Up to 120 new jobs are to be created at Gatwick with the takeover and expansion of an airline.

The Libra Holidays Group has bought a two-thirds share of Sabre Airways and will run it from next summer.

Libra plans to buy three new Boeing 737s and operate under the new name Excel Airways. It will also hire three extra 767s to cope with summer demand.

The number of ground staff, cabin crew and flight crew is expected to rise from 200 to about 320.

Eamonn Mullaney, Libra's chairman, said: "Our acquisition of Sabre enables us to expand the airline and allows independent tour operators to secure their capacity for future years.

"With the investment in new aircraft and major rebranding, it is our intention to deliver a new standard of service to our tour operator customers and it is our aim to create the leading UK charter airline."

Excel will fly to traditional short-haul holiday destinations including Spain, Greece and Cyprus, and some distant locations such as Luxor and Sharm el Sheikh in Egypt.

The company aims to fill a gap in the market left by larger airlines which focus most of their efforts on the biggest tour operators.

An Excel spokesman said: "Often the smaller, independent travel agents don't get the same level of service from the big airlines.

"We want to offer them something new, a charter service devoted to their needs. It is a very exciting time for us and for Gatwick.

"We will have the UK's most modern charter fleet."