WORLD AIRWAYS INC /DE/
EXHIBIT 10.3
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<TYPE>EX-10.3
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<DESCRIPTION>EXHIBIT 10.3
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="le1003_exhibit_10.3"> </A>
<A NAME="toc_le1003_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT 10.3    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le1003_parent_guarantee"> </A>
<A NAME="toc_le1003_2"> </A>
<BR></FONT><FONT SIZE=2><B>PARENT GUARANTEE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>THIS PARENT GUARANTEE</B></FONT><FONT SIZE=2>, dated as of January&nbsp;10, 2005 (as the same may be amended, restated, supplemented or otherwise modified from
time to time, this "</FONT><FONT SIZE=2><B><I>Parent Guarantee</I></B></FONT><FONT SIZE=2>"), is made and entered into by World Air Holdings,&nbsp;Inc., a Delaware corporation (the
"</FONT><FONT SIZE=2><B><I>Parent Guarantor</I></B></FONT><FONT SIZE=2>"), in favor of the Guaranteed Parties (as defined below). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
capitalized terms used herein and not otherwise defined herein shall have the meanings provided for such terms in the Loan Agreement, dated as of December&nbsp;30, 2003 (as the
same may be amended, restated, supplemented or otherwise modified from time to time, the "</FONT><FONT SIZE=2><B><I>Loan Agreement</I></B></FONT><FONT SIZE=2>"), by and among World Airways,&nbsp;Inc., a
Delaware corporation, as Borrower, Govco Incorporated, a Delaware corporation, as Primary Tranche A Lender, Citibank, N.A. as Alternate Tranche A Lender, Collateral Agent and Agent, Citicorp
USA,&nbsp;Inc. as Tranche B Lender, Citicorp North America,&nbsp;Inc. as Govco Administrative Agent, Phoenix American Financial Services,&nbsp;Inc., as Loan Administrator, and Air Transportation
Stabilization Board, created pursuant to Section&nbsp;102 of the Act (as defined in the Loan Agreement) (the "</FONT><FONT SIZE=2><B><I>Board</I></B></FONT><FONT SIZE=2>"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>W I T N E S S E T H:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, pursuant to that certain Agreement and Plan of Merger, dated as of the date hereof, by and among the
Borrower, the Parent Guarantor and World Merger Subsidiary,&nbsp;Inc., a Delaware corporation and wholly-owned subsidiary of the Parent Guarantor (the "</FONT><FONT SIZE=2><B><I>Merger
Sub</I></B></FONT><FONT SIZE=2>"), (i)&nbsp;Merger Sub will be merged with and into the Borrower, (ii)&nbsp;each of the issued and outstanding shares of common stock of the Borrower, par value $.001
per share, will be converted into one share of common stock of the Parent Guarantor, par value $.001 per share, (iii)&nbsp;the shareholders of the Borrower will become shareholders of the Parent
Guarantor, and (iv)&nbsp;the Borrower will become a wholly-owned subsidiary of the Parent Guarantor (the "</FONT><FONT SIZE=2><B><I>Merger</I></B></FONT><FONT SIZE=2>"); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the Merger constitutes a restructuring under Section&nbsp;5.19 of the Loan Agreement (the
"</FONT><FONT SIZE=2><B><I>Restructuring</I></B></FONT><FONT SIZE=2>"); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, Section&nbsp;5.19(f) of the Loan Agreement provides that, in the event of a Restructuring, the Parent Guarantor shall execute
and deliver to the Agent, for the benefit of the Lenders, the Supplemental Guarantor and the Board, a guarantee agreement in substantially the form of the Subsidiary Guarantee (and otherwise inform
and substance satisfactory to the Agent and the Board), pursuant to which the Parent Guarantor unconditionally guarantees the Obligations of the Borrower hereunder and under the other Loan Documents;
and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, The Parent Guarantor is entering into this Parent Guarantee to comply with Section&nbsp;5.19(f) of the Loan Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW</B></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><B>THEREFORE</B></FONT><FONT SIZE=2>, in consideration of the premises contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parent Guarantor hereby agrees as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;1.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Guarantee</I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
Parent Guarantor hereby absolutely, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, the punctual payment when due, whether
at stated maturity, by acceleration or otherwise, of all (i)&nbsp;Obligations of the Borrower to the Agent, the Lenders, the Supplemental Guarantor, the Govco Administrative Agent, the Loan
Administrator or the Board (together with their respective permitted successors and assigns, each individually, a "</FONT><FONT SIZE=2><B><I>Guaranteed Party</I></B></FONT><FONT SIZE=2>" and, collectively,
the "</FONT><FONT SIZE=2><B><I>Guaranteed Parties</I></B></FONT><FONT SIZE=2>") arising under or in respect of the Loan Documents or the Notes (collectively, the
"</FONT><FONT SIZE=2><B><I>Agreements</I></B></FONT><FONT SIZE=2>") now or hereafter existing or arising, whether for principal, interest, fees, expenses or otherwise, including for amounts owed to the
Board or any of its permitted </FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>successors
