International business is hopeful the new airline planned for the Island eventually takes off.

Bermuda Star Limited, which applied to be incorporated on the Island in May, has applied to fly direct to Cologne, Germany, Manchester, England, Chicago, Orlando, Florida and Newark, New Jersey.

Austria's honorary consul in Bermuda Leopold Kuchler and his wife Cynthia have set up the company, although Mr. Kuchler has not revealed who else is behind the business.

Chamber of Commerce International Companies Division chairman David Ezekiel said he thought the fledgling airline could flourish if it did not get too many expensive overheads.

Bermuda Star's plans to fly direct to Florida are exciting because they would open up quicker travel to the southern United States, the Caribbean and South America, said Mr. Ezekiel.

"I think it's a great idea, although not without risk. It is a brave venture that is long overdue," he told The Royal Gazette.

"I don't think many small airlines are profitable unless they have a fairly extensive route complex.

"I think there is huge opportunity for an airline that flies to the southern part of the United States. Anyone flying there opens up the Caribbean, Mexico and South America and that's got to be good.

"On the European routes, time will tell. I'm not sure what the pricing will be but Manchester is not difficult to get to and I assume they have done their research. My guess is that if they don't try to expand too quickly and they can piggy-back on other services provided by other airlines such as check-in and airline services (they have a chance)."

Mr. Ezekiel said he had always argued that the Bermuda government should set up its own airline and even run it as a loss leader, using part of the $35 million annual tourism budget.

"I think we get too hung up on trying to make sure these things are bottom line profitable without judging the spin-off benefits," he added. "We have a huge tourism budget and I wouldn't think it be amiss to take part of that to subsidise an airline."

Mr. Ezekiel said he didn't know who was behind the airline, but others had informed him they "come with good backgrounds".

"I have heard they have got some bright people behind it, and I don't imagine they would go into this without doing their homework."