and Miami, challenging Laker Airways' rival application to become the UK's second designated flag carrier on the route in direct competition with Air Florida as well as in indirect competition with British Airways' and Pan Am's services from Heathrow. The service was to commence at a frequency of five weekly return flights in summer and four weekly round-trips in winter. Air Europe proposed operating the service either with a McDonnell-Douglas DC-10 30 series widebodied trijet or a Rolls-Royce RB211-powered Boeing 747-200B. Air Europe had already reserved delivery positions with both manufacturers. In support of its application, the airline stressed that any spare capacity would be filled with its tour operator affiliates' customers. It hoped that this would convince the CAA of the proposed operation's viability on a year-round basis, especially during off-peak periods. In the event, the CAA rejected Air Europe's application. It argued that the airline was still in its infancy as this was only its second year of operation and, therefore, lacked the expertise to take on three competitors on a major, intercontinental long-haul scheduled service route. Launching low-frequency services on leisure routes Air Europe's first successful scheduled route launch occurred on 2 May 1985. On that day the airline launched a four times weekly scheduled service between London Gatwick and Palma de Mallorca. This was followed by further scheduled route launches between Gatwick and Gibraltar as well as Manchester and Gibraltar in November 1985 and November 1986, respectively. These route launches were part of Air Europe's initial scheduled service strategy to operate low-frequency services on selected leisure routes to destinations already served by Air Europe's charter operation. Taking on flag carriers The gradual liberalisation of the regulatory framework governing the airline industry in Europe from December 1987 provided the legal basis for Air Europe to become the first wholly private airline to take advantage of the new relaxed policies regarding the operation of fully fledged scheduled services on major European trunk routes in direct competition with the established flag carriers. Air Europe considered itself well-placed to take advantage of the new scheduled service opportunities that became available to independent airlines as a result of the gradual liberalisation of the European air transport market. It enjoyed substantially lower operating costs than the established flag carriers because of its much higher aircraft utilisation and labour productivity. This meant that the airline could afford to undercut its rivals' business class