and assigns as a result of a payment under the Board Guarantee, and (ii)&nbsp;any and all expenses (including reasonable counsel fees and expenses) actually incurred by any Guaranteed
Party in enforcing any rights under this Parent Guarantee (all of the foregoing, collectively, the "</FONT><FONT SIZE=2><B><I>Guaranteed Obligations</I></B></FONT><FONT SIZE=2>"). It is the intention of the
parties hereto that in no event shall the Parent Guarantor's obligations under this Parent Guarantee constitute or result in a violation of any applicable fraudulent conveyance or similar law of any
relevant jurisdiction. Therefore, in the event that this Parent Guarantee would, but for the preceding sentence, constitute or result in such violation, then the liability of the Parent Guarantor
under this Parent Guarantee shall be reduced to the maximum amount permissible under the applicable fraudulent conveyance or similar laws. The Parent Guarantor agrees that in the event that any
payment shall be required to be made by it under this Parent Guarantee and by any Subsidiary pursuant to a Subsidiary Guarantee, it will contribute, to the maximum extent permitted by applicable
fraudulent conveyance or similar laws, in order that such contribution will not result in a fraudulent transfer or conveyance, such amount to such Subsidiaries so as to maximize the aggregate amount
paid to the Agent, the Lenders and the Board under this Parent Guarantee, any Subsidiary Guarantee and the Notes. Any and all payments by the Parent Guarantor hereunder shall be made free and clear of
and without deduction for any set-off or counterclaim, or Taxes as and to the extent provided in Section&nbsp;2.12 of the Loan Agreement as if each reference to the
"</FONT><FONT SIZE=2><B><I>Borrower</I></B></FONT><FONT SIZE=2>" therein were a reference to the Parent Guarantor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;The
Parent Guarantor unconditionally and irrevocably guarantees the payment of any and all of the Guaranteed Obligations to the Agent as agent for the Guaranteed Parties
whether or not due or payable by the Borrower upon the occurrence of any of the events specified in Section&nbsp;7.1 of the Loan Agreement or otherwise, and unconditionally and irrevocably promises
to pay such Guaranteed Obligations to the Agent as agent for the Guaranteed Parties, or to its order, on demand, in lawful money of the United States. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;2.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Guarantee Continuing and
Absolute</I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
Parent Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Agreements, regardless of any law, regulation
or order now or hereafter in effect in any jurisdiction affecting any of such terms or the obligations of the Borrower or the rights of the Agent or any Guaranteed Party with respect thereto. This is
a continuing guarantee of payment and not of collection, and the liability of the Parent Guarantor under this Parent Guarantee shall be absolute and unconditional, in accordance with the terms hereof
and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (whether
taking place or occurring with or without notice to or the consent of the Parent Guarantor which notice is hereby waived by the Parent Guarantor), including, without limitation: (i)&nbsp;any lack of
validity or enforceability of the Agreements or any other agreement or instrument relating to the Agreements; (ii)&nbsp;any change in the time, place or manner of payment of, or in any other term
of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to, or any departure from, the Agreements, including, without limitation, any increase in the
Guaranteed Obligations resulting from the extension of additional credit to the Borrower; (iii)&nbsp;any taking, any exchange, release or non-perfection of any collateral, or any taking,
release, or amendment or waiver of, or consent to, departure from any other guarantee, for all or any of the Guaranteed Obligations or any failure by the Agent or any of the Guaranteed Parties to take
any steps to preserve or perfect its rights to or in any collateral securing the obligations of the Borrower under the Agreements or the Parent Guarantor hereunder; (iv)&nbsp;any manner of
application of collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any collateral for all or any part of the Guaranteed
Obligations or any other assets of the Obligors, or any of their Subsidiaries; (v)&nbsp;any change, restructuring or termination of the corporate structure or existence of the Parent Guarantor, the
Borrower, or any of their respective Subsidiaries; (vi)&nbsp;the voluntary or involuntary liquidation, sale or other disposition of all or any portion </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>of
the assets of the Obligors, or the receivership, insolvency, bankruptcy, reorganization or similar proceeding affecting the Obligors or any of their assets; (vii)&nbsp;any termination of or
change in any relationship between the Parent Guarantor and the Borrower; (viii)&nbsp;any change of circumstances, whether or not foreseeable and whether or not such change does or might vary the
risk of the Parent Guarantor hereunder; (ix)&nbsp;any exercise, delay in the exercise or waiver of, forbearance or other indulgence with respect to, or any election not to, or failure to, exercise,
