Kiwi International Airlines, which re-introduced scheduled passenger services to four US cities at the end of January, plans a gradual expansion of its fleet and destinations over the next three months.
Kiwi was forced to suspend all scheduled services in October 1996 after filing for Chapter 11 bankruptcy protection, but has now re-started flights with seven leased Boeing 727-200s on routes from its Newark base to Atlanta, Georgia, West Palm Beach, Florida, and Chicago Midway.
The restart follows a rescue by the Edwards/Wasatch Enterprises investment teaming, which has already provided $8.5 million in cash in hand and pledged another $10-20 million in return for a controlling stake in the airline.
Jerry Murphy, Kiwi's president, says that the cash is "adequate" to get the company through the early stages of the re-organisation, with the airline beginning to generate its own cash in "the February and March timeframe".
Murphy plans a slow route-expansion, increasing frequencies on existing routes and adding destinations, possibly Tampa and San Juan. The airline will lease two extra 727-200s, but Murphy is exploring acquisition of Boeing 737-700s or Airbus A320s.
Source: Flight International
