SkyNet plans to fly from Shannon to US

Aer Lingus is facing further competition on trans-Atlantic routes with private airline SkyNet planning to operate from Shannon to Newark this summer.

The move means five airlines could end up flying from Ireland to the US this summer: Aer Lingus, Continental, Delta, US Airways and SkyNet. The strong euro is expected to boost the numbers travelling to the US.

SkyNet has submitted details of its plans to the Department of Transport in Washington, although managing director Mr Paul Williamson said it was too early to say how many seats would be available.

The airline is going to fly one service a day using either a Boeing 767 or Boeing 757. A significant number of seats will be taken by Russian passengers who have flown from Moscow, with the rest taken by Irish passengers.

SkyNet has close links to Russian airline Aeroflot, but the shares are held by several private individuals.

The idea of a Russian-Irish airline was the brainchild of former Aeroflot Shannon station manager Mr Boris Krivechenko. He continues to advise the airline, although the main investors are Irish, EU and American.

One of the backers is US businessman Mr Thomas Kane, owner of Adare Manor in Co Limerick.

While Aeroflot is a partner of the airline, it has no equity in the venture. The airline reported a pre-tax loss of €4.5 million for 2002. This is expected to drop to €3.3 million for 2003 and the shareholders hope it can become profitable by the end of this year.

The airline's main business comes from flying Shannon-Dublin-Amsterdam-Moscow.

The trans-Atlantic sector remains a vital market for Aer Lingus, but the airline has faced significant competition from US carriers over recent years. The main competition comes from Continental Airlines which flies to Newark's Liberty Airport from Shannon and Dublin.

Last summer US Airways offered two daily direct flights from Philadelphia to Dublin and Shannon. It was the first time US Airways had flown into the Republic. From Philadelphia passengers were able to make connections to up to 40 other US destinations using the daily service. According to aviation sources the service is likely to be resumed this summer.

The other competition comes from Delta Airlines which offers a daily service to Atlanta.