British Airways, Europe's third-largest airline, said yesterday it would increase the size of its lucrative business class cabins over the next 18 months and spend £100 million to upgrade them with new flatbeds.

BA said it was planning to introduce a new flatbed in its Club World business class which is 25 per cent wider than its current model and would upgrade its in-flight entertainment system, as well. Design consultants Tangerine were involved in the design of the new bed, BA said.

"Our premium cabins are our most profitable segment and we are reconfiguring our aircraft to increase Club World capacity by eight per cent, moving from 38 to 52 seats on some of our Boeing 747 aircraft," chief executive officer Willie Walsh said in a statement.

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