Ryanair reveals cut-price transatlantic plans - 10th November 2008

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. 

Ryanair boss Michael O'Leary is looking for a double bonus from the emerging recession - further consolidation among Europe's airlines and the chance to launch a transatlantic carrier.

O’Leary hopes the venture, which would be run completely separately from Ryanair, would offer an economy class fare from £10 one way and have a business/premium class with prices between £1,000 and £1,500. It would serve between eight and 10 cities in Europe and a similar number in the US including New York, California and centres such as Denver and Dallas. European bases could include London, Dublin, Frankfurt, Rome and Milan.

O’Leary says that if the new venture could acquire a fleet of 50 to 60 long-haul aircraft cheaply over the next 18 months, the venture could be in operation a further 12 to 18 months later.

He acknowledges the fleet acquisition is a "huge if" but says a recession has increased the opportunity to acquire aircraft on competitive terms. 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. 

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, due to a combination of soaring oil prices and an economic downturn.


Simon Conn, Sales and Marketing Director of Conti Financial Services, says:  
“It’s very early days in Ryanair’s plans, but this is still welcome news at a time of uncertainty in aviation and a move which would be welcomed by the many people who have bought or are thinking of buying property in the USA.

“We’ve seen an increase in the enquiries we receive about the USA over the last year, due mainly to plummeting property prices following the sub-prime mortgage crisis. This has resulted in properties across the pond becoming more affordable for UK buyers and there are plenty of bargains to be had.

“The cost of long haul flights should always be factored into your overseas property budget, but a lower price option would undoubtedly be welcomed by anyone travelling to their stateside property.”