-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FKbrSa+Sb1/5i6m+NELHSVbvEgl0xg8w0OwuUb2q57/0TpaISLHIGa+U4/QW23G/ lvwguv0wwxcnmx9d7CxRgQ== 0001104659-08-019533.txt : 20080325 0001104659-08-019533.hdr.sgml : 20080325 20080325161845 ACCESSION NUMBER: 0001104659-08-019533 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20080320 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080325 DATE AS OF CHANGE: 20080325 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KITTY HAWK INC CENTRAL INDEX KEY: 0000932110 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, NONSCHEDULED [4522] IRS NUMBER: 752564006 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32284 FILM NUMBER: 08709597 BUSINESS ADDRESS: STREET 1: P O BOX 612787 STREET 2: 1515 W 20TH ST CITY: DALLAS/FT WORTH INTN STATE: TX ZIP: 75261 BUSINESS PHONE: 9724562200 MAIL ADDRESS: STREET 1: P O BOX 612787 STREET 2: 1515 W 20TH ST CITY: DALLAS/FT WORTH INTN STATE: TX ZIP: 75261 8-K 1 a08-8982_18k.htm CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 20, 2008

Kitty Hawk, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-32284	75-2564006
(State or other jurisdiction of incorporation)	(Commission File Number) File Number)	(IRS Employer Identification No.)

1515 West 20th Street

P.O. Box 612787

DFW International Airport,

Texas

75261

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (972) 456-2200

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

As previously reported, on October 15, 2007, Kitty Hawk, Inc. (the “Company”) and all of its wholly-owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company also announced on November 14, 2007 that, during the pendency of the Company’s bankruptcy proceedings, it has adopted a modified reporting program with respect to its reporting obligations under the federal securities laws. In lieu of filing annual reports on Form 10-K and quarterly reports on Form 10-Q, each month the Company will file with the Securities and Exchange Commission (the “SEC”) a current report on Form 8-K that will have attached to it the monthly financial reports required by the Bankruptcy Court.

On March 20, 2008, the Company submitted to the Bankruptcy Court its monthly financial reports for itself and all of its wholly-owned subsidiaries for the month ended February 29, 2008 (the “Monthly Reports”). The Monthly Reports are filed as Exhibits 99.1 through 99.5 to this Form 8-K and are incorporated herein by this reference.

Cautionary Statement Regarding the Monthly Reports

The Monthly Reports contain financial statements and other financial information that have not been audited or reviewed by any independent public accounting firm and may be subject to future reconciliation or adjustments. The Monthly Reports are in a format prescribed by applicable bankruptcy laws and should not be used for investment purposes. The Monthly Reports may not be indicative of the Company’s financial condition or operating results. Results set forth in the Monthly Reports should not be viewed as indicative of future results.

Statement under the Private Securities Litigation Reform Act

This report may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements relate to future events or future financial and operating performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “forecast,” “may,” “will,” “could,” “should,” “expect,” “intends,” “plan,” “believe,” “potential” or other similar words indicating future events or contingencies. For a discussion of these and other risk factors, see the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on the Company’s business or events described in any forward-looking statements. The Company disclaims any obligation to publicly update or revise any forward-looking statements after the date of this release to conform them to actual results.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description
Exhibit 99.1		Monthly Financial Report of Kitty Hawk, Inc. for Month Ending February 29, 2008
Exhibit 99.2		Monthly Financial Report of Kitty Hawk Ground, Inc. for Month Ending February 29, 2008
Exhibit 99.3		Monthly Financial Report of Kitty Hawk Cargo, Inc. for Month Ending February 29, 2008
Exhibit 99.4		Monthly Financial Report of Kitty Hawk Aircargo, Inc. for Month Ending February 29, 2008
Exhibit 99.5		Monthly Financial Report of KH Ground, Inc. for Month Ending February 29, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KITTY HAWK, INC.

Date: March 25, 2008	By:	/s/ James R. Kupferschmid
	Name: James R. Kupferschmid
	Title: Senior Vice President

EX-99.1 2 a08-8982_1ex99d1.htm EX-99.1

Exhibit 99.1

Monthly Operating Report

CASE NAME:		Kitty Hawk, Inc.	ACCRUAL BASIS
				2008
CASE NUMBER:		07-44536

JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: FEBRUARY 29, 2008

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.


RESPONSIBLE PARTY:

/s/James R. Kupferschmid		Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

James R. Kupferschmid		March 20, 2008
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Jessica L. Wilson		VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER		TITLE

Jessica L. Wilson		March 20, 2008
PRINTED NAME OF PREPARER		DATE

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER: 07-44536

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH
ASSETS		AMOUNT		January 2008			February 2008			MONTH
1.	UNRESTRICTED CASH	$	0	$	2,509,077		$	6,297,770
2.	RESTRICTED CASH	$	2,869,929	$	1,935,883		$	1,786,125
3.	TOTAL CASH	$	2,869,929	$	4,444,960		$	8,083,895		$	0
4.	ACCOUNTS RECEIVABLE (NET)			$	(936,674	)	$	(936,674	)
5.	INVENTORY			$	0		$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0		$	0
7.	PREPAID EXPENSES			$	395,855		$	364,311
8.	OTHER (ATTACH LIST)	$	15,953	$	33,385,941		$	29,840,425
9.	TOTAL CURRENT ASSETS	$	2,885,882	$	37,290,082		$	37,351,957		$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	3,362,423		$	3,362,423
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	1,876,033		$	1,899,365
12.	NET PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	1,486,390		$	1,463,058		$	0
13.	DUE FROM INSIDERS	$	0	$	0		$	0
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)	$	0	$	3,486,848		$	3,486,848
15.	OTHER (ATTACH LIST)	$	1,109,030	$	0		$	0		$	0
16.	TOTAL ASSETS	$	5,420,237	$	42,263,320		$	42,301,863		$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	(2,900	)	$	(16,359	)
18.	TAXES PAYABLE			$	0		$	0		$	0
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	944,833		$	1,128,844
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	263,556		$	277,273
23.	TOTAL POSTPETITION
	LIABILITIES			$	1,205,489		$	1,389,758		$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	15,602,760	$	(61,183	)	$	(78,983	)
25.	PRIORITY DEBT	$	56,297	$	0		$	0		$	0
26.	UNSECURED DEBT	$	1,010,347	$	699,306		$	695,370
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	16,669,404	$	638,123		$	616,387		$	0
29.	TOTAL LIABILITIES	$	16,669,404	$	1,843,612		$	2,006,145		$	0
EQUITY
30.	PREPETITION OWNERS' EQUITY			$	41,090,061		$	41,090,061
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(670,353	)	$	(794,343	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0
33.	TOTAL EQUITY	$	0	$	40,419,708		$	40,295,718		$	0
34.	TOTAL LIABILITIES & OWNERS' EQUITY	$	16,669,404	$	42,263,320		$	42,301,863		$	0

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER: 07-44536

INCOME STATEMENT

		MONTH			MONTH			MONTH		QUARTER
REVENUES		January 2008			February 2008			0		TOTAL
1.	GROSS REVENUES	$	0		$	0		$	0	$	0
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0	$	0
3.	NET REVENUE	$	0		$	0		$	0	$	0
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0	$	0
5.	DIRECT LABOR	$	0		$	0		$	0	$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0	$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0	$	0
8.	GROSS PROFIT	$	0		$	0		$	0	$	0
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	140,083		$	89,057		$	0	$	229,140
10.	SELLING & MARKETING	$	0		$	0		$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	265,188		$	228,175		$	0	$	493,363
12.	RENT & LEASE	$	38,735		$	38,735		$	0	$	77,470
13.	OTHER (ATTACH LIST)	$	(555,510	)	$	(427,368	)	$	0	$	(982,878	)
14.	TOTAL OPERATING EXPENSES	$	(111,504	)	$	(71,401	)	$	0	$	(182,905	)
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	111,504		$	71,401		$	0	$	182,905
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	12,847		$	13,484		$	0	$	26,331
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	0	$	0
18.	INTEREST EXPENSE	$	1,603		$	1,532		$	0	$	3,135
19.	DEPRECIATION / DEPLETION	$	23,783		$	23,332		$	0	$	47,115
20.	AMORTIZATION	$	0		$	0		$	0	$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	12,539		$	11,380		$	0	$	23,919
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	207,689		$	184,011		$	0	$	391,700
24.	U.S. TRUSTEE FEES	$	0		$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	207,689		$	184,011		$	0	$	391,700
27.	INCOME TAX	$	0		$	0		$	0	$	0
28.	NET PROFIT (LOSS)	$	(108,724	)	$	(123,990	)	$	0	$	(232,714	)

