limousine service -- but said it was preparing legal action against its only potential competitor.

Bee Line vice president Mr. Edward Johnston said company officials believe the rival, Bermuda Hosts, was unfairly granted a licence by the Public Services Vehicles Licensing Board.

As a result, Bee Line could face unexpected competition while Bermuda Aviation Services, from whom Bee Line is buying 11 airport buses and an eight-passenger van, was forced to lower its price.

In addition, Mr. Johnston said, the licensing board only granted his company a license to carry up to 200 passengers -- less than the 294 passenger capacity of the BAS fleet Bee Line had agreed to buy.

Bermuda Hosts principal Mr. Wayne L. Furbert said his company's licence was fairly and properly given. "We welcome their competition,'' he said. "They have their buses now. I don't know what they are upset about.'' Mr. Furbert said his company, which now charters taxis, has ordered buses that should arrive in July. He would not say how many buses are involved, but the company's licence allows up to 300 passengers.

There has been no limousine service from the airport since last August when BAS shut down its fleet, citing a string of financial losses. But Mr. Johnston and Bee Line president Mr. Harrison Simons said they were confident they could fare better.

The licensing board had originally refused Bee Line's application, but granted a licence to Bermuda Hosts. It also told BAS to sell its buses to Bermuda Hosts, even though Bee Line had offered substantially more money.

Bee Line and BAS subsequently filed suit, charging among other things that the board's decision had been tainted by the fact board chairman Mr. Ed Bailey was a partner in the law firm whose general manager, Mr. Furbert, was a Bermuda Hosts shareholder.

Chief Justice the Hon. Sir James Astwood subsequently ordered a re-hearing of Bee Line's application. Transport Minister the Hon. Ralph Marshall removed Mr.

Bailey and two other members from the licensing board, citing potential conflict of interest.

Bee Line has operated for 20 years and charters taxis for passengers with pre-paid coupons. It has been trying unsuccessfully for years to obtain a limousine licence, but was regularly turned down on the grounds that the Island could not support a second limousine service in addition to BAS.

"We have been fighting a battle in obtaining this licence,'' Mr. Johnston said yesterday. "Now that Bee Line has been granted a licence, we will be endeavouring to ensure that we are the only bus operators at the airport.

"We don't want to dilute any of the work. There's definitely insufficient business for two companies. And the country should not be wasting foreign exchange buying more buses when there's already buses at the airport.''