Airline Air France-KLM is launching a new low-cost service under the name Hop!, by merging the group’s three existing budget companies.

The new unit will have 98 aircraft and fly to 136 destinations within Europe, with tickets from €55 upwards for a single journey. The aim is to compete with other price-fighters on short and medium routes.

Other European airlines, such as Lufthansa, have already launched budget services.

The new company – a combination of Brit Air, Regional and Airlinair – should become operational on March 31.