EXHIBIT 99.3
EXHIBIT 99.3
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
SIXTH DIVISION
MONTHLY OPERATING REPORT
MONTH ENDING: JULY 31, 2000
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:
CFO
--------------------------------------- ----------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Drew Keith 8/21/00
--------------------------------------- ----------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Corporate Controller
--------------------------------------- ----------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Jessica L. Wilson 8/21/00
--------------------------------------- ----------------------
PRINTED NAME OF PREPARER DATE
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-1
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEET
------------------------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
--------------------------------------------------------
ASSETS AMOUNT July 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. UNRESTRICTED CASH $15,476 $68,795
------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH
------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $15,476 $68,795 $0 $0
------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) $13,356,789 $7,933,994
------------------------------------------------------------------------------------------------------------------
5. INVENTORY $6,001,461
------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE $0
------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $131,474
------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $37,290,970 $45,471,928
------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $50,663,235 $59,607,652 $0 $0
------------------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT $17,083,867 $16,626,807
------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $6,269,976
------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $17,083,867 $10,356,831 $0 $0
------------------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $0 $0
------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) $0 $0
------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST)
------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $67,747,102 $69,964,483 $0 $0
------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $607,314 $0
------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE ($1,716) $0
------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE $0 $0
------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $0 $0
------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT $0 $0
------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) $775,995 $0
------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES $1,381,593 $0 $0
------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $152,776 $131,980 $0
------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $380,384 $0 $0
------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $10,596,326 $18,810,130 $0
------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) $0 $0
------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $11,129,486 $18,942,110 $0 $0
------------------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $11,129,486 $20,323,703 $0 $0
------------------------------------------------------------------------------------------------------------------
EQUITY
------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $49,811,366 $0
------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) ($170,586) $0
------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY $0 $49,640,780 $0 $0
------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $11,129,486 $69,964,483 $0 $0
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-2
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
INCOME STATEMENT
----------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH QUARTER
----------------------------------------------
REVENUES July 2000 TOTAL
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. GROSS REVENUES $1,698,466 $1,698,466
----------------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS $0 $0 $0
----------------------------------------------------------------------------------------------------------------
3. NET REVENUE $1,698,466 $0 $0 $1,698,466
----------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
----------------------------------------------------------------------------------------------------------------
4. MATERIAL $0 $0 $0
----------------------------------------------------------------------------------------------------------------
5. DIRECT LABOR $0 $0 $0
----------------------------------------------------------------------------------------------------------------
6. DIRECT OVERHEAD $0 $0 $0
----------------------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------------
8. GROSS PROFIT $1,698,466 $0 $0 $1,698,466
----------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
----------------------------------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION $0 $0 $0
----------------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $0 $0 $0
----------------------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE $470,725 $0 $470,725
----------------------------------------------------------------------------------------------------------------
12. RENT & LEASE $0 $0 $0
----------------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) $1,921,759 $0 $1,921,759
----------------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $2,392,484 $0 $0 $2,392,484
----------------------------------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE ($694,018) $0 $0 ($694,018)
----------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
----------------------------------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST) $0 $0 $0
----------------------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST) $0 $0 $0
----------------------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE ($40,425) $0 ($40,425)
----------------------------------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION $174,996 $0 $174,996
----------------------------------------------------------------------------------------------------------------
20. AMORTIZATION $0 $0 $0
----------------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $0 $0 $0
----------------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $134,571 $0 $0 $134,571
----------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
----------------------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES $0 $0 $0
----------------------------------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES $0 $0 $0
----------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0 $0
----------------------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------------
27. INCOME TAX ($288,003) $0 ($288,003)
----------------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($540,586) $0 $0 ($540,586)
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-3
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
-------------------------------------------------
DISBURSEMENTS July 2000 TOTAL
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH $221,228 $221,228
----------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
----------------------------------------------------------------------------------------------------------
2. CASH SALES $3,259 $3,259
----------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
----------------------------------------------------------------------------------------------------------
3. PREPETITION $3,326,367 $3,326,367
----------------------------------------------------------------------------------------------------------
4. POSTPETITION $0 $0 $0
----------------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $3,329,626 $0 $0 $3,329,626
----------------------------------------------------------------------------------------------------------
NON-OPERATING RECEIPTS
----------------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST) $0 $0
----------------------------------------------------------------------------------------------------------
7. SALE OF ASSETS $0 $0
----------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) ($3,482,059) ($3,482,059)
----------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS ($3,482,059) $0 $0 ($3,482,059)
----------------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS ($152,433) $0 $0 ($152,433)
----------------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $68,795 $0 $0 $68,795
----------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
----------------------------------------------------------------------------------------------------------
12. NET PAYROLL $0 $0 $0
----------------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $0 $0 $0
----------------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $0 $0 $0
----------------------------------------------------------------------------------------------------------
15. SECURED/RENTAL/LEASES $0 $0 $0
----------------------------------------------------------------------------------------------------------
