Kitty Hawk, the Dallas-based charter passenger and cargo air carrier, has agreed to merge with the Ypsilanti, Michigan-based Kalitta Companies, which includes American International Airways (AIA), American International Cargo, American International Freight, Flight One Logistics, Kalitta Flying Services and OK Turbines.
In a related transaction, Kitty Hawk will buy 16 Boeing 727-200 freighters from AIA for $51 million. Should the merger fail to go through, AIA has until 31 March, 1998, to repurchase 13 of the 16 aircraft. AIA operates international and domestic scheduled and charter passenger/cargo flights.
As part of the deal, Conrad "Connie" Kalitta, the sole owner of the Kalitta Companies, will receive an undisclosed amount of cash and Kitty Hawk common stock.
After the merger is completed, Kalitta will be a significant stockholder of the combined company, and will hold "a senior management position". Tom Christopher is now Kitty Hawk's chairman and chief executive. Vincent Puccia, AIA's vice-president for marketing and sales, says that the management structure of the merged company has yet to be established.
The merger still requires a definitive agreement, financing and regulatory approvals.
Source: Flight International
