plans to open up the Island to increased competition.

Both British Airways and Delta Airlines say they are ready to rise to the challenge an increase in carriers would bring -- and they indicated the beneficiary would be the customers.

But there was a word of caution that no airline would tolerate a loss-making situation if more companies started to ply routes originally serviced by existing carriers.

The airlines were responding to a report produced by the Government's Air Transport Policy Review committee, which outlined several proposals for unlocking the skies between Bermuda and the rest of the world.

Included in the scheme are plans to encourage low-cost airlines to consider routes to Bermuda, particularly those within a short haul distance and other destinations such as Europe.

The existing airlines are to be given first opportunity to develop new routes and schedules, but if they refuse then the door will be opened to other carriers.

Delta Airlines, which operates to and from Boston and Atlanta, say they welcome competition and their customers like the level of service offered.

"We have always been a proponent of open skies,'' said spokesman Todd Clay.

"The real winners in an open skies agreement are the customers because it gives them more choice and creates competition.

"We have been very pleased with the service that we have to Bermuda -- we have been trying to provide a high level of service and we feel that the customers have responded to that.'' The Government hopes the recommendations, if accepted, can be negotiated and put into place within a matter of months. The ultimate aim being to increase the number of visitors visiting the Island via an anticipated extra three to four planes a day from the US.

But Mr. Clay said he doubted whether any agreement could be reached in such a short time.

On the longer haul, British Airways say it would like to see more travellers on its London to Bermuda route -- especially since it has increased capacity by 60 percent and increased frequency to four times a week.

General manager Philip Troake hinted that a daily flight was their ultimate aim but that would only come if business increased steadily over time -- and came from the 40 percent of passengers currently flying to Britain via America or Canada.

"Bermuda should be doing a lot more business with Britain,'' he said. "But it is not something that you can do overnight.'' And although the new Boeing 777 aircraft is being received well by customers with good booking numbers, he said it was too early to tell whether demand could support any more flights -- especially since any carrier would more than likely have to operate a wide-body jet on the route.

"We are not turning business away,'' said Mr. Troake.

He predicted there would be vigorous competition if another carrier came in, but pointed out that BA already competed on the route with passengers who flew via North America.

The Government is currently having high-level talks about the plans with existing carriers.

The plans, which have taken a year to come to fruition, aim to decrease the ticket price to Bermuda.

Officials hope that flights from destinations not currently serving Bermuda will enable the country to compete with the Caribbean and hit a 400,000 visitor target.

Low-cost carriers such as Southwest, Legend and Air Tran are expected to take part in talks with Government officials, but other companies have not been ruled out.

Southwest pioneered the "no-frills'' airline service in the US, by offering cheap flights with none of the added extras found on traditional aircraft.

In particular, cities within a 1,500 mile or two hour distance are targeted -- especially as new planes with smaller capacities are becoming increasingly popular in the US.