BA chiefs depart after problems with new Terminal 5

Gareth Kirkwood, the director of operations and David Noyes, the director of customer services, have departed after the BA’s unsuccessful move to the new £4.3 billion Terminal 5 at Heathrow Airport.

The fiasco of the new terminal saw hundreds of flights cancelled just days after T5 was opened.

In a statement, BA said the departures follow the airline’s move to Terminal 5. The airline is looking to appoint a chief operating officer to combine both roles. A spokesperson would not confirm whether the directors had been fired and said details of any pay-offs were private.

The spokesperson added that Willie has said from the outset that he accepts ultimate responsibility but has no intention of not resigning.

BA’s chief executive, Willie Walsh, said the buck stops with me after tens of thousands of passengers were stranded after flight delays and over 20,000 bags were lost.

Mr Walsh has been under pressure from shareholders either to resign or be seen to hold others responsible.

Over the weekend, Mr Walsh appeared to be backing Mr Kirkwood and Mr Noyes over the fiasco which has, to date, cost BA more than £15 million.

Earlier this week, Standard Life Investments (BA’s second largest shareholder) held crisis meetings with airline executives after the share price plummeted yesterday.

Passengers are being refused insurance for lost bags if they use T5. Insurers, including Direct Line, will not lift the ban until they are convinced that the baggage system is under control.

Mr Kirkwood has been with the airline for over 20 years and was a member of the company’s nine-strong ‘Leadership Team, which is responsible for supporting the airline carrier’s board.

Earlier this month, Brokers Collins Stewart said the problems at 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, said Collins Stewart.

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