Willie Walsh is keen to make his mark

BA's new business plan aims to save �450m ($781m) over two years, in time for the flag carrier's move to its new home in Terminal 5 at Heathrow airport.

About �200m will be spent on improving passenger comfort, including a new Club World seat and on-demand films.

But BA said the plans "could mean more job losses".

The airline has already cut staff levels by about 12,000 since 2002. Last year, it announced that 600 management jobs would be axed.

The Transport and General Works Union (T&G) is studying BA's proposals.

"Everyone wants BA to continue its success. But that must include recognition that the workforce and the unions have, and will continue to play, a key role," said T&G national secretary Brendan Gold.

Wide-reaching

As part of the review, the airline will target greater use of self-service check-ins and will upgrade its website.

The plan will make us fit for the future Willie Walsh, BA chief executive See BA's share price

Nearly a third of BA customers bought their seats directly from the airline over the last year, the vast majority of them booked on ba.com.

BA said it would also take steps to improve punctuality and baggage performance.

In the next 12 months, the airline forecasts revenue growth of 4% to 5%, driven by increased capacity.

However, its fuel bill for 2006/07 is expected to rise by �400m to �2bn, which could result in further fuel surcharges on passengers' tickets.

"The plan will make us fit for the future," said chief executive Willie Walsh.

"By resolving our pensions deficit, reducing cost and delivering world-class customer service, we can make a 10% operating margin a sustainable reality."