Airlines serving Bermuda are to get a financial relief package from Government worth hundreds of thousands of dollars to assist with short term cash flow woes caused by the September 11 attacks on the United States.

Transport Minister Dr. Ewart Brown announced the measure at a press conference yesterday. Dr. Brown added that he expected to see reduced air fares and that passenger loads had been increasing gradually since September 11.

"All of the airlines are experiencing an immediate requirement to generate much needed cashflow," said Dr. Brown.

"The airlines have made a request that Government review the airline fees and charges levied against the carriers with a view to reducing the burden in the short term."

The airlines are to get a two month deferral of ''fees and charges'' as well as a complete waiver of lease costs for their airport offices during the two month period.

Dr. Brown would not give any further specifics of the aid package or the total value, saying that the airlines are expected to hold a press conference today.

Airlines pay a variety of fees and charges to Government and the deferral means that they won't have to pay until January 15 2002.

"After October, an evaluation for service levels and passenger loads will be conducted to determine whether further deferment of fees and charges remains necessary," continued Dr. Brown's statement.

"If so we are prepared to continue our support to the airlines."

He said he had been reassured by the airlines that they were committed to sustain their current schedules, "continue their close coordination with the Department of Airport Operations and my office, and review ways to increase business and leisure travel to Bermuda''.

''In addition we have asked the airlines to seriously consider reducing the airfares to Bermuda," he added.

US carriers have been particularly hard hit since September 11 when hijackers wielded four commercial airliners as weapons.

Demand for air services have plummeted and efforts are underway to improve security at American airports and lure passengers back onto airplanes.

Dr. Brown said that passenger loads are about 50 percent what they were in the ten days preceding September 11.

"We are pleased to see a gradual increase of passengers travelling on our airline flights during the past two weeks," said the Transport Minister.

"We are confident that with continued, consistent airline services and the increased measures to improve safety, passengers - local and visitors - will again travel to Bermuda."

Asked whether he expected airfares to be reduced, Dr. Brown said the current economic situation would suggest that. "My guess is... the airlines would do the smart thing which in my opinion would be to reduce fares."