THE US DEPARTMENT of Transportation (DoT) has rejected the bid by USAfrica Airways' to regain route authority to South Africa.
The DoT decision to re-allocate seven weekly frequencies to World Airways and Southern Air Transport dooms USAfrica's attempt to resume operations.
Service in the market, begun in June 1994, was disrupted when USAfrica ceased flying and filed for Chapter 11 bankruptcy protection a year ago after suffering cash flow problems. The DoT proposed in September 1995 to re-allocate USAfrica's routes.
Gregory Lewis, USAfrica's president, had hoped that a multi-million dollar cash infusion and a marketing pact with Continental would allow USAfrica to retain the routes and restart the service by April.
The $15 million financial commitment from Tower Air and a New York-based investment house, which would have acquired control of USAfrica, was subject to the carrier's retention of the routes.
Source: Flight International
