An announcement on whether a UK airline has been granted permission to operate budget flights between London and Bermuda is expected to be made this weekend.

Zoom Airlines applied earlier this month for a licence to run the twice-weekly flights from Gatwick. Ian MacIntyre, Bermuda’s director of civil aviation, would not comment yesterday on whether a decision had been made but told The Royal Gazette: “There is going to be a statement made on Sunday on Zoom.”

The airline - which describes itself as the UK’s first dedicated low-fares, long-haul airline - needs permission from the UK’s Civil Aviation Authority and Bermuda’s Air Transport Licensing Board to bring the Boeing 767-300ER aircraft to the Island.

Mr. MacIntyre said both the British and Bermuda governments were likely to welcome the competition to British Airways, which has long held a monopoly on the route.

“The British Government would encourage other carriers,” he said. “The Premier, who has been Minister of Transport for nine years, has had the same strategy in place here and has said we encourage and welcome competition.”

Scottish Zoom - a sister company to the Canadian airline of the same name - wants to start operating the flights in June in conjunction with its service to JFK Airport in New York. Jonathan Hinkles, the airline’s managing director, could not be contacted for comment last night.

Meanwhile, aviation experts are still assessing what impact a new deal between the US and European Union countries could have on Bermuda. The “Open Skies” agreement will allow airlines to fly from anywhere in the EU to any point in the US from March 30, 2008.

Mr. MacIntyre said it was already possible for European airlines to fly to Bermuda and on to the US but they needed to negotiate permission with the UK in order to do so. “It’s too early to tell what the agreement will mean,” he said.