British Airways has appointed Rod Eddington its new chief executive.

Mr Eddington joins the company from the position of executive chairman at Ansett Holdings and deputy chairman of News Ltd.

He replaces Mr Bob Ayling, who resigned suddenly in March, saying he intended to devote himself to his private interests.

Mr Eddington worked for Cathay Pacific for 18 years, becoming managing director in 1992.

The chairman of British Airways, Lord Marshall, handed over the role of chief executive to Mr Eddington yesterday. "Our ability to meet this challenge (to be competitive) depends on our people delivering the service that customers want... People are the life-blood of any airline," Mr Eddington said.

Mr Ayling had attempted to counter this competition by a new strategy that concentrated on passengers at the upper end of the market.