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A little-known budget airline is set to revolutionise the way we travel, launching low-cost flights between London and the US for as little as £150 each way from this week.

Norwegian, the airline that is coming up behind Ryanair and easyJet to be the third most popular no-frills airline in Europe, will this week launch its first transatlantic service from the UK.

The daring move is expected to cause a price war among established airlines as they battle to keep passengers - and could even prompt other budget carriers to take on the route.

The American dream: Budget carrier Norwegian launches flights to New York, Los Angeles and Fort Lauderdale this week

While Ryanair and easyJet have long hinted that they are considering fling to the US, it is Norwegian that has taken the plunge.

The move is by no means a new one - Laker Airways tried the same thing 30 years ago and failed to make it a success - but Norwegian is already operating budget flights between Oslo and America, which are working well.

The airline launches its first service between Gatwick and Los Angeles on Wednesday, followed by Gatwick to New York the following day and a final route to the Florida hub of Fort Lauderdale on Friday.

Taking off: The airline already runs a successful budget transatlantic route from Oslo to America

While prices during the summer are higher, Norwegian will be offering return journeys from as little as £150 off-peak, one way. That is compared to return flights from the established airlines such as British Airways and Virgin Atlantic, which cost from around £249 one way at their cheapest.

The airline claims it can charge the low prices as it is using new fuel-efficient Dreamliner planes, which means there is not such a pressure to only fly with completely full planes in order to turn a profit.

As well as flying to the US, Norwegian also operates budget flights from Oslo to the Far East, something which could be introduced in the UK if the transatlantic routes do well.

Doomed: Sir Freddie Laker launched his budget transatlantic flights 30 years ago, but it went bankrupt in 1982

Stewart Wingate, the chief executive of Gatwick, told The Times: 'There is no question other airlines will be observing very closely the success of Norwegian on this route.

'Norwegian is already making a success of [low fare] flights across the Atlantic from Oslo and with other long-haul services to Bangkok.'