Dallas-based Kitty Hawk is suspending all major business operations except charter air cargo, and expects to be delisted from the American Stock Exchange this week.
Kitty Hawk handled almost 90% of freight shipped into and out of Fort Wayne International Airport.
Earlier this month when the company and its subsidiaries filed voluntary bankruptcy petitions, it said it intended to operate all of its air and ground networks and conduct business as usual.
However, the company said that the shutdown was due to a 25% drop in demand for its air product and a 15% decline in demand for its ground services.
Consistent deterioration in financial performance inspired the company to explore strategic alternatives, but it appears that Kitty Hawk has failed to attract any investors or buyers.
This is not Kitty Hawk’s first brush with bankruptcy, having filed in 2000 and emerging two years later.
The company then embarked on a bit of a spending spree, expanding its network, buying new aircraft, forming a new subsidiary and acquiring another company. Kitty Hawk has been posting net losses for the past two years.
This shutdown of its air and ground operations is expected to result in around 500 job losses.
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