been plunged into doubt by increasingly fierce competition from American Airlines.

Now the tiny airline has pleaded with its more powerful rival to end its second flight on the Cayman/Miami route, which started on Monday.

It claims the jobs of its 360 employees could be at stake.

The controversy could fuel the ongoing debate over whether Bermuda should have a national airline.

Progressive Labour Party MPs have long pressed for the Island to follow Cayman's lead.

But Government has resisted the pressure, pointing to hefty losses racked up by Cayman Airways.

In an open letter in Thursday's Wall Street Journal, Cayman Airways employees appealed for American Airlines to have a change of heart.

The letter, in the form a petition, is directed at American Airlines' Chief Executive Officer, Mr. Robert Crandall.

It says: "We are appealing to you because we are certain that this second American flight will jeopardise our jobs.

"Our company has just begun to turn itself around from the terrible losses that all airlines suffered last year.

"But increased competition at this time will surely erase the gains that we have managed to make.'' The employees say there is room for American and Cayman to co-exist if competition is balanced.

"But with your tremendous marketing power, route network and the fact that most Americans are going to choose a US carrier over a foreign carrier a second flight by American Airlines at this time could possibly mean the loss of our jobs.'' The letter goes on: "We are the only airline with a base in Cayman, so where would Caymanian maintenance, ground handling and flight crew personnel who have worked in the airline industry for 10, 15 or 20 years find employment suitable to their skills and experience?'' The employees warn of animosity from the confrontation developing between the two companies.

And they claim: "Of course Caymanians will not be the only ones to be put out of a job as Cayman Airways also employ American citizens.

"Please take into account the misery a second American flight could cause to our families and reconsider operating this second flight.'' Local general manager for American Airlines Mrs. Carole DeCouto was yesterday unavailable for comment.

Cayman Airways, which started in 1968, operates four leased Boeing 737 aircraft.

It flies regular routes between the Caymans and Miami, Tampa, Atlanta, Houston, New York and Kingston, Jamaica.

The fortunes of Cayman have been a political football in the House of Assembly as MPs argued over the viability of a Bermuda airline.

Tourism Minister the Hon. C.V. (Jim) Woolridge and Health and Social Services Minister the Hon. Quinton Edness have maintained that Cayman exemplified an unprofitable airline.

They pointed to the airline's successive yearly losses, despite an annual government subsidy of $1.25 million.

Shadow Tourism Minister Mr. David Allen, however, has argued the airline boosted Cayman's economy by bringing in tourists.