Airlines have always been aware of Bermuda Tourism concerns about high airfares to the Island, but Government must also be willing to make some concessions in order to bring the airfares down, Bermuda Public Services Union general secretary Ed Ball said on Friday.

However while noting Bermuda's appreciation to US Airways for decreasing rates to Bermuda through June, Tourism and Transport Minister Ewart Brown said that while the airline industry faces challenges world-wide, Bermuda appears to occupy a unique position.

The BPSU represents US Airways and American Airlines workers in Bermuda, and Mr. Ball said US Airways had authorised him to speak on their concerns regarding their own financial challenges.

Fuel prices appear to be the single largest challenge facing the airline industry. US Airways flies some 50,000 flights per day, Mr. Ball said, while low-cost carrier USA3000 flies to just 28 destinations in the entire world. "There's no way the larger airlines can compete with the overhead they have ... Fuel alone is driving up the costs."

That issue is being discussed all over the Caribbean, he added.

All parties agree on the need to get passengers on flights to Bermuda, but all parties must examine the whole industry and work together, he said ? Bermuda must make concessions too, "especially for the larger airlines".

Such concessions could include decreasing landing fees at the Bermuda International Airport, or for hotel rates to be decreased, or an increase in tourism promotion to the Island.

However Dr. Brown pointed out that while the Ministry is extremely aware of the challenges facing the airline industry, Bermuda occupies a unique position. "The cost of tickets per mile to Bermuda are among the highest in the world."

He said that only recently he had been shown an example of a ticket from New York to Nassau, Bahamas, which was just over half the price of a ticket from New York to Bermuda ? despite Bermuda being hundreds of miles closer to New York than Nassau is.

"We're not saying the airlines shouldn't do what they can to improve their financial stresses. We're saying there's room in there."

Hotel rates in Bermuda are "not that far out of line" with hotels in much of the US and Europe, he said, adding that some hotels are already cutting their Thursday to Sunday rates. Airfares to Bermuda, on the other hand, remain "way out of sync" with airfares world-wide.

No airlines have ever complained about landing fees at the airport, Dr. Brown said, adding that the landing fees are competitive and decreasing them will not make the necessary difference.

"We appreciate what US Airways have done," he said. "We're hoping others will follow their example."

Meanwhile Government appears to be making headway on bringing a second low-cost carrier, Jet Blue, to the Island. Dr. Brown, who met with Jet Blue on Thursday, said yesterday that the airline has no aircraft available to service Bermuda in 2005 ? but that they do have plans to meet with Government in the fall to discuss the specifics of opening a route to Bermuda in 2006.