Bermuda is in talks with Canadian airline CanJet about setting up a new air route from Halifax.

Junior Transport Minister Marc Bean revealed the move yesterday and said: "CanJet have expressed a desire to look at opening up a route.

"We are cautiously optimistic especially in the current economic climate. It is very important to get new markets."

Sen. Bean said he wasn't sure how often flights would run. "I think at a minimum it would be twice or three times a week. It all depends on demand and what is profitable for the airline."

According to its website, CanJet Airlines, a division of IMP Group Limited, Halifax, Nova Scotia, is Canada's newest full-service charter airline. Canjet has a fleet of Boeing 737-800 aircraft configured to 189 seating capacity.

CanJet is one of Canada's 'Top 50 Best Managed Companies' and one of the country's largest aviation and aerospace companies, said the website.

News of the possible link-up with CanJet emerged at a press conference yesterday to mark the signing of a memo of understanding between Bermuda and Nova Scotia.

Premier Dr. Ewart Brown said Air Canada had always provided seasonal direct service and Bermuda had been in serious negotiations since last year with other airlines, including CanJet.

He hopes an announcement can be made soon.

"It's always been my belief that once airlift is established everything else will follow. Twenty-five years ago most Bermudians had no idea of where Atlanta was.

"But after Delta established an airlink we have Bermudians going to Atlanta every day so we believe it is an important step for us to take."

On the memo of understanding Premier Brown said it would:

¦ Strengthen cooperation to promote trade, investment and social sustainability

¦ Promote a favourable environment for private sector initiatives

¦ Foster social sustainability in areas like healthcare, education, culture and workforce development

¦ Focus on developments in air and ocean transport, tourism and financial services.

Premier Brown said that Bermuda and Nova Scotia particularly Halifax share a long and fruitful history of strong ties.

"Bermudian students have gone there to study and return home to the workforce; Bermudian entrepreneurs have gone there to expand their businesses.

"Similarly, about 1,800 Canadians live and work here in Bermuda, and based on the anecdotal evidence I hear often, a great many of those Canadians are from Nova Scotia.

"Business links stretch seamlessly between here and there. They have for more than a century."