Further Insight into Ryanair Transatlantic ambitions

Ryanair boss Michael O'Leary, yesterday gave more insight to the oft rumoured entry into transatlantic operations by the LCC. Admitting that the business plan has been completed, O'Leary said that his plans to invest in transatlantic operations could be expedited if there were a sharp fall in aircraft prices but until Boeing and Airbus start parking up aircraft he doesn't see Ryanair doing a deal on prices.

The new operation has been discussed with David Bonderman, Chairman of Ryanair along with former executives of Southwest and Continental Airlines. O'Leary does not see himself running the new operation and added that the new airline would be 'distinctly separate' from Ryanair. The business model sees the new carrier operating from up to 9 of the existing Ryanair bases in Europe with Islip in New York being proposed as an east coast US destination.

When we will see a Ryanair style carrier operating on the Atlantic will depend when all the many 'ifs' and 'mights' meet together. Two of the biggest ingredients are fuel and aircraft prices.

Until fuel prices drop and stabilise and Ryanair can do the deal on price we won't see any further developments. Airbus and Boeing are both in production backlog with the next generation of wide body aircraft so any movement in the price arena is unlikely to happen until supply exceeds demand.

The other unknown is that Ryanair are nothing if not opportunistic. Should Aer Lingus' AOC suddenly become available things could change very quickly.