BANKRUPTCY has forced Kitty Hawk to shut down all scheduled network air and ground operations but it will continue to operate air cargo charter operations.

The US airline has failed to find a new source of financing or a buyer and will make 500 employees redundant as a result.

Kitty Hawk has seen a 25 per cent decrease in year-on-year demand for its air product and a 15 per cent year-on-year decrease in demand for its ground product.