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

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor or the Owner Participant, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility (i) all risk, agreed value, ground and flight hull insurance covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; PROVIDED THAT, neither the Lessee nor any Permitted Sublessee shall be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed on the Airframe. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the Lessee. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to the date of such agreement, the Lessee shall provide an Officer's Certificate of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with this Section 9(b). Lessee (or any Permitted Sublessee) shall in any event maintain at all times during the Term, with independent insurers of internationally recognized reputation and responsibility hull war risks and allied perils insurance in accordance with the London form LSW555B or its equivalent form reasonably acceptable to the Lessor (or an agreement of the Government to insure against or indemnify for substantially the same risks) from time to time covering the Aircraft in an amount not less than the Termination Value from time to time.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor or the Owner Participant, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility (i) all risk, agreed value, ground and flight hull insurance insurance, which may, except as provided below, exclude war risks and allied perils, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; PROVIDED THAT, neither the Lessee nor any Permitted Sublessee shall be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the Lessee. If and to the extent that the Lessee or a Permitted Sublessee operates the Aircraft (A) on routes where it maintains war risk, hijacking or allied perils insurance in effect with respect to other similar owned or leased aircraft in its fleet, (B) on routes (other than routes within the United States, Canada, Mexico, Bermuda and islands other than Cuba in the Caribbean Basin) where the custom in the industry is to carry war risk insurance or (C) in any area of recognized hostilities, the Lessee or such Permitted Sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the amount at least equal to Termination Value from time to time. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to the date of such agreement, the Lessee shall provide an Officer's Certificate of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with this Section 9(b). Lessee (or any Permitted Sublessee) shall in any event maintain at all times during the Term, with independent insurers of internationally recognized reputation and responsibility hull war risks and allied perils insurance in accordance with the London form LSW555B or its equivalent form reasonably acceptable to the Lessor (or an agreement of the Government to insure against or indemnify for substantially the same risks) from time to time covering the Aircraft in an amount not less than the Termination Value from time to time.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d)11.10, the Lessee shall, without expense to the Lessor or the Owner ParticipantLessor, maintain or cause to be maintained in effect at all times during the Term Term, with insurers of nationally recognized responsibility an Approved Insurer, all risk (i) all riskwhich may, except as provided in Section 11.04, exclude war and allied perils (but which shall not contain any exclusion for date recognition coverage)), agreed value, ground and flight hull insurance insurance, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Stipulated Loss Value from time to time; PROVIDED THATthat, neither the Lessee nor any Permitted Sublessee shall not be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded placed in short term or long term storage status, and properly stored PROVIDED FURTHER that all-risk flight aircraft hull insurance shall be in effect during any check flights, ferry flights or hangaredother flight time during such storage. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe pending replacement by installation of the same or similar Engines, engines or Parts on the AirframeAirframe in an amount not less than the fair market value of such Engine or Part. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the LesseeLessee and shall be consistent with generally accepted industry-wide practice for airlines similarly situated to Lessee with regard to the insurance of aircraft similar to those operated by Lessee and based or operated in any jurisdiction in 35 which the Aircraft may then be based or operated. An agreement of a United States Entity backed by the Government for the benefit full faith and credit of the Additional Insureds United States government to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to the date of such agreement, the Lessee shall provide an Officer's Certificate of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with this Section 9(b). Lessee (or any Permitted Sublessee) shall in any event maintain at all times during the Term, with independent insurers of internationally recognized reputation and responsibility hull war risks and allied perils insurance in accordance with the London form LSW555B or its equivalent form reasonably acceptable to the Lessor (or an agreement of the Government to insure against or indemnify for substantially the same risks) from time to time covering the Aircraft in an amount not less than the Termination Value from time to time11.02.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor Lessor, the Indenture Trustee or the Owner ParticipantParticipants, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility which normally participate in airline insurance programs (i) all riskrisk (including U.S. limited form of war risk insurance covering (but not limited to) hijacking, strikes, civil commotion, terrorist acts and acts of sabotage while the Aircraft is operated in the U.S. and Canada), agreed value, ground ground, taxiing and flight hull insurance insurance, which may, except as expressly provided in this Section 9(b), exclude war risks and allied perils, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; PROVIDED THATprovided that, neither the Lessee nor any Permitted Sublessee shall be -------- ---- required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be on a repair cost basis in respect of damage not constituting an Event of Loss and on an agreed value basis in respect of an Event of Loss and shall be of the same type and covering the same risks usually carried by the Lessee with respect to similar aircraft and enginesengines and shall provide coverage that is in substantially similar form, of such types and covering risks having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers operating similar aircraft on similar routes. If and to the kind customarily insured against by extent that the LesseeLessee or a Permitted Sublessee operates the Aircraft (A) on routes where it maintains war risk, hijacking or allied perils insurance in effect with respect to other similar owned or leased aircraft in its fleet, (B) on routes where the custom in the industry is to carry war risk, hijacking or allied perils insurance or (C) in any area of recognized hostilities, the Lessee or such Permitted Sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the amount at least equal to Termination Value from time to time. