Low-cost carrier easyJet has announced that it will be launching a new package holiday service in 2011 after securing a three-year agreement with Lowcosttravelgroup.

Legal practice DLA Piper has advised the budget airline on the easyJet Holidays venture, which is designed to further boost easyJet's ancillary revenues. Customers will be given the opportunity to book a range of low-cost European holidays through the easyjet.com website, supported by Lowcost's marketing team and call centre.

easyJet chief executive officer Carolyn McCall said: "This will be based on our extensive, convenient flight schedule and Lowcosttravelgroup's great quality, competitive accommodation and transfers." Lowcosttravelgroup chief executive officr Paul Evans added: "We are very proud to have been selected to work with easyJet to create a new and exciting holiday brand in the travel industry."