<Page> Exhibit 10.31 EXECUTION VERSION N296SK Chautauqua Airlines, Inc. 2500 South High School Road Indianapolis, Indiana 46241 December 20, 2001 Wells Fargo Bank Northwest, National Association 79 South Main Street Salt Lake City, Utah 84111 Silvermine River Finance Two, Inc. 201 High Ridge Road Stamford, Connecticut 06927 Re: Participation Agreement [N296SK], dated as of December 20, 2001 (the "Participation Agreement"), among Chautauqua Airlines, Inc. (the "Lessee"), Silvermine River Finance Two, Inc. ("Silvermine") and Wells Fargo Bank Northwest, National Association, as Owner Trustee (the "Owner Trustee"). Capitalized terms used and not defined herein shall be given the meanings assigned in the Participation Agreement. Dear Madams/Sirs: The parties hereto agree that this letter shall be an Operative Agreement and that for all purposes of the Participation Agreement and other Operative Agreements, the first paragraph of Section 4.02(e) of the Participation Agreement shall be deemed to be amended by adding at the end thereof: "In addition to the foregoing requirements, so long as Silvermine or an Affiliate of GECC (including for avoidance of doubt, Silvermine) is the Owner Participant, (x) during the first five (5) years of the Term, the Lessee shall not enter into any merger with or into or consolidation with, or sell, convey, transfer, lease or otherwise dispose of in one or a series of transactions all or substantially all of its assets to any Person nor shall Wexford Air Holdings, Inc. (the "Wexford Shareholder") sell any of its shares of common stock in the Lessee (collectively, a "Transaction") without the prior written consent of the Lessor, such consent not to be unreasonably withheld, unless: (a) following such Transaction, the Wexford Shareholder is the shareholder owning the greatest number of shares of common stock of the Lessee or other surviving entity; or (b) the acquiring or successor entity in such Transaction is a Certificated Air Carrier with a tangible net worth of not less than $50,000,000 or a Group III air carrier as determined under 14 CFR 241, Section 04 (or, if such determination has not been made, an air carrier with <Page> annual operating revenues of $1,000,000,000) or (c) immediately following the Transaction, Lessee receives and retains net proceeds of at least $25,000,000; and (y) clause (2) of the proviso in the immediately preceding sentence shall not apply during the first five (5) years of the Term with respect to any Transaction that otherwise fully satisfies any one of the conditions set forth in subclauses (a), (b) or (c) in clause (x) of this paragraph. The agreement stated in this letter is for the sole benefit of Silvermine and its Affiliates and shall terminate if at any time Silvermine or an Affiliate ceases to be the Owner Participant. Each party agrees that it will not disclose the terms of this letter (other than to its accountants, attorneys, agents or consultants), including to potential assignees, except as required by law. If you agree with the terms of this letter, please so indicate by executing the letter where indicated below. [SIGNATURE PAGE FOLLOWS] <Page> Very truly yours, CHAUTAUQUA AIRLINES, INC. By: ------------------------ Name: Title: ACCEPTED AND AGREED: WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, as Owner Trustee By: ------------------------ Name: Title: SILVERMINE RIVER FINANCE TWO, INC. By: ------------------------ Name: Title: <Page> NOTE TO EXHIBIT 10.31 The 12 additional Letter Agreements are substantially identical in all material respects to the filed Letter Agreement except as follows: <Table> <Caption> - ------------------------------------- ----------------------------------- ----------------------------------- TAIL NUMBER CLOSING DATE OWNER-PARTICIPANT - ------------------------------------- ----------------------------------- ----------------------------------- N289SK July, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N290SK July, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N291SK August, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N292SK August, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N293SK September, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N294SK September, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N295SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N297SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N298SK October, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N299SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N370SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N371SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- </Table>