Bargain flights between Bermuda and London will be up and running from June 8.

Zoom Airlines is offering a round-trip for $498 including all taxes, fees and charges — a saving of up to 73 percent compared with British Airways.

Flights will operate twice weekly throughout the year and will be available in economy or premium economy seats. Passengers can make bookings from today.

It is part of a move to introduce budget flights between London, Bermuda and New York through what Zoom describes as an "excellent and affordable" alternative to established airlines.

BA, which has enjoyed a monopoly of flights from the UK to the Island for decades, yesterday vowed to "respond vigorously" to its new rival.

Business and tourism leaders yesterday joined Premier Ewart Brown in declaring the news a great boost for Bermuda.

From June 8, a temporary schedule will run between Bermuda and London Gatwick on Mondays and Fridays.

The regular schedule begins on June 23, when flights will depart from Bermuda to Gatwick on Tuesday and Saturday evenings, and from Gatwick to the Island on Wednesday afternoons and Sunday mornings.

The Boeing 767-300ER aircraft has 266 seats, of which 84 are premium economy and 182 economy. About 66 will be the cheapest rate — priced $249 one-way — and will be sold on a first come, first served basis. Premium economy seats, featuring additional legroom and other benefits can be booked for an extra $199. Zoom Airlines, a Scottish sister company to the Canadian airline of the same name, says it targeted Bermuda because air prices here are currently so high. It plans to recruit passengers who might not otherwise be able to afford to fly to the Island.

Managing director Jonathan Hinkles said last night: "It's a revolutionary move in terms of the history of air services from the UK to Bermuda.

"We are delighted to be in a position to launch the service and we are hopeful it will have the full support of the travelling public.

"We have been looking at areas we can bring benefits to the market because they are under-served or suffer from very high fares. We thought Bermuda fits the bill."

On Zoom's targeted clientele, Mr. Hinkles said: "There are lots of people who at the moment may decide it's not worth paying the money to travel to Bermuda.

"Students from Bermuda in the UK sometimes can't afford to return home as often as they would like — now they may be able to. People from the UK who used to visit their friends in Bermuda once a year may now decide they will visit twice a year.

"It will make a fundamental difference to people and encourage more passengers to use the route."

Mr. Hinkles said Zoom was able to offer cheap flights because it has no space-consuming business section, meaning there is more room for seats without compromising legroom.

He added that, if the move was a success, the company would consider increasing its frequency of flights.

Details of the leg from Bermuda to New York's JFK Airport will be announced in the coming weeks, said Mr. Hinkles.

Yesterday's announcement came after the airline was granted permission by the UK Civil Aviation Authority (CAA) to start selling tickets. Zoom is still awaiting an operating licence from the CAA but Mr. Hinkles said he was "very confident" this would be awarded shortly. In the event the licence is not granted, customers who bought tickets would be guaranteed a refund.

Revealing the news at a press conference, Dr. Brown, who is also Tourism Minister, said: "As I stand here, it is just getting up to 4.30 p.m. UK time. By now, most of the UK would be aware that Zoom Airlines will provide low cost direct service between Bermuda and London Gatwick.

"It has been this Government's strategy to encourage competition in air services in order to increase seat availability and choice as well as lower fares, particularly on the London route, and as such we at the Ministry of Tourism and Transport are thrilled that we have been able to deliver on our promise of providing added service in this market."

BA spokeswoman Sallie Singleton said: "We are watching the competition and we will respond vigorously to any competition.

"Competition is a good thing. If this brings more people to Bermuda, then BA is happy."

Shadow Tourism Minister David Dodwell, who owns The Reefs resort, said: "I would continue to endorse this move — it is very beneficial to Bermuda and hotels will benefit. I would also call for some sort of awareness campaign in the UK to make sure we take advantage of it."

Chamber of Commerce vice president Philip Barnett said: "We are thrilled. It's certainly been a daunting task from a business point of view when your only choice off the Island is BA, so this is going to be very well received. We all try to watch our pennies."

The announcement comes a few days after Delta Airlines made its inaugural flight from New York's LaGuardia airport to Bermuda.

For more information about Zoom Airlines, log onto www.flyzoom.com