British Airways said it would begin flying from Stansted Airport, establishing a presence at London's No.3 airport for the first time and bringing it into direct competition with budget carrier Ryanair (RYA.I) on leisure routes.

BA, owned by International Airlines Group (ICAG.L), said on Tuesday that from May it would fly to Faro in Portugal, as well as Ibiza, Malaga and Palma in Spain, from 49 pounds ($71) one way.

The full-service operator, which provides complimentary refreshments on flights, will compete directly on those routes with no-frills Ryanair, whose cheapest flights in May cost about 25 pounds one way.

BA's move into secondary airport Stansted enters traditional budget carrier territory, a change from a wider trend of low cost airlines increasingly flying from a city's main airport and stealing market share from full-service airlines.

Stansted, 35 miles north of London, will become BA's fourth airport in the region. It already flies from London's Heathrow, Gatwick and City airports.

BA said the flights would be operated by its BA CityFlyer subsidiary on two-cabin 98-seat Embraer jets which are usually based at London City.