Island early next year.

The airline started service to Bermuda in 1995 from Newark and added flights from Atlanta and Chicago early the following year but was grounded and had to file for Chapter 11 reorganisation bankruptcy on September 30, 1996.

It blamed its downfall on past debts, a Federal Aviation Administration decision to partially shut the carrier down and the effects of the ValuJet crash on May 11.

Kiwi began regular domestic flights between Atlanta, Chicago, Newark and West Palm Beach in January after collecting a $5 million loan.

Meanwhile, it has begun informal discussions with the Department of Tourism, said Tourism Minister David Dodwell.

Nothing specific had been worked out so far, he continued, but the airline had said it enjoyed success on its Bermuda routes during its short flying time here and wanted to resume its service.

However the airline was having to follow certain steps before it would receive approval to fly to the Island.

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.

In other airline news, British Airways has announced that it will use its newest aircraft when it starts a four flight per week schedule on March 28.

The airline chose Bermuda for the Gatwick debut of the long-range Boeing 777 which is bigger than the DC10 and will mean a 60 percent increase in weekly capacity for the Island.

The aircraft features 14 "flying beds'' in First Class, 56 Club World "cradle seats'' and has a larger, more spacious World Traveller cabin that will accommodate 199 passengers.

Every seat will have its own television screen with personal video players in First Class and a choice of up to eight channels in Club World.

BA's local manager Phillip Troake said: "Bringing the Triple Seven to Bermuda has long been our goal and represents a significant investment by the airline.''