British Airways Explores Launch of Low-Budget Carrier

British Airways is poised to launch a new low-cost airline for Europe, a move that would allow it to compete with the two premier budget carriers that service the continent.

EasyJet and Ryanair have had success in recovering from the pandemic as both mostly cater to leisure travelers, the group that has returned more quickly than the business sector travelers, CNN noted.

British Airways CEO Sean Doyle issued a memo to BA staff, first seen by the travel website Headforpoints.com, Doyle said that British Airways was planning a “new operating subsidiary” to run alongside its existing long-haul operation at London’s Gatwick airport.

Doyle added that the new airline would seek to serve “highly competitive” short-haul routes from London’s second-biggest airport by the summer of 2022.

A spokesperson for British Airways confirmed to CNN that the airline was working “on proposals for a short-haul operation at Gatwick” but declined to comment further.

British Airways’ owner, International Airways Group (IAG), has been no different than any other major airline – it hemorrhaged money for the last year-and-a-half due to the coronavirus pandemic, a reluctance to travel by air, and restrictions on those who were willing to fly by air.

IAG reported a pre-tax loss of 2.3 billion euros ($2.7 billion) for the first half of this year, the bulk of which was incurred by British Airways.