Ryanair to offer £7 U.S. flights

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Chief executive Michael O'Leary said his company would create a separate airline with a fleet of wide-bodied jets flying from Stansted and Dublin to both the east and west coasts.

Revenues would be increased through the sale of food, duty-free goods and inflight entertainment.

The services would not go direct to major U.S. cities, however, but to smaller, outlying airports.

Ryanair's move is made possible by the recent open skies' agreement between the U.S. and the EU, which lifts competition restrictions on transatlantic routes from next year.

British Airways, whose fares to New York start at £270, questioned how Ryanair could talk of £7 tickets when taxes on U.S. routes are around £120.