AAI Airtran Holdings, Inc.

Ryanair Holdings PLC (RYA.DB, RYAAY) said Tuesday that it will test reserved seating for the first time in a move that will be closely watched by other low-cost airlines.

Europe's largest carrier of airline passengers will offer access to 24 seats on its Boeing Co. (BA) 737-800s for 10 euros extra. The front two rows are seen generating a premium from passengers wanting a quick exit while the two over-wing exit rows offer more leg room.

Ryanair has a reputation as an industry leader in generating extra revenue, being one of the first to charge for checked bags. It had stopped short of assigned seating in an effort to speed boarding and aircraft turnaround times, though it already offers priority boarding for 4 euros extra.

The trial will start May 16 on its flights from Dublin to London Gatwick--which have a relatively high percentage of business travelers--and from the Irish capital to Malaga, Spain. It plans to roll out "selectively" on other routes if the trial is successful.

Fellow low-cost pioneers including Southwest Airlines Co. (LUV) have looked at assigned seating but opted against the practice. Network carriers have long offered seat assignments, but over the past two years have started charging extra for those offering extra leg room or speedier boarding and exit.

Southwest executives have said there are no plans to provide assigned seating and they have not been under pressure from passengers to change Southwest's policy, though merger partner AirTran Holdings Inc. (AAI) does have reserved seats.

Air Berlin PLC (AB1.XE) already offers reserved seats for a surcharge between 10 euros and 20 euros, while EasyJet PLC (EZJ.LN) said allocated seating is "one of several options that we keep under review".

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com

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