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER: 07-44536

		MONTH		MONTH		MONTH		QUARTER
CASH RECEIPTS AND DISBURSEMENTS		January 2008		February 2008		0		TOTAL
1.	CASH - BEGINNING OF MONTH	$	1,657,197	$	2,509,077			$	1,657,197
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0	$	0	$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	0	$	0	$	0	$	0
4.	POSTPETITION	$	0	$	0	$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	0	$	0	$	0	$	0
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	SALE OF ASSETS	$	0	$	0	$	0	$	0
8.	OTHER (ATTACH LIST)	$	2,691,682	$	4,839,255	$	0	$	7,530,937
9.	TOTAL NON-OPERATING RECEIPTS	$	2,691,682	$	4,839,255	$	0	$	7,530,937
10.	TOTAL RECEIPTS	$	2,691,682	$	4,839,255	$	0	$	7,530,937
11.	TOTAL CASH AVAILABLE	$	4,348,879	$	7,348,332	$	0	$	9,188,134
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	263,883	$	160,663	$	0	$	424,546
13.	PAYROLL TAXES PAID	$	122,432	$	67,789	$	0	$	190,221
14.	SALES, USE & OTHER TAXES PAID	$	0	$	7,891	$	0	$	7,891
15.	SECURED / RENTAL / LEASES	$	26,477	$	160,988	$	0	$	187,465
16.	UTILITIES	$	28,689	$	45,029	$	0	$	73,718
17.	INSURANCE	$	165,616	$	53,346	$	0	$	218,962
18.	INVENTORY PURCHASES	$	2,319	$	0	$	0	$	2,319
19.	VEHICLE EXPENSES	$	0	$	0	$	0	$	0
20.	TRAVEL	$	0	$	496	$	0	$	496
21.	ENTERTAINMENT	$	0	$	0	$	0	$	0
22.	REPAIRS & MAINTENANCE	$	106,059	$	86,417	$	0	$	192,476
23.	SUPPLIES	$	0	$	0	$	0	$	0
24.	ADVERTISING	$	0	$	1,162	$	0	$	1,162
25.	OTHER (ATTACH LIST)	$	1,089,077	$	466,781	$	0	$	1,555,858
26.	TOTAL OPERATING DISBURSEMENTS	$	1,804,552	$	1,050,562	$	0	$	2,855,114
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0	$	0	$	0	$	0
28.	U.S. TRUSTEE FEES	$	35,250	$	0	$	0	$	35,250
29.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	35,250	$	0	$	0	$	35,250
31.	TOTAL DISBURSEMENTS	$	1,839,802	$	1,050,562	$	0	$	2,890,364
32.	NET CASH FLOW	$	851,880	$	3,788,693	$	0	$	4,640,573
33.	CASH - END OF MONTH	$	2,509,077	$	6,297,770	$	0	$	6,297,770

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER: 07-44536

		SCHEDULE		MONTH			MONTH
ACCOUNTS RECEIVABLE AGING		AMOUNT		January 2008			February 2008			MONTH
1.	0-30	$	0	$	0		$	0		$	0
2.	31-60	$	0	$	0		$	0		$	0
3.	61-90	$	0	$	0		$	0		$	0
4.	91+	$	0	$	0		$	0		$	0
5.	TOTAL ACCOUNTS RECEIVABLE	$	0	$	0		$	0		$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	936,674		$	936,674
7.	ACCOUNTS RECEIVABLE (NET)	$	0	$	(936,674	)	$	(936,674	)	$	0

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

February 2008

		0-30			31-60		61-90		91+
TAXES PAYABLE		DAYS			DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0		$	0	$	0	$	0	$	0
2.	STATE	$	0		$	0	$	0	$	0	$	0
3.	LOCAL	$	0		$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	0		$	0	$	0	$	0	$	0

6.	ACCOUNTS PAYABLE	$	(36,520	)	$	12,214	$	1,773	$	6,174	$	(16,359	)

STATUS OF POSTPETITION TAXES

MONTH:

February 2008

		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY*		0R ACCRUED		PAID		LIABILITY
1.	WITHHOLDING**	$	0	$	19,566	$	19,566	$	0
2.	FICA-EMPLOYEE**	$	0	$	10,016	$	10,016	$	0
3.	FICA-EMPLOYER**	$	0	$	10,016	$	10,016	$	0
4.	UNEMPLOYMENT	$	0	$	345	$	345	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	39,943	$	39,943	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	331	$	331	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	1,682	$	1,682	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	2,013	$	2,013	$	0
16.	TOTAL TAXES	$	0	$	41,956	$	41,956	$	0

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-5
		2008
CASE NUMBER: 07-44536

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

BANK RECONCILIATIONS

MONTH:

February 2008

		Account #1		Account #2			Account #3			TOTAL
A.	BANK:	JP Morgan Chase		JP Morgan Chase			JP Morgan Chase
B.	ACCOUNT NUMBER:	100140334		9319959434			1570695922
C.	PURPOSE (TYPE):	Master Funding		Gen’l Disbursements			Payroll
1.	BALANCE PER BANK STATEMENT	$	150,000	$	0		$	0		$	150,000
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0		$	0		$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0	$	169,268		$	26,574		$	195,842
4.	OTHER RECONCILING ITEMS	$	9,910	$	0		$	0		$	9,910
5.	MONTH END BALANCE PER BOOKS	$	159,910	$	(169,268	)	$	(26,574	)	$	(35,932	)
6.	NUMBER OF LAST CHECK WRITTEN	No checks		110006			067013/210607

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
		PURCHASE	INSTRUMENT	PRICE		VALUE
BANK, ACCOUNT NAME & NUMBER
7.	JP Morgan Chase - Overnight Sweep -	2/29/2008	money market	$	6,333,502	$	6,333,502
8.
9.
10.
11.	TOTAL INVESTMENTS			$	6,333,502	$	6,333,502

CASH

12.	CURRENCY ON HAND	$	200

13.	TOTAL CASH - END OF MONTH	$	6,297,770

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER: 07-44536

		MONTH:	February 2008
PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	James R. Kupferschmid	Salary, Expense Reports	$	25,578	$	108,954
2.	Jessica L. Wilson	Salary, Expense Reports	$	15,086	$	65,087
3.	Brad Eagelston	Salary, Expense Reports	$	13,161	$	64,829
4.	David Rescino	Salary, Expense Reports	$	25,232	$	108,633
5.	Steven Markhoff	Salary, Expense Reports	$	0	$	18,333
6.	Mel Keating	Executive Committee Fee, Exp Reports	$	10,000	$	148,652
7.	TOTAL PAYMENTS TO INSIDERS		$	89,057	$	514,488

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID *
1.	Andrews Kurth LLP								$	878,433
2.	Otterbourg, Steindler, Houston & Rosen, P.C.								$	200,000
3.	Munsch Hardt Kopf & Harr, P.C.								$	50,410
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	1,128,843

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	Laurus Master Fund, paid in full 12/07	Revolver		$	0	$	0
2.	Cananwill	$	12,020	$	12,020	$	0
3.	Citicorp Vendor Finance	$	6,005	$	0	$	30,025
4.	DFW Airport - Facility rent, prepaid 3/08 in 2/08	$	37,295	$	75,435	$	0
5.
6.	TOTAL	$	55,320	$	87,455	$	30,025

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER: 07-44536

MONTH:

February 2008

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

# 1 - Misc equipment sold when locations closed i/a/w de minimis asset sale motion approved by the Court

#4 - Payment made on insurance liabilities in accordance with first day orders.

#10 - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have continued during 2/08 and should be brought current during 3/08

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
D&O Insurance	AIG	6/1/07 - 5/31/08	Paid in full
Aviation & Liability	Illinois National Insurance	7/1/07 - 6/30/08	Quarterly; $281,953 (original policy)
B737 Aviation Deductible	Illinois National Insurance	7/1/07 - 6/30/08	Paid in full
Property & Business Interruption	Affiliated FM Insurance	6/1/07 - 5/31/08	Financed; monthly $12,020
Employee Practices	RLI Insurance	6/1/07 - 5/31/08	Paid in full
Fidiciary Liability	RLI Insurance	6/1/07 - 5/31/08	Paid in full
Workers Compensation	Insurance Co of PA	6/1/07 - 5/31/08	Paid in full
D&O InsuranceSide A	Chubb	6/1/07 - 5/31/08	Paid in full
Environmental Impairment	Hudson Insurance	6/1/05 - 5/31/08	Paid in full

Footnotes Supplement

	Monthly Operating Report

CASE NAME: Kitty Hawk, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER: 07-44536

MONTH:

February 2008

Accrual Basis	Line
Form Number	Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to Kitty Hawk, Inc.

3	31	All disbursements (either by wire transfer or check, including payroll, are) disbursed out of the Kitty Hawk, Inc. disbursement accounts

4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary.

7		All insurance policies for Kitty Hawk Cargo, Inc. (Case #07-44538 and) Kitty Hawk Aircargo, Inc. (Case #07-44539) are carried in the name of Kitty Hawk, Inc. Therefore, they are listed here accordingly.