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to . Notwithstanding the date of such agreementforegoing, the Lessee shall provide an Officer's Certificate not be required to maintain war risk insurance (except the U.S. limited form of war risk insurance noted above) so long as the Aircraft is operated only within the United States and Canada. During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with required by this Section 9(b). Lessee (or any Permitted Sublessee, insurance otherwise conforming with the provisions of this Section 9(b) shall in any event maintain at all times during except that the Term, with independent insurers scope of internationally recognized reputation and responsibility hull war the risks and allied perils the type of insurance shall be in accordance with substantially similar form, of such types and having limits within the London form LSW555B range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or its equivalent form reasonably acceptable to hangared, provided that the Lessor (or an agreement scope of the Government to insure against or indemnify for substantially risks and the type of -------- insurance shall be the same risks) as from time to time covering applicable to aircraft owned by the Lessee of the same type similarly on the ground and not in operation, provided further that the Lessee shall maintain insurance against risk of loss -------- ------- or damage to the Aircraft in an amount not less than equal to the Termination Value from time to timetime during such period that the Aircraft is on the ground and not in operation.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor Lessor, the Indenture Trustee or the Owner ParticipantParticipants, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally or internationally recognized responsibility which normally participate in airline insurance programs (i) all riskrisk (including standard North America war risk insurance buy-backs covering (but not limited to) hijacking, strikes, civil commotion, terrorist acts and acts of sabotage while the Aircraft is operated in the U.S. and Canada), agreed value, ground ground, taxiing and flight hull insurance insurance, which may, except as expressly provided in this Section 9(b), exclude war risks and allied perils, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; PROVIDED THATprovided that, neither -------- ---- the Lessee nor any Permitted Sublessee shall be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be on a repair cost basis in respect of damage not constituting an Event of Loss, and on an agreed value basis in respect of an Event of Loss (provided that, in the case of any Engine, such insurance shall be in an amount at least sufficient to replace such Engine (without regard to such replaced Engine's hours or cycles)) and shall be of the same type and covering the same risks usually carried by the Lessee with respect to similar aircraft and enginesengines and shall provide coverage that is in substantially similar form, of such types and covering risks having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers operating similar aircraft on similar routes. If and to the kind customarily insured against by extent that the LesseeLessee or a Permitted Sublessee operates the Aircraft (A) on routes where it maintains war risk, hijacking or allied perils insurance in effect with respect to other similar owned or leased aircraft in its fleet, (B) on routes where the custom in the industry is to carry war risk, hijacking or allied perils insurance or (C) in any area of recognized hostilities, the Lessee or such Permitted Sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the amount at least equal to Termination Value from time to time. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to . Notwithstanding the date of such agreementforegoing, the Lessee shall provide an Officer's Certificate not be required to maintain war risk insurance (except the standard North America war risk insurance buy-backs noted above) so long as the Aircraft is operated only within the United States and Canada. During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with required by this Section 9(b). Lessee (or any Permitted Sublessee, insurance otherwise conforming with the provisions of this Section 9(b) shall in any event maintain at all times during except that the Term, with independent insurers scope of internationally recognized reputation and responsibility hull war the risks and allied perils the type of insurance shall be in accordance with substantially similar form, of such types and having limits within the London form LSW555B range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or its equivalent form reasonably acceptable to hangared, provided that the Lessor (or an agreement scope of the Government to insure against or indemnify for substantially risks and the type of -------- insurance shall be the same risks) as from time to time covering applicable to aircraft owned by the Lessee of the same type similarly on the ground and not in operation, provided further that the Lessee shall maintain insurance against risk of loss -------- ------- or damage to the Aircraft in an amount not less than equal to the Termination Value from time to timetime during such period that the Aircraft is on the ground and not in operation.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor Lessor, the Indenture Trustee or the Owner ParticipantParticipants, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility which normally participate in airline insurance programs (i) all riskrisk (including U.S. limited form of war risk insurance covering (but not limited to) hijacking, strikes, civil commotion, terrorist acts and acts of sabotage while the Aircraft is operated in the U.S. and Canada), agreed value, ground ground, taxiing and flight hull insurance insurance, which may, except as expressly provided in this Section 9(b), exclude war risks and allied perils, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; PROVIDED THATprovided that, ------------- neither the Lessee nor any Permitted Sublessee shall be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be on a replacement cost basis in respect of damage not constituting an Event of Loss and on an agreed value basis in respect of an Event of Loss and shall be of the same type and covering the same risks usually carried by the Lessee with respect to similar aircraft and enginesengines and shall provide coverage that is in substantially similar form, of such types and covering risks having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers operating similar aircraft on similar routes. If and to the kind customarily insured against by extent that the LesseeLessee or a Permitted Sublessee operates the Aircraft (A) on routes where it maintains war risk, hijacking or allied perils insurance in effect with respect to other similar owned or leased aircraft in its fleet, (B) on routes where the custom in the industry is to carry war risk, hijacking or allied perils insurance or (C) in any area of recognized hostilities, the Lessee or such Permitted Sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the amount at least equal to Termination Value from time to time. