A budget airline has applied to start operating flights between Bermuda and London Gatwick this summer ? potentially providing the Island's first competition to British Airways.

Zoom Airlines ? which describes itself as the UK's first dedicated low-fares, long-haul airline ? announced its application for a licence to run the twice-weekly flights yesterday.

Members of the public now have two weeks to object or support the proposal before the Island's Air Transport Licensing Board (ATLB) makes a decision on whether to approve it.

Jonathan Hinkles, the airline's managing director, told last night that the hope was to introduce the transatlantic flights ? which would be priced considerably lower than BA's fares on the same route ? in June.

"I am very hopeful that we will be granted (permission)," he said. "We think the high level of fares has held back growth in passenger numbers from the UK to Bermuda.

"The whole premise is around expanding the market. We view this service as complementary to what's already there. It will create its own customer base."

Premier Ewart Brown, who is also Transport and Tourism Minister, would not comment on the Zoom application yesterday. But he has called for competition to BA in the past and said a year ago that he could not envisage fares dropping while it had the "monopoly" on the route.

Dr. Brown claimed that a "covenant" existed between BA and Virgin Atlantic to keep ticket prices high. Virgin refuted the claim and said it was still considering Bermuda as a possible destination from the UK.

Scottish Zoom Airlines ? a sister company to the Canadian airline of the same name ? still needs safety and operating approval from the UK's Civil Aviation Authority (CAA) to begin flying to the Island, as well as the ATLB approval.

Mr. Hinkles said the CAA applications were going well and he expected both to be granted within the next few months.

Ian MacIntyre, Bermuda's director of civil aviation, said a decision on whether to grant permission could be made by the ATLB later this month. The board must wait to hold a meeting until the public has had a fortnight to respond to the application.

Zoom proposes operating flights between Bermuda and Gatwick in conjunction with its service to JFK Airport in New York. The plan is for aircraft to leave JFK for the Island on Mondays and Saturdays at 5.30 p.m. before taking off for London from here at 9.25 p.m. and arriving at 8 a.m.

The returning flights would depart Gatwick for Bermuda on Wednesdays at 1 p.m. and Sundays at 11 a.m., leaving the Island for JFK at 5.10 p.m. on Wednesdays and 3.10 p.m. on Sundays (all local times).

The Boeing 767-300ER aircraft would have 84 premium economy seats and 182 economy seats.

Mr. Hinkles said it was too soon to give exact figures on fares. "We are very keen to make sure we have done all the paperwork before we make any further public announcement on our plans," he said. "However, we hope to be in a position to release further details as soon as the ATLB has reached a decision on our application."

He added that Zoom's application was made following extensive background work on the market for air services between Gatwick and Bermuda.

"Our research shows that there is significant potential to grow the number of passengers travelling between the two points by introducing cheaper fares than those currently available," he said. "Today's very high fare levels mean that many leisure travellers are deterred from visiting Bermuda, whilst price-sensitive Bermudian leisure and business travellers cannot afford to travel as often as they may wish.

"We believe that a low-fare air service between London and Bermuda would be beneficial for both the tourism industry and Bermuda's whole economy. It would complement the existing air services and revolutionise the choice available to consumers.

"We trust that the Bermudian ATLB will look favourably upon our application."

A luxury "boutique airline" service between Bermuda and Stansted Airport in the UK which was due to be launched last year by Fort Lauderdale-based Fly First Class ? which is operated by FlyJet ? was delayed while the company awaited CAA approval.