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TWA grounds Bermuda service

support the summer TWA flights from St Louis to Bermuda was money well spent, even though the airline is pulling out early.

Mr. Allen confirmed that the airline is stopping the twice weekly service to the Island this week due to poor sales -- five weeks ahead of schedule -- and will not be returning next year.

He said the flights were on an experimental basis for one season and he was not optimistic the service would be resurrected in the future.

Mr. Allen said the Island attracted more than 1,000 visitors through TWA, generating millions in spending.

Government would recoup around $25,000 in head tax, more than $50,000 in landing fees, and at least $75,000 in hotel occupancy taxes.

"In terms of what was generated for Bermuda over that in terms of hotels and spending, its way into the millions. It was a net plus for Bermuda,'' said Mr.

Allen.

"It was an experimental route and when you have the opportunity you seize it and hope it is successful, but clearly this did not generate the revenue TWA would have liked.

"TWA made it clear they did not have the marketing dollars to support this and we provided $2,500 per flight as marketing support.'' Mr. Allen said TWA had pulled the route because it was cutting back on a number of leisure destinations -- including Fort Lauderdale and Tampa in Florida -- to concentrate on corporate business.

The minister said some potential visitors from the US midwest cancelled TWA trips to Bermuda because they could not get hotel rooms.

The twice weekly flights on Mondays and Fridays were not an ideal fit because most were travelling on weekends when few beds were available.

Hotels hit more than an 80 percent occupancy rate over the summer for the first time in ten years, said Mr. Allen.

"A lot of that occupancy was concentrated over the weekend and many hotels had a lack of ability to accommodate new business over the weekend.

"TWA never opened an office in Bermuda or did local advertising. I believe 50 more passengers (per flight) would have made it viable.'' Mr. Allen revealed that the Attorney General's Chambers is also reviewing the deal with TWA to see if it has been breached by the airline by pulling out five weeks early.

"We are reviewing the legal implications because the agreement was for a slightly longer period. I am not suggesting some great altercation (with TWA) but it is something that can be reasonably looked at,'' he said.