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KIWI's bankruptcy leaves travellers angry

Furious Bermudian travellers left stranded by the crisis affecting cut-price airline KIWI yesterday swamped the carrier's Island agents and travel agents.

The airline yesterday suspended flights from Bermuda to Newark, New Jersey after filing for bankruptcy protection in a New York Court.

One woman said she had paid more than $200 in cash for a ticket to Newark, travelling on October 21 at an Island travel agents on Friday.

The airline announced yesterday that tickets paid for by credit card could be refunded immediately.

But those who paid for flights by cash and cheque will have to apply to KIWI for their cash back. although airline chiefs pledged full refunds.

The woman -- who asked not to be named -- said: "I just sent my ticket back to start the process and I was told they don't know when I'll get my money.'' She added she had been forced to pay another $312 to secure seats on another flight.

But she said: "If people can't come up with the extra cash, they won't be able to travel. I know there are a lot of angry people in Bermuda today.'' A spokeswoman for Meyer's Travel confirmed yesterday worried KIWI ticket holders had contacted the firm.

She said: "We haven't issued a lot of KIWI tickets, but we have had calls from people.'' She added the firm had already started the refund process for people who booked by credit card.

But she said: "The ones who have paid by cash or cheque have more of a problem -- God knows when they will get their money and they might get only a few cents on the dollar.'' She said some Bermudians who travelled abroad had been caught out by the flight suspension and would have to buy tickets on other carriers to get home.

The spokeswoman added: "We did have a couple of people we know were away.

It's very inconvenient for them. It's unfortunate and you don't always have that much money at the end of a trip.'' KIWI's shock move, which includes chopping a third of its 1200 staff, came on Monday in a bid to keep the three-year-old carrier in the air.

The firm will continue services between Newark, Chicago and Atlanta -- but services to five other destinations, including Bermuda, have been axed.

A spokeswoman for Hamilton's Franklin Travel said the firm received "about ten'' calls from would-be KIWI passengers yesterday and that she knew of about four people stuck abroad.

She added: "We sold quite a few KIWI tickets when there was a special going on -- but most of the airlines have specials at the moment.'' Graeme Seaton, of KIWI's Bermuda agents GSA, was unable to say how many Island travellers had been affected by the axed flights.

But he said the airline was trying to thrash out a deal with other airlines to get stranded passengers back home.

Mr. Seaton added: "I don't think the number of Bermudians affected will be very high. We were drawing towards the end of the season for the Bermudian service, which was scheduled to end on October 26 and start again in the spring.'' A spokesman for the Newark-based airline said factors affecting the US end of KIWI's operation, including negative publicity rubbing off on budget airlines after the ValuJet crash in Florida the the TWA New York disaster, had affected the firm.

And he added the US Federal Aviation Authority's grounding of four KIWI jets, as well as increasing fuel prices, had caused problems.

But Mr. Seaton insisted: "A lot of Americans were coming to Bermuda from various points in the States. We had a very successful operating season as far as Bermuda was concerned.'' Mr. Seaton stressed that KIWI had not folded and would continue core operations in the US as the bid to reverse the firm's fortunes continued.

He said: "Hopefully, we will be able to restructure successfully and we will be back operating next year.'' Tourism Minister David Dodwell admitted last night he was disappointed at the news.

He added the end of flights to Bermuda could pose problems for the Jazz Festival next weekend.

Mr. Dodwell said: "The airlines are booked solid -- my concern is that we will have to find ways of getting people down here.'' But he added if KIWI's problems are sorted out, Government would still consider them as a carrier to Bermuda.

He said: "We had some success with KIWI -- we had extra flights and more competitive fares, especially from Atlanta. We would look upon KIWI as a provider of flights in the future.'' Mr. Dodwell added, however, that Government was alert to future prospects in the air and the North American sales chiefs were in "constant touch'' with US airlines with a view to possible new business.