Willie Walsh, who took over at the weekend as chief executive of British Airways, said yesterday that the airline was planning to spend at least £400m to upgrade its long-haul business class and to move to Terminal Five at Heathrow airport in 2008.

Mr Walsh said investment in a new business class cabin in long-haul would exceed £100m. Investment in the move to Terminal Five would total about £300m and was expected to lead to hundreds of job losses as operations were rationalised.