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Fly Atlantic is the latest start-up to attempt low-cost UK to US flights

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There is something about the lure of commercial aviation that continues to attract new entrants in a disproportionate way, given the high capital costs.

Looked at cold heartedly, it makes little sense. Even in a good year the global aviation industry struggles to make much of a profit, and averaged over a business cycle it is debatable whether the industry as a whole makes any money at all.

Fly Atlantic is the latest company to announce plans to buck the trend and launch a successful low cost transatlantic airline.

Fly Atlantic CEO

Fly Atlantic has chosen Belfast International as its base, which is interesting.

One thing in its favour is that there is no Air Passenger Duty on flights from Belfast International.

The snag, of course, is that it isn’t far from Dublin. Dublin also has no Air Passenger Duty (as its not in the UK) but can also offer customs and immigration pre-clearance for US flights, a wider range of destinations and carriers and a wide range of onward connections to the UK and Europe.

Belfast International, on the other hand, can’t even offer much in the way of connections. Belfast City is the airport of choice for short haul carriers.

As Simon Calder notes in The Independent, Belfast International has a history of failed transatlantic routes:

  • Norwegian launched and then dropped North American flights from Belfast in 2018
  • United Airlines dropped its service to New York Newark in 2016
  • Flyglobespan tried Toronto and Orlando flights in 2009 before collapsing

What will Fly Atlantic offer?

The plan is to offer ‘new direct routes to North America, Great Britain and continental Europe from Belfast International’.

If this follows the Aer Lingus model, it will mean aircraft doing an afternoon flight to North America, an overnight flight back and then a short hop into the UK or Europe before returning to North America. It is promising 35 destinations which seems a huge stretch given the Belfast catchment area and lack of connectivity.

Belfast International Airport

When will Fly Atlantic launch?

The plan is for flights to begin in Summer 2024 with an initial fleet of six aircraft, growing to 18 by 2028.

Crucially, there is no aircraft deal at present. The press release says that it is in discussions with both Boeing and Airbus, with a choice between the Boeing 737 MAX and the Airbus A321LR. However, I would question whether an order placed now, especially for the ‘proven on transatlantic’ A321LR, could be delivered within 18 months. 

Fly Atlantic’s Chief Executive Andrew Pyne said:

“Our vision is of Belfast as a strong aviation hub linking Europe and North America. The lack of direct transatlantic air services has clearly been an impediment to Northern Ireland’s economic and tourism development, which we now intend to remove. The project can be a gamechanger. We will be offering affordable fares with brand new aircraft. We already have offices at the airport and will now be building out the infrastructure to support the airline’s launch. We start recruiting for the team early in 2023.”  

“We looked at many options throughout the UK and Ireland. Belfast International and Vinci stood out in terms of the facilities that they offered us and by their enthusiasm for and commitment to making this project a reality. Northern Ireland has a proud aviation and engineering history, and we are delighted to be able to build on this tradition as we develop the airline and its support functions.” 

Pyne was previously CEO of Cobalt Air, the defunct Cyprus-based carrier, and the rest of the senior team also seem to have Cobalt Air connections. It is worth noting that Cobalt Air did have a high quality in-flight product and was well regarded, if an eventual commercial failure.

Whilst an A321LR, which tends to have around 170 seats in a two class configuration, would be a good choice to use from a secondary city such as Belfast, the economics will always be against niche operators.

Business travellers, who pay the highest fares, value certainty above all else – an airline with only a handful of weekly flights to a city and no obvious alternatives when things go wrong (as they always do) will lose out to one with multiple daily flights and plenty of Plan B’s in case of disruption.

Let’s see how this one develops. There is a website up and running which you can find here but there’s not much on it.

Comments (44)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • AJA says:

    As Richard Branson so astutely observed:

    “If you want to be a millionaire, start with a billion dollars and launch a new airline.”

    Though to be fair he has done rather well out of his own start up although that’s more down to then successfully flogging half less 1 controlling share off to anyone who will bite.

  • Paul says:

    The important comment about most short hall airlines using Belfast City airport is a little misleading,
    Ryanair flies to Belfast International and the majority of EasyJet flights are from Belfast International.
    BA may use City, but international has many many more flights a day to the UK.
    For example – EasyJet normally has 2 daily flights from any London airport to Belfast City, but it has 11 flights to Belfast International.

    • TerryTierPoints says:

      This is all true. The runway at George Best is too short for even European flights; regional only.

  • TimM says:

    FlyAtlantic appears to be little more than a business plan and a minimal website. However, new entrants should always be welcomed and there is great potential of the A321LR operating on a hub-spoke low-cost model. The location, Belfast, is almost irrelevant if there are enough short-haul spokes. Avoiding UK APD is a huge benefit as is new, fuel-efficient, relatively low-maintenance aircraft. A fleet of six provides sufficient redundancy but “35 destinations” appears quite a stretch.

