Zoom launches £129 New York trip

Zoom's US flights are scheduled to take off from Gatwick in July

A price war for budget transatlantic flights could be on the cards after an airline said it would offer a London to New York service for £129 one-way.

The carrier, Zoom, will begin flights from London Gatwick on 21 June.

In addition, budget airline Ryanair has said it is now eyeing a transatlantic service within three to four years, with flights from 10 euros (£6.80).

The news comes ahead of an "open skies" deal allowing more US-Europe flights from March 2008.

'Good availability'

Zoom, which already operates from five UK airports to Canada, said it aimed to become the UK's leading budget transatlantic carrier by undercutting the likes of BA and Virgin Atlantic.

Co-owner Hugh Boyle, the Scottish entrepreneur who started the firm with his brother John, told the BBC that more than 25% of seats would be available at the lowest price.

"It's across the board on all dates. It's not a low season date, it's not just if you go in November or on a Tuesday.

"Every flight on every date will have a good availability of seats at £129."

Passengers will be able to upgrade for £99, the airline said.

The past year has seen the launch of three business class-only airlines - Silverjet, EOS and Maxjet - flying between London and New York.