1 British Airways Terminal 5

2 London Heathrow Airport Handled 68 million people a year in buildings designed for 45 million One of the most congested airports in Europe Least popular airport among business travelers To ease overcrowding: Terminal 5 –Two decades to plan & build –Cost of £4.3 billion, or $8.6 billion –British Airways is the sole user –Opened Thursday 3/27/2008

3 Opening day: Thursday March 27, 2008 Long lines of passengers in the check-in area Canceled more than 250 flights –About 11% of all flights –only short-haul & domestic flights, to cities including Amsterdam & Glasgow About 6% of baggage handled did not reach its owners –Backlog of about 15,000 pieces of luggage Disruptions were expected to last for a week…

4 Disruptions Due To: The computerized baggage-handling system Computer log-on failures for baggage handlers Baggage system is the biggest, single- terminal baggage handling system in Europe –18km (11.2 miles) of belts capable of transporting 12,000 bags per hour around the terminal

5 Terminal 5 Biggest freestanding building in the UK –40 metres (132’) high * 396 metres (1,300’) long * 176 metres (578’) wide Five times the size of Terminal 4 Five levels, each the size of 10 football pitches

6 British Airways Statement Then “Since opening London Heathrow's Terminal 5 on March 27, 2008, we have experienced some operational difficulties and we accept that we have not provided the level of service our customers expect.” “We are working hard to overcome the difficulties we have faced and are operating the vast majority of our flights to and from Terminal 5. We will continue to increase the number of flights each day.”

7 British Airways Europe's third-biggest airline According to the Air Transport Users Council: –worst airline for lost luggage –second-worst for delayed bags

8 Cost to British Airways Cost of £16 million ($31.89 million) Disruptions & flight cancellations cost over £25 million ($50 million), Panmure Gordon, London estimates Stock price fell 2.4% in London Rival carriers had a surge in customer bookings because of Terminal 5 problems: –BMI, the second-biggest user of Heathrow –Virgin Atlantic Airways, the third-biggest Damage to credibility if flight schedules not returned to normal

9 British Airways Statement Now “With the new Terminal 5, we've taken every step possible to ensure you get on your way quickly and hassle-free. Whether you're arriving, departing, or connecting through, Terminal 5 will be a smooth part of your journey.” More than 90% of flights operate through Terminal 5, with over 500 flights per day.

10 Move to Terminal 5 complete: Wednesday, October 22, 2008 Transfer of long-haul services were phased to avoid a repetition of the chaos. More than 90% of flights operate through Terminal 5, with over 500 flights per day carrying 64,000 passengers.

11 Similarities New Terminal 4 in Madrid Barajas Airport, 2004 –struggled with luggage handling –now cited in surveys as among the more popular airports New Chek Lap Kok Airport in Hong Kong, 1998 –suffered various technical & organizational mishaps for first 3 months New Denver International Airport, 1995 –Opening delayed more than a year –Automated baggage system ultimately abandoned