Duty free shops at the Airport could unfairly threaten Bermuda's retailers, the president of the Chamber of Commerce said this week.

Mr. Robert Rego said he spoke to Transport Minister Wayne Furbert after reading in The Royal Gazette about plans for three duty free shops at Bermuda International Airport.

"I did express some concern,'' Mr. Rego said. "My belief is we have such a small community in respect of people to draw from that every opportunity should be given to the merchant community in respect of a level playing field.

"If there is going to be duty free shopping at the Airport, then we should review the tariffs and have duty free shopping in various parts of Bermuda ... to create a level playing field.'' Mr. Rego, himself a retailer, expected the Chamber would meet with Mr. Furbert to discuss planned changes at the Airport within the next couple of weeks.

On Tuesday, Mr. Furbert announced measures intended to cut the Airport's $8 million deficit in half. They included hikes in landing fees and other charges to airlines, improved concessions, and duty free shopping.

With the exception of Bermuda, "we're not aware of any airport that has direct international service in North America or the Caribbean that doesn't sell duty free,'' said Airport general manager Mr. Jack Gordon.

While talk of duty free shopping set off alarms among merchants, airlines serving Bermuda were accepting their increased fees without protest.

Two years ago, when the US Navy tried to hike landing fees to $1.70 per thousand pounds from 30 cents per thousand pounds, the airlines balked. But Mr. Furbert said that was for other reasons.

The airlines argued they were already American taxpayers, so they should not have to pay twice to subsidise the US military. "Now, it's strictly a business transaction between a foreign country and airlines that want to operate in Bermuda,'' Mr. Furbert said.

Government is raising the 30 cent fee to $3.25 per thousand pounds in stages.

It went to $1.30 on June 1, to $2.80 on September 1, and will jump to $3.25 on April 1.

Mrs. Carole DeCouto of American Airlines, the main spokesman for airlines serving Bermuda, could not be reached for comment. But other airline officials said the hikes were not excessive.

At British Airways, deputy manager Mrs. Marianne Wilcox said no cost increase was ever welcome, but those recently imposed by Government were understandable.

"Obviously, any increase adds additional costs to our bottom line, and we're all in the business to make a profit,'' Mrs. Wilcox told The Royal Gazette .

"We do realise and sympathise with the fact that the (Government) needs to make a cut in the loss that it is experiencing at the moment, in order to continuously improve the Airport, which all the airlines have been lobbying for,'' Mrs. Wilcox said.

"While it is a big percentage increase, (Bermuda) is still one of the more reasonable places to land.'' Mrs. Wilcox added that she hoped any future increases "would be limited to a more reasonable percentage.'' BA was looking forward to capital improvements at the Airport, which would include an improved arrivals area, a better restaurant, bar, and retail store, and duty free shops, she said.

Duty free stores were "one of the things passengers are always asking about.'' While BA would keep its own first class/executive lounge, Mrs. Wilcox said she favoured plans for a new Airport executive lounge. "We're finding (ours) is really inadequate, because of the number of business people we have travelling, just on our route.'' Miss Jackie Zuill, general manager of Delta Air Lines in Bermuda, said the new charges followed "good dialogue'' with Government. "We knew it was coming,'' she said.

"We understand the rates charged by the Navy were below market value,'' Mrs.

Zuill said. "We can attest to the fact that the rates are still much lower than other jurisdictions.''