EXHIBIT 99.2
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS
------------------------------------
CASE NUMBER: 400-42142-BJH-11 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/ KEVIN K. CRAIG CONTROLLER, KITTY HAWK INC.
--------------------------------------- ---------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
KEVIN K. CRAIG 11/20/00
--------------------------------------- ---------------------------
PRINTED NAME OF PREPARER DATE
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS-1
------------------------------------
CASE NUMBER: 400-42142-BJH-11 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 $16,904 $20,628
-----------------------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $16,904 $20,628 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) $29,303,045 $13,024,107
-----------------------------------------------------------------------------------------------------------------------------------
5. INVENTORY $1,508,508 $2,808,584
-----------------------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $2,294,717 $19,178,545
-----------------------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $111,256,463 ($44,672,920)
-----------------------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $144,379,636 ($9,641,056) $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT $166,772,560 $217,508,349
-----------------------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $0 $51,878,276
-----------------------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $166,772,560 $165,630,073 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS
-----------------------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) $0 $4,220,037
-----------------------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST) $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $311,152,196 $160,209,054 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $4,357,039
-----------------------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE $226,700
-----------------------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE $0
-----------------------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $0
-----------------------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT $0
-----------------------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) $9,548,468
-----------------------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES $14,132,207 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $29,350,000
-----------------------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $2,177,962 $0
-----------------------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $184,252,878 $30,473,790
-----------------------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) $0 $20,075,979
-----------------------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $186,430,840 $79,899,769 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $186,430,840 $94,031,976 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $69,645,449
-----------------------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) ($3,468,371)
-----------------------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION) $0
-----------------------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY $0 $66,177,078 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $186,430,840 $160,209,054 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
$0 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS-2
------------------------------------
CASE NUMBER: 400-42142-BJH-11 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 $15,743,416 $15,743,416
--------------------------------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS $0 $0
--------------------------------------------------------------------------------------------------------------------------------
3. NET REVENUE $15,743,416 $0 $0 $15,743,416
--------------------------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
--------------------------------------------------------------------------------------------------------------------------------
4. MATERIAL $0 $0
--------------------------------------------------------------------------------------------------------------------------------
5. DIRECT LABOR $0 $0
--------------------------------------------------------------------------------------------------------------------------------
6. DIRECT OVERHEAD $0 $0
--------------------------------------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
8. GROSS PROFIT $15,743,416 $0 $0 $15,743,416
--------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
--------------------------------------------------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION $32,291 $32,291
--------------------------------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $0 $0
--------------------------------------------------------------------------------------------------------------------------------
11. GENERAL& ADMINISTRATIVE $1,410,441 $1,410,441
--------------------------------------------------------------------------------------------------------------------------------
12. RENT & LEASE $2,577,341 $2,577,341
--------------------------------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) $13,452,447 $13,452,447
--------------------------------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $17,472,520 $0 $0 $17,472,520
--------------------------------------------------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE ($1,729,104) $0 $0 ($1,729,104)
--------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
--------------------------------------------------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST) $0 $0
--------------------------------------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST) $0 $0
--------------------------------------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE $566,251 $566,251
--------------------------------------------------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION $0 $0
--------------------------------------------------------------------------------------------------------------------------------
20. AMORTIZATION $13,188 $13,188
--------------------------------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $240,725 $240,725
--------------------------------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $820,164 $0 $0 $820,164
--------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
--------------------------------------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES $0 $0
--------------------------------------------------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES $0 $0
--------------------------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0
--------------------------------------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
27. INCOME TAX ($1,020,007) ($1,020,007)
--------------------------------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($1,529,261) $0 $0 ($1,529,261)
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS-3
------------------------------------
CASE NUMBER: 400-42142-BJH-11 02/13/95, RWD, 2/96
------------------------------------
<TABLE>
<CAPTION>
MONTH MONTH MONTH
CASH RECEIPTS AND ----------------------------------------------------------- QUARTER
DISBURSEMENTS OCTOBER, 2000 TOTAL
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH $20,999 $20,628 $20,628 $20,999
-------------------------------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
-------------------------------------------------------------------------------------------------------------------------------
2. CASH SALES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
-------------------------------------------------------------------------------------------------------------------------------
3. PREPETITION $0 $0
-------------------------------------------------------------------------------------------------------------------------------
4. POSTPETITION $14,344,857 $14,344,857
-------------------------------------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $14,344,857 $0 $0 $14,344,857
-------------------------------------------------------------------------------------------------------------------------------
NON - OPERATING RECEIPTS
-------------------------------------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST) $0 $0
-------------------------------------------------------------------------------------------------------------------------------
7. SALE OF ASSETS $0 $0
-------------------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) ($14,345,228) ($14,345,228)
-------------------------------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS ($14,345,228) $0 $0 ($14,345,228)
-------------------------------------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS ($371) $0 $0 ($371)
