Kitty Hawk, Inc. to Cease Scheduled Network Air and Ground Operations
October 29 2007 - 1:27PM
PR Newswire (US)
Kitty Hawk will continue to operate air cargo charter operations
DALLAS, Oct. 29 /PRNewswire-USNewswire/ -- Kitty Hawk, Inc.
(AMEX:KHK) and all of its wholly-owned subsidiaries (collectively,
"Kitty Hawk") announced today that it will immediately cease all
scheduled network air and ground operations. Kitty Hawk will
continue to operate air cargo charter operations. Approximately 500
employees at Kitty Hawk will be affected by the ceasing of
operations, and such employees were notified of their termination
today. 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%
decrease in year-over-year demand for its air product and a 15%
year-over-year decrease in demand for its ground product. In
conjunction with lower demand for Kitty Hawk's services, record
high jet and diesel fuel prices have contributed to Kitty Hawk's
inability to continue network air and ground operations. On October
15, 2007, Kitty Hawk, Inc. and its wholly-owned subsidiaries filed
voluntary petitions in the U.S. Bankruptcy Court for the Northern
District of Texas, Fort Worth Division in a continued effort to
address significant financial challenges and identify a strategic
or financial investor. Kitty Hawk has been unable to secure new
sources of financing or a buyer for all or a portion of its assets
after considerable and continuing efforts which commenced in early
2007. As result a result of the aforementioned, Kitty Hawk must
cease its scheduled air and ground network operations, but will
continue to operate its air cargo charter operations. About Kitty
Hawk, Inc. http://www.kittyhawkcompanies.com/ 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; our inability to successfully reorganize pursuant
to Chapter 11 of the Bankruptcy Code; our inability to successfully
implement and operate our expanded scheduled airport-to-airport
expedited ground freight network; failure of key suppliers and
vendors to perform; our inability to attract sufficient customers
at economical prices for our air network or ground network;
unforeseen increases in liquidity and working capital requirements
related to our air and 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
revolving 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 release to
conform them to actual results. Contact: David Rescino Kitty Hawk,
Inc. 972-456-2422 DATASOURCE: Kitty Hawk, Inc. CONTACT: David
Rescino of Kitty Hawk, Inc., +1-972-456-2422 Web Site:
http://www.kittyhawkcompanies.com/
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