A new UK low-cost airline is gearing up for launch later this year. The project was conceived by Neil Hansford, who founded the long-defunct UK regional airline, Euro Direct.
The start-up is to be funded by European private equity and initially will not take on any debt. With a projected annual turnover of more than £100 million ($144 million), it will operate a fleet of 10-12 leased Boeing 737-300s, providing mainly European services out of UK airports including Birmingham but not London.
The business plan for the carrier, which was submitted to the UK Civil Aviation Authority last month, was drawn up by Hansford, who launched Euro Direct in the mid-1990s. The airline was grounded after 10 months. Hansford is also a former executive of TNT and managing director of British World Airways. He is currently advising the unnamed investors in his capacity as chairman of UK consultancy Strategic Airline Solutions but would become a director of the airline.
Hansford says the airline will not sell tickets through travel agents but will use direct telephone and internet sales via the company's own booking engine. "It will be a right-priced, low-overhead, airline," says Hansford, who cites EasyJet as the "brand leader" in the low-cost market.
The airline has "no interest in London what so ever" as a base because of growing congestion. "One of the airports in the proposal is Birmingham," he adds. The UK's second-largest airport outside the London area, with 7.8 million passengers last year, Birmingham says it is "aware" it features in the "embryonic" plans of the new carrier.
The launch date is "probably September", Hansford says, adding that the CAA has to respond to the business plan within two months.
Source: Flight International
