Wed, Oct 31, 2007
Filed Chapter 11 Twice In Seven Years
Beleaguered air freight
and ground cargo operation Kitty Hawk Inc. announced this week it
has shut down most of its operations, and will eliminate 500
According to the Dallas Morning News, Kitty Hawk Aircargo and KH
Ground Inc., filed for Chapter 11 bankruptcy protection from
creditors two weeks ago... the second time in seven years it had
done so. Kitty Hawk previously filed for protection in 2000, and
reemerged in 2002.
"Kitty Hawk's financial condition has deteriorated significantly
over the last year, and the ceasing of network air and ground
operations is necessitated by, among other things, a 25 percent
decrease in year-over-year demand for its air product and a 15
percent year-over-year decrease in demand for its ground product,"
the carrier said.
Kitty Hawk officials also cited record-high jet and diesel fuel
prices as reasons for the grim news. The operation reported net
losses of $19.9 million in the first six months of 2007... and over
$34 million since January 2006.
The cargo company is
based at Dallas/Fort Worth International Airport, and has a hub in
Fort Wayne, IN. The carrier said it plans to continue charter air
cargo and on-demand operations.
Kitty Hawk appealed to investors in August it would likely need
more loans or equity to "fund our operations during the second
quarter of 2008" -- but then filed for bankruptcy protection
Shares in the air-and-ground operation will likely be delisted
from the American Stock Exchange on Wednesday. Shares stopped
trading upon its bankruptcy filing, at a whopping nine cents a
According to its bankruptcy filing, Kitty Hawk has 776
employees, of which 671 are full-time workers.
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