Transatlantic dogfight looms as Ryanair promises £7 fare to US
The bargain flights common in Europe looked set yesterday to spread across the Atlantic, as the budget airlines announced plans to challenge the dominance of British Airways and Virgin Atlantic.
Michael O’Leary, of Ryanair, promised £7 tickets to the US, and Southwest Airlines, the American pioneer of no-frills travel, signalled its intention to start flying to the UK.
The prospect of cheap flights from London to New York will revive memories of Freddie Laker’s doomed challenge to the flag carriers 30 years ago.
However, liberalisation of air travel through last month’s “open skies†agreement promises to revolutionise transatlantic travel.
Other entrants to route have failed to get off the ground
Ryanair, Europe’s biggest low-cost carrier, announced plans yesterday to offer flights to Baltimore, Rhode Island and New York for as little as €10 to €12 each way, but the service is likely to face stiff competition.
The Times understands that Southwest Airlines is considering going international, while Jet Blue, another US low-cost airline, is also thought to be eager to join the fray.
If the plans are carried out, prices for passengers would be slashed and a much wider choice of service would be available, from the top end offered by BA and Virgin, to aircraft on which everything from food to entertainment costs extra.
The opportunity to launch low-cost fares across the Atlantic has been made possible by the “open skies†agreement, which will lift the restrictions on where airlines can fly.
At present only BA, Virgin, American and United are allowed to fly from Heathrow to the US.
From next year this will be opened to all carriers. Technology is also making budget flights possible as the next generation of aircraft will be at least 20 per cent more fuel efficient and less expensive to maintain.
Mr O’Leary, the chief executive of Ryanair, said that he was seeking to buy between 30 and 50 long-haul jets.
These would be either the Boeing 787 or the Airbus A350, neither of which is in the air yet.
He is proposing to launch a company, wholly owned by Ryanair, which will start flying within four years to up to half a dozen US cities.
Ticket prices will start at €10 to €12 but the company will use the typical low-cost model of increasing the price as more tickets are sold.
This would challenge the already competitive market for economy passengers between the UK and the US, potentially forcing BA and Virgin to offer similar promotional fares.
BA and Virgin are also experiencing competition in business class, which accounts for most of their profits.
Silverjet, Maxjet and Eos have all begun operating business-class-only flights for substantially lower prices.
However, the real threat to all these operators will be if Southwest launches international flights, possibly through its code-share partner ATA.
Southwest said: “It is definitely something we are looking at.†This appeared in several UK and Canadian Papers
The bargain flights common in Europe looked set yesterday to spread across the Atlantic, as the budget airlines announced plans to challenge the dominance of British Airways and Virgin Atlantic.
Michael O’Leary, of Ryanair, promised £7 tickets to the US, and Southwest Airlines, the American pioneer of no-frills travel, signalled its intention to start flying to the UK.
The prospect of cheap flights from London to New York will revive memories of Freddie Laker’s doomed challenge to the flag carriers 30 years ago.
However, liberalisation of air travel through last month’s “open skies†agreement promises to revolutionise transatlantic travel.
Other entrants to route have failed to get off the ground
Ryanair, Europe’s biggest low-cost carrier, announced plans yesterday to offer flights to Baltimore, Rhode Island and New York for as little as €10 to €12 each way, but the service is likely to face stiff competition.
The Times understands that Southwest Airlines is considering going international, while Jet Blue, another US low-cost airline, is also thought to be eager to join the fray.
If the plans are carried out, prices for passengers would be slashed and a much wider choice of service would be available, from the top end offered by BA and Virgin, to aircraft on which everything from food to entertainment costs extra.
The opportunity to launch low-cost fares across the Atlantic has been made possible by the “open skies†agreement, which will lift the restrictions on where airlines can fly.
At present only BA, Virgin, American and United are allowed to fly from Heathrow to the US.
From next year this will be opened to all carriers. Technology is also making budget flights possible as the next generation of aircraft will be at least 20 per cent more fuel efficient and less expensive to maintain.
Mr O’Leary, the chief executive of Ryanair, said that he was seeking to buy between 30 and 50 long-haul jets.
These would be either the Boeing 787 or the Airbus A350, neither of which is in the air yet.
He is proposing to launch a company, wholly owned by Ryanair, which will start flying within four years to up to half a dozen US cities.
Ticket prices will start at €10 to €12 but the company will use the typical low-cost model of increasing the price as more tickets are sold.
This would challenge the already competitive market for economy passengers between the UK and the US, potentially forcing BA and Virgin to offer similar promotional fares.
BA and Virgin are also experiencing competition in business class, which accounts for most of their profits.
Silverjet, Maxjet and Eos have all begun operating business-class-only flights for substantially lower prices.
However, the real threat to all these operators will be if Southwest launches international flights, possibly through its code-share partner ATA.
Southwest said: “It is definitely something we are looking at.†This appeared in several UK and Canadian Papers