any right, remedy or power available to the Agent or any of the Guaranteed Parties hereunder or under any of the Agreements; or (x)&nbsp;any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the Borrower or the Parent Guarantor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;This
Parent Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Agent and the Guaranteed Parties for any reason including upon the insolvency, bankruptcy or reorganization of the Borrower or the Parent Guarantor or otherwise,
all as though such payment had not been made and the Parent Guarantor agrees to indemnify the Agent and each Guaranteed Party for all costs and expenses incurred by the Agent or the Guaranteed Party
in connection with such rescission or return. To the extent permitted by applicable law, the Parent Guarantor hereby expressly waives the benefit of any applicable statute of limitations and agrees
that it shall be liable hereunder whenever such rescission or return of payment occurs. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;The
Parent Guarantor further agrees that this is a guarantee of payment and not of collection. The Agent may require payment by the Parent Guarantor and enforce the
obligations of the Parent Guarantor hereunder without first being required to enforce any claim against the Borrower or resort to any security or other credit support for the Guaranteed Obligations. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;3.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Waiver</I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;To
the extent permitted by applicable law, the Parent Guarantor hereby waives (i)&nbsp;promptness, diligence, notice of acceptance and, except to the extent expressly
provided for under any of the other Loan Documents, any other notice with respect to any of the Guaranteed Obligations and this Parent Guarantee, including any notice of default, demand, dishonor,
presentment or protest, (ii)&nbsp;all defenses and discharges of a guarantor or surety, including all defenses based on or arising out of any defense of the Borrower or the unenforceability of the
Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower, other than the final and indefeasible payment in full in cash of the
Guaranteed Obligations, and (iii)&nbsp;any requirement that the Agent or any Guaranteed Party protect, secure, perfect or insure any security interest or lien on any property subject thereto or
exhaust any right or take any action against the Borrower, or any other person or entity or any collateral. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;The
Guaranteed Parties may, at their election, foreclose on any security held by them or for their benefit in one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with the Borrower or any other guarantor or exercise
any other right or remedy available to them against the Borrower or any other guarantor, without affecting or impairing in any way the liability of the Parent Guarantor hereunder except to the extent
the Guaranteed Obligations have been fully, finally and indefeasibly paid in cash. The Parent Guarantor waives any defense arising out of any such election even though such election operates, pursuant
to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of the Parent Guarantor against the Borrower or any other guarantor, as the case may
be, or any security. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;4.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Subordination of Subrogation.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parent
Guarantor hereby irrevocably agrees to subordinate any Subrogation Rights (as defined below) to the rights of the Agent or any Guaranteed Party to recover from the Borrower all Obligations, including
for amounts owed to the Board or any of its permitted successors and assigns as a result of a payment under the Board Guarantee. The term </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><I>Subrogation Rights</I></FONT><FONT SIZE=2>" shall mean any and all rights of subrogation, reimbursement, exoneration, contribution or indemnification, any right to participate
in any claim or remedy of the Agent or the Guaranteed Parties or any collateral which any Guaranteed Party or the Agent now has or hereafter acquires in connection with the payment, performance or
enforcement of the Parent Guarantor's obligations under this Parent Guarantee, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including the
right to take or receive, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or other rights. To
effectuate such subordination, the Parent Guarantor hereby agrees that it shall not be entitled to exercise any Subrogation Rights or to receive any payment by the Borrower in respect of any
Guaranteed Obligations until all of the Guaranteed Obligations have been indefeasibly paid in full. If any amount shall be paid to the Parent Guarantor in violation of the preceding sentence and the
Guaranteed Obligations shall not have been paid in full or any commitment of any Lender under any of the Agreements shall not have been irrevocably terminated, such amount shall be deemed to have been
paid to the Parent Guarantor for the benefit of, and held in trust for, the Agent for the benefit of the Guaranteed Parties, and shall forthwith be paid to the Agent to be credited and applied to the
