Jackie's Tour to refund 10,000 Vegas travelers
By Debbie Sokei
Advertiser Staff Writer
Jackie's Tour, a Honolulu travel agency operating chartered flights to Las Vegas, said yesterday it will halt operations and send refund checks to more than 10,000 customers.
The announcement came after the carrier used by Jackie's, World Airways Inc., said it is owed $2.3 million and will not provide air service for Jackie's customers after May 7. Jackie's was unable to explain why it fell behind in payments to World Airways, except to say that there is a discrepancy in the amount owed.
"We kind of got caught off guard," said Jason Kine, director of sales and marketing for Jackie's. "We are suspending flights indefinitely until this gets resolved."
Most of the 50 customers at Jackie's office in the Varsity Building on University Avenue yesterday morning were asking for refunds.
"We heard it on the news. We tried calling, but the lines were busy so we decided to come down here and get in line first for our refunds," said James Sunday, a teacher at Radford High School, who planned to go to Las Vegas with a group of friends in June.
World Airways began providing charter service to Jackie's on Oct. 8. Jackie's flies to Las Vegas three times a week with a 336-passenger MD-11 jet.
Jackie's has sold tickets through October. Kine said about 10,000 passengers have purchased tickets with Jackie's. The company is sending customers refund checks and a letter apologizing for any inconvenience the shutdown will cause.
"Due to unforeseen circumstances, we will be suspending our operations indefinitely," states the letter, signed by Jack Kitagawa, who opened Jackie's Tour last fall.
"We thank you for your patience and understanding."
When Alyssa Malo heard the news, she immediately went to the travel agency to get her refund of $819 for two tickets she purchased in March. Malo planned to go to Vegas to attend her friend's college graduation in May.
"This is the first time I made reservations with Jackie's," Malo said. "I'm kind of disappointed, but I'm satisfied I got my money back."
Kitagawa established T M Travel Inc., doing business as Jackie's Tours, last year. To draw customers, Jackie's advertised Vegas packages in October starting at $299 per person, double occupancy. After that special, prices ranged from $359 to $509, president Mike Tanaka said then. The Web site for Jackie's, hawaiilasvegascharters.com, says packages include roundtrip airfare, hotel, meals and ground transportation.
World Airways filed a lawsuit in U.S. District Court yesterday, asking that Jackie's money be put in an escrow account. Judge David Ezra denied the request so that Jackie's could continue to issue refund checks to customers.
Peachtree City, Ga.-based World Airways, known in Hawai'i as a military charter, said in a news release yesterday that it can offset the loss from Jackie's with other revenue.
Hawai'i residents have experience with charter-tour operators shutting down. The closure of Jimmy's Travel in 1998 led the state to launch an investigation and pass legislation to establish more safeguards for customers. Owner James K.S. Lee declared corporate bankruptcy and pleaded guilty to first-degree theft.
The state Department of Commerce and Consumer Affairs said it will investigate Jackie's. Passengers who purchased tickets for travel after May 7 should file a complaint with the Regulated Industries Complaints Office.
Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.