-------------------------------------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $20,628 $20,628 $20,628 $20,628
-------------------------------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
-------------------------------------------------------------------------------------------------------------------------------
12. NET PAYROLL $0 $0
-------------------------------------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $0 $0
-------------------------------------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $0 $0
-------------------------------------------------------------------------------------------------------------------------------
15. SECURED/RENTAL/LEASES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
16. UTILITIES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
17. INSURANCE $0 $0
-------------------------------------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
20. TRAVEL $0 $0
-------------------------------------------------------------------------------------------------------------------------------
21. ENTERTAINMENT $0 $0
-------------------------------------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE $0 $0
-------------------------------------------------------------------------------------------------------------------------------
23. SUPPLIES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
24. ADVERTISING $0 $0
-------------------------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0
-------------------------------------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $0 $0 $0 $0
-------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
-------------------------------------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES $0 $0
-------------------------------------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST) $0 $0
-------------------------------------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
-------------------------------------------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $0 $0 $0 $0
-------------------------------------------------------------------------------------------------------------------------------
32. NET CASH FLOW ($371) $0 $0 ($371)
-------------------------------------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH $20,628 $20,628 $20,628 $20,628
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS-4
------------------------------------
CASE NUMBER: 400-42142-BJH-11 02/13/95, RWD, 2/96
------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
SCHEDULE ---------------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT OCTOBER, 2000
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 0-30 $27,808,237 $9,668,192
----------------------------------------------------------------------------------------------------------------------------
2. 31-60 $648,873 $809,259
----------------------------------------------------------------------------------------------------------------------------
3. 61-90 $923,454 ($80,208)
----------------------------------------------------------------------------------------------------------------------------
4. 91+ ($77,519) $1,147,186
----------------------------------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $29,303,045 $11,544,429 $0 $0
----------------------------------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE
----------------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $29,303,045 $11,544,429 $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 $0 $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
2. STATE $226,700 $0 $0 $0 $226,700
--------------------------------------------------------------------------------------------------------------------------------
3. LOCAL $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
5. TOTAL TAXES PAYABLE $226,700 $0 $0 $0 $226,700
--------------------------------------------------------------------------------------------------------------------------------
6. ACCOUNTS PAYABLE $1,188,737 $103,178 $1,219,176 $1,845,948 $4,357,039
--------------------------------------------------------------------------------------------------------------------------------
<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 $964,879 $964,879 $0
----------------------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 $0
----------------------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $0
----------------------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $0
----------------------------------------------------------------------------------------------------------------------------------
5. INCOME $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $0 $0
----------------------------------------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES $0 $964,879 $964,879 $0
----------------------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
----------------------------------------------------------------------------------------------------------------------------------
8. WITHHOLDING $0 $0
----------------------------------------------------------------------------------------------------------------------------------
9. SALES $0 $0
----------------------------------------------------------------------------------------------------------------------------------
10. EXCISE $177,474 $49,226 $226,700
----------------------------------------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT $0 $0
----------------------------------------------------------------------------------------------------------------------------------
12. REAL PROPERTY $0 $0
----------------------------------------------------------------------------------------------------------------------------------
13. PERSONAL PROPERTY $0 $0
----------------------------------------------------------------------------------------------------------------------------------
14. OTHER (ATTACH LIST) $0 $0
----------------------------------------------------------------------------------------------------------------------------------
15. TOTAL STATE & LOCAL $177,474 $49,226 $0 $226,700
----------------------------------------------------------------------------------------------------------------------------------
16. TOTAL TAXES $177,474 $1,014,105 $964,879 $226,700
----------------------------------------------------------------------------------------------------------------------------------
</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 AIRCARGO, INC. ACCRUAL BASIS-5
-------------------------------------
CASE NUMBER: 400-42142-BJH-11 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: OCTOBER, 2000
------------------------------------------------------------------------------------------------------------
BANK RECONCILIATIONS Account #1 Account #2 Account #3
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A. BANK: Bank One
--------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 100130152 TOTAL
--------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Operating Account
------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT $0 $0
------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0
------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $0
------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $0 $0
------------------------------------------------------------------------------------------------------------
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 $20,628
------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $20,628
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS-6
------------------------------------
CASE NUMBER: 400-42142-BJH-11 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.
--------------------------------------------------------------------------------
INSIDERS
--------------------------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
--------------------------------------------------------------------------------
1. Clark Stevens Salary $16,458 $89,999
--------------------------------------------------------------------------------
2. Donny Scott Salary $15,833 $59,999
--------------------------------------------------------------------------------
3. Susan Hawley Salary $0 $41,667
--------------------------------------------------------------------------------
4.
--------------------------------------------------------------------------------
5.
--------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $32,291 $191,665
--------------------------------------------------------------------------------
<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. SEE KITTY HAWK, INC. MOR - CASE# 400-42141-BJH-11
-------------------------------------------------------------------------------------------------------------------------
2.
-------------------------------------------------------------------------------------------------------------------------
3.