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to . Notwithstanding the date of such agreementforegoing, the Lessee shall provide an Officer's Certificate not be required to maintain war risk insurance (except the U.S. limited form of war risk insurance noted above) so long as the Aircraft is operated only within the United States and Canada. During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with required by this Section 9(b). Lessee (or any Permitted Sublessee, insurance otherwise conforming with the provisions of this Section 9(b) shall in any event maintain at all times during except that the Term, with independent insurers scope of internationally recognized reputation and responsibility hull war the risks and allied perils the type of insurance shall be in accordance with substantially similar form, of such types and having limits within the London form LSW555B range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or its equivalent form reasonably acceptable to hangared, provided that the Lessor (or an agreement scope of the Government to insure against or indemnify for substantially risks and the type of -------- insurance shall be the same risks) as from time to time covering applicable to aircraft owned by the Lessee of the same type similarly on the ground and not in operation, provided further that the Lessee shall maintain insurance against risk of loss -------- ------- or damage to the Aircraft in an amount not less than equal to the Termination Value from time to timetime during such period that the Aircraft is on the ground and not in operation.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee Borrower under Section 9(d3.4(f), the Lessee Borrower shall, without expense to the Lessor or the Owner ParticipantLender, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility (i) all risk, agreed value, ground and flight hull insurance covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) of not less than 105% of the Termination Value from time to timeoutstanding principal of the Note; PROVIDED THAT, neither the Lessee nor any Permitted Sublessee Borrower shall not be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) Borrower shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be of the type usually carried by the Lessee Borrower with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the LesseeBorrower. The Borrower shall in any event maintain or cause to be maintained in effect at all times during the Term, with independent insurers of internationally recognized reputation and responsibility hull war risks and allied perils insurance (in accordance with the London form LSW555B or its equivalent form reasonably acceptable to the Lender) with respect to the Aircraft in the amount at least equal to 105% of the outstanding principal amount of the Note from time to time. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b3.4(b), PROVIDED that on or prior to the date of such agreement, the Lessee shall provide an Officer's Certificate of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with this Section 9(b). Lessee (or any Permitted Sublessee) shall in any event maintain at all times during the Term, with independent insurers of internationally recognized reputation and responsibility hull war risks and allied perils insurance in accordance with the London form LSW555B or its equivalent form reasonably acceptable to the Lessor (or an agreement of the Government to insure against or indemnify for substantially the same risks) from time to time covering the Aircraft in an amount not less than the Termination Value from time to time.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor Lessor, the Indenture Trustee or the Owner ParticipantParticipants, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility (i) all risk, agreed value, ground and flight hull insurance insurance, which may, except as provided below, exclude war risks and allied perils, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; PROVIDED THATprovided that, neither the Lessee nor any Permitted Sublessee shall be required to maintain all-all- risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded for any reason and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts while not installed temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the AirframeAirframe but such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Lessee or a Permitted Sublessee. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the Lessee. If and to the extent that the Lessee or a sublessee operates the Aircraft (A) on routes where it maintains war risk, hijacking or allied perils insurance in effect with respect to other similar owned or leased aircraft in its fleet, (B) on routes (other than routes within the United States, Canada, Mexico, Bermuda and islands other than Cuba in the Caribbean Basin) where the custom in the industry is to carry war risk insurance or (C) in any area of recognized hostilities, the Lessee or such sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the lesser of an amount at least equal to Termination Value or the amount of such insurance customarily carried by corporations engaged in the same or similar business similarly situated with the Lessee and owning or operating similar aircraft and engines on such routes or similar routes, provided that if the requirement to maintain war risk insurance arises under clause (A) of this sentence, such insurance shall be maintained in an amount not less than that maintained by the Lessee or such sublessee on similar aircraft in its fleet. An agreement by the Government for the benefit of the Additional Insureds to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b), PROVIDED that on or prior to the date of such agreement, the Lessee shall provide an Officer's Certificate of the Lessee certifying that any such insurance or indemnity provides protection no less favorable than insurance coverage that would comply with this Section 9(b). Lessee (or any Permitted Sublessee) shall in any event maintain at all times during the Term, with independent insurers of internationally recognized reputation and responsibility hull war risks and allied perils insurance in accordance with the London form LSW555B or its equivalent form reasonably acceptable to the Lessor (or an agreement of the Government to insure against or indemnify for substantially the same risks) from time to time covering the Aircraft in an amount not less than the Termination Value from time to time.