Published on Friday, April 4, 2008

T5 fiasco costs BA at least £16m

Problems associated with the disastrous opening of Heathrow Terminal 5 have cost British Airways at least £16 million.

The costs so far emerged as the airline released its performance figures for last month – the £4.3 billion terminal opened on March 27.

There were 300 short haul flights cancelled following the opening of the new terminal which was affected by baggage delays and disruption.

“The financial impact of these events is estimated to be around £16 million, reflecting all costs associated with the disruption and lost revenue opportunities,” BA said yesterday.

“Although there remains a small number of cancellations for today and tomorrow, the Terminal 5 performance is steadily improving.”

BA hopes to operate a full schedule of flights from the new terminal by tomorrow (Saturday) and aims to move more long haul flights to T5 on April 30.

The airline also said passenger traffic was down by 2.8% in March, with a 5% drop in premium and a 2.3% fall in economy carryings.

The load factor fell by 0.9 points to 75.4% over March 2007.

“Comparisons between March 2007 and 2008 are complicated by the timing of Easter, which fell in April in 2007, and by the de-linking of UK school holidays from the Easter period and into the middle of April,” BA said.

“This altered both premium and non-premium travel patterns, an impact which is also likely to be seen in April’s statistics.”  

The carrier described market conditions as being “unchanged” adding: “Underlying conditions in long haul premium traffic continue to be strong, while short haul premium and long haul non-premium continue to be weak.”

by Phil Davies 

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  • BA lost reputation

    This is the DETROIT curse to BA for pulling out of Detroit inspite of so much opposition by traveling public. BA is not same what it used to be. I travelled by BA in February. I encountered one worst ignorant check in staff at the Hong Kong airport check in counter. BA is loosing it what it had "A ROYAL SERVICE" They will loose more with HEATHROW opening up to other airlines. It will be long road to recovery.

    By girish divecha, Friday, April 4, 2008

  • Bad Planning

    We've heard the reasons for the fiasco. Call it bad luck but it also means that whoever was responsible for planning and preparation got it totally wrong.

    By Russell Hart, Friday, April 4, 2008

  • Bungle at BA Cost £16 Million

    The recent BA bungle at Terminal 5 has not only cost BA £16 million, but more important an embarassment to the 'BA BRAND' & their reputation. BA's Willie Walsh needs to get his & BA's act together.

    By HARRY CICHY, Friday, April 4, 2008

  • Who are they kidding? Only £16M?

    Only £16M? I reckon more like £160M and counting, especially with all the future business they will lose as a result of this.

    By Peter Cookson, Friday, April 4, 2008

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