-------------------------------------------------------------------------------------------------------------------------
4.
-------------------------------------------------------------------------------------------------------------------------
5.
-------------------------------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $0 $0 $0 $0
-------------------------------------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
<CAPTION>
--------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
1. PEGASUS $403,000 $403,000 $0
--------------------------------------------------------------------------------------------------------
2. REPUBLIC $269,166 $269,166 $0
--------------------------------------------------------------------------------------------------------
3. PROVIDENT $125,000 $125,000 $0
--------------------------------------------------------------------------------------------------------
4. COAST BUSINESS $262,000 $262,000 $0
--------------------------------------------------------------------------------------------------------
5. WELLS FARGO $0 $0 $0
--------------------------------------------------------------------------------------------------------
6. TOTAL $1,059,166 $1,059,166 $0
--------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. ACCRUAL BASIS-7
------------------------------------
CASE NUMBER: 400-42142-BJH-11 02/13/95, RWD, 2/96
------------------------------------
MONTH: OCTOBER 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.
a) Unserviceable engine ESN 654009 traded in for $75,000 toward purchase of ESN 666135, with balance of
asset as loss on sale
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
<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
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
SEE KITTY HAWK, INC. MOR - CASE # 400-42141-BJH-11
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
------------------------------------
CASE NAME: KITTY HAWK AIRCARGO, INC. FOOTNOTES SUPPLEMENT
------------------------------------
CASE NUMBER: 400-42142-BJH-11 ACCRUAL BASIS
------------------------------------
MONTH: OCTOBER, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE/EXPLANATION
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
3 8 All cash received into the subsidiary cash account is swept
each night to Kitty Hawk, Inc. Master Account
-----------------------------------------------------------------------------------------------------------
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 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 3 All insurance policies are carried in the name of Kitty Hawk, Inc. and its
subsidiaries. Therefore, they are listed here accordingly.
-----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK AIRCARGO, INC.
CASE NUMBER: 400-42142-BJH-11
DETAILS OF OTHER ITEMS OCTOBER, 2000
ACCRUAL BASIS-1
8. OTHER (ATTACH LIST) $ (44,672,920)Reported
-----------------
Intercompany Receivables (49,025,226)
Deposits - State Street Bank (TA Air) 3,534,696
Deposits - Landing & Parking 25,000
Deposits - Ventura Aerospace 65,125
Deposits - Rent 112,723
Deposits - Misc 502,709
Intangible - Mather 112,053
-----------------
(44,672,920)Detail
-----------------
- Difference
14. OTHER (ATTACH LIST) $ 4,220,037 Reported
-----------------
Deposits - Aircraft Leases 2,940,816
Intangible - ATAZ STC 1,279,221
-----------------
4,220,037 Detail
-----------------
- Difference
22. OTHER (ATTACH LIST) $ 9,548,468 Reported
-----------------
Accrued A/P 2,260,260
Deposit held for ATAZ sale 150,000
Accrued Salaries & Wages 1,535,436
Accrued 401K & Misc PR Deductions 58,885
Accrued PR Taxes (FICA) 117,283
Accrued Fuel Exp 6,690,706
Accrued Interest 291,156
Accrued Maintenance Reserves 1,015,185
Accrued Notes Payable 1st Source (256,720)
Accrued Fed Income Tax (Post) (2,313,723)
-----------------
9,548,468 Detail
-----------------
- Difference
27. OTHER (ATTACH LIST) $ 20,075,979 Reported
-----------------
Accrued A/P 5,313,797
Accrued Maintenance Reserves 10,267,512
Accrued Fed Income Tax (Pre) 3,332,363
Accrued Taxes - Other 521
FINOVA Equip Accrued 373,786
Pegasus Lease Incentive 788,000
-----------------
20,075,979 Detail
-----------------
- Difference
<PAGE>
CASE NAME: KITTY HAWK AIRCARGO, INC.
CASE NUMBER: 400-42142-BJH-11
DETAILS OF OTHER ITEMS OCTOBER, 2000
ACCRUAL BASIS-2
13. OTHER (ATTACH LIST) $13,452,447 Reported
-----------------
Aircraft Expense 2,430,934
Maintenance 4,682,537
Fuel 157,656
Ops Wages-Flight 2,204,216
Ops Wages-Grnd 848,890
Ground Handling 1,098,471
Other Operating Exp 2,029,743
-----------------
13,452,447 Detail
-----------------
- Difference
16. NON OPERATING INCOME (ATT. LIST) $0 Reported
-----------------
Interest Income - Detail
-----------------
- Difference
21. OTHER (ATTACH LIST) $240,725 Reported
-----------------
(Gain)/Loss on Sale of Assets 240,725 Detail
-----------------
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) (14,345,228)Reported
-----------------
Transfer to Inc - all money sweeps (14,345,228)Detail
-----------------
to KH Inc. Case #400-42141 - Difference
-----------------
