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British Airways (BA) has ordered four Boeing 777-200 ER aircraft as it looks to expand its fleet ahead of the opening of Heathrow's Terminal Five.

The decision comes as a blow to Boeing's great rival Airbus, which was also chasing the BA contract.

BA said it had been a close race between the two plane makers, but that Boeing offered greater continuity.

"The ease of assimilating up to eight aircraft into our existing 777 fleet, rather than having a small number of A330s, swung the balance in Boeing's favour," said Robert Boyle, the airline's commercial director.

"These new aircraft will enable us to grow our long-haul business after we move to Terminal Five."

Boeing will deliver the 777-200s in 2010, with GE and Rolls Royce battling it out for the contract to build the engines.

While Airbus will be deeply disappointed, all is not lost as BA is planning to replace 20 Boeing 747s and 14 Boeing 767s as part of the modernisation of its long-haul fleet.

The carrier is currently looking at the Airbus A330, A350 and A380 and Boeing's 787, 777 and 747-8 as potential replacements.

The news comes as the German and French governments meet to discuss the restructuring at Airbus.

Reports this week suggested that up to 10,000 jobs could go at the European aerospace giant.