KIWI Airlines - Soon to be grounded?
Mar 23, 1999 | 11:23 pm
#1
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KIWI Airlines - Soon to be grounded?
U.S. DEPARTMENT OF TRANSPORTATION
Office of the Secretary ~ Office of Public Affairs
Washington, DC 20590
-----------------------------------------------------
FOR IMMEDIATE RELEASE
Tuesday, March 23, 1999
Contact: Bill Mosley
Tel: (202) 366-5571
DOT 41-99
DOT Proposes to Revoke Kiwi Certificate
The Department of Transportation today proposed to revoke the
operating certificate of Kiwi International Airlines for failing to meet
federal fitness standards for air carriers.
In a show-cause order, DOT said that it tentatively has found that
the Newark, N.J.-based carrier no longer meets any of the three standards
for airline fitness: adequate financing, competent management, and a
willingness to comply with applicable laws and regulations. The fitness
requirement is in addition to, and distinct from, Federal Aviation
Administration (FAA) safety requirements. It is designed to assure that a
carrier's operations do not pose an undue risk to consumers.
"The department rarely revokes airline certificates, and does so
only after we determine that the carrier cannot meet the necessary
requirements," U.S. Secretary of Transportation Rodney E. Slater said. "A
primary purpose of those requirements is to prevent potential harm and
inconvenience to consumers."
Final action will be taken only after a thorough review of Kiwi's
response to the proposal.
In July 1992, the department found Kiwi fit, and two months later
issued the company a certificate to conduct passenger service. In late
1998, the department learned that the carrier was not making timely
payments for fees and services, including passenger facility charges
(PFCs), to its airports. A Jan. 8, 1999 letter from the department
reminded the carrier of its responsibility to pay the fees, but subsequent
checks revealed that, by Feb. 19, the carrier owed more than $750,000 to
airports. In addition, Kiwi's financial condition had deteriorated, with
an operating loss of $19.8 million in 1998 and a net loss of $20.6
million. The carrier's attempts to cut costs were unlikely to ease its
financial crisis, the department said.
The department added that it was no longer confident that Kiwi's
management, with a complete turnover in key management personnel in less
than a year, could effectively direct the carrier's operations. Also, its
failure to pay PFCs as required by law shows a serious disregard for
federal requirements, the department said.
DOT's Federal Aviation Administration said that despite Kiwi's
difficulties, it has determined, based on its continued oversight of the
carrier, that the carrier can continue to operate safely. However, the
agency is being forced to devote considerable resources to its safety
monitoring responsibilities with Kiwi.
Objections to the tentative decision are due within 14 days, and
answers to objections seven days afterward. After the comment period
ends, the department will review all comments and prepare a final
decision.
The show-cause order may be obtained via the Internet at
http://dms.dot.gov//reports/reports_aviation.asp.
###
Visit the DOT Public Affairs Web Site at:
http://www.dot.gov/briefing.htm
Office of the Secretary ~ Office of Public Affairs
Washington, DC 20590
-----------------------------------------------------
FOR IMMEDIATE RELEASE
Tuesday, March 23, 1999
Contact: Bill Mosley
Tel: (202) 366-5571
DOT 41-99
DOT Proposes to Revoke Kiwi Certificate
The Department of Transportation today proposed to revoke the
operating certificate of Kiwi International Airlines for failing to meet
federal fitness standards for air carriers.
In a show-cause order, DOT said that it tentatively has found that
the Newark, N.J.-based carrier no longer meets any of the three standards
for airline fitness: adequate financing, competent management, and a
willingness to comply with applicable laws and regulations. The fitness
requirement is in addition to, and distinct from, Federal Aviation
Administration (FAA) safety requirements. It is designed to assure that a
carrier's operations do not pose an undue risk to consumers.
"The department rarely revokes airline certificates, and does so
only after we determine that the carrier cannot meet the necessary
requirements," U.S. Secretary of Transportation Rodney E. Slater said. "A
primary purpose of those requirements is to prevent potential harm and
inconvenience to consumers."
Final action will be taken only after a thorough review of Kiwi's
response to the proposal.
In July 1992, the department found Kiwi fit, and two months later
issued the company a certificate to conduct passenger service. In late
1998, the department learned that the carrier was not making timely
payments for fees and services, including passenger facility charges
(PFCs), to its airports. A Jan. 8, 1999 letter from the department
reminded the carrier of its responsibility to pay the fees, but subsequent
checks revealed that, by Feb. 19, the carrier owed more than $750,000 to
airports. In addition, Kiwi's financial condition had deteriorated, with
an operating loss of $19.8 million in 1998 and a net loss of $20.6
million. The carrier's attempts to cut costs were unlikely to ease its
financial crisis, the department said.
The department added that it was no longer confident that Kiwi's
management, with a complete turnover in key management personnel in less
than a year, could effectively direct the carrier's operations. Also, its
failure to pay PFCs as required by law shows a serious disregard for
federal requirements, the department said.
DOT's Federal Aviation Administration said that despite Kiwi's
difficulties, it has determined, based on its continued oversight of the
carrier, that the carrier can continue to operate safely. However, the
agency is being forced to devote considerable resources to its safety
monitoring responsibilities with Kiwi.
Objections to the tentative decision are due within 14 days, and
answers to objections seven days afterward. After the comment period
ends, the department will review all comments and prepare a final
decision.
The show-cause order may be obtained via the Internet at
http://dms.dot.gov//reports/reports_aviation.asp.
###
Visit the DOT Public Affairs Web Site at:
http://www.dot.gov/briefing.htm
Feb 11, 2006 | 7:31 pm
#2
Join Date: Feb 2006
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Posts: 1
Kiwi Staff
Someone I chatted with who used to work at Newark Airport said the Kiwi staff were pissed drunk most of the time. If this is true, I'm glad it never led to any accidents.
Feb 11, 2006 | 9:11 pm
#3
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So, I wonder if reviving a seven-year-old thread is a record on FT...
Feb 11, 2006 | 9:18 pm
#4
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Originally Posted by mahasamatman
So, I wonder if reviving a seven-year-old thread is a record on FT...
Just for your info - the former CEO of KIWI Airlines is now the CEO of the company offering Heli-rides between JFK/LGA and Midtown/Downtown Manhatten.
Feb 12, 2006 | 11:50 am
#5
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Posts: 1,861
Will someone revive the threat announcing that President Lincoln has been shot? Or that he is responding to the terrorist bombing at Fort Sumter by Confederate invaders?
Feb 12, 2006 | 1:09 pm
#6
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Posts: 22,314
I think this one was done a long time ago.
Gary
aka gleff
MilesBuzz moderator
Gary
aka gleff
MilesBuzz moderator