Kitty Hawk has parked one of two Boeing 747 passenger aircraft operated by its American International Airways (AIA) unit pending a decision about whether to sell the aircraft or convert it into a freighter.
The decision leaves one 747-100 and two Lockheed L-1011 TriStars available for passenger charter customers, but the company plans to ground the remaining 747-100 next month. The two L-1011s will remain in service while Kitty Hawk studies the issue.
"Kitty Hawk's core business is cargo transportation and we are taking a hard look at our passenger charter operation and its place within the organisation," says Tom Christopher, Kitty Hawk's chairman and chief executive.
"We are working on weeding out lines of business and assets that are producing marginal rates of return," he adds. With its hub in Terre Haute, Indiana, Kitty Hawk provides air cargo service and third party aircraft maintenance services. AIA's flight operations is based in Ypsilanti, Michigan. Kitty Hawk acquired AIA a year ago.
Kitty Hawk had disappointing third quarter earnings due to high operating costs at AIA. Charles Carson has recently been brought in as AIA's president. Carson previously worked at SimuFlight Training International, Emery and Southern Air Transport. He is restructuring the operation to streamline operations and maintenance and reduce costs.
Source: Flight International
