MyTravelLite, the British low-cost no-frills airline founded by former Ryanair director of sales and marketing Mr Tim Jeans, will begin flying between Dublin and Birmingham from September 30th.

The airline, which is part of the publicly quoted MyTravel group, will operate two daily return services to Birmingham, with fares starting at €1.99 plus taxes each way. MyTravelLite already offers service to Birmingham from Knock Airport in Co Mayo and from Belfast.

Announcing its forthcoming arrival in Dublin yesterday, Mr Jeans said it was braced for an aggressive reaction from its Irish competitors, particularly Ryanair. He also accused Aer Lingus and Ryanair of operating a "cosy cartel" on this route to keep fares high.

"We are prepared for a price war. Ryanair are the most efficient and most aggressive competitor in the market. We are under no illusions about what we are taking on. We will meet and beat the competition," he said.

Responding to MyTravelLite's arrival on the route, Ryanair's head of communications, Mr Paul Fitzsimmons, said it welcomed competition.

"This is not the first time an airline has announced a Dublin route and it won't be the last, and, like all the others, they won't beat Ryanair on price, frequency or punctuality," he said.

MyTravelLite was established in October 2002 and has carried more than 700,000 passengers since its foundation. It began operating flights from Knock in March and has two daily flights between Belfast and Birmingham.

"When MyTravelLite was launched, we promised to deliver low fares and that's exactly what we'll do on the Birmingham route," Mr Jeans said.

Customers can book flights with the airline through its website, MyTravelLite.com. It offers a range of low-fares flights from Birmingham to Spain, Italy, Portugal, Tenerife and Amsterdam.

Its parent, MyTravel, employs 25,000, and has its own fleet of aircraft and cruise ships, as well as a portfolio of hotels and resort properties.

It was formerly known as Airtours and offers package holidays in the Republic through Panorama and Airtours holidays.

In the six months to the end of March 2003, MyTravel reported an operating loss of £282.7 million sterling (€399.87) and has since sought to restructure its debts.

Mr Jeans said that MyTravelLite was part of a long-established group and has a sustainable low-cost model capable of underpinning low fares.

The airline has pledged that 30 per cent, or 60 seats, on each flight to Birmingham will always be available at €1.99 plus taxes.