<Page> Exhibit 10.7(b) SECOND AMENDMENT This Second Amendment is entered and made as of December 20, 2000 (the "Amendment") as an amendment to the Chautauqua Jet Service Agreement dated as of March 19, 1999, by and betwccn US Airways, Inc. ("US Airways") and CHAUTAUQUA AIRLINES. INC. ("Chautauqua") as amended by the First Amendment dated as of September 6, 2000 (as amended, the "Agreement"). WITNESSETH: WHEREAS, US Airways and Chautauqua have entered into the Agreement; and WHEREAS, US Airways and Chautauqua desire to further amend certain provisions of the Agreement; NOW THEREFORE, in consideration of the premises and mutual covenants hereinafter set forth and for good and valuable consideration, the receipt and sufficiency of which is acknowledged US Airways and Chautauqua hereby agree as follows: 1. Section 2.1 is hereby amended by deleting "twenty (20) active and 1 spare" as stated in item 1 of the First Amendment and replacing it with, "twenty (25) active and (1) spare EMB-145 LR" which have an engine performance rating at least as high as the rating provided by the Rolls Royce engine with an AIP rating. Chautauqua represents that all aircraft delivered after November 2000 shall be configured with the AIP performance rating, subject to FAA certification, and that Chautauqua shall use its best efforts to retro-fit the existing US Airways ERJ Fleet with, the AIP performance modification in a timely manner. 2. Exhibit 2.1 of the Agreement is hereby deleted in its entirety and replaced with Exhibit 2.1 attached hereto. 1 - -------------------- Certain portions of this exhibit have been ommitted pursuant to a request for confidential treatment under Rule 406 of the Securities Act of 1933. The omitted materials have been filed separately with the Securities and Exchange Commission. <Page> 3. (a) Exhibit 5.1 of the Agreement is hereby deleted in its entirety and replaced with Exhibit 5.1 attached hereto as of December 20, 2000. (b) US Airways reserves the right but not the obligation to provide Hull Insurance and Passenger Liability Insurance at the levels specified in the Section 6 of the Agreement or at mutually agreed levels in lieu of payment far Hull Insurance and Passenger Liability Insurance as specified in the Pricing Model. 4. As of the date when the twenty second (22nd) aircraft is placed into service, Section 5.5 is hereby amended by deleting " [*] as stated in the first sentence of Section 5.5 and replacing it with" [*]. 5. Section 7.1 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof: "7.1 This Agreement is effective as of March 19, 1999 and Services provided hereunder will continue, without interruption until March 1, 2009 unless it is terminated on an earlier date pursuant to the provisions of this Article 7 of the Agreement. US Airways will have the right to extend the term of this Agreement by three (3) years upon twelve (12) months notice prior to the end of the initial term." 2 - -------------------- * Confidential <Page> Except as amended hereby, the Agreement remains unchanged in all other respects. Upon its execution, this Second Amendment, together with the Agreement, will be the complete and binding understanding of the parties with respect to the terms and conditions of the Agreement, as amended by the terms set forth heroin. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above written. CHAUTAUQUA AIRLINES, INC. US AIRWAYS, INC. /s/ Bryan Bedford /s/ Thomas M. Hanley ------------------------ -------------------------- By: Bryan Bedford By: Thomas M. Hanley Title: President Title: Vice President, US Airways 3 <Page> EXHIBIT 2.1 IMPLEMENTATION SCHEDULE OF AIRCRAFT DEPLOYMENT <Table> <Caption> NUMBER OF DATE OPERATIONAL AIRCRAFT Date of Amendment 11 January 2001 12 May 2001 13 July 2001 14 July 2001 15 August 2001 16 September 2001 17 September 2001 18 October 2001 19 October 2001 20 November 2001 21 December 2001 22 December 2001 23 January 2001 24 February 2002 25 March 2002 26 </Table> 4 <Page> EXHIBIT 5.1 PRICING MODEL PER 2ND AMENDMENT [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] <Page> [U.S AIRWAYS LOGO] DATA TRANSMITTAL. COVER SHEER Date: December 20, 2000 Time: 4;05 PM To: Bryan Bedford / Fax: 317-484-6047 From: Tom Hanley Number of Pages (including cover sheet): 8 =============================================================== Comments: Re: Second Amendment Fax Number: 703-872-7312 Telephone Number: 703-872-7617