With effect from Monday fares from London Stansted will start at 100 pounds return to Milan and Copenhagen, and 120 pounds return to Rome. Prices for every flight will start at these prices, but the number of seats at the lowest level will be limited. Higher prices will be charged in increments of 10 pounds according to availability on the 148-seat Boeing 737-300 aircraft, the airline explained.

"Customers who are flexible about when they travel can be confident about getting a seat at the lowest price," sales and marketing director David Magliano said.

"The number available on each flight varies but we think we will have more seats on our aircraft at the lowest price than any of our competitors," he added.

Theairline said it was also introducing a fully-flexible open ticket fare which allows travellers unlimited changes to when they choose to fly, for 150 pounds return to Milan and Copenhagen and 180 pounds to Rome.

Magliano said the airline had taken a further 500,000 pounds of bookings since the airline started flying on May 22.

In addition to the two million pounds of business already booked by then, which was better than expected.

"All the flights going out are full," he said. "There's a great deal of interest in travelling to these destinations at these prices." As with other low-cost airlines Go will be concentrating on the computer-assisted art of yield management.