Government's first attempt to recover the real costs of running the Airport since the US Navy turned it over in June.

Transport Minister Wayne Furbert said the proposed increases, although large in percentage terms, compared very well to Caribbean competitors for the tourism market.

He added: "Over the last few years, air fares have always gone up and we have never increased the cost.'' Mr. Furbert said that Bermuda was regarded as a high occupancy route by airlines, who were happy to take good profits.

Mr. Walter Lister (PLP) said that both sides of the house accepted that Government had to offset the cost of full responsibility for the running of the Airport.

But he said: "Our concern is that we won't see so large future jumps in the costs to the airlines.'' And Mr. David Allen (PLP) warned that airlines saw a drop in passenger numbers during the off-season, which was subsidised by high season profits.

He called for a sliding rate to be applied, with lower landing fees in the winter, plus reduced rates at off-peak times of day during the summer.

Tourism Minister David Dodwell said that airlines wanted to see a "well-operated airport -- one where they can feel comfortable and secure''.

He added: "We are going to make this Airport the envy of the world, certainly of the small island world and tourist destination world.'' And he said the proposed increases would be the last "for the forseeable future''.

Shadow Finance Minister Mr. Eugene Cox said that airlines had always shown goodwill in the past, but that the increases would not return that cooperation.

But his counterpart, Dr. Grant Gibbons , pointed out that the proposed increases would bring Bermudian charges up to around one-third or half of some airports and only a fifth in some cases.

"We are not talking about jacking them up, we are talking about bringing them up to a reasonable standard.'' The Rev. Trevor Woolridge (PLP) warned that airlines had in the past "manufactured'' mechanical problems to avoid flying scheduled flight with hardly any passengers on board.

He added that increasing landing fees would add further stress to airline budgets.

And he said: "Lets not cut off our noses to spite our faces because in the long run it will hurt us considerably.'' Members of the House then agreed to allow the bill to proceed to a third reading.