Torygraph:
Ryanair plots transatlantic price war
Ryanair is preparing to trigger a transatlantic fares war as it seeks to cash in on the crisis engulfing the aviation industry.
Low cost flights could be run from Stansted, Prestwick and Birmingham to New York under the airline's plans. They would be operated by a new company, which Ryanair would set up purely to take on the established airlines on the route.
Senior executives at Ryanair first floated the idea of entering the transatlantic market more than a year ago. But at the time it appeared to be little more than a pipe dream. But soaring fuel prices over the past 12 months and more than two dozen airline failures have dramatically changed the landscape making it far easier for Ryanair to enter the market.
With the industry bracing itself for a number of airline mergers, Ryanair now believes it will be harder for the European Union to block its bid for Aer Lingus, the Irish national flag carrier. "I think the whole European agenda has changed," said Howard Millar, Ryanair's deputy chief executive. He added that should the bid be approved the new carrier would use some of the 15 long-haul planes Aer Lingus has on order for the new service.
In addition the Ryanair offshoot is ready to hold talks with leasing companies over the possibility of acquiring some new Boeing 787 dreamliners. This has become possible because of the slump in the airline industry, which is expected to bring down the cost of leasing aircraft.
Even though it could take a few years before the new carrier begins operating, it is now clear that the strategy is at an advanced stage, with Ryanair talking about the type of fuel-efficient aircraft it would need.
Underpinning the company's plans is the belief that other weak carriers will go to the wall over the next few months. "This industry is in a rapid period of change. Smaller carriers will not survive as Europe moves towards recession," Mr Millar said,
adding that Ryanair planned fare cuts this winter to "help a few carriers on their way" to failure.
In the short term, Ryanair expects to offer passengers the chance to make mobile phones on some of its aircraft from next month.
The company also plans axeing some of its 15 French routes during the winter, but Mr Millar declined to say which services were at risk.