SOURCE: Utilicraft Aerospace Industries, Inc.

April 18, 2007 07:30 ET

Utilicraft Aerospace Industries Sees Additional Opportunities in Growing World Air-Cargo Market

ALBUQUERQUE, NM -- (MARKET WIRE) -- April 18, 2007 -- Utilicraft Aerospace Industries, Inc. (OTCBB: UITA). Officials of Utilicraft Aerospace Industries Inc. announced today that current (2006-2007 World Air Cargo Forecast) market indicators show an even stronger market potential for their FF-1080-300ER Freight Feeder Aircraft.

"It is the on-going mission of Utilicraft Aerospace Industries, to provide, in the FF-1080-300ER aircraft, a 'system-solution' to the growing capacity issues in the current and future global logistics industry, fulfilling the mandate of bringing value to the customer quicker," stated John J. Dupont, President and CEO of Utilicraft Aerospace Industries, Inc.

Because a growing number of shipments are not getting through on time, many shippers are turning to air freight. Air cargo has been able to achieve annual growth rates substantially exceeding rates of passenger traffic growth. According to the Boeing 2006-2007 World Air Cargo Forecast, world air cargo traffic will triple over their current levels, and the large jet aircraft freighter fleet will double in the next twenty years. To keep up with this growth, new freight aircraft will be needed.

This need for additional cargo aircraft has created a tremendous opportunity for Utilicraft Aerospace Industries. Although the company's FF-1080-300ER Freight Feeder is in a different segment of the freighter market than the large jet aircraft, and does not compete with those aircraft, the FF-1080-300ER supports them by cost-effectively feeding standard industry air containers on short-to-medium range/medium density routes directly to and from the large jet cargo aircraft.

Some of the reasons for this continued market growth are:

1. Transportation represents the highest single cost of supply chain logistics, accounting for over 60 percent of the total logistics costs. Transportation costs per mile have increased 23 percent in the past three years to an average of $1.69 per mile. The trucking industry spent $87.7 billion dollars on diesel fuel in 2005, compared to $65.9 billion in 2004.

2. Fuel surcharges when introduced in the early 2000's, were a mere 1 percent of overall freight rates, but today may account for as much as 20% of a shipper's freight bill.

3. The cost of fuel has also led to fewer truckers willing to haul containers. Driver shortage is at an all-time high, largely due to low wages, stress, poor quality of life and the new hours of service (HOS) mandate.

4 Customers are requesting more non-traditional services including historically untouchable planning and control activities. As the trend continues to grow, experts predict a significant gap will open between buyer demands and current provider capabilities.

About Utilicraft Aerospace Industries, Inc.:

Utilicraft Aerospace Industries, Inc. was formed to implement a system solution to the current problem of declining capacity in the short haul (or feeder) route segments of the air cargo and overnight express companies.

The FF-1080-300ER Freight Feeder aircraft is a new air vehicle which is the result of Utilicraft's extensive research and development. The FF-1080-300ER is revolutionary because of its capability to carry standard industry air containers on short-to-medium range/medium density routes combined with the aircraft's integrated air cargo information system for the freight feed market.

The FF-1080-300ER, an all aluminum twin-engine, high-wing, un-pressurized, fixed gear, single pilot capable, turboprop aircraft, specifically designed as a utility air freight transport system. The aircraft satisfies an industry recognized need to cost effectively feed containerized air cargo to the major hubs of the scheduled passenger carriers and the overnight express airlines.

The aircraft is also designed for short take-off and landing (STOL) capability. This feature makes the FF-1080-300ER the only short-haul, heavy-lift containerized feeder aircraft capable of cost-effectively transporting ten revenue tons over two thousand nautical miles from airfields with less than 3,500 feet of runway, expanding air cargo capacity to many smaller cities and airports worldwide.

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release involve risks and uncertainties and reflect the company's current views with respect to possible future events. Readers are cautioned that no forward-looking statement can be guaranteed and actual results or events may materially differ from those projected or anticipated. In particular, the following factors, among others, could cause actual results or events to differ materially from those described in the forward-looking statements: the company's ability to obtain and fulfill contracts for the sale of products, protect intellectual property rights and manage future growth; market acceptance of future products; product supplier delays; design and engineering certification delays or denials; and the introduction of similar products by competitors. Any forward-looking statement made in this press release is made as of the date of this press release, and the company assumes no obligation to update any such forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect the company's business.

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