Low-cost US airline eyes Atlantic

BRITISH Airways and Virgin could face a new low-cost rival on transatlantic routes if an American start-up wins government approval.

SkyLink Airways has lodged a business plan with the US Department of Transportation that proposes flying scheduled and charter services from Baltimore to London and Paris.

The airline hopes to be operational by next May and says it is 'close to announcing a deal' on aircraft agreements with Boeing and Airbus.

According to documents lodged with the US authorities, SkyLink would offer fares between 15% and 70% below those of the major airlines. Josh Marks, 27, a Harvard Business School graduate has joined forces with chief executive Kenneth Carlson, 59.

The latter has experience running small airlines Midway, which went bankrupt in 2001, and Jet Express. The new airline plans to target last-minute business travellers.

Marks is still trying to piece together financingfor the venture by raising $130m (£71m) from unnamed venture capitalists. The funding is a key question for the US Department of Transportation, which reportedly threatened to dismiss SkyLink's application unless it gave more details of its financial backers by 18 April.

Marks maintains the funding is on track. Previous budget transatlantic carriers, most famously Freddie Laker's failed venture, have not been successful and the route is jealously guarded by the large incumbent carriers.