Guaranteed Obligations, whether matured or unmatured. The Parent Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Agreements
and that the subordination set forth in this Section is knowingly made in contemplation of such benefits. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;5.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Representations and Warranties.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parent
Guarantor represents and warrants that all representations and warranties made with respect to it in the Loan Agreement and each other Loan Document are true and correct. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;6.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Certain Covenants</I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Subject
to the provisions of the Loan Agreement, the Parent Guarantor will do or cause to be done all things necessary to preserve and keep in full force and effect its
corporate existence and the corporate, partnership or other existence of the Borrower and the rights (charter and statutory) and franchises of the Parent Guarantor and the Borrower. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;The
Parent Guarantor shall comply with the terms and conditions of the Agreements applicable to it as if it were a party to the Agreements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;The
Parent Guarantor shall not consolidate or merge into any other Person or sell, convey, transfer or lease all or substantially all of its assets to any Person unless,
if the Parent Guarantor is not the surviving entity, such Person executes an agreement in form and substance satisfactory to the Guaranteed Parties pursuant to which it assumes all of the obligations
of the Parent Guarantor under this Parent Guarantee. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;7.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Notices.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All communications and notices
hereunder shall be in writing and given as provided in the Loan Agreement. The address of the Parent Guarantor set forth below its signature hereto shall be its address for all purposes of the Loan
Agreement as if set forth on </FONT><FONT SIZE=2><I>Annex&nbsp;A</I></FONT><FONT SIZE=2> thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;8.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>No Waiver; Remedies Cumulative;
Enforcement</I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;No
failure or delay on the part of any Guaranteed Party in exercising any right, power or privilege hereunder and no course of dealing between the Parent Guarantor and
the Agent or any other Guaranteed Party shall operate as a waiver of any such right, power or privilege; nor shall any single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Agent or any Guaranteed Party of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy which the Agent or such Guaranteed Party would otherwise have on any future occasion. Each and every right, power and remedy of the Agent and
Guaranteed Parties provided for in this Parent Guarantee, any document executed in connection with the Agreements, or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>now
or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in addition to every other such right, power or remedy. The exercise or beginning of the
exercise by the Agent of any one or more of the rights, powers or remedies provided for in this Parent Guarantee, any other document executed in connection with the Agreements or now or hereafter
existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Agent of all such other rights, powers or remedies, and no failure or delay on the
part of the Agent to exercise any such right, power or remedy shall operate as a waiver thereof. No notice to or demand on the Parent Guarantor in any case shall entitle the Parent Guarantor to any
other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Agent to any other or further action in any circumstances without notice or demand. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Notwithstanding
any other provision hereof to the contrary, each of the parties hereto and the Guaranteed Parties agrees (i)&nbsp;that this Parent Guarantee may be
enforced only by the action of the Agent; and (ii)&nbsp;that the rights and responsibilities of the Agent under this Parent Guarantee with respect to the taking of any action hereunder or the
exercise or non-exercise by the Agent of any right, power or remedy hereunder or arising hereunder, including with respect to the enforcement of this Parent Guarantee, may be exercised by
the Agent only with the consent of and shall be exercised by the Agent upon the instructions of the Board, or if the Board Guarantee is no longer in effect and all obligations to the Board thereunder
and under the Loan Documents have been satisfied in full, the Requisite Lenders, in each case, in accordance with the applicable terms of the Board Guarantee and the Loan Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Any
payments made hereunder shall be allocated in accordance with the provisions of the Loan Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;9.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Continuing Guarantee; Transfer of
Obligations.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Parent Guarantee is a continuing guarantee and shall (i)&nbsp;remain in full force and effect until the indefeasible payment in full of the
