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: OCTOBER 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:
/s/ DREW KEITH Chief Financial Officer
--------------------------------------- -------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Drew Keith 11/20/00
--------------------------------------- -------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ JESSICA L. WILSON Chief Accounting Officer
--------------------------------------- -------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Jessica L. Wilson 11/20/00
--------------------------------------- -------------------------
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 October 2000
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. UNRESTRICTED CASH $15,476 ($3,048) $0 $0
------------------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH
------------------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $15,476 ($3,048) $0 $0
------------------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) $13,356,789 $6,220,572 $0 $0
------------------------------------------------------------------------------------------------------------------------------
5. INVENTORY $5,142,821 $0 $0
------------------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $201,238 $0 $0
------------------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $37,290,970 $47,569,379 $0 $0
------------------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $50,663,235 $59,130,962 $0 $0
------------------------------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT $17,083,867 $16,645,008 $0 $0
------------------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $6,778,594 $0 $0
------------------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $17,083,867 $9,866,414 $0 $0
------------------------------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST)
------------------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $67,747,102 $68,997,376 $0 $0
------------------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $246,220 $0 $0
------------------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE ($285,316) $0 $0
------------------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) $1,432,739 $0 $0
------------------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES $1,393,643 $0 $0
------------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $152,776 $100,158 $0 $0
------------------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $380,384 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $10,596,326 $18,351,965 $0 $0
------------------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $11,129,486 $18,452,123 $0 $0
------------------------------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $11,129,486 $19,845,766 $0 $0
------------------------------------------------------------------------------------------------------------------------------
EQUITY
------------------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $49,811,368 $0 $0
------------------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) ($659,758) $0 $0
------------------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
------------------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY $0 $49,151,610 $0 $0
------------------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $11,129,486 $68,997,376 $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 October 2000 TOTAL
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. GROSS REVENUES $2,462,079 $0 $0 $2,462,079
------------------------------------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
3. NET REVENUE $2,462,079 $0 $0 $2,462,079
------------------------------------------------------------------------------------------------------------------------------------
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 $2,462,079 $0 $0 $2,462,079
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION $10,000 $0 $0 $10,000
------------------------------------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE $313,782 $0 $0 $313,782
------------------------------------------------------------------------------------------------------------------------------------
12. RENT & LEASE $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) $2,071,080 $0 $0 $2,071,080
------------------------------------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $2,394,862 $0 $0 $2,394,862
------------------------------------------------------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE $67,217 $0 $0 $67,217
------------------------------------------------------------------------------------------------------------------------------------
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 ($37,455) $0 $0 ($37,455)
------------------------------------------------------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION $177,328 $0 $0 $177,328
------------------------------------------------------------------------------------------------------------------------------------
20. AMORTIZATION $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $139,873 $0 $0 $139,873
------------------------------------------------------------------------------------------------------------------------------------
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 $34,758 $0 $0 $34,758
------------------------------------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($107,414) $0 $0 ($107,414)
------------------------------------------------------------------------------------------------------------------------------------
</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>
---------------------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH QUARTER
CASH RECEIPTS AND ------------------------------------------------------------
DISBURSEMENTS October 2000 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH ($71,331) $0 $0 ($71,331)
---------------------------------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
---------------------------------------------------------------------------------------------------------------------------------
2. CASH SALES $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
---------------------------------------------------------------------------------------------------------------------------------
3. PREPETITION $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
4. POSTPETITION $2,553,548 $0 $0 $2,553,548
---------------------------------------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $2,553,548 $0 $0 $2,553,548
---------------------------------------------------------------------------------------------------------------------------------
NON - OPERATING RECEIPTS
---------------------------------------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
7. SALE OF ASSETS $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) ($2,485,265) $0 $0 ($2,485,265)
---------------------------------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS ($2,485,265) $0 $0 ($2,485,265)
---------------------------------------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS $68,283 $0 $0 $68,283
---------------------------------------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE ($3,048) $0 $0 ($3,048)
---------------------------------------------------------------------------------------------------------------------------------
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 $68,283 $0 $0 $68,283
---------------------------------------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH ($3,048) $0 $0 ($3,048)
---------------------------------------------------------------------------------------------------------------------------------
</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 October 2000
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 0-30 $2,298,311 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
2. 31-60 $1,091,251 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
3. 61-90 $354,139 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
4. 91+ $2,476,871 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $0 $6,220,572 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $0 $6,220,572 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: October 2000
------------------------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. FEDERAL ($287,535) $0 $0 $0 ($287,535)
------------------------------------------------------------------------------------------------------------------------------------
2. STATE $2,219 $0 $0 $0 $2,219
------------------------------------------------------------------------------------------------------------------------------------
3. LOCAL $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------------------------
5. TOTAL TAXES PAYABLE ($285,316) $0 $0 $0 ($285,316)
------------------------------------------------------------------------------------------------------------------------------------
6. ACCOUNTS PAYABLE $64,684 $24,659 $1,215 $155,662 $246,220
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
STATUS OF POSTPETITION TAXES MONTH: October 2000
---------------------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. WITHHOLDING** $0 $194,554 $194,554 $0
---------------------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
5. INCOME ($322,293) $34,758 $0 ($287,535)
---------------------------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES ($322,293) $229,312 $194,554 ($287,535)
---------------------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
---------------------------------------------------------------------------------------------------------------------------------
8. WITHHOLDING $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
9. SALES $204 $89 $0 $293
---------------------------------------------------------------------------------------------------------------------------------
10. EXCISE $49,025 $36,662 $83,761 $1,926
---------------------------------------------------------------------------------------------------------------------------------
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 $49,229 $36,751 $83,761 $2,219
---------------------------------------------------------------------------------------------------------------------------------
16. TOTAL TAXES ($273,064) $266,063 $278,315 ($285,316)
---------------------------------------------------------------------------------------------------------------------------------
</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.
