Has there ever been a ULCC *long haul* that actually worked? The whole idea (extra fees for everything and not a cubic inch of extra space to save a buck or two) seems stupid for 10 hour flights across half the world where the “extras” aren’t really optional for the vast majority.
I think FrenchBee would be the best example of a long haul LCC that actually works. Not a very big airline, but they're sustainable.
This would be my business plan to success using LGW as my center of operation providing I could get slots. I would start with 3 A321s operating 18 weekly flights over the North Atlantic giving me a spare frame 3 days week so I am not completely screwed if one plane goes tech.
LGW-BOS 4 X
LGW-PIT 3 X
LGW-BWI 4 X
LGW-YUL 3 X
LGW-CLE-DTW-LGW 2 X
LGW-DTW-CLE-LGW 2 X
For flights to Central Europe I would operate the full 21 weekly flights with all 3 frames because if for any reason 1 frame goes down it's pretty easy to find your customers onward connections to their final destination through alterative options.
LGW-BER 4 X
LGW-FRA 5 X
LGW-ORY 5 X
LGW-AMS 4 X
LGW-BRU 3 X
Again the base of operations is flexible but LGW kills 2 birds with one stone it's one less out station you have to serve and it's a major destination with a lot of O/D. STN might work as well. I think this could work well. BOS is good because it's a volume destination with a relatively short flying time meaning less cost so you can take a bit of a hit there on ticket prices.
Sorry to say, but your business plan is doomed to fail. Certainly when another airline comes in with this business plan:
Center of operation would be Budapest. Fleet would consist of 2 A330-800NEOs in all-economy configuration, offering it's maximum seating capacity of 406 seats. These would be the routes:
That's a total of 10 weekly flights, thus 5 flights per week per aircraft. Seems doable to me, even in case one goes tech there wouldn't be immediately a major problem. I would not operate any short haul routes within Europe. Hence, why do you think I picked Budapest as a base? It's the largest base for Wizzair, Ryanair and EasyJet also have a large presence there. They can operate those European flights much cheaper than I can. Yes, the frequency would be lower but low-cost passengers don't care too much about that. They go whenever the cheapest flight goes, therefor a higher frequency doesn't make sense, you'd only be competing against yourself. Because long haul low cost is a niche market, you don't want to flood the market with flights. Let those passengers adapt to you.
The first gain compared to your airline would be the APD. On departure from any British airport to a long haul destination passengers pay £80 APD. Hungary doesn't have any APD, therefor I can start by offering my tickets out of Budapest £80 cheaper than you can out of Gatwick. A flight from London to Budapest is likely cheaper than £80, certainly on Wizzair, Ryanair or EasyJet. Let's say you can fly Luton - Budapest for £20, that's still £60 pure profit for the passenger and then the fare excluding taxes is the same.
But it would not be the same. Given that my plane is packed with the maximum amount of seats, I can divide my total flight operating costs by much more passengers than you can. That leads to a lower price per seat. Granted, given the fact that I use a bigger plane my operating costs would also be higher but still it would be way lower per seat. That allows for lower ticket prices, up to £100 cheaper than your proposal.
The destinations I've chosen aren't random. Not only do they have a large demand by themselves, they also have good connecting opportunities. Newark has a number of flights on Spirit, Frontier and Allegiant, Orlando also has plenty of Spirit and Frontier. Those don't have a major presence at the west coast, but Oakland seems like a pretty good one. Then there's one destination in Asia, which is Bangkok Don Mueang. The hub for NokAir and Thai AirAsia. Those can provide flights further into Asia.
Needless to say, you don't need to interline with those airlines. You just have to serve the same airport, passengers will mix and match their own connections together.
How is your airline going to respond to this? You thought you had something good, until someone else did it better.