Ryanair ponders transatlantic move

Low-cost carrier Ryanair is seriously considering making a move into the highly lucrative transatlantic market, reports suggest.

According to the Telegraph, the operator is apparently close to launching flights to New York from its bases at London Stansted, Birmingham and Glasgow Prestwick.

The idea was discussed a year ago but never seriously considered possible at a time when the aviation industry was in a period of strength.

However, drastic change to the transatlantic market, including the collapse of various airlines due to high fuel prices, has prompted Ryanair to push the plan forward.

The carrier reportedly intends to establish a separate new company that will be purely devoted to the transatlantic service.

Ryanair is now believed to be in negotiations with Boeing in order to acquire a fleet of its new 787 Dreamliners to operate under the transatlantic entity.

Howard Millar, Ryanair deputy chief executive, told the Telegraph that "this industry is in a rapid period of change".

Mr Miller also indicated that the changing aviation industry may have the effect of opening the door to Ryanair's protracted takeover of Aer Lingus.

He warned that "smaller carriers will not survive as Europe moves towards recession" and the airline industry also increasingly moves to consolidate.

It is believed that Ryanair will point to the proposed link-up between British Airways and American Airlines as reason for regulators to green-light the Aer Lingus takeover.

Low-cost aviation companies are due to meet this week in London in order to debate the future of the industry which faces high fuel costs and a continuing economic downturn.

Airline News posted on 26 September 2008

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