Guaranteed Obligations and all other amounts payable under this Parent Guarantee, (ii)&nbsp;be binding upon the Parent Guarantor, its successors and assigns, and (iii)&nbsp;inure to the benefit of
the Guaranteed Parties and their permitted successors, transferees and assigns and be enforceable by the Agent on their behalf; provided that the Parent Guarantor may not assign or transfer this
Parent Guarantee or any of its interests or obligations hereunder. Without limiting the generality of the foregoing clause&nbsp;(iii), the rights of the Guaranteed Parties to assign, and their
obligations with respect to assignments of, any of their rights or obligations under the Agreements, including any assignment of or under the Board Guarantee, shall be determined solely in accordance
with the applicable terms of the Agreements and the Board Guarantee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;10.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Governing Law.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Parent Guarantee and the
rights and obligations of the parties hereto shall be governed by, and construed in accordance with, the law of the State of New York; provided, that the rights and obligations of the Board hereunder
shall be governed by, and construed in accordance with, the Federal law of the United States of America, if and to the extent such Federal law is applicable, and otherwise in accordance with the law
of the State of New York. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;11.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Submission to Jurisdiction; Service of
Process</I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Any
legal action or proceeding with respect to this Parent Guarantee may be brought in the courts of the State of New York or of the United States of America for the
Southern District of New York, and, by execution and delivery hereof, the Parent Guarantor hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of
the aforesaid courts. The parties hereto hereby irrevocably waive any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, which any of them may
now or hereafter have to the bringing of any such action or proceeding in such respective jurisdictions. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;The
Parent Guarantor hereby irrevocably consents to the service of any and all legal process, summons, notices and documents in any suit, action or proceeding brought in
the United States of America arising out of or in connection with this Parent Guarantee by the mailing (by registered or certified mail, postage prepaid) or delivering of a copy of such process to the
Parent Guarantor in accordance with the provisions of Section&nbsp;7. The Parent Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Nothing
contained in this Section&nbsp;11 shall affect the right of the Agent or any Guaranteed Party to serve process in any other manner permitted by law or commence
legal proceedings or otherwise proceed against the Parent Guarantor in any other jurisdiction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;12.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Waiver of Trial by Jury.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;THE PARENT GUARANTOR
HEREBY IRREVOCABLY WAIVES, TO THE EXTENT ALLOWED BY LAW, ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS PARENT GUARANTEE OR THE OTHER
LOAN DOCUMENTS. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;13.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Waivers and Amendments.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;None of the terms or
provisions of this Parent Guarantee may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Parent Guarantor and acknowledged and agreed to by the
Agent and the Board, or if the Board Guarantee is no longer in effect and all obligations to the Board thereunder and under the Loan Documents have been satisfied in full, by the Parent Guarantor and
acknowledged and agreed to by the Agent, acting on instructions of the Requisite Lenders; provided that any provision of this Parent Guarantee may be waived by a written instrument executed by the
Agent and the Board, or if the Board Guarantee is no longer in effect and all obligations to the Board thereunder and under the Loan Documents have been satisfied in full, the Agent, acting on
instructions of the Requisite Lenders. Any such amendment, supplement, modification or waiver shall be binding upon the Parent Guarantor, the Agent and all future holders of the Guaranteed
Obligations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;14.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Severability.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In case any provision in or
obligation under this Parent Guarantee or the Guaranteed Obligations shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations in such jurisdiction, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;15.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Right of Setoff.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default shall
have occurred and be continuing, the Agent, the Board and each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, but subject to Section&nbsp;10.5
