BA outlines �450m cost savings-ar--F.

BA outlines �450m cost savings-ar--F.: "BA outlines �450m cost savings



British Airways aims to achieve cost savings of �450 million in the two years prior to moving into Terminal 5 at Heathrow in March 2008.

The airline wants to drive costs down by �225 million a year over the next two financial years.

A new business plan unveiled by chief executive Willie Walsh includes an investment of almost �200 million in new Club World seats, on-demand films in all cabins and ba.com.

The airline wants to see the proportion of online bookings worldwide through its website rise from a third to half by March 2008.

The plan, which includes improvements in punctuality and baggage performance prior to the switch to the new terminal, comes against a background of the airline's fuel bill being up by around �400 million for 2006-07.

BA also revealed that flights to Australia and Spain will not move to Terminal 5. Instead they will operate alongside Oneworld alliance partners Qantas and Iberia from Heathrow's Terminal 3 from March 2008.

Walsh said: 'This plan will make us fit for the future. By resolving our pensions deficit, reducing cost and delivering world-class customer service, we can make 10% operating margin a sustainable reality.

'Better management of our costs and having an absolute focus on customer needs will give us a lasting platfrom for success.

'Meeting the business plan's objectives will put us in a position to take on our competitors in preparing for growth.' "