(Reuters) - British Airways owner IAG (ICAG.L) said it will launch a new low-cost, long-haul airline with flights from Barcelona to the Americas, in response to rising budget competition on transatlantic routes.
Long-established airlines like American Airlines Group Inc (AAL.O) and Delta Air Lines Inc (DAL.N) are finding their formerly lucrative transatlantic routes tougher amid rising competition from budget newcomers like fast-expanding Norwegian Air Shuttle ASA (NWC.OL), WestJet Airlines Ltd (WJA.TO) and Wow Air.
IAG's new airline, Level, will start in June with flights from Barcelona to Los Angeles, San Francisco, Buenos Aires and Punta Cana, it said in a statement on Friday. (bit.ly/2mQ9mPO)
As well as British Airways and Vueling, IAG also owns Spain-based Iberia and Ireland-based Aer Lingus.
Level will start flying with two new Airbus A330 aircraft and initially will be operated by Iberia's flight and cabin crew.
Reporting By Justin George Varghese in Bengaluru; Editing by Shounak Dasgupta