Ryanair considering transatlantic launch
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Ryanair is planning to launch low-cost transatlantic flight for as little as GBP10 (US$17), The Telegraph has reported. The UK-based low-cost carrier is considering setting up a sister company to serve the lucrative Europe-US routes, and controversial Chief Executive Michael O’Leary’s plans have been accelerated by the current global economic crisis.
O’Leary believes that the prospect of more airlines collapsing is set to bring the cost of aircraft down, with a glut of unwanted jets coming onto the market. Now Ryanair is thought to have drawn up a comprehensive business plan identifying possible new routes, while waiting for the industry to collapse.
“We won’t do this until we are at the bottom of the business cycle,” he told the Daily Telegraph. “The only time to set up an airline is when they are parking planes in the desert. We are not very far from that at the moment.”
O’Leary added that Ryanair plans to set up a long-haul airline “18 months after we secure a fleet of aircraft”. He went on to predict that the new carrier would trigger a transatlantic price war. The cheapest tickets could be sold for as little as GBP10 including taxes and charges, with the price increasing as planes fill up.
Possible American destinations include New York, Boston, San Diego, Denver and Dallas, however the new airline would likely look for smaller airports near the cities offering lower landing fees.
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