Kitty Hawk, Inc. has announced that its wholly-owned subsidiary, Kitty Hawk Aircargo, Inc., has entered into a one year charter contract with H.E. Sutton Forwarding Company, LLC. Kitty Hawk will operate one of its B727 aircraft on an ACMI basis (managing the Aircraft, Crew, Maintenance and Insurance), for the purpose of transporting horses within the United States. The Kitty Hawk aircraft and flight crews will be based in Lexington, Kentucky. Based on successful performance of the contract, the total annual revenue to Kitty Hawk Aircargo, Inc. is estimated to be approximately $2.7 million.

H.E. Sutton is the leader in domestic equine air travel transporting horses between all of the major Thoroughbred racing and breeding markets in the U.S. and Canada.

"The whole staff at H.E. Sutton looks forward to a long and mutually prosperous relationship with Kitty Hawk Aircargo," said Robert Clark, President of H.E. Sutton. "Our reputation within the Thoroughbred horse racing industry as the first name in equine air travel depends on reliable air carrier service and we are confident that Kitty Hawk's industry-leading reliability and commitment to customer service will sustain that reputation."

"Kitty Hawk has been a major carrier of high value shipments and exotic and other live animals for many years and all live cargo is given our highest level of care," said Robert W. Zoller, president and chief executive officer of Kitty Hawk, Inc. "Given the special requirements of moving horses, we are proud that H.E. Sutton recognized Kitty Hawk Aircargo's industry leading service, experience and expertise for moving high value, high security and mission-critical heavyweight freight of all kinds and trusts us with this precious cargo. With H.E. Sutton we aim to expand and improve the service standard in this specialized niche in the freight transport industry."