British Airways orders aircraft, raises surcharge

British Airways orders aircraft, raises surcharge

British Airways will modernize its long-haul fleet with 12 new Airbus A380 “mega-jumbos” and 24 Boeing 787 aircraft to be delivered from 2010 to 2014.

   The multibillion-dollar orders include options for a further seven Airbus A380s and 18 Boeing 787s. To finance the firm orders British Airways has arranged for a group of banks to provide $1.5 billion of debt financing.

   The A380s will become the first Airbus aircraft in the airline’s long-haul fleet, which, along with the 787s, will replace 34 aging 747 and 767 Boeing planes.

   The airline said the A380s would be used to provide more capacity for its key high-density markets and maximize use of scarce Heathrow slots while the B787s will be used to start new routes and increase frequencies in existing markets.

   In addition, British Airways World Cargo said it will increase its fuel surcharge to 44 pence (65 cents) per kilogram, effective Oct. 11.

   The carrier said the increase follows a second consecutive week its fuel index has been above the level 13 threshold.