MORTGAGE AND SECURITY AGREEMENT



                          DATED AS OF DECEMBER 30, 2003



                                     MADE BY



                            WORLD AIRWAYS, INC., AND



                        WORLD AIRWAYS PARTS COMPANY, LLC,

                                   AS GRANTORS



                                   IN FAVOR OF



                                 CITIBANK, N.A.,

                               AS COLLATERAL AGENT



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                                TABLE OF CONTENTS



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                                                                                                                   PAGE

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ARTICLE 1 DEFINITIONS............................................................................................    6



   Section 1.01      Definitions.................................................................................    6



ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF THE GRANTORS.........................................................   16



   Section 2.01      Certificated Air Carrier; Maintenance and Location of Spare Parts; Section 1110.............   16

   Section 2.02      Title to Collateral; Financing Statements...................................................   16

   Section 2.03      Location of Grantors; UCC Information.......................................................   17

   Section 2.04      Perfected First Priority Liens..............................................................   17

   Section 2.05      Consents....................................................................................   17

   Section 2.06      Possession of Pledged Equipment.............................................................   18

   Section 2.07      Pledged Equity and Pledged Debt.............................................................   18

   Section 2.08      Intellectual Property.......................................................................   19

   Section 2.09      Deposit and Securities Accounts.............................................................   19



ARTICLE 3 COVENANTS OF THE COMPANY...............................................................................   20



   Section 3.01      Maintenance and Operation; Possession; Insignia.............................................   20

   Section 3.02      Replacement and Pooling of Parts; Alterations, Modifications and Additions..................   25

   Section 3.03      Use, Possession and Designated Locations of Spare Parts and Pledged

                     Equipment; Collateral Access Agreement......................................................   26

   Section 3.04      Insurance...................................................................................   28

   Section 3.05      Inspection..................................................................................   32

   Section 3.06      Changes in Locations, Name, etc.............................................................   33

   Section 3.07      Pledged Receivables.........................................................................   33

   Section 3.08      Pledged Equipment...........................................................................   34

   Section 3.09      Delivery and Control of Pledged Equity and Pledged Debt.....................................   34

   Section 3.10      Notices.....................................................................................   35

   Section 3.11      Intellectual Property Collateral............................................................   36

   Section 3.12      Liens.......................................................................................   37

   Section 3.13      Financing Statements........................................................................   37

   Section 3.14      Disposition of Collateral...................................................................   37

   Section 3.15      Further Assurances..........................................................................   38

   Section 3.16      Performance.................................................................................   38



ARTICLE 4 EVENT OF LOSS..........................................................................................   38



   Section 4.01      Event of Loss; Application of Payments and Proceeds.........................................   38

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