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Aug 5
Low Cost Carrier, Zoom UK, to Launch US Service by Early 2007
So do you remember when United Airlines CEO, Glenn Tilton, said that low cost carriers would never fly on the long haul international routes"The simple Southwest [Airlines] model, although compelling from a cost perspective, will never serve Shanghai nor will it ever serve Springfield, Ill."  Tilton believes that the major legacy carriers are safe on these routes where the LCC's will not be able to compete because their aircraft will not reach those ranges.  Tilton said, Low-cost airlines will "never" fly long-distance routes to China nor short hops to smaller cities because those flights don't fit with their economic model.

Low-cost flights to the US could become a reality when an airline promising cheap tickets on transatlantic routes is launched in Britain early next year.

united-inside.jpgOttawa-based Zoom Airlines, which currently offers one-way fares between the UK and Canada for as little as £99, is to launch Zoom UK after Bank of Scotland Growth Equity bought a 7.5 per cent stake. Zoom says it will fly between the UK and the US, Mexico and the Caribbean. Likely routes include Gatwick to New York and San Francisco.

Uh, Mr. Tilton you want to rethink what you said? 



A spokesman said they would be the first dedicated low-cost flights to the US since Freddie Laker launched Laker Skytrain in 1977. The London to New York service was popular but went bust in 1982 as other airlines lowered their fares in response.

The UK subsidiary will be formed later this year using the Bank of Scotland's £5.7m investment and could start flying in early 2007.

Zoom was started by Scots-born travel entrepreneurs John and Hugh Boyle, who made £53m with the sale of Direct Holidays in 1998. In the last three years it has carried 750,000 passengers between the UK and Canada. It has five Boeing 767-300s and two more planes on order.

Like the Canada routes, ticket prices with Zoom UK will include meals and there will be a premium-class cabin. Passengers will be able to fly to one destination and back from another - for example, from Gatwick to New York and returning from San Francisco - at no extra cost.

The Observer

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