    I thought that the most profitable seat was premium economy so I would expect a mix of short-haul economy & PE – no business class. Corporates are likely to stick with their legacy contracts anyway.

    I expect some headline super-cheap fares, but much like as with Laker Airway’s ‘Skybus’, the giants are likely to use their powers to squash the new entrant, at any cost. If I were the CEO of Fly Atlantic, I would launch pre-emptive legal cases against the competition now 🙂

  • Stevek1 says:

    Firstly, the catchment area is not that small – you only have to look at the catchment area of Shannon airport to rubbish the argument you are trying to make.

    Belfast intl pre-pandemic also had approximately 3x the traffic of Belfast city which would not have a runway capable of handling Fly Atlantic transatlantic segments.

    Lazy reporting, spouting the same thing picked up by other outlets days ago.

  • Andy S says:

    It will be bust in 2 years.

    Why do you think O’Leary has never flown long haul?

    The economics!

  • Spaghetti Town says:

    Would love to know Robs thoughts on which industries an entrepreneur should go into? (Serious question)

    • Richie says:

      That’s easy. It’s all about harnessing the energy from the heat of summer, storing it, and then using it in the depths of winter.

    • Rob says:

      Things I made a lot of money with in my private equity career:

      * products where customers do no price comparison (funerals in our case)

      * back-end tech businesses with recurring revenues (domain name registration, software for insurance brokers in our case)

      * buying a retail / restaurant format which could be rolled out

      * businesses with complex pseudo monopoly positions due to entry barriers (eg pharma packaging, which is so strictly regulated the barriers to entry are huge)

      * buying anything being sold by the Government

      • TimM says:

        “* buying anything being sold by the Government”
        Or supplying anything being bought by the Government.

      • Spaghetti Town says:

        Really interesting. Thanks.

        Never knew funerals were considered investable, small businesses only came to mind on that one!

        • Rob says:

          Look up the cost of a hearse, then think about the savings of sharing one across 3-4 outlets and not just 1.

  • BA Flyer IHG Stayer says:

    “One thing in its favour is that there is no Air Passenger Duty on flights from Belfast International.“

    That only applies to direct flights to Band B & C countries.

    APD still applies to flights to Europe and if you fly and then have a connection on the same ticket (such as Belfast – LHR – USA or Belfast – AMS – XXX)

  • Londonsteve says:

    What is it about the TATL market that seems to lure these start-ups, invariably trying to compete in a market flooded with choice and a dense schedule. The US and western Europe are two of the wealthiest places on the planet, the potential market for low cost TATL flights is extremely limited to the point that even people in the market to save £200 would wrinkle their nose at the offer of one departure a day and no on board catering. After all, you’ll spend a fortune when you arrive in either location, so why try to shave a few pounds off the flight and in turn make your life very uncomfortable? Absolutely fine for Belfast locals looking for a direct flight to NY or wherever they will fly to, but that’s a tiny market. I’d wager that more than 50% of Belfastonians would rather go to Dublin or London to commence their TATL crossing anyway.

    The world is full of opportunity for affordable aviation to make a real transformation to people’s lives, Wizz Air are in the process of building a low-cost Emirates and I’m sure it’ll be very successful as for many of their existing and future destinations (in both the eastern and western hemisphere), it does make a real difference if the overall flight cost is £200 lower and a huge potential market of customers will gladly weather the discomfort of flying on a high density single aisle aircraft and transferring planes in the Gulf. Why don’t these TATL start-ups direct their industry nous and start-up capital to something useful with a realistic prospect of success, the new Wizz model being just one example, rather than offer yet another budget flight across the Atlantic that nobody wants? There’s even a potential market for these flights in western Europe heading to otherwise expensive to fly to or good value end destinations. When the XLRs are delivered to Wizz I’m pretty sure they’ll russle up a surprising amount of customers departing LGW seeking to fly to India, Thailand, Vietnam, Kenya, et al. Backpackers, VFR, migrant workers et al. Absolutely nobody wants to fly to Philadelphia in the same way. A friend flew BUD-DWC a few years ago on an A320 and said that 5 hours was perfectly bearable with a little prep, the flight was a fraction of the price of the Emirates alternative.

    • Richie says:

      Have you not notice Wizzair sticks two fingers up at EU&UK261? Well worth avoiding.

      • Londonsteve says:

        I’ve flown them for nearly 20 years and always found them a cheerful and reliable operation. The pandemic bought sharp practice out of the cupboard across all airlines, which is deeply unfortunate. BA was no different in this regard. Wizz are like Ryanair in more ways than one: airlines that are popular to castigate and laugh at, but the people that use them overwhelmingly say positive things about them, mostly that they get you from A to B, reliably and on time. I once had to claim 261 delay compo from Wizz 10 years ago (none of the other hundreds of flights I took with them were delayed for as long) and it was paid without much bother.

    • dougzz99 says:

      Nicely put and thought through.

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