British Airways.

But BA officials on the Island have warned that pressure to increase service could have a detrimental effect on the route -- putting its viability in danger.

BA general manager Phillip Troake said a 12 percent cut in passenger miles over the next three years, announced in London, was not expected to hit the profitable four times a week London-Gatwick flight.

He said the cuts, which could come in the form of downsizing aircraft and slashing a number of unprofitable routes, could affect Trans-Atlantic flights where competition is high and returns are variable.

"It will not affect Bermuda at this point in time, provided we are cautious of developing business,'' he said. "I don't see any reason why it shouldn't remain viable.

"The danger there is, is that we are under pressure from various quarters here to increase frequency.

"The business community would love that and the tourism people would also love there to be availability of seats, but that means flying planes with empty seats.

"We hope to see growth but we will be very cautious that that is driven by new business.'' Some of the cuts will come from downsizing aircraft, and replacing some 747s with the new 777 which includes more business class -- and is already in use on the London to Bermuda route.

London to Pittsburgh and Jakarta are two routes under threat, and cheap UK to New York flights could be disappearing in the cuts, which may also affect short haul schedules.

Most of BA's rivals have been increasing capacity, but BA earlier this year said it planned to rationalise its short-haul network as part of a new strategy to boost margins on each flight by reducing economy seats and increasing profits from business cabins.

BA said in early July that it expected growth in capacity to slow even further this year. The carrier said it would reduce its growth plan of 0.6 percent, with industry sources expecting capacity to hover around zero.

BA's announcement will coincide with its first-quarter results which are expected to show a drastic drop due to billowing overcapacity and high fuel bills.

First-quarter results before tax and exceptionals are seen ranging from a 17 million pound ($27.48 million) loss to a 50 million pound ($80.82 million) profit.

The main reason for BA's pain is falling passenger yields -- seen about seven percent down on last year -- due to considerable pressure on prices because of overcapacity particularly in North Atlantic routes, analysts said.

Though the airline has chosen the right long-term strategy in the highly-competitive war of the skies, it is likely to take a beating at least until early next year as it faces some of the fastest falling yields since its flotation in 1987, they said.