British Airways will launch a new subsidiary airline called OpenSkies flying between New York and Paris or Brussels in June.

It will use a single Boeing 757 seating 82 passengers in business, premium economy and economy class.

A second aircraft operating to the second European destination will start later this year, with the subsidiary having a fleet of aircraft by then end of 2009.

BA chief executive Willie Walsh said: “We are confident OpenSkies will be a great success building on the strength of the BA brand in the US and Europe.”

Walsh will meet with representatives of pilots union BALPA on Monday to discuss their concerns.

BA’s former director of worldwide sales Dale Moss will be managing director of OpenSkies.