Security TrusteeAdditional Insureds). However, in the event that an Event of Default has occurred and is continuing, all losses will be adjusted among the Company, the insurers and the Security TrusteeSenior Secured Party (if the Lien of the Senior Mortgage shall not then have been discharged) and the Secured Party (if the Lien of the Senior Mortgage shall then have been discharged). As between the Security Trustee Secured Party and the Company, the insurance payments for any property damage loss to any Engine not constituting an Event of Loss with respect thereto shall be paid, to the extent such proceeds are not paid by the insurer(s) directly to the person effecting the repair, as follows: all proceeds payments in respect of losses less than or equal to the Threshold Amount shall be paid to the Company (or any Permitted Lessee if directed by the Company), and all proceeds payments with respect to losses greater than the Threshold Amount shall be paid to the Security TrusteeSenior Secured Party (if the Lien of the Senior Mortgage shall not then have been discharged) and to the Secured Party (if the Lien of the Senior Mortgage shall then have been discharged), to be held as collateral security for the Obligations, and applied to reimburse the Company for accomplishing repairs and/or replacements as required, or to pay suppliers directly for such repairs and/or replacements as directed by the Company (or any Permitted Lessee if directed by the Company). In the case of any payment to the Security Trustee Secured Party (other than in respect of an Event of Loss of an Engine), the Security Trustee Secured Party shall, upon receipt of evidence reasonably satisfactory to it that the damage giving rise to such payment shall have been repaired or that such payment shall then be required to pay for repairs then being made, pay the amount of such payment, and any interest or income earned thereon, to the Company or its order. 2. During any period that an Aircraft or an Engine is on the ground and not in operation, the Company may carry or cause to be carried, in lieu of the insurance required by paragraph 1 above, and subject to the self-insurance to the extent permitted by Section D hereof, insurance otherwise conforming with the provisions of said paragraph 1 except that the scope of the risks and the type of insurance shall be consistent with industry practice for airlines operating only similar-sized equipment on similar routes the same as from time to time applicable to aircraft and engines owned or leased and operated by the Company (or any Permitted Lessee) of the same or similar type which comprise the Company's ’s (or such Permitted Lessee's’s) fleet similarly on the ground and not in operation, provided that, subject to the self-insurance to the extent permitted by Section D hereof, the Company shall maintain or cause to be maintained insurance against risk of loss or damage to each Engine in an amount at least equal to the Stipulated Loss Termination Value of such Engine during such period that such Engine is on the ground and not in operation.