Foot-dragging by Britain on open skies talks could dent Bermuda's chances of increasing its own air service.

The UK has postponed negotiations with the Americans on increasing air service on transatlantic routes and opening up Heathrow to more carriers -- frustrating officials here and in the US.

Bermuda is keen to introduce more flights between Europe, the US and the Island, but any plans could be held up by the lack of progress on the pact known as the Bermuda II agreement.

Tourism has flagged Frankfurt, Chicago and Miami as a few possible new links, but before touchdown, the new service may have to be ratified by the US and UK.

And if the two nations are at loggerhead over transatlantic routes, then Bermuda's interests would not figure greatly.

Herman Tucker, permanent secretary at the Ministry of Transport, said the standoff situation was disappointing for Tourism officials here trying to get new initiatives underway to boost visitor arrivals.

A new flight from a gateway not included in the existing agreement would probably have to be re-negotiated, and could bring problems for Bermuda, he said.

"If we had one today, it could be affected,'' he said. "Every flight involving Bermuda and the US would go via this agreement.

"I wouldn't go so far as saying we couldn't add an extra flight, however, for example if you wanted a flight out of a new city not in the agreement, then you have got to get into re-negotiation.'' US officials said that Britain wanted to postpone a meeting tentatively set for next week in Washington.

"They seem unable to reach a position that they can bring to the negotiating table,'' said US Department of Transportation Deputy Assistant Secretary Patrick Murphy.

The Financial Times reported that the British government and the UK Office of Fair Trading (OFT) were in dispute with British Airways over how many landing and takeoff rights it should give up at Heathrow.

The airline issued a statement expressing optimism the talks could resume but added: "We want to get the UK government's position, our position and the OFT's position in a row and then we can deliver.'' The latest postponement follows a similar cancellation in June. There have been no formal negotiations, with airline representatives present, in nine months.

Under the current Bermuda II, only British Airways, Virgin Atlantic Airways , AMR Corp.'s American Airlines and UAL Corp's United Airlines are allowed to use Heathrow for transatlantic services.

Bermuda, as an overseas dependent territory is bound by the agreement, but doesn't figure in the broader picture being considered by the US and UK.

Mr. Tucker added: "The US want more access, the UK don't unless they get more access in the US.

"The US has re-negotiated with almost every country but the UK is the last one holding out.''