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.
The E170s will be 76-seaters and the E190s 98-seaters will replace smaller Avros, while deliveries will start in the second half of 2009.
BA was voted 'Airline of the Year' by frequent travellers from across the world at the Official Airline Guide Airline of the Year Awards this year.
British Airways route network covers 145 destinations in more than 70 countries and carries approximately 36 million passengers a year around the world.