Industrial action by Delta Air Lines staff has not affected Bermuda flights -- yet.

However, passengers have been warned to check with the airline over their reservations after the dispute led to hundreds of domestic US flights being cancelled.

A spokesman for the airline told the Royal Gazette that only domestic services were affected at present. He said it was "speculation'' whether or not the discord would spread to Island flights.

He said: "We are doing what we can to make sure we alert the passengers that are affected by this job action.

"We do notify passengers if their flights are delayed or cancelled. We suggest they call the Delta reservation number, that way they can get the most recent information.'' The airline confirmed it was forced to cancel almost 300 flights last weekend and more yesterday because pilots refused to work overtime as contract talks continued between their union and the carrier.

The Atlanta-based airline, the third largest in the US, has been in negotiations with the pilots since September 1999.

Delta cancelled 67 flights on Friday, 148 on Saturday and 80 on Sunday due to crew shortages. Delta normally operates 2,700 flights a day and on a normal day fewer than two flights are cancelled due to crew shortages.

The spokesman said there were additional cancellations on Sunday due to snow in the Southeast, but did not have any numbers.

BERMUDA INVOLVED IN US LAWSUIT NJ CTS Bermuda involved in US lawsuit Bermuda has been pulled into an investigation of a Dallas property developer who is alleged to have hidden ill-gotten savings and loans earnings overseas.

A Phoenix-based collection firm has sued Lou Reese and his wife claiming they engaged in trickery, deceit and fraud by hiding assets abroad, reported the US Dallas Observer newspaper.

Advantage Capital Group's suit claims the 50-year-old has a money pipeline which originates in the Cayman Islands, runs through Bermuda and pours millions of dollars into Reese properties in Dallas.

Mr. Reese was convicted of defrauding bank regulators and cheating the Internal Revenue Service in 1992 and spent three years in a federal prison before returning to work in Dallas' real estate market.

In 1997 Advantage began hunting him and set up an elaborate sting operation in which Mr. Reese talked about his offshore money which he set up before his imprisonment in 1992.

Advantage's investigation allegedly found a connection between Bermuda-based entity MSA Limited and a Dallas shopping centre which Mr. Reese financed to the tune of $50 million.

And its lawsuit says it has established a connection between Cayman Islands lawyer Michael Alberga, who is the trustee of the hidden assets allegedly identified by Mr. Reese in the sting tapes, and Anthony Piling, allegedly the agent for MSA Limited.

COMMUNITY CATEGORY FOR LIGHTS FESTIVAL BUC Community category for lights festival Changes to Bermuda's annual Festival of Lights, operated by Belco and BF&M Insurance, promise to draw more interest this year with a new "community'' category.

The category allows participants to decorate their neighbourhood as one entry.

Winners will get a $500 charitable donation made in the their name.

A spokesperson for the event said: "The Festival of Lights provides an opportunity for individuals and businesses to join in the spirit of giving during the holiday season.

"Join in this year's festivity by completing an entry form, choosing a dedicated theme and then decorating. Adherence to the stated theme is of particular importance.'' Winners in each of the 13 categories will have a cash prize donated to their charity of choice.

In addition, all winners will receive a $200 credit to their electricity bills for the month of December.

Judging will take place between December 11 and 12 from 6 to 11 p.m. If inclement weather prevails, then judging will take place December 13 and 14 from 6 to 11 p.m.

Winners will be announced in The Royal Gazette on Monday, December 18.

Participation in the Festival of Lights is free and entry forms are available from BF&M Group on Pitt's Bay Road, all Belco locations, Gorham's, the Phoenix Toy Centre, Meyer Travel locations, The Bank of Bermuda locations, Bank of Butterfield locations, Toys 'N Stuff, Knick Knack and Masters.

Completed entries must be received by 5 p.m., Friday, December 8. For further information, contact Debbie Turner at 299-2810 or Wendy Butler-Augustus at 298-2810.

MONTESSORI MOVE GAINS MOMENTUM ED Montessori move gains momentum Montessori Academy has been given the green light to move into its new home for the start of the next academic year next September.

Construction will begin in February, and the expanded site will allow the school to increase its intake by offering classes for three to six-years-old.

In addition, the school, which is currently located at the National Trust's Tivoli property in Warwick, will be able to reduce its current 100-strong waiting list.

Bermuda-based reinsurance firm PartnerRe has helped the school with a $3.5 million bridging loan to help with the purchase and construction.

Headteacher Margaret Hallett said: "I am absolutely delighted that our school has matured to the point that we are able to make this tremendous move and offer an expanded opportunity to attain a first class learning environment to our children.''