The CEO of Europe’s biggest low-cost carrier, Ryanair, has recently revealed plans to launch a transatlantic airline offering cut-price fares as low as $12 between Europe and the US. This apparently the first major effect of the recently agreed ‘open skies’ pact between the European Union and US. Michael O’Leary has said that he wants to bring his no-frills, bargain basement service to the US in the next few years. Few industry analysts are of the view that he might be the one to pull it off. The pronouncement of the decision comes when entire airlines industry eyeing on to capitalize on new international markets that will be newly freed under the ‘open skies’ agreement. The agreement was signed with a view to increase service and lowering fares. BWI in all probability be benefit with overseas discount airlines that know the Baltimore airport as a low-cost hub. Although Ryanair’s service would not be luxurious, but if this airline starts his announced services it not only would fill empty gates at the airport, but also could force others to lower their fares across the Atlantic. However, the announcement of Michael O’Leary met with scepticism from rival airlines and analysts. They are of the view that flying economy class to the US is a loss-making business. Lawrence Hunt, chief executive of all-business class airline Silverjet, which travels from Luton to Newark, New Jersey, said that any UK to US service would struggle without a business class section. BA earns about two-thirds of its profits from transatlantic travel with maximum part of that coming from business class tickets to New York, analysts have argued. The very slim margins on economy class seats will allow the likes of BA to reduce the cost of cheap tickets which make insignificant amounts of money for the airline anyway. Few analysts see this announcement as the $12 one-way fares that O’Leary mentioned could end up as a momentary marketing stunt, and they do not include hundreds of dollars in taxes and fees.