News that key airlines have dropped their fares from New York to Bermuda in response to the challenge from the new JetBlue service has been welcomed.

Both Continental and American Airlines are offering $337 return deals including taxes to the Island in early May, matching the offer from the new cut-price carrier.

The fare war had previously been anticipated by Tourism Minister Dr. Ewart Brown, who told a Press conference on the JetBlue launch earlier this month: ?In other markets where this phenomenon has occurred, the low-cost carrier comes in and as long as that carrier is able to sustain itself in terms of frequency, then usually what happens is that the other carriers reduce their fares.

?We are hoping that will happen out of New York, one of our major gateways, and out of Boston and, eventually, every gateway that serves Bermuda.?

The news that this now seems to be the case was yesterday welcomed by Shadow Tourism Minister David Dodwell, although he sounded a note of caution that the cut-price offers may not hold out long-term.

?It?s good to see this ? it?s one of the benefits of good competitive air services ? but we have got to keep an eye on this going forward and make sure it is not just a short-term response. Continental?s price for the same trip from June 22 to 29 is $398, although that?s still not a bad fare,? he said.

?We have also got to make sure that as we create this competition we maintain good relationships with our existing carriers and make sure that they are all taken care of over issues such as landing fees.?

Dr. Brown was not available for comment.