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Old 10-05-2007, 02:45 PM   #1  
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Default Kitty HAwk Fleet

Anybody know how many planes KHK has in their fleet? Thanks
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Old 10-05-2007, 04:06 PM   #2  
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They are not in very good shape right now, you should think twice before going there. They do not own any of the 737's and and are very heavy in debt. They have expressed an interest to be sold off, but unless someone wanted a sort center there is nothing to buy but debt. I also just read they are going to lose their stock listing and be traded OTC. I wish the guys at KH the best of luck, but I don't see who would touch KH for purchase. They only own 5 in service 727's, the rest are parked and all 737's are leased.

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Boeing 737-300SF Cargo Aircraft Leases.
At March 9, 2006, we had seven Boeing 737-300SF cargo aircraft under operating leases with a«liates of GE Capital Aviation Services. The obligations of Kitty Hawk Aircargo under the operating leases are guaranteed by Kitty Hawk, Inc. and Kitty Hawk Cargo. The leases generally are not terminable prior to the expiration of the initial ten year term and impose limits on our ability to sublease the aircraft, but generally do not limit our ability to operate them on behalf of third parties in ACMI service. Each of the leases contains two 30-month extension options exercisable at our discretion. The leases allow us to substitute these aircraft for larger Boeing 737-400 cargo aircraft during the sixth year of the lease if they are available for lease by the lessor and we can agree on terms. In addition, we have a power-by-the hour maintenance agreement with Aviation Services International, LLC which covers normal maintenance for these aircraft.
During 2004 and 2005, we incurred signifcant one-time costs to integrate these Boeing 737-300SF cargo aircraft into our current feet and operations, including, but not limited to, costs relating to pilot training, maintenance training, purchases of additional tooling and spare parts and costs to modify our operational manuals and maintenance program. In 2004 and 2005, we incurred costs of approximately $1.9 million and $3.7 million, respectively, related to the induction of the Boeing 737-300SF cargo aircraft. We do not anticipate incurring additional Boeing 737-300SF cargo aircraft induction costs during 2006.
The Boeing 737-300SF cargo aircraft has higher lease and insurance costs than our Boeing 727-200 cargo aircraft. In addition, the Boeing 737-300SF cargo aircraft has approximately 30% less cargo capacity than our Boeing 727-200 cargo aircraft. The Boeing 737-300SF cargo aircraft generally has lower operating costs than our Boeing 727-200 cargo aircraft as a result of signi—cantly lower aircraft fuel consumption rates, lower crew costs from operating with a two person crew instead of three, as well as lower landing fees and reduced maintenance costs over the long-term. In addition, the Boeing 737-300SF cargo aircraft has improved performance capabilities and range over the Boeing 727-200 cargo aircraft. We have
deployed the Boeing 737-300SF cargo aircraft in our operations in situations in which we can take advantage of its lower operating cost and improved performance characteristics and for which its capacity
is better suited.

Owned Aircraft.
At March 9, 2006, we owned 12 Boeing 727-200 cargo aircraft of which five were operating in revenue service and one is temporarily parked and will be available for revenue service during
2006. Based on our current feet composition plan, we have determined it is uneconomical to perform the heavy maintenance required on the remaining six aircraft to return them to revenue service.

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Old 10-05-2007, 07:22 PM   #3  
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Thanks for the answer.
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Old 10-05-2007, 11:57 PM   #4  
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Yeah dude, you really need to think twice about going to work over there!
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Old 10-06-2007, 06:25 AM   #5  
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I don't think that's a problem, has KH had a new-hire in the past 5 years?
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Old 10-07-2007, 03:22 AM   #6  
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Originally Posted by Holy Toledo View Post
I don't think that's a problem, has KH had a new-hire in the past 5 years?
I thought there was mass jumping ship going on. I know I would be. I would have responded with that thought to Av8itor to save you from your post but his reply makes him sound like a real smart arse.
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Old 10-07-2007, 08:47 PM   #7  
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Not that it matters, but does it matter if you own or lease ?

Ask a USAir ( or America West) guy how many a/c they they Lease ? than ask him how many they own ... ?

If he answers honestly ... there is little to be owned !
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Old 10-07-2007, 09:25 PM   #8  
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Originally Posted by CactusCrew View Post
Not that it matters, but does it matter if you own or lease ?

Ask a USAir ( or America West) guy how many a/c they they Lease ? than ask him how many they own ... ?

If he answers honestly ... there is little to be owned !
naaa, it doesnt matter if the airline is operating. But KH has put themselves out for sale. My guess is to avoid going into BK again. And for a sale it does matter because there are no assets to purchase only the debt. I dont know a sane person that would buy a debt to get leased aircraft or leased anything for that matter. All there is to purchase beside the debt is the 727 fleet and there is not an operator outside 3rd world countries that are buying them. And if there were, UPS and FedEx are shedding them like last winters coat and my guess is they are in better shape and newer than the KH 72's. The only thing left is the sort center as an asset. For what its worth.

Last edited by brewster; 10-07-2007 at 09:32 PM.
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Old 10-07-2007, 09:29 PM   #9  
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Quote:
Originally Posted by brewster View Post
naaa, it doesnt matter if the airline is operating. But KH has put themselves out for sale. My guess is to avoid going into BK again. And for a sale it does matter because there are no assets to purchase only the debt. I dont know a sane person that would buy a debt to get leased aircraft or leased anything for that matter. All there is to purchase beside the debt is the 727 fleet and there is not an operator outside 3rd world countries that are buying them. And if there were, UPS and FedEx is shedding them like last winters coat and my guess is they are in better shape and newer than the KH 72's. The only thing left is the sort center as an asset. For what its worth.

You made a good point ...
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Old 10-07-2007, 10:31 PM   #10  
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Too Bad & Too Sad.....

Jumpseated on them a few times great bunch of guys.....
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