The arrival of Now, a new low-cost airline flying from Luton, has been announced.

The new carrier will offer fixed fares according to destination and season, with the result that all passengers on any flight will be paying the same. Apart from the £5 government tax, all charges will be included in the price.

The company will be flying, subject to final confirmation, to Manchester, Hamburg, Jersey, Rome, Lisbon, Ibiza and Tenerife.

Initially using two aircraft, Now will add a third later in the year, allowing two further destinations - Valencia and Dusseldorf - to be added, again subject to final confirmation.

Interim chief executive of Now, Lars Welinder, said : 'We've had tremendous support from the airport, from Luton Borough Council and from the East of England Development Agency who have awarded us a Regional Selective Assistance grant of around £300,000 towards our start-up costs.'

For Luton Airport, managing director Paul Kehoe said : 'London Luton Airport is again taking the UK lead by becoming a partner in the launch of a new concept in flying - second generation low cost.'

The company is in the process of applying for an operating licence and its first flight is scheduled to depart in the summer. Details: www.fly-now.com