Kitty Hawk Signs ACMI Contract with H.E. Sutton
February 26 2007 - 6:30AM
Business Wire
Kitty Hawk, Inc. (AMEX:KHK), today announced that its wholly-owned
subsidiary, Kitty Hawk Aircargo, Inc., has entered into a one year
charter contract with the H.E. Sutton Forwarding Company, LLC.
Kitty Hawk will operate one of its B727 aircraft on an ACMI basis
(managing the Aircraft, Crew, Maintenance and Insurance), for the
purpose of transporting horses within the United States. The Kitty
Hawk aircraft and flight crews will be based in Lexington,
Kentucky. Based on successful performance of the contract, the
total annual revenue to Kitty Hawk Aircargo, Inc. is estimated to
be approximately $2.7 million. H.E. Sutton is the leader in
domestic equine air travel; its mission is to safely and
efficiently transport horses between all of the major Thoroughbred
racing and breeding markets in the U.S. and Canada. "The whole
staff at H.E. Sutton looks forward to a long and mutually
prosperous relationship with Kitty Hawk Aircargo,� said Robert
Clark, President of H.E. Sutton. �Our reputation within the
Thoroughbred horse racing industry as the first name in equine air
travel depends on reliable air carrier service and we are confident
that Kitty Hawk�s industry-leading reliability and commitment to
customer service will sustain that reputation.� �Kitty Hawk has
been a major carrier of high value shipments and exotic and other
live animals for many years and all live cargo is given our highest
level of care,� said Robert W. Zoller, president and chief
executive officer of Kitty Hawk, Inc. �Given the special
requirements of moving horses, we are proud that H.E. Sutton
recognized Kitty Hawk Aircargo�s industry leading service,
experience and expertise for moving high value, high security and
mission-critical heavyweight freight of all kinds and trusts us
with this precious cargo. With H.E. Sutton we aim to expand and
improve the service standard in this specialized niche in the
freight transport industry.� About Kitty Hawk, Inc.
www.kittyhawkcompanies.com As a recognized leader in customer
service, Kitty Hawk is the premier provider of guaranteed,
mission-critical, time-definite overnight air, second-morning air
and time-definite expedited ground freight transportation to major
business centers, international freight gateways and surrounding
communities throughout North America, including, Alaska; Hawaii;
Toronto, Canada; and San Juan, Puerto Rico. Kitty Hawk's scheduled
freight network and award-winning, guaranteed overnight
time-definite air or expedited ground products are ideal for
heavy-weight (over 150 lbs.), high-value or high-security, special
goods with unique dimension, perishable, animal and/or other
shipments requiring special handling. With more than 30 years
experience in the aviation and air freight industries, Kitty Hawk
plays a key connecting role in the global supply chain. Kitty Hawk
serves the logistics needs of more than 550 freight forwarders,
integrated carriers, domestic and international airlines and
logistics companies with its extensive integrated air and ground
network, fleet of Boeing 737-300SF and 727-200 cargo aircraft, as
well as a 240,000-square-foot cargo warehouse, U.S. Customs
clearance and sort facility at its Fort Wayne, Indiana hub. In
2005, Kitty Hawk became the North American launch customer for the
fuel-efficient and environmentally friendly Boeing 737-300SF cargo
aircraft. In late 2005, Kitty Hawk launched its new coast-to-coast
and border-to-border expedited ground network reaching key business
centers throughout the US, Canada and Mexico. In early 2006, to
manage the growing demand for its high customer service ground
freight product Kitty Hawk formed Kitty Hawk Ground, Inc. In June
2006, Kitty Hawk Ground acquired and began integrating the majority
of the assets of 20-year-old Air Container Transport (ACT), the
dominant expedited airport-to-airport freight trucking company
operating from Southwestern Canada to San Diego as well as
additional cities as far east as Texas and Illinois. In early 2007,
Kitty Hawk is scheduled to implement its new internet-based,
customer-focused information technology and cargo management
platform which is specifically designed for enhanced customer
service and communications, tracing and tracking of shipments as
well as operation management for all of the Company�s air and
ground network, regional hub operations and cargo accounting and
related administrative functions. About H.E. Sutton Forwarding
Company, LLC www.suttonforwarding.com Since 1969, H.E. "Tex" Sutton
Forwarding Company, LLC. has been the leader in domestic Equine Air
travel. H.E.�Sutton is the only U.S. company to have a dedicated
Boeing 727 cargo aircraft at its disposal. The company�s only
mission is to safely and efficiently transport horses between all
of the major Thoroughbred racing and breeding markets in the U.S.
and Canada. Sutton�s custom walk-on and off loading ramps, climate
controlled cabin, and experienced horse handlers provide�our�four
legged passengers with the�most comfortable and least stressful way
to get to that important race, show, auction�or breeding engagement
within hours from coast to coast! Statement under the Private
Securities Litigation Reform Act This report may contain
forward-looking statements that are intended to be subject to the
safe harbor protection provided by Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements relate to future events or future financial and
operating performance and involve known and unknown risks and
uncertainties that may cause actual results or performance to be
materially different from those indicated by any forward-looking
statements. In some cases, you can identify forward-looking
statements by terminology such as "forecast," "may," "will,"
"could," "should," "expect," "intends," "plan," "believe,"
"potential" or other similar words indicating future events or
contingencies. Some of the things that could cause actual results
to differ from expectations are: economic conditions; the impact of
high fuel prices; cancellation of the ACMI horse charter contract
by H.E. Sutton; our inability to successfully implement and operate
our expanded scheduled airport-to-airport expedited ground freight
network; our inability to successfully operate and integrate the
Air Container Transport operation and to retain their customers;
failure of key suppliers and vendors to perform; our inability to
attract sufficient customers at economical prices for our expanded
ground network; unforeseen increases in liquidity and working
capital requirements related to our expanded ground network;
potential competitive responses from other operators of nationwide
airport-to-airport ground freight networks; the continued impact of
terrorist attacks, global instability and potential U.S. military
involvement; the Company's significant lease obligations and
indebtedness; the competitive environment and other trends in the
Company's industry; changes in laws and regulations; changes in the
Company's operating costs including fuel; changes in the Company's
business plans; interest rates and the availability of financing;
limitations upon financial and operating flexibility due to the
terms of our credit facility; liability and other claims asserted
against the Company; labor disputes; the Company's ability to
attract and retain qualified personnel; and inflation. For a
discussion of these and other risk factors, see the Company's most
recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q filed with the Securities and Exchange Commission. All of the
forward-looking statements are qualified in their entirety by
reference to the risk factors discussed therein. These risk factors
may not be exhaustive. The Company operates in a continually
changing business environment, and new risk factors emerge from
time to time. Management cannot predict such new risk factors, nor
can it assess the impact, if any, of such new risk factors on the
Company's business or events described in any forward-looking
statements. The Company disclaims any obligation to publicly update
or revise any forward-looking statements after the date of this
report to conform them to actual results.
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