Bmi - formerly British Midland Airways - is to turn most of its Heathrow services into a low-cost airline operation.
The carrier is scrapping business class on all but four of its 17 short-haul Heathrow routes and introducing low fares and charging for on-board food.
The airline said it was making the changes following a six-month study surveying the views of 10,000 air travellers. Fares will start at £25 one-way.
A separate business class will remain on four routes - Heathrow to Glasgow, Edinburgh, Belfast City and Brussels.
Nigel Turner, bmi chief executive, said: "For the last three years we have faced two fundamental issues.
"More than half of our passengers travel on business - but most do so in the rear of the aircraft. They or their companies choose to travel in economy.
"Our leisure travellers are getting lowest fares but a full service offering.
"Now we're getting back in sync with what our customers want."
