Delta Airlines has asked Government for a $500,000 guarantee to keep its Boston to Bermuda flight going early next year, The Royal Gazette has learned.

Transport Minister Dr. Ewart Brown confirmed last night that the airline approached Government on Monday because its projected bookings for January and February next year are down ten percent on this year.

He said the Ministry of Transport, with the Ministry of Tourism, will look at the plea carefully, but the initial reaction was not to automatically agree to the request. And Dr. Brown said he would be "surprised" if another airline serving Bermuda, US Airways, was in business in six or nine months.

He said last night: "Delta have told us that their projections for January and February are well below 2001 and they have asked for some financial assistance, a $500,000 guarantee.

"There are different ways it could be structured, but our initial reaction is that we don't want to automatically be seen to be willing to do that without serious consideration.

"We have to look at it and see what the science tells us, in other words, what are the real numbers? If it's unprofitable for the airlines, will it be unprofitable for Government? We are formulating a response."

In a speech to the Progressive Labour Party delegates conference on Monday night, Dr. Brown warned party members to be prepared for gloomy news in the airline industry.

He said: "I will personally be surprised if US Airways globally is even in business in the next six to nine months."

But last night speaking to The Royal Gazette, he modified this to: "I would not be surprised if they are not in business."

In his speech to PLP, Dr. Brown said: "United Airlines - their CEO resigned or was fired yesterday. They are in trouble. Only Southwest Airlines and Jet Blue, which don't serve Bermuda, didn't lay off anyone. "There's no automatic obligation that these airlines have to come to Bermuda, so it comes down to negotiation." Shortly after the September 11 terrorist attacks in the United States, Government announced a relief package of around $1 million dollars for the airlines serving the Island from the US. Fees were deferred for September and October, and rental space at the airport was waived for the same period, but Dr Brown said 90 percent of the relief would be recovered.

Dr Brown told The Royal Gazette last night he was preparing PLP members for the worst so they would not be taken by surprise if the Island lost any flights because the aviation industry was in trouble before September 11.

"I want to prepare for the nature of the aviation industry. I don't want Bermudians to base their comfort on not knowing the facts.

"Sometimes we live inside our perfect bubble, but the reality is if US Airways goes out of business, there will be no US Airways flights to Bermuda."