Low cost airline JetBlue is in discussions with Government about flying to Bermuda from New York, The Royal Gazette has learned.

Transport Minister Dr. Ewart Brown will be meeting representatives of the airline in Washington next week to discuss the possibility.

He told The Royal Gazette yesterday that the Island could see reduced air fares spurred on by competition if JetBlue becomes the third carrier on the New York route.

Government has been holding informal talks through intermediaries since last year following prompting from “mutual friends”, said Dr Brown.

If the airline does decide to fly to Bermuda it will provide competition for Continental and American Airlines, which each fly daily services to New York.

In an e-mail to former Department of Tourism research officer Aaron Adderley, Kevin Murphy of Morgan Stanley predicted air fares to the Island would be halved if JetBlue operates to Bermuda.

Dr Brown said yesterday: “We're still very much in the preliminary stages of getting together with JetBlue. I'll be speaking to them in Washington next week.

“We're still pursuing it very quietly and hopefully very effectively. There is no formal proposal, we've just had informal discussions around the issue of their possibly filing an application to fly to Bermuda from New York.

“We had mutual friends who suggested we have conversations and we've had a few. Our approach with all these conversations is not to say anything that may raise false expectations.

“It would offer our travellers, visitors, Bermudians and the international business sector new options and choice. We think competition on any route might help us give not just additional options but potentially have a lowering of air fares.”

Dr. Brown said extra flights would also provide a boost for retail operators at the airport and for taxis.

JetBlue, which has a reputation for quality as well as low fares, was set up in 2000 and now flies to 17 cities in the United States. Its 17 Airbus A320 jets all have leather seats with LiveTV and DIRECTV programming.

In an e-mail to Mr. Murphy last July, Mr. Adderley wrote that as a “low cost yet high quality carrier, JetBlue would seem to be an ideal partner for the Island to pursue”.

But he warned that although Government wanted lower fares, on some routes it may not be possible for more than one airline to compete profitably.

“There is little room to significantly grow the demand for Bermuda to the degree where two airlines can be profitable serving the Island from the same gateway,” he wrote.

“If we overly pursue other carriers to introduce service to the Island at this time, we may end up with a scenario where both airlines fail to succeed.

“With that said, however, the Bermuda Government truly recognises the need to address the high cost of airfares and we will look to do everything possible to ensure that a Bermuda vacation is more affordable, while at the same time ensuring that the Island remains an economically viable opportunity for airlines to pursue.”