British Airways has ordered eight new Airbus A320 Family aircraft for delivery in 2008-2010.

This is the first step towards a single shorthaul fleet across British Airways' network.

The airline will also upgrade the Gatwick shorthaul fleet by replacing the oldest 14 Boeing 737s with Airbus A319 aircraft.

Willie Walsh, British Airways' chief executive said: "We've made considerable progress at Gatwick, particularly on costs. Gatwick is an important part of our shorthaul strategy and replacing the older Boeing 737 fleet with Airbus aircraft will give us flexibility across both airports. This is the first step towards a single shorthaul fleet."

British Airways will place a major order for replacement and growth wideboded aircraft later this year for delivery in the next decade.