Ryan Airlines is going to start the cheap flights across the Atlantic and they are looking for surplus aircraft to fill the demand. The fares will start @ $17.
This news was released today and was in the travel section of the Daily Telegraph.
I knew the price of oil had gone down, but really???
Ryanair reveals cut-price transatlantic plans
Passengers could pay as little as £10 to cross the Atlantic as Ryanair draws up plans to set up a new independent low-cost carrier. By David Millward, Transport Editor
Last Updated: 5:53PM GMT 03 Nov 2008
Michael O'Leary, Ryanair's chief executive, said the blueprint depended on the continued industry slump making it possible to buy a cut-price fleet of aircraft.
The new carrier would need between 50 to 60 long-haul planes, which would be based at up to 10 European airports, including London.
In America the planes would use secondary airports near to a number of cities including New York, Denver and Los Angeles.
However Ryanair's operation would be completely separate from the new airline, which would take about three years to set up.
"We would not have any links with the company that would run this apart from the fact that we would envisage flights being made across the Atlantic from some of our European bases."
His willingness to consider entering the transatlantic market comes within months of the collapse of four carriers on the route: Eos, Silverjet, MaxJet and Zoom.
Even if the new company would be separate from Ryanair, the pricing model would be similar with some very cheap seats on offer, although prices would rise with demand.
The aircraft would also carry some business class passengers, who would pay £1,000 each way to cross the Atlantic – roughly half the full price of a business class ticket on a mainstream airline, like British Airways.
Underpinning Mr O'Leary's plans is the belief that the aviation industry is entering a recession which could lead to only four carriers surviving: Ryanair, Lufthansa, Air France KLM and British Airways.
In all more than two dozen airlines have failed this year, thanks to a combination of soaring oil prices and an economic downturn.
"We need a recession. We have had 10 years of growth. A recession
gets rid of crappy loss-making airlines and it means we can buy aircraft more cheaply."
The recession would be "dark and deep", Mr O'Leary said, adding that he expected it to last for 18 months.
Ryanair itself reported half year profits of £170 million for the six months ending Sep 30 – a fall of 47 per cent.
The airline expects to make a loss over the next six months and fares could fall by 15 to 20 per cent.
Despite this, Mr O'Leary added, Ryanair's performance had been "remarkable", with passenger numbers increasing by 18 per cent compared with October last year.
