Passengers could cash in after an airline U-turn brought two carriers head-to-head on a route from the US East Coast.

Just weeks after announcing it was pulling the plug on its LaGuardia-Bermuda route, US Airways had an eleventh hour change of heart and reinstated the service.

But now the company will face direct competition on the route after TWA was given permission by the US Department of Transportation to fly a summer service for the next two years.

From early June both airlines are set to fly on a daily basis at roughly the same time, bringing travellers increased choice and possibly lower fares.

US Airways spokesman David Castelveter confirmed the airline's about-turn but said the decision had nothing to do with TWA's move on the route.

He said the flight was originally deleted because of year-round low load factors and aircraft availability. A replacement Boeing 737-400 had now been found for the service, he added.

Tourism Minister David Allen hailed it as good news for both leisure and business travellers, who make up ten percent of visitors to the Island.

He said: "It means more competition and increased space for the customer.

Whether they (US Airways) realised that TWA had jumped in and had a think again or not, it is great news.

"We now have a wonderful situation and hope that residents take advantage and support both airlines to make it a success.'' But the Minister, speaking from his current US trade promotion in San Francisco, added that Tourism was keen to persuade the airlines to spread their departure times rather than "go head on''.

At present both flights arrive and depart from Bermuda within a two-hour period during the middle of the day.

"We believe with the early morning departure (from LaGuardia), there is still a need for adjustment. But every airline is different and has different requirements.'' Mr. Allen said the Island was now served by four airlines from three airports in the New York area, adding that the LaGuardia link was convenient for wealthy Westchester County residents to get to Bermuda.

"I would like to think prices would come down, we want to see more competition. This is very good news for international business.'' US Airways, which quotes a lowest advance fare of $410 for the service, would not comment on the possibility of prices coming down. TWA, when asked, could not give any information on the route at all.

Mr. Castelveter shrugged off the threat of rivalry on a service that was thought to be operating at around 60 percent of capacity before it was dropped.

"We are faced with new competition on every route we service every day. We hope the customer recognises the value that US Airways brings.

"We have a long-standing and valuable working relationship with the Bermuda Department of Tourism. It is an important market to us.''