GOVERNMENT should not enter into a contract with Jet Blue or any other charter airline before first determining whether their flights meet the needs of Bermuda's most frequent fliers, Shadow Transport Minister Trevor Moniz warned yesterday.

And he questioned whether an operation the size of Jet Blue could cater to the specific needs of business travellers, now seen as the airlines' greatest passenger source, and whether Bermuda wanted the type of tourist that a low-cost airline might bring.

"Charters are not feasible for business travellers. Business travellers want reliability. I don't know much about Jet Blue other than what I've read in the newspapers, but the difficulty with smaller operations is that if the plane breaks down, the flight doesn't go. The big airlines have all sorts of back-up that the smaller ones do not have.

"Business travellers are willing to pay higher prices; quite often they have to change flights. With charter flights, you're stuck with (what's arranged). They usually fly only one flight per day and at one time only. With regular airlines, you pay more but the service is more reliable. We have to consult the business traveller and ask what they are looking for in flights. People who are trying to travel at cut-rate prices are people without (huge spending power)," he said. "If they're coming out of the east coast, no matter what they buy here it's twice the cost. They're going to say, 'I can get this at home for cheaper.'

"They won't be able to afford to stay in an expensive hotel. Is that really going to help Bermuda? We're not that sort of destination. People don't come to Bermuda for that reason. Are charters going to cater to upmarket people? No."

Transport Minister Ewart Brown is currently in talks with Jet Blue, a small - but growing - charter company to start a New York to Bermuda flight. Dr. Brown's talks with the carrier, if successful, could push down the cost of airfares to Bermuda. If it does start flying to Bermuda, the new route will be Jet Blue's first expansion beyond the continental United States and Puerto Rico.

While he is not against introducing charter flights, Mr. Moniz said he was sceptical about the idea. Any decision reached, he added, should only be through careful consideration of a number of factors. "I am sceptical about charters but not opposed to the judicious use of them where called for," he said.

"That's not to say it's something we shouldn't do, but it is something that should be examined very carefully. (The larger airlines) have made a commitment to Bermuda and have gone with us through bad times and good times.

"Charters, because they charge so little, only want to be there during the good times. They can be of benefit to residents. It sounds great. We all want lower airfares. But I know the major airlines are in financial trouble, so it's a touchy issue. We don't want to make enemies of friends. Cheaper isn't always best."

Dr. Brown said he did not feel there was a risk the introduction of Jet Blue might offend those airlines which already travelled to the island; most, he felt, would regard the introduction of a new player as "healthy competition."

"The serious and successful players in the airline industry today - and there aren't many of them - understand competition and succeed in spite of it. They welcome it. There's nowhere they travel that they don't have it.

"As to whether or not airlines might pull out because of new airlines or the fact that their flights are half empty, I would never speculate on anything that any one carrier might do. But we expect our relationship with them to continue to be strong, cordial and full of partnership."

According to a spokesman from American Airlines, whether or not Jet Blue's presence in Bermuda would affect its service could only be determined at that time.

"We are unable to compete for competitive reasons on any changes that may be made to our schedules," said Todd Burke. "We are unable to comment on anything, which at the moment, is only speculation."