British Airways orders eight A320s

British Airways said it has ordered eight new Airbus A320 family aircraft for delivery in 2008-2010, marking the first step towards a single short-haul fleet across the airline's network.

The airline said it will also upgrade the Gatwick short-haul 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 short-haul 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 short-haul fleet".

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

British Airways has a short-haul fleet of 67 Airbus aircraft. An Airbus A320 costs $66 million.