Michael O'Leary, the chief executive of Ryanair, said yesterday he was planning to bring his no-frills approach to transatlantic flights, offering one-way tickets from less than £7.
The market is poised for significant changes in the wake of the recent "open skies" agreement between the US and EU and Mr O'Leary said he was looking to set up a new airline with a fleet of up to 50 planes within the next three to four years.
His intervention comes less than 24 hours after Zoom UK said it planned a Gatwick to New York service for £129, one way including taxes, from June.
Virgin Atlantic said it welcomed the opportunities for competition which a full "open skies" agreement presented and was looking to expand its own services between Europe and the US. "On long-haul flights customers want frills. If you are getting a low-frills service from $12 (£6) there will probably be a few hidden costs," a spokeswoman said.
British Airways said: "If Ryanair goes ahead, they would not compete directly with British Airways as they would not be flying to the US from the UK but from bases in continental Europe."
"It is not clear how Ryanair has calculated the ability to offer fares at $12 when taxes on routes to the US from Europe are currently in the region of $240."
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