Kitty Hawk lays off 500

Kitty Hawk lays off 500 Kitty Hawk Inc. and all of its wholly owned subsidiaries said Monday they would immediately cease all scheduled network air and ground operations.
   In a statement, the company said it would continue to operate air cargo charter operations.
   About 500 employees at Kitty Hawk will be affected by the move, and such employees were notified of their termination today.
   The Ft. Wayne Journal Gazette reported that about 300 people would be put out of work at the Fort Wayne International Airport in Indiana where the company has a sorting hub.
   Kitty Hawk said its financial condition has significantly deteriorated over the last year, and the ceasing of network air and ground operations is necessitated by, among other things, a 25 percent decrease in year-over-year demand for its air product and a 15 percent decrease in demand for its ground product.
   The company also said record high jet and diesel fuel prices have contributed to its inability to continue network air and ground operations.
   On Oct. 15, the company filed for reorganization in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division, in a continued effort to address significant financial challenges and identify a strategic or financial investor.
   The company said it has been unable to secure new sources of financing or a buyer for all or a portion of its assets after considerable and continuing efforts, which commenced in early 2007.