British Airways has slashed prices on flights between Bermuda and London just days after Zoom Airlines announced bargain round-trip deals. BA is now offering spring and summer economy return tickets to London Gatwick for $661 including all taxes, fees and charges — a reduction of around a quarter on its usual $870 price.

The deal, which only applies to travellers making the return trip from the Island, runs on Mondays, Tuesdays and Wednesdays from April 23 until September 5.

It comes after Zoom announced it was introducing a round-trip offer of $498 between Bermuda and the UK, breaking a monopoly of the route BA has enjoyed for decades.

Zoom yesterday said it had enjoyed a positive take-up of its budget offer so far and viewed BA’s new reductions with “amusement”.

BA spokesman John Lampl said yesterday: “Whenever another carrier comes into the market place, we have always competed and we will continue to compete vigorously.

“Our main thing is the commitment to Bermuda. We have been there 70 years and we hope to be there another 70 years.”

Mr. Lampl insisted the reduction was not entirely due to the fresh competition.

“From time to time during the year we have had price reductions,” he said. “This deal is ex-Bermuda but we hope it will promote the daily service and improve airfare sales in both directions.”

Defending BA’s comparatively high prices over the years, Mr. Lampl said: “It’s a supply and demand situation. That’s the way the market is.”

Responding to the news, Zoom managing director Jonathan Hinkles said: “We note with a level of amusement that BA has cut its prices. This doesn’t come as the remotest surprise to us.

“BA have had the market for the past 40 years and they are now looking to protect that. Well, it ain’t going to happen.

“We have had a very healthy take-up so far. Bookings at both the UK and Bermuda ends have been strong and we are confident that is going to continue. There is room in the market for both of us I’m sure.”

John Harvey, chief executive officer of Bermuda Hotel Association, said: “BA has been the single carrier from that region for many, many years. It is now 2007 and things have changed, and we are pleased about that.”

BA’s new offer is called the Roundtrip World Traveller. Tickets, which are on sale until May 1, must be bought seven days in advance. Minimum stay is one Saturday night and maximum stay is 11 months.

The airline also announced a special 42-day advance purchase fare for Club World business class, starting at $1,539 between June 1 and September 7, representing savings of 62 percent.

Zoom flights will operate twice weekly throughout the year and will be available in economy or premium economy seats. It is part of a move to introduce bargain flights between London, Bermuda and New York.

The company has been granted planning permission by the UK Civil Aviation Authority to start selling tickets and is currently awaiting an operating licence from the same group. If the licence is not granted, officials say customers who bought tickets would be guaranteed a refund.