International Airlines Group (IAG) will launch low-cost subsidiary LEVEL from Vienna in mid-July and operate it as an Austrian carrier.

IAG, owner of British Airways, Iberia and Aer Lingus, already operates growing low-cost carrier Vueling from its base at Barcelona, from which it launched LEVEL as a low-cost long-haul airline last year.

However, the new Austrian-registered LEVEL will operate only short-haul routes when it launches from Vienna on July 17.

The carrier will begin twice-daily services to London Gatwick and daily flights to Palma from its launch, adding services to Barcelona, Malaga, Venice and Olbia in Sardinia by the end of the month.

In August, LEVEL Austria will add flights to Ibiza, Paris Charles de Gaulle, Milan Malpensa, Dubrovnik, Larnaca, Alicante, Valencia and Bilbao – making 14 destinations in all.

IAG said it will base four, 210-seat Airbus A321 aircraft in Vienna to begin operations.

Group chief executive Willie Walsh said: “We are launching this new short-haul subsidiary to provide Austrian consumers with more flight choices across Europe.

“These flights will be branded as LEVEL to build upon the huge success of our new long-haul low-cost operation.”

Walsh said the operation would create “around 200 new jobs at our Vienna base”.

Fares will be available from at the lowest lead-in fare of €24.99 for travellers with a single hand-baggage item.