In addition to Britain, SkyLink Airways has named Aruba, Austria, Belgium, Canada, Chile, Costa Rica, the Czech Republic, the Dominican Republic, France, Germany, Italy, the Netherlands, Slovakia and Taiwan as potential destinations, according to the documents filed with the Transportation Department.
The company said it hopes to partner with U.S. and European airlines, picking up their connecting passengers and sending business to them as well. Stansted Airport, 40 miles north of central London, is a hub for some low-cost carriers that fly within Europe.
SkyLink said it will initially fly out of BWI, an airport that has lower operating costs than many others and has become identified with low-cost carriers such as Southwest Airlines Co. But it did not rule out offering international flights from other U.S. cities.
SkyLink, which has its offices in Dulles, was incorporated in Delaware in November 2003. Carlson was a high-ranking executive with now-defunct Midway Airlines and several other carriers. SkyLink's president is Joshua B. Marks, who has been an airline industry consultant and is former associate director of the George Washington University Aviation Institute. Carlson and Marks each have a 42.5 percent stake in the company, according to filings.
SkyLink reported it has raised more than $15 million from investors and hired the Lehman Brothers financial firm to raise up to $160 million more. It plans to buy its first three 767s from West Dover LLC, a company owned by Lehman Brothers. West Dover will finance the $26.9 million purchase. SkyLink plans to have a fleet of eight wide-body jets by the end of the year.
The company also must pick a new carrier name: It will give up "SkyLink" to avoid a trademark dispute with a Canadian travel firm known as SkyLink Aviation Inc.
The prospect of another low-cost airline comes at a difficult time in the U.S. aviation industry. The parent companies of five carriers -- United Airlines, US Airways, ATA, Aloha and Hawaiian -- are operating under bankruptcy protection. Delta Air Lines Inc. reported a $5.2 billion loss for 2004. And Flyi Inc.'s low-fare carrier, Independence Air, based at Dulles International Airport, has been struggling to pay its bills.
Aaron J. Gellman, a professor and transportation specialist at Northwestern University's Kellogg School of Management, said the new airline may succeed if it can build alliances with other carriers. But he cautioned that low fares alone won't assure success.
Discussing SkyLink's planned fares, Gellman said, "For a business-class fare, that's quite low." But many large corporations, he said, negotiate bulk discounts with large carriers that bring fares down by as much as 50 percent.
BT&T analyst Cristello said he wonders if customers would feel comfortable taking a transatlantic flight on a low-fare start-up.
"You're talking about a six- or seven-hour trip," he said. "People are building [frequent-flier] miles on airlines like Continental or American or Delta. And they are just not going to be as willing to fly that distance on an unknown airline. People think: 'If I can get just as good of a fare on a Delta or a Continental, or at least close, I don't see any reason why I would be willing to give up [earning] my miles.' "
On Jan. 11, the Department of Transportation issued its tentative approval.
"We tentatively conclude that SkyLink has developed a funding plan which, if successful, will provide the applicant with sufficient resources to commence its proposed air transportation operations without posing an undue risk to consumers or their funds," the agency said.
Before making its approval final, the department gave "interested parties" 14 days to show cause why SkyLink should not be certified. A department spokesman said yesterday that the deadline passed on Tuesday with no objections being raised.
