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Wednesday May 22, 2019

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Ryanair set to launch €10 transatlantic fares

Ryanair's chief executive Michael O'Leary reaffirmed his airlines plans for low-cost transatlantic travel, stating they had a business plan for the new model; but can it really work?

Mr O'Leary told the Irish Hotels Federation conference in Meath yesterday that Ryanair would offer €10 flights to Boston and New York and US$10 (€7.30) seats back to Europe. The only thing holding them back they say, is availability of the right aircraft.

The concept may be new avenue for Ryanair and it's vitriolic chief executive, but it's certainly not novel or unique.

In 1977 british entrepreneur Sir Freddie Laker launched 'LAKER AIRWAYS', the original long-haul, low-cost & "no-frills" airline. Operating services between London Gatwick & New York's John F Kennedy airports, the airline lasted until falling victim of the recession in 1982.

Laker was not short of ideas, and the airline pioneered some cost saving measures that are used by all airlines today, such as reduced thrust take-offs, and faster climbs.

Ryanair intend to operate their long-haul services in a true no-frills way; customers are to pay extra for things like meals and baggage.

If you're only paying €10 to cross the Atlantic, are you going to complain?

But this is where it is hard to see how their plan can work; no doubt they will have endless numbers of customers queueing up to pay €10, but even on a 400 seat aircraft this barely scratches the surface of the fuel bill.

This means only a small portion of the ticket prices can be anywhere near the headline act.

O'Leary made no secret of his desire to launch a premium service alongside his bargain basement offerings, famously stating that those at the front can expect "flat-beds and blowjobs", but can a brand like no-frills Ryanair really attract those premium passengers?

Whilst they may be making strides with regards to their customer service and their product, many have been put off by their brash persona of the past.

We suspect that airlines like Virgin Atlantic & British Airwasy may be safe for sometime yet.

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