6	Professional Fees	The fees noted on this schedule are initial estimates and are subject to change once final billings are prepared.

1	24	Secured Debt pre-petition includes $257,365 Laurus is holding after payment in full for the outstanding obligations on 12/7/07, pending their final receipt and reconciliation of professional fees they expended during the proceedings

CASE NAME:		Kitty Hawk, Inc.

CASE NUMBER:		07-44536

Details of Other Items

	February 2008
ACCRUAL BASIS - 1

8. OTHER (ATTACH LIST)	29,840,425		Reported
Flex Spending deposit	17,283
A/R - Accrued	76
A/R - 401(k) Loan	37
A/R - Travel Advance	15,720
Deposits	54,869
Professional Fees Retainer	457,365
Intercompany Receivables	29,295,075

	29,840,425		Detail
	0		Difference

14. OTHER ASSETS - NET OF AMORTIZATION ATTACH LIST	3,486,848		Reported
Laurus Loan Organization Costs - Warrants Value	3,486,848

	3,486,848		Detail
	0		Difference

22. OTHER (ATTACH LIST)	277,273		Reported
A/P Clearing	(3,953	)
General Accrued AP	308,822
Accrued Health Savings Plan	(27,810	)
AFLAC Deductions	(12	)
Accrued 401(k)	226

	277,273		Detail
	0		Difference

ACCRUAL BASIS - 2

13. OTHER (ATTACH LIST)	(427,368	)	Reported
G&A allocation to subsidiaries	(427,368	)

	(427,368	)	Detail
	0		Difference

16. NON-OPERATING INCOME (ATT. LIST)	13,484		Reported
Interest Income	9,304
Gain on Sale of assets	4,180

	13,484		Detail
	0		Difference

ACCRUAL BASIS - 3

8. OTHER (ATTACH LIST)	4,839,255		Reported
Transfers in from Kitty Hawk Cargo (Case 07-44538)	312,534
Transfers in from Kitty Hawk Ground (Case 07-44537)	687,923
Transfers in from Kitty Hawk Aircargo (Case 07-44539)	152,150
Transfers from Asset Sales Account (Case 07-44539)	3,500
Transfers to Asset Sales Account (Case 07-44539)	0
Proceeds from FWA Auction	3,581,932
Misc Refunds	30,392
Misc Deposits	37,110
Interest income	5,714
CD Redemption - Corporate Credit Card	28,000

	4,839,255		Detail
	0		Difference

25. OTHER (ATTACH LIST)	466,781		Reported
401(k)	20,596
Aircraft landing and parking	43,715
Bank fees	3,179
BOD Fees	0
Contract labor	63,724
Communications	71,142
Employee expense reports	7,328
Executive committee fees	10,000
Flight crew expense	15,156
Freight handling	16,605
Fuel	8,693
IT Support	5,692
Payroll processing fees	4,431
Non-reorganization professional fees	14,614
Security	5,831
Shipping	4,588
Trucking	116,452
Misc	22,582
Transfer to Kitty Hawk Aircargo (Case 07-44539)	32,453

	466,781		Detail
	0		Difference

EX-99.2 3 a08-8982_1ex99d2.htm EX-99.2

Exhibit 99.2

Monthly Operating Report

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: February 29, 2008

RESPONSIBLE PARTY:

/s/James R. Kupferschmid	Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE


James R. Kupferschmid	March 20, 2008
PRINTED NAME OF RESPONSIBLE PARTY		DATE


PREPARER:

/s/ Jessica L. Wilson	VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER		TITLE


Jessica L. Wilson	March 20, 2008
PRINTED NAME OF PREPARER		DATE

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER: 07-44537

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH
ASSETS		AMOUNT		January 2008			February 2008			MONTH
1.	UNRESTRICTED CASH	$	106,914	$	123,003		$	2,562
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	106,914	$	123,003		$	2,562		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	1,192,901		$	796,914
5.	INVENTORY			$	0		$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0		$	0
7.	PREPAID EXPENSES			$	854,169		$	922,938
8.	OTHER (ATTACH LIST)	$	767,230	$	220,181		$	206,609
9.	TOTAL CURRENT ASSETS	$	8,637,296	$	2,390,254		$	1,929,023		$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	1,146,152	$	2,291,849		$	590,499
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	914,056		$	68,892
12.	NET PROPERTY, PLANT & EQUIPMENT	$	1,146,152	$	1,377,793		$	521,607		$	0
13.	DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	603,884	$	0		$	0		$	0
16.	TOTAL ASSETS	$	10,387,332	$	3,768,047		$	2,450,630		$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	780,571		$	644,197
18.	TAXES PAYABLE			$	27,895		$	16,826
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	18,082,012		$	17,711,751
23.	TOTAL POSTPETITION LIABILITIES			$	18,890,478		$	18,372,774		$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	17,206,526	$	1,064,069		$	1,064,069
25.	PRIORITY DEBT	$	277,316	$	0		$	0		$	0
26.	UNSECURED DEBT	$	7,503,343	$	7,207,239		$	7,251,717
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	24,987,185	$	8,271,308		$	8,315,786		$	0
29.	TOTAL LIABILITIES	$	24,987,185	$	27,161,786		$	26,688,560		$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0		$	(17,803,179	)	$	(17,803,179	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(5,590,560	)	$	(6,434,751	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(23,393,739	)	$	(24,237,930	)	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	24,987,185	$	3,768,047		$	2,450,630		$	0

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER: 07-44537

INCOME STATEMENT

		MONTH			MONTH			MONTH		QUARTER
REVENUES		January 2008			February 2008			0		TOTAL
1.	GROSS REVENUES	$	(2,029	)	$	(7,194	)			$	(9,223	)
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0	$	0
3.	NET REVENUE	$	(2,029	)	$	(7,194	)	$	0	$	(9,223	)
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0	$	0
5.	DIRECT LABOR	$	0		$	0		$	0	$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0	$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0	$	0
8.	GROSS PROFIT	$	(2,029	)	$	(7,194	)	$	0	$	(9,223	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	0		$	0				$	0
10.	SELLING & MARKETING	$	0		$	0		$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	374,955		$	170,444				$	545,399
12.	RENT & LEASE	$	25,309		$	16,814				$	42,123
13.	OTHER (ATTACH LIST)	$	(119,152	)	$	17,602				$	(101,550	)
14.	TOTAL OPERATING EXPENSES	$	281,112		$	204,860		$	0	$	485,972
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(283,141	)	$	(212,054	)	$	0	$	(495,195	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	505		$	110				$	615
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	445,711		$	632,247				$	1,077,958
18.	INTEREST EXPENSE	$	0		$	0				$	0
19.	DEPRECIATION / DEPLETION	$	28,486		$	0				$	28,486
20.	AMORTIZATION	$	0		$	0				$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	473,692		$	632,137		$	0	$	1,105,829
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0		$	0	$	0
24.	U.S. TRUSTEE FEES	$	0		$	0				$	0
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0	$	0
27.	INCOME TAX	$	0		$	0		$	0	$	0
28.	NET PROFIT (LOSS)	$	(756,833	)	$	(844,191	)	$	0	$	(1,601,024	)

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER: 07-44537

CASH RECEIPTS AND		MONTH			MONTH			MONTH		QUARTER
DISBURSEMENTS		January 2008			February 2008			0		TOTAL
1.	CASH - BEGINNING OF MONTH	$	68,770		$	123,003				$	68,770
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	1,205,023		$	567,482				$	1,772,505
4.	POSTPETITION	$	0		$	0		$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	1,205,023		$	567,482		$	0	$	1,772,505
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0		$	0	$	0
7.	SALE OF ASSETS	$	0		$	0		$	0	$	0
8.	OTHER (ATTACH LIST)	$	(1,150,790	)	$	(687,923	)			$	(1,838,713	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(1,150,790	)	$	(687,923	)	$	0	$	(1,838,713	)
10.	TOTAL RECEIPTS	$	54,233		$	(120,441	)	$	0	$	(66,208	)
11.	TOTAL CASH AVAILABLE	$	123,003		$	2,562		$	0	$	2,562
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	0		$	0		$	0	$	0
13.	PAYROLL TAXES PAID	$	0		$	0		$	0	$	0
14.	SALES, USE & OTHER TAXES PAID	$	0		$	0		$	0	$	0
15.	SECURED / RENTAL / LEASES	$	0		$	0		$	0	$	0
16.	UTILITIES	$	0		$	0		$	0	$	0
17.	INSURANCE	$	0		$	0		$	0	$	0
18.	INVENTORY PURCHASES	$	0		$	0		$	0	$	0
19.	VEHICLE EXPENSES	$	0		$	0		$	0	$	0
20.	TRAVEL	$	0		$	0		$	0	$	0
21.	ENTERTAINMENT	$	0		$	0		$	0	$	0
22.	REPAIRS & MAINTENANCE	$	0		$	0		$	0	$	0
23.	SUPPLIES	$	0		$	0		$	0	$	0
24.	ADVERTISING	$	0		$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
26.	TOTAL OPERATING DISBURSEMENTS	$	0		$	0		$	0	$	0
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0		$	0		$	0	$	0
28.	U.S. TRUSTEE FEES	$	0		$	0		$	0	$	0
29.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0	$	0
31.	TOTAL DISBURSEMENTS	$	0		$	0		$	0	$	0
32.	NET CASH FLOW	$	54,233		$	(120,441	)	$	0	$	(66,208	)
33.	CASH - END OF MONTH	$	123,003		$	2,562		$	0	$	2,562

