The BAA has unveiled plans for the development of Terminal 2 at Heathrow Airport.
Star Alliance Airlines is to make the new terminal its home and it is expected that 20 million passengers will use it every day once it is open.
Mike Brown, Heathrow Airport's chief operating officer, said: "The new Terminal 2 is part of a major programme of work already underway.
"Passengers travelling through Heathrow will be using new and extensively refurbished facilities which provide us with an excellent platform from which we can provide a better service to our customers than ever before."
The building will cost £1 billion to construct and is part of a wider £4.8 billion being spent across the airport as a whole.
It will produce 40 per cent less carbon than the building it is replacing and will see a large amount of natural light thanks to north-facing windows.
Construction of the first phase of the building is expected to be completed in 2013.