The resurrection of Kiwi International Airlines now appears assured, but the saviour who eventually stepped forward to rescue the bankrupt low-cost US carrier came from an unexpected direction.
On 26 November, with Newark-based Kiwi facing imminent liquidation, Wasatach International, the investment group and cruise-line owner, re-entered the fray - this time in partnership with a Maryland orthopaedic surgeon, apparently impressed with the airline's low-fares operation.
The partners secured Kiwi's survival by depositing $2.5 million in the carrier's bank and pledging to provide a similar amount in follow-up finance. They also plan to provide $10-20 million to buy a majority stake in the airline.
With the cash in hand, Kiwi International plans to announce early this month where and when it will resume scheduled passenger flights, possibly in time for the December holiday season.
Wasatach had previously stepped forward to rescue Kiwi, but failed to produce the promised follow-up financing. Kiwi then turned to Isbre Holding, a New York investment company, which owns American Helicopter Service, but this group also failed to deposit the necessary financing to buy the airline out of bankruptcy.
Kiwi filed for bankruptcy protection on 30 September, scaling back scheduled services to three cities. It then suspended scheduled-flight operations on 15 October, but continued providing charter flights.
Source: Flight International