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER: 07-44537

		SCHEDULE		MONTH			MONTH			MONTH
ACCOUNTS RECEIVABLE AGING		AMOUNT		January 2008			February 2008			0
1.	0-30			$	(26,011	)	$	43,012
2.	31-60			$	3,644		$	(44,944	)
3.	61-90			$	8,131		$	(245	)
4.	91+			$	1,302,864		$	644,880
5.	TOTAL ACCOUNTS RECEIVABLE	$	7,763,152	$	1,288,628		$	642,703		$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	48,193		$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	1,240,435		$	642,703		$	0

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

February 2008

		0-30		31-60		61-90		91+
TAXES PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0	$	0	$	0	$	0	$	0
2.	STATE	$	0	$	0	$	0	$	0	$	0
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	16,826	$	0	$	0	$	0	$	16,826
5.	TOTAL TAXES PAYABLE	$	16,826	$	0	$	0	$	0	$	16,826

6.	ACCOUNTS PAYABLE	$	39	$	2,196	$	57,668	$	584,294	$	644,197

STATUS OF POSTPETITION TAXES

MONTH:

February 2008

		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY*		0R ACCRUED		PAID		LIABILITY
1.	WITHHOLDING**	$	0	$	0	$	0	$	0
2.	FICA-EMPLOYEE**	$	0	$	0	$	0	$	0
3.	FICA-EMPLOYER**	$	0	$	0	$	0	$	0
4.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	0	$	0	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16.	TOTAL TAXES	$	0	$	0	$	0	$	0

*	The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.
**	Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER: 07-44537

MONTH:

February 2008

BANK RECONCILIATIONS

		Account #1			Account #2		Account #3		TOTAL
A.	BANK:	Capital One			N/A		N/A
B.	ACCOUNT NUMBER:	3620477825
C.	PURPOSE (TYPE:)	Depository
1.	BALANCE PER BANK STATEMENT	$	2,675						$	2,675
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0						$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0						$	0
4.	OTHER RECONCILING ITEMS	$	(113	)					$	(113	)
5.	MONTH END BALANCE PER BOOKS	$	2,562		$	0	$	0	$	2,562
6.	NUMBER OF LAST CHECK WRITTEN	None

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.	N/A
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0

CASH

12.	CURRENCY ON HAND	$	0

13.	TOTAL CASH - END OF MONTH	$	2,562

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER: 07-44537

MONTH:

February 2008

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	Gary Jensen	Salary, Expense Reports	$	0	$	34,027
2.	Mark Lasky	Salary, Expense Reports	$	0	$	12,078
3.	Dan Yongue	Salary, Expense Reports	$	0	$	25,292
4.
5.
6.	TOTAL PAYMENTS
	TO INSIDERS		$	0	$	71,397

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID *
1.	See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	AICCO, cancelled during 12/07	$	106,001	$	0	$	212,002
2.	Crown Credit, cancelled during 12/07	$	12,474	$	0	$	24,948
3.	Other Facility leases cancelled 11/07
4.
5.
6.	TOTAL	$	118,475	$	0	$	236,950

	Monthly Operating Report

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER: 07-44537

MONTH:

February 2008

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?	X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?	X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

1 - On-line auction conducted by GE for rolling stock in accordance with court order
7, 8, 10 - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties continued during 2/08 and should be brought current during 3/08

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?		X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?		X
3.	PLEASE ITEMIZE POLICIES BELOW.

See summary of policies below for status.

INSTALLMENT PAYMENTS

TYPE OF				PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED		& FREQUENCY
Cargo Liability	The Hanover Insurance Group	6/1/07 - 5/31/08		$49,538.50 Annual - paid in full
General Liability	Chubb	6/1/07 - 5/31/08		$45,004 Annual - paid in full
Commerical Umbrella	Lexington	6/1/07 - 5/31/08	cancelled	$48,684.11, monthly financed
Auto Physical Damage	Lloyd’s of London	6/1/07 - 5/31/08		$14,000 (est), monthly
Workers Compensation	American Home Assurance	6/1/07 - 5/31/08	cancelled	$57,316.96, monthly financed
Business Auto	American Home Assurance	6/1/07 - 5/31/08		$42,259 Annual - paid in full
Trucker Liability	American Home Assurance	6/1/07 - 5/31/08	cancelled	$63,829, monthly

	Footnotes Supplement

CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS
		2008
CASE NUMBER: 07-44537

MONTH:

February 2008

Accrual Basis Form Number	Line Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to Kitty Hawk, Inc. (Case #07-44536)

3	31	All disbursements (either by wire transfer or check), including payroll, are disbursed out of the Kitty Hawk, Inc. disbursement accounts (Case #07-44536)

4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary. (Case #07-44536)

6	Secured Notes	AICCO finance agreement was cancelled when underlying insurance policies were cancelled; pending Stipulation with Court; Crown Credit - all forklifts were returned mid November 2007, waiting final administrative claim to make payment

3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receipts tranferred directly to Kitty Hawk, Inc. (Case #07-44536)

4	AR - 7	Total Accounts Receivable does not agree to Accrual Basis - 1, line 4 due to Unapplied cash at the end of the reporting cycle, not included on the AR aging, $39,143 and Accrued AR of $193,354 related to on-line vehicle auction

4	Payroll Taxes	There were no employees for Kitty Hawk Ground, Inc. during this reporting period, therefore, there are no payroll tax liabilities or payments reported.

Case Name:		Kitty Hawk Ground, Inc.

Case Number:		07-44537

Details of Other Items

	February 2008
ACCRUAL BASIS - 1

8. OTHER (ATTACH LIST)	206,609		Reported
A/R - Clearing	3,187
A/R - Customer Refund	536
A/R - 401(k)	(119	)
A/R - Owner/Operator	0
A/R - Employees	3,488
A/R - Payroll Advance	(102	)
A/R - Other	4,244
Deposits	195,375

	206,609		Detail
	0		Difference

22. OTHER (ATTACH LIST)	17,711,751		Reported
General Accrued AP	768,905
Intercompany Payables	16,949,092
A/P - Clearing	(231	)
Accrued Wages	(5,575	)
Accrued 401(k) contribution	(440	)

	17,711,751		Detail
	0		Difference

ACCRUAL BASIS - 2

13. OTHER OPERATING EXPENSE	17,602		Reported
Trucking expense	(20,728	)
Driver Wages	0
Fuel	40,986
Truck Maintenance	447
Freight Handling Contract Costs	(3,103	)
Equipment Lease	0
Other support	0

	17,602		Detail
	0		Difference

16. NON-OPERATING INCOME (ATT. LIST)	110		Reported
Other Income	0
Interest income	110

	110		Detail
	0		Difference

17. NON-OPERATING EXPENSE (ATT. LIST)	632,247		Reported
Lease rejection accrual
Other Expense	137
Net Loss on Disposal of Assets	632,110

	632,247		Detail
	0		Difference

ACCRUAL BASIS - 3

8. OTHER (ATTACH LIST)	(687,923	)	Reported
Transfer to Kitty Hawk, Inc. (Case 07-44536)	(687,923	)

	(687,923	)	Detail
	0		Difference

ACCRUAL BASIS - 4

Aging of Post-petition Taxes	16,826		Reported
Accrued franchise taxes	960
O/O Fuel Tax	15,831
Fuel Tax	35

	16,826		Detail
	0		Difference

EX-99.3 4 a08-8982_1ex99d3.htm EX-99.3

Exhibit 99.3

Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER: 07-44538

JUDGE: Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: February 29, 2008

RESPONSIBLE PARTY:

/s/James R. Kupferschmid		Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

James R. Kupferschmid		March 20, 2008
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Jessica L. Wilson		VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER		TITLE

