on January 20 with less than half the number of flights it had before filing for bankruptcy protection.

Bolstered by a $5 million loan, Kiwi's new schedule of about 26 flights daily, using seven jets, will allow it to recall about 500 of its 1,200 workers, airline spokesman Rob Kulat told the Associated Press yesterday.

There was no word on whether or not the airline would resume flights to Bermuda. The schedule announced yesterday will see it flying between Atlanta, Chicago, Newark and West Palm Beach, Florida.

Kiwi is featuring one-way unrestricted fares of $79 and $99 until February.

Fares will then rise to $179 and $245, said Jerry Murphy, president and chief executive officer of Kiwi.

Kiwi also served Orlando and Tampa, Florida, Las Vegas and Bermuda with 65 daily flights before filing for Chapter 11 reorganisation on September 30.

After grounding its fleet two weeks later, Kiwi struggled to obtain financing, which finally came with a $5 million loan on November 27 from a group led by Dr. Charles C. Edwards, a Baltimore surgeon, and Wasatch International Corp.

of Boynton Beach, Florida.

The airline at first said it wanted to be flying for Christmas, but wasn't able to reach agreements with its vendors in time to take off for the prime holiday period.

Kiwi's lender is working on another capital infusion of $10 million to $15 million, Murphy said. No timetable was given, but once it is completed, Kiwi hopes to leave bankruptcy and possibly have a public stock offering.

Kiwi's 1,200 employees -- who hold a majority stake in the airline -- are likely to lose their control as Kiwi takes on additional outside investment.

Kiwi was founded in 1992 by a group of airline employees who had lost their jobs at other bankrupt carriers. They chose the name of a flightless bird because they had lost their wings.