16. UTILITIES $0 $0 $0
----------------------------------------------------------------------------------------------------------
17. INSURANCE $0 $0 $0
----------------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES $0 $0 $0
----------------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES $0 $0 $0
----------------------------------------------------------------------------------------------------------
20. TRAVEL $0 $0 $0
----------------------------------------------------------------------------------------------------------
21. ENTERTAINMENT $0 $0 $0
----------------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE $0 $0 $0
----------------------------------------------------------------------------------------------------------
23. SUPPLIES $0 $0 $0
----------------------------------------------------------------------------------------------------------
24. ADVERTISING $0 $0 $0
----------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0 $0
----------------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
----------------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES $0 $0 $0
----------------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES $0 $0 $0
----------------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST) $0 $0 $0
----------------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
32. NET CASH FLOW ($152,433) $0 $0 ($152,433)
----------------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH $68,795 $0 $0 $68,795
----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-4
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
---------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT July 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 0-30 $1,393,027
------------------------------------------------------------------------------------------------------------------
2. 31-60 $1,649,627
------------------------------------------------------------------------------------------------------------------
3. 61-90 $856,786
------------------------------------------------------------------------------------------------------------------
4. 91+ $4,034,554
------------------------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $0 $7,933,994 $0 $0
------------------------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE $0 $0
------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $0 $7,933,994 $0 $0
------------------------------------------------------------------------------------------------------------------
<CAPTION>
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: July 2000
------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. FEDERAL ($55,073) $0 $0 $0 ($55,073)
------------------------------------------------------------------------------------------------------------------
2. STATE $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. LOCAL $53,357 $0 $0 $0 $53,357
------------------------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. TOTAL TAXES PAYABLE ($1,716) $0 $0 $0 ($1,716)
------------------------------------------------------------------------------------------------------------------
6. ACCOUNTS PAYABLE $304,323 $255,088 $47,653 $250 $607,314
------------------------------------------------------------------------------------------------------------------
<CAPTION>
STATUS OF POSTPETITION TAXES MONTH: July 2000
------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. WITHHOLDING** $0 $202,477 $202,477 $0
------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. INCOME $232,930 ($288,003) $0 ($55,073)
------------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES $232,930 ($85,526) $202,477 ($55,073)
------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
------------------------------------------------------------------------------------------------------------------
8. WITHHOLDING $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
9. SALES $640 $162 $356 $446
------------------------------------------------------------------------------------------------------------------
10. EXCISE $72,899 $37,911 $72,899 $37,911
------------------------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
12. REAL PROPERTY $15,000 $0 $0 $15,000
------------------------------------------------------------------------------------------------------------------
13. PERSONAL PROPERTY $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
14. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
15. TOTAL STATE & LOCAL $88,539 $38,073 $73,255 $53,357
------------------------------------------------------------------------------------------------------------------
16. TOTAL TAXES $321,469 ($47,453) $275,732 ($1,716)
------------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-5
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
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.
<TABLE>
<CAPTION>
MONTH: July 2000
------------------------------------------------------------------------------------------------------------
BANK RECONCILIATIONS
Account #1 Account #2 Account #3
------------------------------------------------------------------------------------------------------------
A. BANK: Bank One Sun Trust
------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 100128198 5572932 TOTAL
------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Deposit Operating
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $0 $54,705 $54,705
------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0
------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $0 $0
------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS ($660) $0 ($660)
------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS ($660) $54,705 $0 $54,045
------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN No checks No checks
------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT ACCOUNTS
------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7. N/A
------------------------------------------------------------------------------------------------------------
8. N/A
------------------------------------------------------------------------------------------------------------
9. N/A
------------------------------------------------------------------------------------------------------------
10. N/A
------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
------------------------------------------------------------------------------------------------------------
CASH
------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $14,750
------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $68,795
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-6
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
MONTH: July 2000
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. Toby Skaar Salary $0 $4,808
--------------------------------------------------------------------
2. Doug Kalitta Salary $10,000 $35,000
--------------------------------------------------------------------
3. N/A
--------------------------------------------------------------------
4. N/A
--------------------------------------------------------------------
5. N/A
--------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $10,000 $39,808
--------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
PROFESSIONALS
------------------------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID *
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. N/A
------------------------------------------------------------------------------------------------
2. N/A
------------------------------------------------------------------------------------------------
3. N/A
------------------------------------------------------------------------------------------------
4. N/A
------------------------------------------------------------------------------------------------
5. N/A
------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $0 $0 $0 $0
------------------------------------------------------------------------------------------------
</TABLE>
* 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. GE Capital $11,579 $0 $0
--------------------------------------------------------------------------------
2. (invoice not received prior to 7/31/00 - paid on 8/14/00)
--------------------------------------------------------------------------------
3. N/A
--------------------------------------------------------------------------------
4. N/A
--------------------------------------------------------------------------------
5. N/A
--------------------------------------------------------------------------------
6. TOTAL $11,579 $0 $0
--------------------------------------------------------------------------------
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-7
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
MONTH: July 2000
<TABLE>
<CAPTION>
QUESTIONNAIRE
-------------------------------------------------------------------------------------------------------
YES NO
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
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.