Jessica L. Wilson		March 20, 2008
PRINTED NAME OF PREPARER		DATE

Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER: 07-44538

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH
ASSETS		AMOUNT		January 2008			February 2008			MONTH
1.	UNRESTRICTED CASH	$	901,444	$	23,495		$	2,452
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	901,444	$	23,495		$	2,452		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	3,717,170		$	(1,981	)
5.	INVENTORY			$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0
7.	PREPAID EXPENSES			$	10,204		$	10,204
8.	OTHER (ATTACH LIST)	$	129,586	$	56,359		$	51,375
9.	TOTAL CURRENT ASSETS	$	15,553,353	$	3,807,228		$	62,050		$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	511,103	$	155,567		$	155,567
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	52,297		$	52,297
12.	NET PROPERTY, PLANT & EQUIPMENT	$	511,103	$	103,270		$	103,270		$	0
13.	DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	150,000	$	0		$	0		$	0
16.	TOTAL ASSETS	$	16,214,456	$	3,910,498		$	165,320		$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	335,328		$	207,657
18.	TAXES PAYABLE			$	21,134		$	31,258
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	22,550,477		$	19,265,501
23.	TOTAL POSTPETITION LIABILITIES			$	22,906,939		$	19,504,416		$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	136,918		$	136,918
25.	PRIORITY DEBT	$	223,906	$	0		$	0
26.	UNSECURED DEBT	$	3,562,306	$	4,044,264		$	3,875,071
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	20,470,956	$	4,181,182		$	4,011,989		$	0
29.	TOTAL LIABILITIES	$	20,470,956	$	27,088,121		$	23,516,405		$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	(23,236,677	)	$	(23,236,677	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	59,054		$	(114,408	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(23,177,623	)	$	(23,351,085	)	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	20,470,956	$	3,910,498		$	165,320		$	0

Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER: 07-44538

INCOME STATEMENT

		MONTH			MONTH			MONTH		QUARTER
REVENUES		January 2008			February 2008			0		TOTAL
1.	GROSS REVENUES	$	31,385		$	43		$	0	$	31,428
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0	$	0
3.	NET REVENUE	$	31,385		$	43		$	0	$	31,428
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0	$	0
5.	DIRECT LABOR	$	0		$	0		$	0	$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0	$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0	$	0
8.	GROSS PROFIT	$	31,385		$	43		$	0	$	31,428
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	0		$	0		$	0	$	0
10.	SELLING & MARKETING	$	0		$	0		$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	245,237		$	187,755		$	0	$	432,992
12.	RENT & LEASE	$	85,000		$	4,966		$	0	$	89,966
13.	OTHER (ATTACH LIST)	$	(8,412	)	$	(19,216	)	$	0	$	(27,628	)
14.	TOTAL OPERATING EXPENSES	$	321,825		$	173,505		$	0	$	495,330
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(290,440	)	$	(173,462	)	$	0	$	(463,902	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	2,966,440		$	0		$	0	$	2,966,440
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	0	$	0
18.	INTEREST EXPENSE	$	169		$	0		$	0	$	169
19.	DEPRECIATION / DEPLETION	$	0		$	0		$	0	$	0
20.	AMORTIZATION	$	0		$	0		$	0	$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	(2,966,271	)	$	0		$	0	$	(2,966,271	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0		$	0	$	0
24.	U.S. TRUSTEE FEES	$	0		$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0	$	0
27.	INCOME TAX	$	0		$	0		$	0	$	0
28.	NET PROFIT (LOSS)	$	2,675,831		$	(173,462	)	$	0	$	2,502,369

Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER: 07-44538

CASH RECEIPTS AND		MONTH			MONTH			MONTH		QUARTER
DISBURSEMENTS		January 2008			February 2008			0		TOTAL
1.	CASH - BEGINNING OF MONTH	$	68,445		$	23,495				$	68,445
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	802,171		$	300,739		$	0	$	1,102,910
4.	POSTPETITION	$	0		$	0		$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	802,171		$	300,739		$	0	$	1,102,910
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0		$	0	$	0
7.	SALE OF ASSETS	$	0		$	0		$	0	$	0
8.	OTHER (ATTACH LIST)	$	(841,242	)	$	(316,034	)	$	0	$	(1,157,276	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(841,242	)	$	(316,034	)	$	0	$	(1,157,276	)
10.	TOTAL RECEIPTS	$	(39,071	)	$	(15,295	)	$	0	$	(54,366	)
11.	TOTAL CASH AVAILABLE	$	29,374		$	8,200		$	0	$	14,079
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	0		$	0		$	0	$	0
13.	PAYROLL TAXES PAID	$	0		$	0		$	0	$	0
14.	SALES, USE & OTHER TAXES PAID	$	0		$	0		$	0	$	0
15.	SECURED / RENTAL / LEASES	$	0		$	0		$	0	$	0
16.	UTILITIES	$	0		$	0		$	0	$	0
17.	INSURANCE	$	0		$	0		$	0	$	0
18.	INVENTORY PURCHASES	$	0		$	0		$	0	$	0
19.	VEHICLE EXPENSES	$	0		$	0		$	0	$	0
20.	TRAVEL	$	0		$	0		$	0	$	0
21.	ENTERTAINMENT	$	0		$	0		$	0	$	0
22.	REPAIRS & MAINTENANCE	$	0		$	0		$	0	$	0
23.	SUPPLIES	$	0		$	0		$	0	$	0
24.	ADVERTISING	$	0		$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	5,879		$	5,748		$	0	$	11,627
26.	TOTAL OPERATING DISBURSEMENTS	$	5,879		$	5,748		$	0	$	11,627
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0		$	0		$	0	$	0
28.	U.S. TRUSTEE FEES	$	0		$	0		$	0	$	0
29.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0	$	0
31.	TOTAL DISBURSEMENTS	$	5,879		$	5,748		$	0	$	11,627
32.	NET CASH FLOW	$	(44,950	)	$	(21,043	)	$	0	$	(65,993	)
33.	CASH - END OF MONTH	$	23,495		$	2,452		$	0	$	2,452

	Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER: 07-44538

		SCHEDULE		MONTH			MONTH			MONTH
ACCOUNTS RECEIVABLE AGING		AMOUNT		January 2008			February 2008			0
1.	0-30			$	(35,549	)	$	(1,794	)
2.	31-60			$	(46,035	)	$	(19,906	)
3.	61-90			$	(81,009	)	$	(28,172	)
4.	91+			$	403,678		$	47,696
5.	TOTAL ACCOUNTS RECEIVABLE	$	14,522,323	$	241,085		$	(2,176	)	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE			$	0		$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	241,085		$	(2,176	)	$	0

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

February 2008

		0-30			31-60		61-90		91+
TAXES PAYABLE		DAYS			DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0		$	0	$	0	$	0	$	0
2.	STATE	$	0		$	0	$	0	$	0	$	0
3.	LOCAL	$	0		$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	31,258		$	0	$	0	$	0	$	31,258
5.	TOTAL TAXES PAYABLE	$	31,258		$	0	$	0	$	0	$	31,258

6.	ACCOUNTS PAYABLE	$	(18,497	)	$	4,163	$	7,127	$	214,864	$	207,657

STATUS OF POSTPETITION TAXES

MONTH:

February 2008

		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY*		0R ACCRUED		PAID		LIABILITY
1.	WITHHOLDING**	$	0	$	0	$	0	$	0
2.	FICA-EMPLOYEE**	$	0	$	0	$	0	$	0
3.	FICA-EMPLOYER**	$	0	$	0	$	0	$	0
4.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	0	$	0	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16.	TOTAL TAXES	$	0	$	0	$	0	$	0

*		The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the
		amount should be zero.
**		Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

	Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-5
		2008
CASE NUMBER: 07-44538

BANK RECONCILIATIONS

MONTH:

February 2008

		Account #1		Account #2		Account #3		TOTAL
A.	BANK:	Capital One
B.	ACCOUNT NUMBER:	3620477841
C.	PURPOSE (TYPE):	Depository
1.	BALANCE PER BANK STATEMENT	$	1,433					$	1,433
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0					$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0					$	0
4.	OTHER RECONCILING ITEMS	$	1,019					$	1,019
5.	MONTH END BALANCE PER BOOKS	$	2,452	$	0	$	0	$	2,452
6.	NUMBER OF LAST CHECK WRITTEN	None

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.	N/A
8.
9.
10.
11	TOTAL INVESTMENTS			$	0	$	0

CASH

12.

CURRENCY ON HAND

13.

TOTAL CASH - END OF MONTH

2,452

	Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER: 07-44538

MONTH:

February 2008

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	Gregg Saylor	Salary, Expense Reports	$	0	$	9,231
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	9,231

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID *
1.	See Case #07-44536,Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	Crown Credit (4 leases), lease cancelled 11/07	$	1,434	$	0	$	2,868
2.	Duxbury Capital, lease cancelled 11/07	$	669	$	0	$	1,338
3.	Coactive Capital, lease cancelled 2/08	$	1,048	$	0	$	1,048
4.	US Bank, cancelled 1/08	$	168,775	$	0	$	0
5.	Other facility leases cancelled 11/07
6.	TOTAL	$	171,926	$	0	$	5,254

	Monthly Operating Report

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER: 07-44538

MONTH:

February 2008

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?	X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

8, 10 - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have continued during 2/08 and should be brought current during 3/08 Additionally, several creditors have drawn on outstanding letters of credit; company attempting to reconcile activity; therefore, no payments were made on post-petition basis, primarily airport landing, parking and rental fees.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
See Case #07-44536, Kitty Hawk, Inc.

