the US-based carrier to begin service between Bermuda and Newark on May 25, says Tourism Director Mr. Gary Phillips.

Bermuda is to mark the airline's first scheduled international service. On Friday, Kiwi chairman Mr. Byron Hogue said he may yet resign from the struggling carrier, days after he was fired by the board and then restored to office by a judge.

That report followed closely on an earlier, erroneous report that Mr. Hogue had fired Kiwi president Mr. Danny Wright.

Mr. Hogue has himself only been in office since February, when he ousted former chairman and airline founder Mr. Bob Iverson.

Mr. Iverson, in turn, has filed suit against the Newark-based carrier, alleging Kiwi has not paid aircraft leasing obligations and has other financial problems.

Also, Kiwi was grounded for a few days in December by the Federal Aviation Administration because of a record-keeping lapse on whether the airline's pilots were sufficiently trained.

Mr. Phillips said such turmoil was not unusual. "These are industry events which happen all the time,'' he said.

"All of the things you've referred to have happened in the best of industries. You might ask the question should we be associated with British Airways, when they had the problem with the Virgin Atlantic allegation that they were stealing business.

"The Ministry has no reluctance whatsoever in supporting Kiwi's application to fly to Bermuda,'' Mr. Phillips said. "They have opened up for us a very sizeable market, which is the Midwest.'' Relations between Bermuda and Kiwi were going "extremely well at the level where things happen,'' he said.

"Notwithstanding the continuing saga of turmoil at the upper echelons...the operations level is working extremely well,'' he said.

The Government and its representatives were working closely with Kiwi on advertising, and a Kiwi official was on the Island much of last week.

For months warring board members at Kiwi have been split into two camps at the financially ailing, employee-owned airline, Associated Press reported.

On Tuesday, several board members voted to fire Mr. Hogue, who responded by declaring the board meeting invalid and handing termination notices to his opponents, participants said.

The dispute ended up in Newark Superior Court on Thursday where Judge Alvin Weiss ordered all parties to resolve the turmoil internally or face a court-mandated resolution.

Prior to a new hearing, tentatively scheduled for today, the judge ordered the clock to be turned back on the events of the past week, meaning that both Mr.

Hogue and the opposing board members have regained their positions, participants said.

While reportedly experiencing a severe cash shortage, Kiwi continues to operate 65 flights a day, mostly along the Eastern seaboard, and reported a good month in March, a traditionally strong revenue period in the industry.

Kiwi was earlier expected to begin daily flights to Bermuda on May 4, but recently said in a one-page statement that the launch of service would be delayed until May 25.

Mr. Phillips said the delay was due to a problem with Kiwi's filing system.

However, he said, all other plans remained the same.

The daily flight will originate from Chicago's Midway Airport. From there it will fly to Newark, New Jersey where it will depart for Bermuda at 10.45 a.m.

It is scheduled to arrive here at 2.05 p.m.

The flight will leave Bermuda at 3.30 p.m. and arrive in Newark at 4.50 p.m.

Kiwi will also offer an Atlanta connecting service through Newark.

Mr. Phillips said this would give those coming from the Atlanta area an alternative to the Delta service to Bermuda.

Kiwi will offer special round-trip introductory fares of $248 on weekdays and $299 on weekends from May 25 to June 21.

After that date, midweek round-trip fares will start at $318 and weekend fares will start at $366.