British Airways to buy 11 new regional jets, cut long-haul fares

British Airways, the UK's flagship carrier, is looking for expansion, with £240 million orders for 11 new state-of-the-art Embraer aircraft for City Airport.

BA, which operates daily flights from Bahrain to London Heathrow airport, also cut its fuel surcharge by as much as a third on long-haul services, despite an expected 50 per cent rise in fuel bill for 200-09.

The reduction in the fuel surcharge would apply to all four BA cabins - World Traveller (economy), World Traveller Plus (premium economy), Club World (business) and First - the airline said.

The fuel surcharge cut will result in a saving of between £30 and £82 on return trips from Bahrain to London and North America, depending on their cabin of choice, according to British Airways.

While British Airways' fuel bill for 2008-09 is expected to rise 50 per cent from £2 billion to £3 billion - a daily equivalent of £8 million – a reduction in global oil prices will bring down BA's fuel bill for 2009-10.

BA will be buying 11 regional jets - E170s and E190s - from Embraer of Brazil, with an option to buy three more, for its subsidiary CityFlyer's short-haul routes from London City Airport to other European destinations.