	Footnotes Supplement

CASE NAME: Kitty Hawk Cargo, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER: 07-44538

MONTH:

February 2008

Accrual Basis Form Number	Line Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to Kitty Hawk, Inc. (Case #07-44536)

3	31	All disbursements (either by wire transfer or check, including payroll, are disbursed out of the Kitty Hawk, Inc. disbursement accounts (Case #07-44536)

4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary. (Case #07-44536)

7		All insurance policies for Kitty Hawk Cargo, Inc. are carried in the name of Kitty Hawk, Inc. (Case #07-44536)

3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receipts tranferred directly to Kitty Hawk, Inc. (Case #07-44536)

4	AR - 7	Total Accounts Receivable does not agree to Accrual Basis - 1, line 4 by $195 due to on-going reconciliation item.

4	Payroll Taxes	There were no employees for Kitty Hawk Cargo, Inc. during this reporting period, therefore, there are no payroll tax liabilities or payments reported.

Case Name:	Kitty Hawk Cargo, Inc.
Case Number:	07-44538

Details of Other Items

	February 2008
ACCRUAL BASIS - 1

8. OTHER (ATTACH LIST)	51,375		Reported
A/R Employees	988
A/R Other	22,831
Deposits	27,784
A/R - 401(k) loan	(228	)

	51,375		Detail
	0		Difference

22. OTHER (ATTACH LIST)	19,265,501		Reported
Intercompany Payables	19,198,620
Accrued Wages	16,440
Accrued 401(k)	2,114
General Accrued AP	48,327

	19,265,501		Detail
	0		Difference

ACCRUAL BASIS - 2

13. OTHER OPERATING EXPENSE	(19,216	)	Reported
Chartered Airline Expense	0
Allocation from Ground	(9,819	)
Freight Handling Wages	0
Freight Handling Contractors	(11,485	)
GSE Wages	0
Support Costs	1,717
Fuel	371

	(19,216	)	Detail
	0		Difference

ACCRUAL BASIS - 3

8. OTHER (ATTACH LIST)	(316,034	)	Reported
Transfer to Inc (#07-44536)	(312,534	)
Transfer to Aircargo (#07-44540)	(3,500	)

	(316,034	)	Detail
	0		Difference

25. OTHER (ATTACH LIST)	5,748		Reported
Bank Charges	3,961
Misc - Petty Cash usage	1,787
	5,748		Detail
	0		Difference

EX-99.4 5 a08-8982_1ex99d4.htm EX-99.4

Exhibit 99.4

Monthly Operating Report

CASE NAME:		Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS
				2008
CASE NUMBER:		07-44539

JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: February 29, 2008

RESPONSIBLE PARTY:

/s/James R. Kupferschmid		Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

James R. Kupferschmid		March 20, 2008
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Jessica L. Wilson		VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER		TITLE

Jessica L. Wilson		March 20, 2008
PRINTED NAME OF PREPARER		DATE

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER: 07-44539

COMPARATIVE BALANCE SHEET

ASSETS		SCHEDULE AMOUNT		MONTH January 2008			MONTH February 2008			MONTH
1.	UNRESTRICTED CASH	$	2,913	$	142,416		$	199,455
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	2,913	$	142,416		$	199,455		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	623,545		$	340,721
5.	INVENTORY	$	1,807,835	$	1,355,242		$	1,355,242
6.	NOTES RECEIVABLE	$	0	$	0		$	0
7.	PREPAID EXPENSES	$	538,000	$	572,538		$	545,897
8.	OTHER (ATTACH LIST)	$	2,114,882	$	205,518		$	202,463
9.	TOTAL CURRENT ASSETS	$	4,892,202	$	2,899,259		$	2,643,778		$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	359,058	$	1,181,826		$	1,166,223
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	927,686		$	927,446
12.	NET PROPERTY, PLANT & EQUIPMENT	$	359,058	$	254,140		$	238,777		$	0
13.	DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.	OTHER ASSETS – NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	0	$	6,859,002		$	6,852,889
16.	TOTAL ASSETS	$	5,251,260	$	10,012,401		$	9,735,444		$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	430,867		$	465,264
18.	TAXES PAYABLE			$	93,039		$	115,821
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	985,594		$	843,827
23.	TOTAL POSTPETITION LIABILITIES			$	1,509,500		$	1,424,912		$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	0		$	0		$	0
25.	PRIORITY DEBT	$	810,299	$	0		$	0		$	0
26.	UNSECURED DEBT	$	4,675,404	$	6,324,435		$	6,340,059
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	22,170,447	$	6,324,435		$	6,340,059		$	0
29.	TOTAL LIABILITIES	$	22,170,447	$	7,833,935		$	7,764,971		$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	3,848,021		$	3,848,021
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(1,669,555	)	$	(1,877,548	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	2,178,466		$	1,970,473		$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	22,170,447	$	10,012,401		$	9,735,444		$	0

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER: 07-44539

INCOME STATEMENT

REVENUES		MONTH January 2008			MONTH February 2008			MONTH 0		QUARTER TOTAL
1.	GROSS REVENUES	$	36,900		$	0		$	0	$	36,900
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0	$	0
3.	NET REVENUE	$	36,900		$	0		$	0	$	36,900
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0	$	0
5.	DIRECT LABOR	$	0		$	0		$	0	$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0	$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0	$	0
8.	GROSS PROFIT	$	36,900		$	0		$	0	$	36,900
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	24,616		$	36,923		$	0	$	61,539
10.	SELLING & MARKETING	$	0		$	0		$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	115,042		$	115,591		$	0	$	230,633
12.	RENT & LEASE	$	23,462		$	630		$	0	$	24,092
13.	OTHER (ATTACH LIST)	$	236,341		$	45,827		$	0	$	282,168
14.	TOTAL OPERATING EXPENSES	$	399,461		$	198,971		$	0	$	598,432
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(362,561	)	$	(198,971	)	$	0	$	(561,532	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	112,010		$	3,566		$	0	$	115,576
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	0	$	0
18.	INTEREST EXPENSE	$	0		$	0		$	0	$	0
19.	DEPRECIATION / DEPLETION	$	12,661		$	12,588		$	0	$	25,249
20.	AMORTIZATION	$	0		$	0		$	0	$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	(99,349	)	$	9,022		$	0	$	(90,327	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0		$	0	$	0
24.	U.S. TRUSTEE FEES	$	0		$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0	$	0
27.	INCOME TAX	$	0		$	0		$	0	$	0
28.	NET PROFIT (LOSS)	$	(263,212	)	$	(207,993	)	$	0	$	(471,205	)

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER: 07-44539

CASH RECEIPTS AND DISBURSEMENTS		MONTH January 2008			MONTH February 2008			MONTH 0		QUARTER TOTAL
1.	CASH - BEGINNING OF MONTH	$	564,506		$	142,416				$	564,506
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	182,283		$	176,881		$	0	$	359,164
4.	POSTPETITION	$	0		$	0		$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	182,283		$	176,881		$	0	$	359,164
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0		$	0	$	0
7.	SALE OF ASSETS	$	23,234		$	0		$	0	$	23,234
8.	OTHER (ATTACH LIST)	$	(612,074	)	$	(119,467	)	$	0	$	(731,541	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(588,840	)	$	(119,467	)	$	0	$	(708,307	)
10.	TOTAL RECEIPTS	$	(406,557	)	$	57,414		$	0	$	(349,143	)
11.	TOTAL CASH AVAILABLE	$	157,949		$	199,830		$	0	$	215,363
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	0		$	0		$	0	$	0
13.	PAYROLL TAXES PAID	$	0		$	0		$	0	$	0
14.	SALES, USE & OTHER TAXES PAID	$	0		$	0		$	0	$	0
15.	SECURED / RENTAL / LEASES	$	0		$	0		$	0	$	0
16.	UTILITIES	$	0		$	0		$	0	$	0
17.	INSURANCE	$	0		$	0		$	0	$	0
18.	INVENTORY PURCHASES	$	0		$	0		$	0	$	0
19.	VEHICLE EXPENSES	$	0		$	0		$	0	$	0
20.	TRAVEL	$	0		$	0		$	0	$	0
21.	ENTERTAINMENT	$	0		$	0		$	0	$	0
22.	REPAIRS & MAINTENANCE	$	0		$	0		$	0	$	0
23.	SUPPLIES	$	0		$	0		$	0	$	0
24.	ADVERTISING	$	0		$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	15,533		$	375		$	0	$	15,908
26.	TOTAL OPERATING DISBURSEMENTS	$	15,533		$	375		$	0	$	15,908
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0		$	0		$	0	$	0
28.	U.S. TRUSTEE FEES	$	0		$	0		$	0	$	0
29.	OTHER (ATTACH LIST)	$	0		$	0		$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0	$	0
31.	TOTAL DISBURSEMENTS	$	15,533		$	375		$	0	$	15,908
32.	NET CASH FLOW	$	(422,090	)	$	57,039		$	0	$	(365,051	)
33.	CASH - END OF MONTH	$	142,416		$	199,455		$	0	$	199,455

