FAA Grounds Kiwi International as Unsafe

The Federal Aviation Administration grounded Kiwi International Air Lines, saying the tiny discount carrier was no longer able to fly safely. The FAA ordered the Newark, N.J.-based airline, which this week filed for U.S. Bankruptcy Court protection from its creditors, to immediately surrender its operating certificate. Its six-city schedule was suspended. The FAA said Kiwi had “deteriorated to the point where . . . it is no longer able to sustain safe operations.” It said Kiwi’s planes were in “un-airworthy condition” and that it failed to adequately maintain aircraft and follow up on maintenance discrepancies in FAA audits. In filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code, Kiwi said Pan American Airlines Inc., the former commercial airline that now flies charters, would give it $3 million to allow it to fly its current schedule.