KITTY HAWK SUSPENDS FREIGHTER OPERATIONS

KITTY HAWK SUSPENDS FREIGHTER OPERATIONS

   Kitty Hawk Inc., has suspended operations at its Kitty Hawk International division in Michigan.

   Kitty Hawk International operates seven B747s, six L-1011s and six DC-8 freighters predominantly in the United States. The move is a major blow for independent U.S. air forwarders, Kitty Hawk’s main customers, who rely on the capacity to move large shipments.

   Kitty Hawk purchased most of the grounded aircraft when it bought the Kalitta Cos. in 1997. The planes have imposed a costly maintenance burden on Kitty Hawk, once a fast-growing darling of the U.S. freight industry.

   Kitty Hawk said it will continue to operate its Aircargo unit, which flies B727 freighters in the United States, and its charter management division.

   Weak demand, unexpected maintenance costs and rising fuel prices have put Kitty Hawk in serious financial trouble. The Dallas-based carrier expects to miss an interest payment on secured loans next month and is trying to sell assets to raise cash.