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER: 07-44539

ACCOUNTS RECEIVABLE AGING		SCHEDULE AMOUNT		MONTH January 2008		MONTH February 2008		MONTH 0
1.	0-30			$	151,830	$	0
2.	31-60			$	41,823	$	44,969
3.	61-90			$	21,483	$	2,012
4.	91+			$	301,988	$	293,471
5.	TOTAL ACCOUNTS RECEIVABLE	$	428,572	$	517,124	$	340,452	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0	$	0	$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	517,124	$	340,452	$	0

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

February 2008

		0-30		31-60		61-90		91+
TAXES PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0	$	0	$	0	$	0	$	0
2.	STATE	$	0	$	0	$	0	$	0	$	0
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	115,821	$	0	$	0	$	0	$	115,821
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	115,821

6.	ACCOUNTS PAYABLE	$	17,734	$	133,820	$	106,126	$	207,584	$	465,264

STATUS OF POSTPETITION TAXES

MONTH:

February 2008

FEDERAL		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
1.	WITHHOLDING**	$	0	$	5,918	$	5,918	$	0
2.	FICA-EMPLOYEE**	$	0	$	3,256	$	3,256	$	0
3.	FICA-EMPLOYER**	$	0	$	3,256	$	3,256	$	0
4.	UNEMPLOYMENT	$	0	$	22	$	22	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	12,452	$	12,452	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	482	$	482	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	96	$	96	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	578	$	578	$	0
16.	TOTAL TAXES	$	0	$	13,030	$	13,030	$	0

*		The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.
**		Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-5
		2008
CASE NUMBER: 07-44539

MONTH:

February 2008

BANK RECONCILIATIONS

		Account #1		Account #2		Account #3		TOTAL
A.	BANK:	Capital One		JP Morgan Chase		Capital One
B.	ACCOUNT NUMBER:	3620477833		100130152		3620562563
C.	PURPOSE (TYPE):	Depository		Operating		Asset Sales
1.	BALANCE PER BANK STATEMENT	$	0	$	0	$	5,129	$	5,129
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0	$	0	$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0	$	0	$	0	$	0
4.	OTHER RECONCILING ITEMS	$	0	$	0	$	0	$	0
5.	MONTH END BALANCE PER BOOKS	$	0	$	0	$	5,129	$	5,129
6.	NUMBER OF LAST CHECK WRITTEN	None		No Checks		No Checks

INVESTMENT ACCOUNTS

BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
7.	N/A	2/29/2008	Overnight Sweep	$	194,326	$	194,326
8.
9.
10.
11.	TOTAL INVESTMENTS			$	194,326	$	194,326

CASH

12.	CURRENCY ON HAND	$	0

13.	TOTAL CASH – END OF MONTH	$	199,455

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER: 07-44539

MONTH:

February 2008

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	Robbie Barron	Salary, Expense Reports	$	23,077	$	80,845
2.	Danny Clifton	Salary, Expense Reports	$	0	$	22,418
3.	Mark Luman	Salary, Expense Reports	$	13,846	$	44,302
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	36,923	$	147,565

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID *
1.	See Case #07-44536, Kitty Hawk, Inc.
2
3
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	GECAS; all aircraft returned 12/07	$	738,159			$	1,372,597
2.	AirLease International; all aircraft returned 1/08	$	48,910			$	0
3.
4.
5.
6.	TOTAL	$	787,069	$	0	$	1,372,597

	Monthly Operating Report

CASE NAME: Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER: 07-44539

MONTH:

February 2008

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

1 - - Misc equipment sold when locations closed i/a/w de minimis asset sale motion approved by the Court

10 - - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have continued during 2/08 and should be brought current during 3/08

4 - Payment made on accrued vacation balances in accordance with first day orders.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
See Case #07-44536, Kitty Hawk, Inc.

Footnotes Supplement

CASE NAME:	Kitty Hawk Aircargo, Inc.	ACCRUAL BASIS
			2008
CASE NUMBER:	07-44539

MONTH:

February 2008

Accrual Basis Form Number	Line Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to Kitty Hawk, Inc. (Case#07-44536)

3	31	All disbursements (either by wire transfer or check), including payroll, are disbursed out of the Kitty Hawk, Inc. disbursement accounts (Case#07-44536)

4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary. (Case#07-44536)

6	Post Pet Leases	GECAS and AirLease are aircraft and engine leases which are protected under Section 1110; Debtor may delay lease payment 60 days from petition date

7		All insurance policies for Kitty Hawk Aircargo, Inc. are carried in the name of Kitty Hawk, Inc. (Case#07-44536)

1	4	Accounts Receivable (Net) includes accrued AR at the end of the reporting period

3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receipts tranferred directly to Kitty Hawk, Inc. (Case#07-44536)

3	7	All proceeds from the sale of assets in all 5 cases (07-44536, 44537, 44538,44539, 44540) are deposited into the account maintained at Capital One Bank in the name of Kitty Hawk Aircargo, Inc. Asset Sales Account

4	AR – 7	Total Accounts Receivable does not agree to Accrual Basis - 1, line 4 due to $269 on going reconciling item.

CASE NAME:		Kitty Hawk Aircargo, Inc.

CASE NUMBER:		07-44539

Details of Other Items

	February 2008
ACCRUAL BASIS - 1

8. OTHER (ATTACH LIST)	202,463		Reported
AR 401(k)	(834	)
AR Employees	(1,604	)
Fuel intoplane suspense	(36,170	)
Deposits	240,691
AR Accrued	380

	202,463		Detail
	0		Difference

15. OTHER (ATTACH LIST)	6,852,889		Reported
Intercompany receivable	6,852,889

	6,852,889		Detail
	0		Difference

22. OTHER (ATTACH LIST)	843,827		Reported

Payroll clearing	(3,394	)
General Accrued AP	839,703
Accrued Union Dues	(13,209	)
Accrued wages	20,440
Accrued 401(k)	(72	)
Accrued Health Savings Plan	87
Other	272
	843,827		Detail
	0		Difference

ACCRUAL BASIS - 2

13. OTHER OPERATING EXPENSE	45,827		Reported
Crewmember wages	0
Crewmember travel	0
Training	0
Fight Operations Admin wages & travel	8,135
Flight Planning Expense	(600	)
Aircraft Insurance	165
Ground Operating Expense	1,104
Fuel	(1,154	)
Maintenance wages & travel	11,868
Support costs	171
Contract labor	17,322
Parts Related Expense	6,317
Contractual Maintenance agreements	1,459
Allocation to Cargo	0
On demand charter expense	1,040

	45,827		Detail
	0		Difference

16. NON-OPERATING INCOME (ATT. LIST)	3,566		Reported
Interest income	230
Gain on sale of assets	3,336

	3,566		Detail
	0		Difference

ACCRUAL BASIS - 3

8. OTHER (ATTACH LIST)	(119,467	)	Reported
Transfer to Inc (#07-44536	(152,150	)
Transfer from Inc (#07-44536	32,453	)
Interest Income	230
	(119,467	)	Detail
	0		Difference

25. OTHER (ATTACH LIST)	375		Reported
Federal Excise Tax payments
Bank Fees	25
Petty Cash usage	350
	375		Detail
	0		Difference

EX-99.5 6 a08-8982_1ex99d5.htm EX-99.5

Exhibit 99.5

Monthly Operating Report

CASE NAME:		KH Ground, Inc.	ACCRUAL BASIS
				2008
CASE NUMBER:		07-44540

JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: FEBRUARY 29, 2008

RESPONSIBLE PARTY:

/s/James R. Kupferschmid		Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

James R. Kupferschmid		March 20, 2008
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Jessica L. Wilson		VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER		TITLE