MONTH: October 2000
<TABLE>
<CAPTION>
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 $11,490 $11,490
----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0
----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $0 $0
----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS ($29,921) $0 ($29,921)
----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS ($29,921) $11,490 $0 ($18,431)
----------------------------------------------------------------------------------------------------------------------------------
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 $15,383
----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH ($3,048)
----------------------------------------------------------------------------------------------------------------------------------
</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: October 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.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
INSIDERS
-----------------------------------------------------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Toby Skaar Salary $0 $4,808
-----------------------------------------------------------------------------------------------------------
2. Doug Kalitta Salary $10,000 $65,000
-----------------------------------------------------------------------------------------------------------
3. N/A
-----------------------------------------------------------------------------------------------------------
4. N/A
-----------------------------------------------------------------------------------------------------------
5. N/A
-----------------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $10,000 $69,808
-----------------------------------------------------------------------------------------------------------
<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
---------------------------------------------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
----------------------------------------------------------------------------------------------------------------------------------
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. GE Capital $11,579 $11,579 $0
----------------------------------------------------------------------------------------------------------------------------------
2. N/A
----------------------------------------------------------------------------------------------------------------------------------
3. N/A
----------------------------------------------------------------------------------------------------------------------------------
4. N/A
----------------------------------------------------------------------------------------------------------------------------------
5. N/A
----------------------------------------------------------------------------------------------------------------------------------
6. TOTAL $11,579 $11,579 $0
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK CHARTERS, INC. ACCRUAL BASIS-7
------------------------------------
CASE NUMBER: 400-42143-BJH 02/13/95, RWD, 2/96
------------------------------------
<TABLE>
<CAPTION>
MONTH: October 2000
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.
<CAPTION>
INSURANCE
---------------------------------------------------------------------------------------------------------------------------------
YES NO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
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>
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: October 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 6 Accounts payable on the aging are in the 60 and 90 day categories due to wire
transfers sent as prepayment on Kitty Hawk Inc. (Case #400-42141) A/P
aging and invoices on Kitty Hawk Charters Aging. Company is working on
clearing these items.
-----------------------------------------------------------------------------------------------------------------------------
3 28 All payments are made by Kitty Hawk, Inc. (Case #400-42141)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK CHARTERS, INC.
CASE NUMBER: 400-42143
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-1 October 2000
8. OTHER (ATTACH LIST) $47,569,379 Reported
-------------
Intercompany Receivables 47,234,558
Contra A/R 420
A/R Other 52,231
A/R Clearing 78,621
A/R Customer Refund -
A/R Accrued -
A/R 401(k) Loan (1,851)
A/R Employees 7,709
A/R Clothing Sales 32,711
A/R Payroll Advance -
A/R Aging reconciling item 104,000
Fuel Inventory 9,051
Misc 6,082
Security Deposit 45,847
-------------
47,569,379 Detail
-------------
- Difference
22. OTHER (ATTACH LIST) $ 1,432,739 Reported
-------------
Accrued charter expenses 585,938
Accrued Salaries/Wages 381,504
Accrued 401(k) (38,670)
Accrued accounting/legal 35,831
A/P Unrecorded 26,000
Adjusted FET (149,845)
A/P Aging reconciling item 8,539
Accrued franchise tax 15,732
Misc (448)
Accrued Fuel 568,158
-------------
1,432,739 Detail
-------------
- Difference
ACCRUAL BASIS-2
13. OTHER (ATTACH LIST) $2,071,080 Reported
-------------
Ondemand costs 196,558
135 Airline charter costs 118,349
Fuel 783,277
Wages 697,257
Travel expense 15,520
Insurance 46,024
Other 23,010
Rotables/Repair/Consumables 157,786
Shipping 9,425
Shop materials/equip rental 23,874
Maintenance allocation -
-------------
2,071,080 Detail
-------------
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) (2,485,265)Reported
-------------
Transfer from OK Turbines (Case #400-42146) -
Sweeps to Kitty Hawk, Inc. (2,485,265)Detail
-------------
(2,485,265)Detail
-------------
- Difference
