BA named airline of Olympics in £40m deal

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The £40 million sponsorship deal will comprise cash and free flights for British athletes to future Games, starting with about 1,000 trips to this summer's Beijing Olympics.

BA will be carrier of choice for thousands of officials and International Olympic Committee members right up to 2012. The national flag carrier clinched the deal ahead of rivals Virgin and Emirates - as revealed by the Evening Standard last October.

BA now has exclusive marketing rights for the London Olympics, and can use the Games logo of the interlockingrings on its planes. Strict rules on use of the Olympic brand mean the logo is likely to feature modestly beneath the cockpit, rather than being plastered across the tailfin.

Unlike existing sponsors, BA can use the London logo abroad, as planes on runways are considered neutral territory in advertising terms. The airline is spending £7 billion on a fleet of giant A380 Airbuses, and the double-decker aircraft will come into service in 2012.

BA becomes the fourth "tier one" 2012 sponsor after Lloyds TSB, EDF Energy and adidas. The Games organising committee, Locog, aims to raise £625 million selling marketing rights, with tier-one deals costing a minimum £40 million each. It is seeking sponsors in four more categories: telecommunications, clothing and homeware, oil and gas, and automotive.

BA chief executive Willie Walsh said: "British Airways is a natural partner for London 2012 and we are proud to become part of the team that makes the Games a success. It is right that we should sponsor the Games in our home city. We supported London's bid in 2005 and we will be proud to welcome the world to London."

London 2012 chairman Sebastian Coe said: "I can't remember when British Airways was not part of my sporting life, from my first international junior competition in Athens in 1975, through to flying the team to Moscow in 1980.

"I'm thrilled BA will support our athletes through Beijing and the Winter Games in Vancouver in 2010, and remain part of my life through to 2012."