It will operate as an independent subsidiary offering the full BA-style service using a fleet of up to 17 Airbus A320s, depending on demand.

BA hopes the unnamed new venture, which will fly in BA colours, will return its Gatwick short-haul operation to profit by cutting costs, allowing it to compete with easyJet and Wizz Air at the airport.

BA said: “The continuing travel restrictions mean that British Airways is not currently flying any short-haul flights from Gatwick and looking beyond this, we know the competitive environment will be even tougher than it was pre-pandemic.

“While we want to restart flying short-haul from Gatwick, we will only do this if we have a competitive and sustainable operating cost base.”

BA added: “From a customer experience perspective the new airline will be British Airways branded and customers will continue to benefit from the same full standard of service that they currently receive from us, alongside competitive fares.”

The carrier is in talks with pilot union Balpa, which is understood to be supportive. BA said that alongside this, it was running a process of evaluating alternatives for the Gatwick slots.  

“We believe that our proposals for an independent subsidiary will enable us to both maintain the British Airways customer experience and be competitive in this environment,” it said.