Ryanair to start low cost trans-Atlantic airline

Dublin: A visible sign of the effect that the 'open skies'' agreement between the US and the European Union is likely to have on the airline industry in the Western hemisphere may be Ryanair chief executive officer Michael O'Leary's announcement that Ryanair will start a low cost trans-Atlantic airline. The new airline could offer fares as low as $12, Leary said.

O'Leary told reporters that the new airline would fly from Ryanair's existing bases, including London Stansted, Dublin and Frankfurt-Hahn. He said that the carrier would service secondary US airports at major destinations including New York, San Francisco, San Diego, Boston, Dallas and Florida.

According to O'Leary the new carrier would begin operations in three or four years and compete against major network airlines, including the likes of British Airways and Virgin Atlantic Airways.

Starting as a single airplane operator in 1985, Ryanair has now grown into a fleet operator that flies 133 aircraft to 130 European destinations. The Dublin-based airline is now the worlds third biggest in terms of market value. Low cost carriers such as Ryanair and EasyJet have doubled their capacity over the past four years.