Company made the May and June Note payable payments on the GE Capital Note
secured by a Lear Jet and 2 engines (Section 1110 payment)
-------------------------------------------------------------------------------------------------------
<CAPTION>
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.
-------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------------------------------------
INSTALLMENT PAYMENTS
-------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
See Kitty Hawk, Inc. Case #400-42141
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK CHARTERS, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 400-42143-BJH ACCRUAL BASIS
MONTH: July 2000
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE / EXPLANATION
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
------------------------------------------------------------------------------------------------------------
6 All Professional fees related to the Reorganization of the
Company are disbursed out of Kitty Hawk, Inc. (Parent
Company). Refer to Case # 400-42141
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
7 All insurance plans related to the Company are carried
at Kitty Hawk, Inc. (Parent Company). Refer to Case #
400-42141.
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
3 3 The current general ledger system is not able to provide a detail of
customer cash receipts segregated by prepetion accounts receivable
and post petition accounts receivable. Therefore, cash receipts
is provided in total for the month.
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
3 8 All cash received into the Company cash accounts is swept
each night to Kitty Hawk, Inc. Master Account (see Case
#400-42141).
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
3 31 All disbursements (either by wire transfer or check), including payroll are
disbursed out of the Kitty Hawk, Inc. controlled disbursement
account.
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
4 6 All assessment of uncollectible accounts receivable are done
at Kitty Hawk, Inc. Refer to Case #400-4214. All reserves
are recorded at Inc. and pushed down to Inc.'s subsidiaries
as deemed necessary.
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
4 7 The A/R aging does not reconcile to the general ledger do to historical
system problems. Difference is $75,809.
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
1 1 Cash is negative for the month due to a cash receipt not being posted
to the general ledger prior to the month being closed. This will be
corrected in the following month.
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
3 28 All payments are made by Kitty Hawk, Inc. (Case #400-42141)
Trustee fees for the previous quarter were paid and are
reflected on Kitty Hawk, Inc. Monthly Operating Report.
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK CHARTERS, INC.
CASE NUMBER: 400-42143
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-1 July 2000
8. OTHER (ATTACH LIST) $ 45,471,928 Reported
-----------------------
Intercompany Receivables 45,003,612
Contra A/R 420
A/R Other 52,231
A/R Clearing 78,622
A/R Customer Refund 63,943
A/R Accrued -
A/R 401(k) Loan (1,612)
A/R Employees 11,156
A/R Clothing Sales 34,853
A/R Payroll Advance -
A/R Aging reconciling item 212,476
Fuel Inventory 10,371
Misc 6,082
Security Deposit (226)
-----------------------
45,471,928 Detail
-----------------------
- Difference
22. OTHER (ATTACH LIST) $ 775,995 Reported
-----------------------
Accrued charter expenses 373,657
Accrued Salaries/Wages 118,843
Accrued 401(k) (24,208)
Accrued accounting/legal 40,000
A/P Unrecorded 26,000
Adjusted FET (133,894)
A/P Aging reconciling item 7,591
Accrued franchise tax 15,732
Misc 136
Accrued Fuel 352,138
-----------------------
775,995 Detail
-----------------------
- Difference
ACCRUAL BASIS-2
13. OTHER (ATTACH LIST) $1,921,759 Reported
-----------------------
Ondemand costs 194,560
135 Airline charter costs 121,663
Fuel 405,645
Wages 610,338
Travel expense 14,262
Insurance 38,352
Other 9,998
Rotables/Repair/Consumables 515,736
Shipping
Shop materials/equip rental 11,205
Maintenance allocation -
-----------------------
1,921,759 Detail
-----------------------
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) (3,482,059)Reported
-----------------------
Sweeps to Kitty Hawk, Inc. (3,492,043)Detail
-----------------------
9,984 Difference
