Low Cost Carrier to fly over the Atlantic


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RivieraJet hopes to 'leapfrog' transatlantic competition
Dateline:  Tuesday February 24, 2004 

Now in its final planning stages, RivieraJet Airways, a new low-cost carrier that will operate on transatlantic routes, unveiled more of the business plan that it said it intends to use to "leapfrog" the competition by deploying the latest in technology, equipment and services.

"RivieraJet will cross the Atlantic faster, cheaper and better. That's a winning combination in any business," Chairman and CEO Thomas Bonetti said.
The company, which plans to launch operations later this year, said it will keep its costs and fares down by following and enhancing the successful "alternative airline" model employed by carriers such as JetBlue Airways. "We didn't have to reinvent the wheel. We just had to learn from the other cost-efficient alternative carriers and update that strategy for long-haul," Bonetti said.
RivieraJet will offer only direct point-to-point flights. It said it already has put in place a "desirable and carefully planned" network of transatlantic routes that are underserved or not served at all. "Because the legacy airlines have such high cost structures, these routes aren't viable for them," it said.
The airline plans to grow its network by developing three strategic gateways on the US East Coast, with one located in the Northeast, one in the mid-Atlantic region and one in southern Florida. It said it already has secured agreements in principle with its three preferred US gateway airports for terminal use. From these airports it will offer flights to "major destinations" in the UK, France, Germany, Italy, Spain, Switzerland and the Benelux.
The carrier will operate a single type of aircraft and talks are underway with Boeing and Airbus, it said. RivieraJet also developed a "simple fare structure" with three classes of service: Classic, Classic Plus and Business Class. Passengers in each class will have access to individual in-seat video and inflight entertainment and the company said it expects to offer Internet connectivity and e-mail access for a "modest" fee.--LF
ATA is also in the planning stages to start scheduled transoceanic flights in the next couple of years.
It sounds like Virgin Atlantic - apart from Virgin flew to cities you actually wanted to go to. I wonder what cities in the UK you want to go to that are not already flown into.

MAN - US is done by many majors
Birmingham - US - AA
Stansted - US - CO
Scotland - US - Many majors

We all know they are not going to be operating into LHR.
This is going to be interesting because the majors have such a high amount of mothballed capacity either sitting idle or doing hi freq routes like NE to FL that could absolutely obliterate any competition on their routes.

But only if they face the threat head on. Who knows. Perhaps they'll just ask us to work for lower wages and that'll solve their unwillingness to compete.