A price war between airline companies for cheap transatlantic flights is on the cards as many of the budget operators are making a substantial UK investment in providing cheap transatlantic flights.

The carrier Zoom, set up and ran by Scottish entrepreneurs Hugh and John Boyle, said that 25% of seats on flights beginning on the 21st June would be available at “the lowest price”.

Hugh Boyle added: “It’s across the board on all dates. It’s not a low season date, it’s not just if you go on a Tuesday in November. Every flight on every date will have a good availability of seats at £129.”

But Michael O’Leary trumped even this announcement and said that he has plans to launch a new carrier that will offer transatlantic flights within three to four years for as little as £7 per head at any time.

O’Leary’s new company would not fly to the main US airports like New York’s JFK and Washington Dulles, but would open up Long Island Islip MacArthur for New York and Providence, Rhode Island, for Boston.

O’Leary commented that he “expected the planes to be full” as passengers switch from traditional but more expensive long-haul carriers. The cheapest flights at the moment start at £196 to New York.