Long Haul Services Move Deferredadmin

British Airways has delayed the transfer of more long-haul services to Heathrow’s problem-plagued Terminal 5 from April 30 till at least June 5.

“We are making this decision in the interests of customers,” said British Airways chief executive Willie Walsh. “Though Terminal 5 is now working well, we need to have confidence that good service can be maintained when the terminal is handling larger numbers of customers.”

The opening of the 4.3 billion- pound ($8.5 billion) terminal has been a public relations disaster for British Airways, which had hoped the new building would put an end to constant delays and overcrowding at Heathrow airport.

British Airways cancelled more than 600 flights in the first 12 days of operations at Terminal 5 after a glitch in the automated baggage system and what the company called “staff familiarization” issues. The decision to delay the second stage of the move will disrupt plans of other airlines that are moving into the free space.

At one point, more than 15,000 pieces of luggage went missing. Walsh said Friday that three-quarters of those have now been returned.

British Airways has said the problems have cost it some $32 million in lost revenue and compensation through March.

The delay by British Airways could lead to compensation claims against Heathrow’s operator BAA.

The carriers that had expected to move into the terminal space vacated by British Airways, including Alitalia SpA, Air Transat and Aeroflot, must now wait.

British Airways has been criticized by shareholders and its own pilots for opening Terminal 5 prematurely. Management’s “arrogance” turned the airline into a “laughing stock,” the British Air Line Pilots Association said in a letter on April 7.

Mr Walsh stood by his airlines decision to open Terminal 5, “I’d make it clear that the decision to go forward on the 27th of March was a decision I agreed to,” Walsh said. “I was confident we could make it work.”

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This entry was posted on Friday, April 18th, 2008 at 11:49 am and is filed under Industry News, Travel Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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