The new chief executive of British Airways, former Aer Lingus boss Willie Walsh, has vowed to make “significant investments” in the Club World cabin, in-flight entertainment and the ba.com website in the coming year.

Walsh, who has been chief exec in waiting for the past five months, took over from Rod Eddington yesterday and said the airline had made tremendous progress in the past but there was “room for further improvement”.

Walsh has made it clear that working practices at the airline will have to change. He comes from Aer Lingus with a reputation as someone who is unafraid of cost cutting and with experience of hard negotiating with unions.

Walsh says: "Terminal 5 gives us a once in a lifetime opportunity to provide a world-class service for customers and to work with the unions in a way that is relevant to the 21st Century. We will address working practices in a structured way."

"There are further opportunities for efficiencies all across the airline which we will need to deliver to ensure our financial viability and to allow us to invest in the future."