BRITISH Midland, the UK's second largest airline, is set to announce a new name and livery for its fleet next month.

The airline is taking the step to help it break out of the European market and into the more lucrative US long-haul market.

A spokeswoman for the airline confirmed a new corporate identity would be unveiled on February 1, along with details of its "transatlantic product".

However, the East Midlands-based airline is refusing to divulge the new name ahead of the official launch. It is thought the frontrunner is BMI, or British Midland International. Bluebird and British Blue have already been rejected. British Midland is hoping its rebranding is more successful than that of British Airways in the late 1990s.