It says that by cutting airport check-in, it reduces overhead costs.
The new airline would be separate from Ryanair and operate under a different branding.
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Flights were scheduled into regional airports, which offered lower landing and handling charges than larger established international airports.
O'Leary as Chief Executive took part in a publicity stunt, where he helped out with baggage handling on Ryanair flights at Dublin Airport.
O´Leary was charged with the task of making the airline profitable.
O'Leary quickly decided that the key to profitability was low fares, quick turn-around times for aircraft, "no frills" and no business class, as well as operating a single model of aircraft.
A loss of €3.3 million in the second quarter of 2004 was the airline's first recorded loss for 15 years but the airline became profitable soon after.