The hi-tech chopper, run by Bermuda Helicopters Ltd., is set to leave its Airport base for good after being advertised worldwide.

Co-owner Mike Smatt said year-long negotiations with five Government departments to fly the helicopter commercially had finally crashed.

The helicopter's air operator certificate has now been withdrawn, he added.

And the 120 mph JetRanger has already attracted interest from potential buyers in Japan, Canada and the US.

Mr. Smatt said: "Our licence to run commercial flights was terminated on October 31.

"There has been insufficient work for the aircraft and although there is potential for a viable business, there has not been enough use made of it.'' Mr. Smatt has operated Bermuda's only helicopter service in the last two years, since the US Navy quit the Island.

He has also run commercial flights in the helicopter across Bermuda since 1991, carrying more than 6,000 tourists.

But he said there were no more plans to meet with senior Government officials or make the helicopter airborne again.

Mr. Smatt has never been able to market the helicopter for Government use -- despite meetings with customs, fisheries officials, the Rescue Co-ordination Centre, Police and tourism bosses. He added that "it would never be too late'' to resurrect the business if tourism or Police chiefs wanted to use the helicopter regularly.

And the head of the Marine Police, Inspector Stephen Petty, said: "This means we lose a fantastic asset in the fight against drugs and in search and rescue.

"It would be nice to have the helicopter available permanently as an early warning system and to help with chases.

"But how much use we make of the helicopter and whether or not we hire it on a full-time basis is not my decision. That would be taken at Government level.'' A spokesman for the Tourism Department would not comment on news that the helicopter would finally be sold last night.

But Mr. Smatt said: "Government officials and the Police acknowledge the importance of the helicopter but they don't make use of it all the same.

"Bermuda seems to have been dragging its heels a little bit. We have always been eager to offer the helicopter and enter into some sort of contractual arrangement.

"However, the feeling in Government departments has been that they simply want to use the helicopter on an ad hoc basis.'' Mr. Smatt said the JetRanger, which is permanently tuned into emergency air and sea radio broadcasts, could have been used for marine searches.

"You can never tell when there may be a life-threatening situation at sea and we will be needed,'' he said.

"When a helicopter is required, it's a fact that nothing else will do. If we used search and rescue facilities from America it would take at least three hours to get them here.'' He said the aircraft, which is also used by the US Drug Enforcement Agency, could cover 1,200 square miles in an hour.

It would also be able to distribute floats or supplies to people stranded at sea, he added.