10:03am UK, Wednesday January 09, 2008

British Airways is set to launch a new service between continental Europe and the United States.

180 Plane

'Just two planes will be used'

The new business, which may be called BA European, is likely to start with just two Boeing 757s.

It has has been made possible by the "open skies" deal between the EU and the US which comes into effect in April.

Until now, BA has only been allowed to fly to the US directly from the UK.

Under the open skies agreement European carriers will be able to fly from anywhere in the EU to America.

It is believed BA's new venture will cater for just two classes of passenger - business and premium economy.

The airline could face opposition from pilots' union Balpa, however.

Balpa wants BA's own pilots to be allowed to apply for jobs ahead of new recruits.

The union is due to meet BA to discuss this next week