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The new long-haul budget airline by parent company IAG is called "Level" and will be based in Barcelona, which is also the hub for Vueling, IAG's Spanish no-frills airline.

Level's aircraft will be fitted with 21 premium-economy and 293 economy-class seats.

This low-priced, long haul airline will begin flying twin Airbus A330's in June 2017, with inaugural flights from Barcelona to Los Angeles, San Francisco, Buenos Aires, and Punta Cana. It will benefit from having the strength of one of the world's largest airline groups behind it.

According to The Telegraph, IAG chief executive Willie Walsh said that other European destinations are in the works.

According to IAG, the parent company of British Airways, Iberia, Vueling, and Aer Lingus, LEVEL will be the a long haul low-priced carrier that will connect Europe with destinations across the Atlantic. Passengers flying in premium economy will have access to complimentary meals, in-flight entertainment, seat selection, and a piece of checked luggage.

The new airline will operate out of Barcelona, Spain, and will officially launch in June. It will complement our existing airline portfolio and further diversify our current customer base.

According to Loizos Heracleous, a professor of strategy at Warwick Business School who has followed the aviation industry, long-haul, low-priced travel is on the rise. High-speed Wi-Fi will be offered for prices starting at $9.65.

"Barcelona is Vueling's home base and this will allow customers to connect from Vueling's extensive European network onto Level's long-haul flights", he said.

LEVEL customers can earn Avios, the loyalty currency of British Airways and other IAG airlines, although at significantly reduced earning rates for the cheaper fares.

Mr Walsh added Barcelona was "just the start" and that other European destinations would be added.

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.