Ryanair looking to initiate transatlantic airfare war

Ryanair is looking to cash in on the current global airline financial crisis by waging a war over transatlantic airfares, according to comments by an airline executive.

Under the no-frills carrier’s plans, low-cost flights to New York could be offered from Birmingham, Prestwick and Stansted airports.

The services would be operated by a new company, which Ryanair would take the initiative to set up, with the aim of stimulating competition on transatlantic routes – and reducing airfares.

This idea was first floated by Ryanair senior executives over a year ago, but at the time it was pursued, or seen as realistic.

Record-high fuel prices during the past year, however, as well as more than 20 airline failures, have changed the environment in the airline industry, making it more reasonable for Ryanair to be considering a move into this market.

As the industry braces for additional mergers and other airline failures, Ryanair feels that it would be more difficult for EU regulators to block its bid to take over Aer Lingus – Ireland’s flagship carrier.

“I think the whole European agenda has changed,” Ryanair’s deputy chief executive, Howard Millar, said.

Millar added that it regulators approve the bid, the newly-formed carrier could use several of the long-haul aircraft that Aer Lingus has on order.

www.ryanair.com