A new long-haul low-cost airline, initially flying direct to Asian and Middle Eastern destinations, hopes to launch this summer.

Air Sylhet, a London-based business created by four British businessmen, will initially focus on providing scheduled services from London - probably Stansted - Birmingham and Manchester to Dhaka, Jeddah, Dubai, Islamabad and Delhi. It plans to operate ten aircraft by the end of year two.

Other planned destinations in Asia and the US will include Mumbai, Amritsar, Karachi, Riyadh, Abu Dhabi and New York.

Air Sylhet intends to be initially financed by a public offering of shares to cover start-up and operating expenses including aircraft lease, crewing, administration, landing and route fees, regulatory costs, maintenance and fuel.

It is planned to list the company on AIM in 2008. Ten million shares are being offered to private investors at £1 each.

Chairman of Air Sylhet, Shah Shahin Choudhury, said the new airline would first concentrate its routes on Bangladesh.

"The demand is significant but the present routes are difficult, rarely direct and frequently expensive," he said. "Our business is based on low-cost long-haul principles offering a daily service on new, modern Boeing 767 aircraft carrying up to 289 passengers.

"Market studies have shown there is significant customer demand for reliable, low-cost airline services to destinations worldwide for the major Bangladeshi, Indian and Pakistani communities in London, Birmingham and Manchester."

There are 2.3 million people with origins from the Indian subcontinent living in the UK.

Kabir Khan, marketing and communications director, said: "Family connections between the UK and the Indian subcontinent are important. The UK Asian community is relatively wealthy and tries hard to maintain its links."

Meanwhile Virgin boss Sir Richard Branson announced plans to launch a business-only airline. Sir Richard said the time was right for a service which "would provide choice and quality for the customer".

Planned destinations will include Frankfurt, Zurich, Paris and Milan. It hoped the carrier would be operational in nine to 18 months.