Ryanair chief executive Michael O'Leary said on Tuesday he may help create a sister company to launch a long-haul, low-cost airline, if cheap aircraft became available next year.

Ryanair, Europe's biggest low-cost carrier, would not invest in the new airline but Ryanair shareholders including himself may be invited to participate, O'Leary said.

"If aircraft fleet prices collapse, it is a real possibility," O'Leary told reporters in London.

"There may be the opportunity to buy a fleet of long-haul aircraft cheaply next year," he said, adding that a collapse of a carrier may create the opportunity for such an order, which would then take a further 18 months to deliver.

Several airlines have gone bankrupt worldwide, hit by a combination of high oil prices and faltering economies, but analysts see Dublin-based Ryanair's position strong as its costs are lower and cash reserves higher than most peers.

O'Leary said there would be no direct connection between the two airlines except that the long-haul one may want to use Ryanair's European bases as hubs.

O'Leary has said in the past he was looking into plans for a no-frills transatlantic airline, without providing any details.

He reiterated that Ryanair expected to break even for the current year if oil stayed at USD$100 per barrel and yields fell by 5 percent.

Ryanair remained unhedged for its fuel needs for the fourth quarter of its fiscal year, O'Leary said.