A Northern Virginia company has received initial federal approval to form the first U.S.-based low-cost airline that would fly exclusively to international destinations, although it still must clear other regulatory and financial hurdles.
The Department of Transportation has given tentative approval to SkyLink Airways Inc., calling the new venture "fit, willing and able" to operate financially. But the Federal Aviation Administration must still approve its maintenance and safety plans.
The company has told the Transportation Department that it would like to start flying this spring, with flights from Baltimore-Washington International Airport to Stansted Airport outside London.
The airline says it intends to fly wide-body Boeing 767s to as many as 15 countries on four continents.
The company, headed by longtime airline industry executive Kenneth T. Carlson, proposes to sell economy and business-class tickets at fares 15 to 70 percent lower than those offered by traditional carriers, SkyLink said in its filing with the Transportation Department.
SkyLink said it may offer a one-way business-class fare to Europe of $700 instead of the $2,300 to $2,400 charged by larger carriers. The airline said it may offer economy fares as low as $300 one-way, although it did not specify whether that was for the summer peak season. Larger carriers already offer lower fares at times during the year.
Although the Federal Aviation Administration has not taken action on SkyLink's application to begin air service, the Transportation Department's findings on SkyLink said that the FAA believes the airline is "making satisfactory progress in working toward obtaining its FAA certification," and that "the agency knows of no reason why the carrier should not be granted the authority it is seeking."
Even if the airline gets off the ground, some analysts are skeptical about its prospects in an industry with large carriers sharply cutting fares to match competitors.
"In this environment, this airline doesn't make much sense," said Anthony F. Cristello, an analyst who follows low-fare carriers for BB&T Capital Markets. "The international markets are the profit centers -- the lifeline -- for a lot of the major airlines. And I think they'd quickly go after their competitors."
Carlson, the new company's chief executive, declined to comment yesterday, saying it was premature to discuss the company's operations.
