Common use of Insurance Against Loss or Damage to the Aircraft Clause in Contracts

Insurance Against Loss or Damage to the Aircraft. (a) Except as provided in paragraph (b) of this Section 6.02 and the provisions of Section 6.08, and subject to the provisions of Section 6.04 permitting self-insurance, the Borrower shall at all times carry and maintain or cause to be carried and maintained, on a non-discriminatory basis, in effect with insurers of internationally recognized responsibility acceptable to the Administrative Agent (which acceptability not to be unreasonably withheld or delayed) (i) "all risk" aircraft hull insurance covering the Aircraft (with flight, taxiing and ingestion coverages), (ii) fire, transit and extended coverage of Engines and Parts while removed from the Aircraft (providing insurance for replacement value), 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"); provided that, in the case of War Risk Insurance, such insurance shall only be required to be maintained (x) with respect to the buy-backs covering strikes, sabotage, confiscation and hijacking contained in London Form LSW 555B and (y) with respect to terms and provisions of War Risk Insurance in addition to those covered by the preceding clause (x), (A) if and to the extent the same is maintained by the Borrower with respect to other aircraft owned or operated by the Borrower on the same routes or (B) if the Aircraft is operated in a war zone (unless the Borrower obtains indemnification in lieu thereof pursuant to Section 6.06 hereof) or (C) if and to the extent the same is industry standard for major U.S. carriers operating similarly-sized aircraft on similar routes; provided, further, that the foregoing insurance shall at all times while the Aircraft is subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section 6.04) not less than the Stipulated Insured Amount. In the case of a loss with respect to an engine (other than an Engine) installed on the Airframe, the Administrative Agent shall hold any payment received by it of any hull insurance proceeds in respect of such loss for account of the Borrower or any other third party to the extent the Borrower or such third party is entitled to receive such proceeds. Except during a period when a Special Default or an Event of Default has occurred and is continuing (in which case all losses will be adjusted by the loss payee), all losses will be adjusted with the insurers by the Borrower (giving due regard to the interest of the Administrative Agent). It is agreed that all insurance payments received under insurance policies required to be maintained by the Borrower pursuant to this Section 6.02 as the result of the occurrence of an Event of Loss will be applied as follows:

Insurance Against Loss or Damage to the Aircraft. (a) Except as provided in paragraph (b) of this Section 6.02 and the provisions of Section 6.08, and subject to the provisions of Section 6.04 permitting self-insurance, the Borrower shall at all times carry and maintain or cause to be carried and maintained, on a non-discriminatory basis, in effect with insurers of internationally recognized responsibility acceptable to the Administrative Agent (which acceptability not to be unreasonably withheld or delayed) (i) "all risk" aircraft hull insurance covering the each Aircraft (with flight, taxiing and ingestion coverages), (ii) fire, transit and extended coverage of Engines and Parts while removed from the an Aircraft (providing insurance for replacement value), and (iii) war risk and allied perils insurance, including governmental confiscation and expropriation (other than by the government of registry of the an Aircraft) and hijacking insurance (collectively, "War Risk Insurance"); provided that, in the case of War Risk Insurance, such insurance shall only be required to be maintained (x) with respect to the buy-backs covering strikes, sabotage, confiscation and hijacking contained in London Form LSW 555B and (y) with respect to terms and provisions of War Risk Insurance in addition to those covered by the preceding clause (x), (A) if and to the extent the same is maintained by the Borrower with respect to other aircraft owned or operated by the Borrower on the same routes or (B) if the an Aircraft is operated in a war zone (unless the Borrower obtains indemnification in lieu thereof pursuant to Section 6.06 hereof) or (C) if and to the extent the same is industry standard for major U.S. carriers operating similarly-sized aircraft on similar routes; provided, further, that the foregoing insurance shall at all times while the an Aircraft is subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section 6.04) not less than the Stipulated Insured Amount. In the case of a loss with respect to an engine (other than an Engine) installed on the an Airframe, the Administrative Agent shall hold any payment received by it of any hull insurance proceeds in respect of such loss for account of the Borrower or any other third party to the extent the Borrower or such third party is entitled to receive such proceeds. Except during a period when a Special Default or an Event of Default has occurred and is continuing (in which case all losses will be adjusted by the loss payee), all losses will be adjusted with the insurers by the Borrower (giving due regard to the interest of the Administrative Agent). It is agreed that all insurance payments received under insurance policies required to be maintained by the Borrower pursuant to this Section 6.02 as the result of the occurrence of an Event of Loss will be applied as follows:

Insurance Against Loss or Damage to the Aircraft. (a) Except as provided in paragraph (b) of this Section 6.02 and the provisions of Section 6.08, and subject to the provisions of Section 6.04 permitting self-insurance, the Borrower shall at all times carry and maintain or cause to be carried and maintained, on a non-discriminatory basis, in effect with insurers of internationally recognized responsibility acceptable to the Administrative Agent (which acceptability not to be unreasonably withheld or delayed) (i) "all risk" aircraft hull insurance covering the each Aircraft (with flight, taxiing and ingestion coverages), (ii) fire, transit and extended coverage of Engines and Parts while removed from the an Aircraft (providing insurance for replacement value), and (iii) war risk and allied perils insurance, including governmental confiscation and expropriation (other than by the government of registry of the an Aircraft) and hijacking insurance (collectively, "War ---- Risk Insurance"); provided that, in the case of War Risk Insurance, such insurance shall only be required to be maintained (x) with -------------- respect to the buy-backs covering strikes, sabotage, confiscation and hijacking contained in London Form LSW 555B and (y) with respect to terms and provisions of War Risk Insurance in addition to those covered by the preceding clause (x), (A) if and to the extent the same is maintained by the Borrower with respect to other aircraft owned or operated by the Borrower on the same routes or (B) if the an Aircraft is operated in a war zone (unless the Borrower obtains indemnification in lieu thereof pursuant to Section 6.06 hereof) or (C) if and to the extent the same is industry standard for major U.S. carriers operating similarly-sized aircraft on similar routes; provided, further, that the foregoing insurance shall at all times while the an Aircraft is subject to this Mortgage be for an amount (taking into account self-insurance to the extent permitted by Section 6.04) not less than the Stipulated Insured Amount. In the case of a loss with respect to an engine (other than an Engine) installed on the an Airframe, the Administrative Agent shall hold any payment received by it of any hull insurance proceeds in respect of such loss for account of the Borrower or any other third party to the extent the Borrower or such third party is entitled to receive such proceeds. Except during a period when a Special Default or an Event of Default has occurred and is continuing (in which case all losses will be adjusted by the loss payee), all losses will be adjusted with the insurers by the Borrower (giving due regard to the interest of the Collateral Agent and Administrative Agent). It is agreed that all insurance payments received under insurance policies required to be maintained by the Borrower pursuant to this Section 6.02 as the result of the occurrence of an Event of Loss will be applied as follows: