BA pay £40million to become the latest sponsors of the 2012 Olympics

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The airline, which backed London's bid to host the Games, paid around £40 million for marketing rights and will fly British athletes to this year's Beijing Olympics and the 2010 Winter Games in Vancouver.

Making the announcement at Heathrow Airport's Terminal 5, which is set to open in March, London 2012 chairman and double Olympic champion Lord Coe gave his support.

"I can't remember when British Airways was not part of my sporting life - from my first ever international junior competition in Athens in 1975, through to flying the team out to Moscow in 1980, not to mention the immense support they offered during the bid.

"I'm thrilled that British Airways will continue to support our Olympic and Paralympic athletes... and remain part of my life through to 2012."

British Airways is London 2012's fourth major commercial partner alongside Lloyds TSB, which paid £80 million, and energy firm EDF, which signed up for £50 million.

Adidas's £100 million sponsorship investment is over five years and includes a large marketing drive but is thought to be worth around £70 million to London's 2012 organising committee.

London will host the Olympics in 2012

As part of the BA, the airline has pledged to create a travel bursary for athletes and be involved with the 2012 volunteer training programme.

It will also extend community projects in west London to the east London areas where the 2012 Games will be staged.

It will also be involved in cultural and entertainment events.

Now BA is on board there are four top-tier categories still up for grabs - clothing and home wear, oil and gas, automotives and telecommunications.

BA chief executive Willie Walsh said: "As one of Britain's most high-profile and iconic brands, it is right that we should sponsor the Games in our home city."

Simon Clegg, the British Olympic Association's chief executive, said: "Delivering Team GB to an Olympic Games is a major undertaking for any organisation and we are therefore pleased to be working with British Airways again."