travellers, and paved the way for similar moves by its competitors.

The reduction in fares, which went into effect April 13, lowered prices in all categories -- Anytime Fares for business, a new first class fare and "PlanAAhead'' 7 and 21 fares -- between Bermuda-New York and Bermuda-Raleigh/Durham.

"It's part of the whole restructuring -- to encourage people to start travelling again,'' explained general manager Mrs. Carole DeCouto. "In this manner (Bermuda's) fares will remain below domestic fare levels even after the deep decreases implemented recently. New and more flexible rules are also being introduced as part of this fundamental fare structure.'' Mrs. DeCouto said while the PlanAAhead fares remain non-refundable, they will be reusable with a $25 service charge for changing the itineraries and reissuing tickets.

"Ticketing fares will remain more liberal than in the domestic system,'' she said."Domestic PlanAAhead fares must be purchased by midnight the day following reservations whereas, (Bermuda) PlanAAhead fares must be purchased within 14 days of reservation.'' A new lower first class fare offers domestic fliers a 20-50 percent reduction and Bermudian travellers a further five percent cutback.

"Because fare levels on a length of haul basis in (Bermuda) were already 40-55 percent lower than in the domestic system, the basic fare reduction in (the market) is a five percent reduction from our full and excursion fares,'' said Mrs. DeCouto.

She added that the five percent reduction will be most appreciated by businessmen making last-minute reservations as it falls on top of the 38 percent decrease offered on domestic full coach fare.

The fares were matched by Continental Airlines, Northwest Airlines and USAir.

USAir will begin a new, regular service between Charlotte, North Carolina, and Bermuda tomorrow.