Terminal 5 chaos could cost British Airways £50 million

According to Brokers Collins Stewart, the problems at Heathrow’s new Terminal 5 could cost British Airways up to £50 million.

Compensation payments, flight cancellations and other costs could cost between £20 million and £50 million in the current financial year.

At least 300 short-haul flights have been cancelled and thousands of passengers are missing their bags.

BA has admitted the main problems for the chaos were ‘teething problems’ including ‘car parking provision for staff, delays in staff security screening and staff familiarisation with the terminal’. 400 volunteers have been appointed to clear the backlog caused by the luggage system collapse.

Many passengers have had to spend the night in the terminal and are complaining about a lack of information, broken lifts and inadequate facilities to store luggage, sleep and eat.

A spokesman warned disruption will continue ‘for the remainder of the week but is diminishing each and every day.’

Ruth Kelly, Transport Secretary, has been criticised for ‘running for cover’. Shadow transport secretary Theresa Villiers said Ms Kelly should have acted more quickly.

Ms Villiers has also condemned BA bosses including chief executive Willie Walsh for not anticipating the problems. Ms Villiers said we were assured terminal 5 was ready and it would offer travellers a much improved experience. However, this has not been the case.

Serious allegations have been made about ‘lax security controls’ at the terminal and Ms Kelly must provide answers to reassure the public that everything possible is being done to keep them safe, concluded Ms Villiers.

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