Kiwi Travel International Airlines

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For the airline operating in the United States with a similar name see Kiwi International Air Lines.

Kiwi Travel International Airlines was a New Zealand based airline which pioneered discount flights between secondary airports in Australia and New Zealand in the mid 1990s. The airline was established by Ewan Wilson and several associates. Ewan Wilson served as CEO and was later convicted on five counts of fraud. The Securities Commission went further and banned Wilson from ever holding a Directorship or Senior Management position stating that “Wilson’s actions as CEO of Kiwi Air were both ethically void and morally reprobate”.

1 Charter Services
2 Scheduled Flights
3 Competition, route expansion and fleet changes
4 Financial troubles and liquidation
5 Further reading

[edit] Charter Services

The airline started out as Kiwi Travel Air Charters in July 1994, operating weekly charters between Hamilton, New Zealand and Brisbane, Australia using a leased Air Nauru Boeing 737-400. In December 1994 charters were operated to Brisbane, Tonga and Western Samoa. The network was expanded in April 1995 to include Queensland coastal cities, including the Gold Coast, Cairns, Townsville and Rockhampton. The last charter flight was operated on 27 August 1995, following the commencement of scheduled services.

[edit] Scheduled Flights

Following the issue of the necessary Government permits, Kiwi Travel International Airlines commenced scheduled flights between Hamilton and Sydney using a leased Boeing 727-200 on 23 August 1995. The 727 aircraft was operated on behalf of Kiwi by AvAtlantic of the United States who also held the Air Operator's Certificate on behalf of the airline. Flights were operated from the New Zealand cities of Hamilton and Dunedin. Due to the short runways at these airports the aircraft could only take on limited fuel due to weight restrictions and needed to land in Auckland and Christchurch respectively to take on more fuel before making the trans-Tasman crossing. The airline offered full economy services as well as no frills - ‘Peanuts and Cola’ class fares.

[edit] Competition, route expansion and fleet changes

By December 1995 Air New Zealand used its subsidiary Mount Cook Airline to establish Freedom Air, to operate in competition with Kiwi on the same routes with similar fare structure. By early 1996 Kiwi Airlines had replaced its 727 with a leased Boeing 757 from United Kingdom based Air 2000. The replacement of the 757 and the addition of a second aircraft saw the airline operating a Boeing 737 and an Airbus A320. Kiwi at the time also expanded its network to include Christchurch and the Australian city of Melbourne. In September 1996 trans-Tasman fares reached historic lows with $199 return tickets between Melbourne/Christchurch and Melbourne/Hamilton. Freedom Air at the time was also operating a Boeing 737. Both airlines operated with ad-hoc liveries based on those of the carriers from which they had leased their aircraft at the time with minor modifications. Kiwi Airlines' livery was based on a stylised Kiwi bird, while Freedom Air used a stylised sun.

[edit] Financial troubles and liquidation

Following intense competition with Freedom Air and a series of financial difficulties, Kiwi Travel International Airlines went into voluntary liquidation on 9 September 1996, leaving passengers on both sides of the Tasman Sea stranded. The company’s Boeing 737 and Airbus A320 were both seized in Brisbane by Airservices Australia for unpaid aviation fees. The aircraft were eventually returned to their owners. Freedom Air continues to offer discount no-frills airfares between Australia and New Zealand, although fares are not often as low as they were when the two airlines competed on the routes.