of the Loan Agreement, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other Indebtedness at any time owing by such party to
or for the credit or the account of the Parent Guarantor against any or all of the obligations of the Parent Guarantor now or hereafter existing under this Parent Guarantee and the other Loan
Documents held by such party, irrespective of whether or not such party shall have made any demand under this Parent Guarantee or any other Loan Document and although such obligations may be
unmatured. The rights of each such party under this Section&nbsp;15 are in addition to other rights and remedies (including other rights of setoff) which such party may have. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;16.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Further Assurances.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Parent Guarantor
shall from time to time, at its own cost and expense, do and perform such other and further acts and duly execute and delivery such further documents and assurances as may be required by applicable
laws or reasonably requested by the Board or the Agent to establish, maintain and protect the respective rights and remedies of each such party and to carry out the intent and purpose of this Parent
Guarantee or any other Loan Document. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;17.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Rules of Interpretation.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The rules of
interpretation specified in the Loan Agreement shall be applicable to this Parent Guarantee. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;18.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>Counterparts.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Parent Guarantee may be
executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same
document. Delivery of an executed signature page of this Parent Guarantee by facsimile transmission shall be as effective as delivery of a manually executed counterpart hereof. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>[</FONT><FONT
SIZE=2><B>THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P style='page-break-before:always'></p>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Parent Guarantor has duly executed this Parent Guarantee as of the day and year first above written. </FONT></P>

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<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><B>WORLD AIR HOLDINGS,&nbsp;INC.</B></FONT></TD>
</TR>
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&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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By:</FONT></TD>
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<TD COLSPAN=3><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>RANDY J. MARTINEZ</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Randy J. Martinez<BR>
Chief Executive Officer and President</FONT></TD>
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<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
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Address and Contact Information:</FONT></TD>
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&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
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World Air Holdings,&nbsp;Inc.<BR>
HLH Building<BR>
101 World Drive<BR>
Peachtree City, Georgia<BR>
Attention: Randy J. Martinez<BR>
Telephone: (770)&nbsp;632-8260<BR>
Facsimile: (770)&nbsp;632-8090</FONT></TD>
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<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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With a copy to:</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Powell Goldstein LLP<BR>
One Atlantic Center<BR>
Suite 1400<BR>
1201 West Peachtree Street NW<BR>
Atlanta, GA 30309<BR>
Attention: Thomas R. McNeill, Esq.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabriel Dumitrescu, Esq.</FONT></TD>
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<TD COLSPAN=3><FONT SIZE=2><BR>
Accepted:</FONT></TD>
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&nbsp;</FONT></TD>
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<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
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<TD COLSPAN=3 VALIGN="TOP"><BR><FONT SIZE=2><B>AIR TRANSPORTATION STABILIZATION BOARD</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>MARK R. DAYTON</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Mark R. Dayton<BR>
Executive Director</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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<TD COLSPAN=3><BR><FONT SIZE=2><B>CITIBANK, N.A., as Agent</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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By:</FONT></TD>
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<TD WIDTH="38%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BARBARA KOBELT</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Barbara Kobelt<BR>
Title: Vice President</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<BR>
<P><br><A NAME="05ATA1003_11">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_le1003_1">EXHIBIT 10.3</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_le1003_2">PARENT GUARANTEE</A></FONT><BR>
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