off next year.

London-based Imperial Airlines -- registered in Bermuda -- had planned flights from Frankfurt.

Flights were to be targeted at deep-pocketed tourists.

"Unfortunately the airline says it has not had sufficient time to market the flight,'' said Mr. Woolridge.

It needed more time to promote the route, and get it up and running.

Last month the company told The Royal Gazette it had two specially equipped DC-8 aircraft with 88 first-class seats.

General sales agent Mr. Andre Brenner said the planes also had a lounge, bar, and an in-flight doctor.

He added Imperial also planned flights from Zurich.

Imperial was started under president Mr. Robin Gibbs with the aim of offering flights to the rich and famous.

By registering in Bermuda, the company said it had a duty to provide a local service.

And it felt it could capitalise on Mr. Brenner's contacts with European tour operators.

Mr. Brenner has been heavily involved in developing European business for Cambridge Beaches.

Recently, he started Connect AB Ltd to represent luxury resorts through offices in London, Frankfurt and Zurich.

Yesterday Mr. Woolridge was hopeful the Frankfurt flight would get off the ground next year.

He stressed Government had given its blessing to the plan.

"Imperial said they would offer a premier class service, with one, possibly two, flights a week out of Germany.'' Bermuda has boosted spending in Europe in a bid to capture a larger chunk of the tourism market, especially in Germany.

Mr. Woolridge, however, said Bermuda had to be very careful about its spending.

"We need to look where our potential lies,'' he said. "We need to fish where the fish are.'' America was still easily the biggest source of visitors, he said. He pointed out many Europeans came to Bermuda via America.

Mr. Woolridge said other plans for a regular flight from Europe were still in hand.

These included a "risk-sharing'' plan between Government and a major airline.

Under it, both parties would split any losses if the venture ran into trouble.

He declined to say which airlines Government was talking to.