A price war has broken out between airlines covering some of Scotland's most remote islands, slashing the cost of flights between the mainland and the Hebrides.

One-way fares between Glasgow and Stornoway on Lewis typically top 300 in high season, making the 60-minute journey one of the most expensive routes per mile in the world - but are now on sale for just 50 with Flybe and Eastern Airways, which have agreed an alliance and codeshare arrangement.

Similarly lower fares have been announced for the new alliance's routes to Sumburgh on Shetland and to Kirkwall on Orkney.

Ian Fordham, chairman of Outer Hebrides Tourism, welcomed the news, saying he hoped the affordable fares would lead to an increase in the number of visitors. We hope the affordable fares will encourage more people to take a break in the islands, especially out of the main season and experience our unique landscape and culture, he said.

Around 218,000 people visit the Outer Hebrides a year, the vast majority - 80 per cent - by ferry. High airfares have meant that flights tend to be dominated by businesses on expense accounts. The popularity of the Outer Hebrides has been growing dramatically over the past few years, and ferry capacity has been unable to cope at peak times," said Fordham.

The alliance between Flybe and Eastern Airways begins in September and follows a falling out between Flybe and Loganair, whose current franchise arrangement will stop at the end of August. Eastern Airways already flies the Aberdeen-Stornoway route.

Loganair flies routes on behalf of Flybe from Scottish mainland airports, such as the Glasgow-Barra route which involves the famous beach landing on Trigh Mhr, along with services to Benbecula, Stornoway, Sumburgh and Kirkwall. The airlines' managing director Jonathan Hinkles said the company was extremely disappointed and surprised at Flybe's decision to split with it.

Loganair says it will continue its routes and is adding additional Glasgow-Barra flights in peak season - in effect it is going head to head with its former partner - and larger aircraft on some Glasgow-Benbecula flights. The airline is also seeking a codeshare with Flybe, whose CEO Christine Ourmieres-Widener said the new agreement is a chance to offer more choices and competitive pricing in the region.

Under current arrangements passengers flying into Scotland on Flybe and onto the islands do not need to collect their bags and check in again for the connecting flights. Loganair says that baggage charges imposed by Flybe/Eastern Airways will erode any savings from cheaper tickets.

The Barra route has been the subject of local criticism for regular delays due to routine maintenance while Flybe has also faced criticism over customer care.

A spokesman for Comhairle nan Eilean Siar, the Outer Hebrides' council, said it was seeking talks with all the airlines to develop a clearer picture of what the announcement may mean for the longer-term sustainability of air services to the Western Isles.

Cameron Taylor, executive director of the Orkney Tourism Group, also welcomed more flights and lower fares but cautioned: It is important for the air service to be sustainable and stable, and we would not wish commercial rivalries to create instability or uncertainty.

In Shetland, local tour operators hope the news might spark a tourism revival. Visitor numbers have declined in recent years, almost entirely because demand from the oil industry for staff accommodation has made it difficult for visitors to find a bed for the night.

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The bizarre price war cutting the cost of flights to Britain's most remote islands - Telegraph.co.uk