Jessica L. Wilson		March 20, 2008
PRINTED NAME OF PREPARER		DATE

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER: 07-44540

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH
ASSETS		AMOUNT		January 2008			February 2008			MONTH
1.	UNRESTRICTED CASH	$	0	$	0		$	0		$	0
2.	RESTRICTED CASH	$	0	$	0		$	0		$	0
3.	TOTAL CASH	$	0	$	0		$	0		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	0	$	0		$	0		$	0
5.	INVENTORY	$	0	$	0		$	0		$	0
6.	NOTES RECEIVABLE	$	0	$	0		$	0		$	0
7.	PREPAID EXPENSES	$	0	$	0		$	0		$	0
8.	OTHER (ATTACH LIST)	$	0	$	0		$	0		$	0
9.	TOTAL CURRENT ASSETS	$	0	$	0		$	0		$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	0	$	0		$	0		$	0
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	0		$	0		$	0
12.	NET PROPERTY, PLANT & EQUIPMENT	$	0	$	0		$	0		$	0
13.	DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.	OTHER ASSETS – NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	0	$	0		$	0		$	0
16.	TOTAL ASSETS	$	0	$	0		$	0		$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	0		$	0		$	0
18.	TAXES PAYABLE			$	0		$	0		$	0
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	0		$	0		$	0
23.	TOTAL POSTPETITION
	LIABILITIES			$	0		$	0		$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	0		$	0		$	0
25.	PRIORITY DEBT	$	0	$	0		$	0		$	0
26.	UNSECURED DEBT	$	0	$	0		$	0		$	0
27.	OTHER (ATTACH LIST)	$	0	$	250		$	250		$	0
28.	TOTAL PREPETITION LIABILITIES	$	16,684,744	$	250		$	250		$	0
29.	TOTAL LIABILITIES	$	16,684,744	$	250		$	250		$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0		$	0		$	0		$	0
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(250	)	$	(250	)	$	0
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(250	)	$	(250	)	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	16,684,744	$	0		$	0		$	0

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER: 07-44540

INCOME STATEMENT

		MONTH		MONTH		MONTH		QUARTER
REVENUES		January 2008		February 2008		0		TOTAL
1.	GROSS REVENUES	$	0	$	0	$	0	$	0
2.	LESS: RETURNS & DISCOUNTS	$	0	$	0	$	0	$	0
3.	NET REVENUE	$	0	$	0	$	0	$	0
COST OF GOODS SOLD
4.	MATERIAL	$	0	$	0	$	0	$	0
5.	DIRECT LABOR	$	0	$	0	$	0	$	0
6.	DIRECT OVERHEAD	$	0	$	0	$	0	$	0
7.	TOTAL COST OF GOODS SOLD	$	0	$	0	$	0	$	0
8.	GROSS PROFIT	$	0	$	0	$	0	$	0
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	0	$	0	$	0	$	0
10.	SELLING & MARKETING	$	0	$	0	$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	0	$	0	$	0	$	0
12.	RENT & LEASE	$	0	$	0	$	0	$	0
13.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
14.	TOTAL OPERATING EXPENSES	$	0	$	0	$	0	$	0
15.	INCOME BEFORE NON-OPERATING							$	0
	INCOME & EXPENSE	$	0	$	0	$	0	$	0
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	0	$	0	$	0	$	0
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0	$	0	$	0	$	0
18.	INTEREST EXPENSE	$	0	$	0	$	0	$	0
19.	DEPRECIATION / DEPLETION	$	0	$	0	$	0	$	0
20.	AMORTIZATION	$	0	$	0	$	0	$	0
21.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	0	$	0	$	0	$	0
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0	$	0	$	0	$	0
24.	U.S. TRUSTEE FEES	$	0	$	0	$	0	$	0
25.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	0	$	0
27.	INCOME TAX	$	0	$	0	$	0
28.	NET PROFIT (LOSS)	$	0	$	0	$	0	$	0

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER: 07-44540

CASH RECEIPTS AND		MONTH		MONTH		MONTH		QUARTER
DISBURSEMENTS		January 2008		February 2008		0		TOTAL
1.	CASH - BEGINNING OF MONTH	$	0	$	0	$	0	$	0
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0	$	0	$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	0	$	0	$	0	$	0
4.	POSTPETITION	$	0	$	0	$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	0	$	0	$	0	$	0
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	SALE OF ASSETS	$	0	$	0	$	0	$	0
8.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
9.	TOTAL NON-OPERATING RECEIPTS	$	0	$	0	$	0	$	0
10.	TOTAL RECEIPTS	$	0	$	0	$	0	$	0
11.	TOTAL CASH AVAILABLE	$	0	$	0	$	0	$	0
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	0	$	0	$	0	$	0
13.	PAYROLL TAXES PAID	$	0	$	0	$	0	$	0
14.	SALES, USE & OTHER TAXES PAID	$	0	$	0	$	0	$	0
15.	SECURED / RENTAL / LEASES	$	0	$	0	$	0	$	0
16.	UTILITIES	$	0	$	0	$	0	$	0
17.	INSURANCE	$	0	$	0	$	0	$	0
18.	INVENTORY PURCHASES	$	0	$	0	$	0	$	0
19.	VEHICLE EXPENSES	$	0	$	0	$	0	$	0
20.	TRAVEL	$	0	$	0	$	0	$	0
21.	ENTERTAINMENT	$	0	$	0	$	0	$	0
22.	REPAIRS & MAINTENANCE	$	0	$	0	$	0	$	0
23.	SUPPLIES	$	0	$	0	$	0	$	0
24.	ADVERTISING	$	0	$	0	$	0	$	0
25.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
26.	TOTAL OPERATING DISBURSEMENTS	$	0	$	0	$	0	$	0
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0	$	0	$	0	$	0
28.	U.S. TRUSTEE FEES	$	0	$	0	$	0	$	0
29.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	0	$	0
31.	TOTAL DISBURSEMENTS	$	0	$	0	$	0	$	0
32.	NET CASH FLOW	$	0	$	0	$	0	$	0
33.	CASH - END OF MONTH	$	0	$	0	$	0	$	0

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER: 07-44540

		SCHEDULE		MONTH		MONTH		MONTH
ACCOUNTS RECEIVABLE AGING		AMOUNT		January 2008		February 2008		0
1.	0-30	$	0	$	0	$	0	$	0
2.	31-60	$	0	$	0	$	0	$	0
3.	61-90	$	0	$	0	$	0	$	0
4.	91+	$	0	$	0	$	0	$	0
5.	TOTAL ACCOUNTS RECEIVABLE	$	0	$	0	$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0	$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	0	$	0	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

February 2008

		0-30		31-60		61-90		91+
TAXES PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0	$	0	$	0	$	0	$	0
2.	STATE	$	0	$	0	$	0	$	0	$	0
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	0

6.	ACCOUNTS PAYABLE	$	250	$	0	$	0	$	0	$	250

STATUS OF POSTPETITION TAXES

MONTH:

February 2008

		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY*		OR ACCRUED		PAID		LIABILITY
1.	WITHHOLDING**	$	0	$	0	$	0	$	0
2.	FICA-EMPLOYEE**	$	0	$	0	$	0	$	0
3.	FICA-EMPLOYER**	$	0	$	0	$	0	$	0
4.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	0	$	0	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16.	TOTAL TAXES	$	0	$	0	$	0	$	0

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-5
		2008
CASE NUMBER: 07-44540

BANK RECONCILIATIONS

MONTH:

February 2008

		Account #1		Account #2		Account #3		TOTAL
A.	BANK:	No Accounts
B.	ACCOUNT NUMBER:
C.	PURPOSE (TYPE):
1.	BALANCE PER BANK STATEMENT
2.	ADD: TOTAL DEPOSITS NOT CREDITED
3.	SUBTRACT: OUTSTANDING CHECKS
4.	OTHER RECONCILING ITEMS
5.	MONTH END BALANCE PER BOOKS	$	0	$	0	$	0	$	0
6.	NUMBER OF LAST CHECK WRITTEN

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0

CASH

12.	CURRENCY ON HAND	$	0

13.	TOTAL CASH – END OF MONTH	$	0

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER: 07-44540

MONTH:

February 2008

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	No insiders
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID *
1.	See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL	$	0	$	0	$	0

	Monthly Operating Report

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER: 07-44540

MONTH:

February 2008

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE		X
	THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSURANCE

		YES	NO
1	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?		X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?		X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN ATTACH ADDITIONAL SHEETS IF NECESSARY.

This is a non-operating entity with no assets or employees and therefore has no insurance policies

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
No insurance due to being a non-operating entity with no assets or employees

	Footnotes Supplement

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER: 07-44540

MONTH:

February 2008

Accrual Basis	Line
Form Number	Number	Footnote/Explanation

General		This is a non-operating entity.

Case Name:	KH Ground, Inc.
Case Number:	07-44540

Details of Other Items

		February 2008
ACCRUAL BASIS - 1

27. OTHER (ATTACH LIST)		250	Reported
	Intercompany Payable to Kitty Hawk, Inc. ( Case No. 07-44536)
		250	Detail
		0	Difference

-----END PRIVACY-ENHANCED MESSAGE-----

CASE NAME:

Kitty Hawk Ground, Inc.

ACCRUAL BASIS

CASE NUMBER:

07-44537

JUDGE:

Russell F. Nelms