COMPETITION in the skies between Southampton and Holland is set to dramatically increase with two new major airlines launching cut price flights to Amsterdam.

bmi regional, a subsidiary of bmi, Heathrow Airport's second largest airline - will launch its first ever services from Southampton with a direct service to Amsterdam, beginning October 29,2006.

Meanwhile it is understood Southampton Airport's largest carrier Flybe is also on the verge of unveiling a new route to the Dutch capital, which is one of Europe's hottest destinations.

The competition is likely to drive down fares for passengers, with bmi's return tickets starting at £48 plus taxes of between £25 and £30.

ScotAirways, currently the only carrier operating direct flights on the route, charges fares from £49 to £200 one way, plus taxes.

Flybe is yet to officially confirm its plans, so prices are unavailable.

A source close to Flybe, which is set to sponsor Southampton Football Club next season, said: "Flybe thinks the market is constrained at the moment by small aircraft charging high fares. This makes it an opportune time to open a route there.

"It is one of the most visited destinations in Europe."

ScotAirways is not concerned by an influx of heavyweight competition.

Commercial manager Jerry Froggett said: "We've been in this position before. When you have an airline like bmi launching a route they have no experience of, their first priority is to advertise heavily and that increases market size and that's to the benefit of both airlines.

"I wouldn't say we are putting up the flags but you have got to take the view that we live in a competitive world and we are in pole position. We already have a large loyal customer base that I have no doubt will stick with us."

bmi regional, which claims to be Britain's most punctual airline, will fly to Amsterdam four times daily on weekdays, once on Saturday and twice on Sundays with a schedule designed to appeal to both business and leisure travellers.

bmi chief executive Nigel Turner said: "I'm confident that our new service will not only be welcomed by the discerning business traveller, but by all travellers who have a strong desire for quality and choice."

Southampton Airport managing director Chris Butler said: "In continuing to attract the UK's premier airlines, Southampton Airport plays a key role in boosting the region's economic competitiveness. It improves access to the international market place for local businesses, further strengthens the region's appeal to new companies looking to relocate, and promotes the growth of inbound tourism.

"bmi regional has responded to the demand for additional capacity on the Amsterdam route and we are delighted to be giving even more choice to the south's business and leisure travellers."