A new direct scheduled air service from Europe to Bermuda could take off by early next year.

Tourism and Government officials here and in London are working toward establishing a weekly link between the Island and Frankfurt, with the service ending in the Caribbean.

This week Tourism Minister David Allen said his department, along with Transport Minister Ewart Brown, were waiting on progress from the UK, before they could take a step forward.

Negotiations over the proposed new alliance of American Airlines and British Airways, in conjunction with the Bermuda Two agreement, are understood to be holding the deal up.

"If we had not had a log jam in the UK, we would have made an announcement by now and the link would start early next year,'' said Mr. Allen.

He said strong representations were being made at every level in the UK, in order to have the deal ratified.

But, he added, the authorities, including civil air officials, were adopting a "wait and see'' stance toward Bermuda's plea, whilst discussions were ongoing between the two airlines.

Any change in Bermuda Two, which covers all flights to and from Bermuda, may have to wait, although officials here are trying to fast track the deal.

If a link was established, then it would become the Island's second carrier from Europe -- joining the successful British Airways service from London Gatwick.

And it would be the first service from Germany since a Lufthansa subsidiary pulled out of its route from Frankfurt to Bermuda and on to Dominican Republic in 1996.

BA now fly to Bermuda four times a week and the eventual aim is to increase that to a daily frequency.

In addition, tourism officials are also hoping that US carriers will increase the number of gateways to the Island.

New airlines and existing companies are being targetted as the Government tries to give American holidaymakers as many options as possible for travelling here.

A second Delta flight out of Atlanta is one aim, as is a link with Miami and a possible midwest destination.

Miami is seen as crucial as it could bring visitors from the Florida region and could also allow Bermuda to tap into the Latin American market.