The Bermuda Government is in talks with the private sector to establish a fund that will encourage airlines to stay loyal to the Island.

The news comes after United Airlines chose to significantly reduce its service to the Island this year.

Shawn Crockwell, the Minister of Transport and Tourism Development, told The Royal Gazette that working with the international business community to provide financial incentives to airlines could provide a much-needed boost to air arrivals.

“We are looking to the private sector to improve the airlift because we have to find a way of keeping the airlines here and increase the numbers,” Mr Crockwell said.

“We are not going to have any problems with airlift in 2017; people will be flocking here for the America’s Cup. But we are having a dialogue with individuals in the international business sector to create a type of fund to help support these airlines.

“International business appreciates the concern of reduced capacities. It affects business, so they are willing to have discussions with Government to find a possible private sector driven solution.”

Bill Hanbury, the Bermuda Tourism Authority CEO, added: “Working with our partners in the public and private sector on airlift is a very high priority for the tourism authority.

“Early next month we’ll have our first in-person meeting with a collection of stakeholders who have a vested interest in this subject.

“I don’t want to predetermine what the group will decide because it’s important to be as open-minded as possible as we tackle this, but the overall objective is to find the right balance — a balance that allows the airlines to remain profitable and allows the tourism authority to grow visitor air arrivals to Bermuda.”

United’s cuts to its Newark-Bermuda service will start to bite at the beginning of September.

The airline operates a daily service at present, but that will be reduced to a three-day weekly service from September 8 to November 17.

From November 17, United’s connection between Newark and Bermuda will end for the winter, but the winter schedule is still subject to further talks with the airline.

“United appreciated our position,” Mr Crockwell said. “We have had a very good relationship for 25 years, but they made a pecuniary decision.

“We were disappointed with their decision to completely withdraw in the winter season, but business is driven by revenues.

“Previously Government has been able to offer airlines minimum revenue guarantees where airlines are guaranteed a minimum return for their service.

“But we cannot do that in this current economic setting. If we could have issued a minimum revenue guarantee, I believe that United would not have left.”