GE Capital Aviation Services to deliver aircraft in 2004, 2005

Kitty Hawk (OTCBB: KTHK.OB), has signed a contract to lease seven Boeing 737-300SF aircraft from GE Capital Aviation Services (GECAS). Kitty Hawk will be the North American launch customer for the 737-300SF, the freighter version of one of the best-selling and most popular commercial passenger aircraft of all time.

The first aircraft is scheduled to be delivered to Kitty Hawk in November 2004, with the balance of the order delivered through 2005, subject to FAA approval. The two pilot, twin-engine aircraft will be powered by CFM-56 jet engines.  The lease term for the new aircraft will be 10 years, with extension options at the end of that term. Work to convert the passenger Boeing 737-300s to SF models (freighters) will be performed by one of the premier passenger to cargo aircraft conversion companies in the world, Israel Aircraft Industries, Bedek Division. For the present time, Kitty Hawk will continue to operate all of its Boeing 727-200F aircraft, though some of those aircraft will be retired or returned to lessors in the future.

"This is a significant step toward enhancing the Kitty Hawk fleet and preparing our company for the future," said Robert W. Zoller, Kitty Hawk’s president and CEO. "The Boeing 737-300SF will be a tremendous addition – it is a very fuel efficient, environmentally friendly aircraft, capable of achieving federal Stage 4 noise regulations and possessing a modern digital technology flightdeck.  As such, the 737-300SF will provide lower operating and maintenance costs for our company. This obviously expands our fleet and reaffirms our commitment to growing our company in a way that makes good, solid economic sense."

Zoller also noted that Kitty Hawk is honored to be working closely with industry leaders GE Capital and IAI.

FMI: www.kha.com, www.gecas.com