Walsh admits 'calculated risk' over T5

The chief executive of British Airways had admitted that he took a "calculated risk" in pressing ahead with the opening of Heathrow Terminal 5.

Appearing before the Commons Transport Committee, Willie Walsh said he had seriously considered delaying the launch, but decided against doing so due to financial and logistical concerns.

His acknowledgment comes alongside a temperate admission of guilt from BAA chief executive Colin Matthews, who apologised "unreservedly" but claimed that he had not been made aware of several key issues.

Speaking to MPs yesterday, Walsh insisted that postponing the scheduled March 27 launch-date of T5 would have had catastrophic consequences for BA's ability to transfer its operations.

He said that the delay would have necessitated a six-month wait until the airline's summer flying schedule ended, resulting in losses that would have far outweighed the £16 million bill run up by the botched opening.

"The costs would have been significantly greater than we incurred in the first few days - by many times," the BA chief executive said.

Mindful of such concerns, Walsh admitted cutting corners by ditching a planned six-month testing period which was intended to familiarise BA staff with the new terminal and rectify known problems in the baggage system.

"My regret is we did compromise on our testing programme. But we did this with our eyes open. It was a calculated risk," he insisted.

In his most direct admission of guilty, Walsh added: "It is clear we made some mistakes and in particular had compromised on the testing regime as a consequence of delays in the building of the terminal - and this did impact on the T5 opening."

Adopting an equally diplomatic tack, BAA chief executive Colin Matthews told the committee that he accepts some blame for the disastrous launch, but that questions remain to be asked about "who knew what or when".

Matthews claimed that no-one had brought key failings within the terminal to his attention - a stance which MPs described as "complacent" given that 28 of the elevators in T5 were known to be broken.

"We have not sought to blame others," the man in charge of the UK's airports asserted. "Some of the problems were undoubtedly our fault and some were not. With the benefit of hindsight, there were aspects that were not ready."

All told, the chaotic launch of T5 saw 23,000 pieces of luggage being lost and some 500 flights being cancelled as the baggage handling system completely broke down.

BA is now expected to complete its transition to the £4.3 billion building early next year.

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