Ex-BA boss criticises Heathrow expansion

Published: 05 May 2008

Former chief executive of British Airways has slammed plans to expand Heathrow airport and termed the development as a "costly mistake".

In an article for The Sunday Times, Bob Ayling, who headed BA from 1996 to 2000, states that BAA, the operator of Heathrow, is pursuing a flawed business model that has contributed to the bankruptcy and near collapse of numerous US and European air-lines, and has turned the airport into a "national disgrace".

He said Heathrow's operator BAA has turned the airport into a "national disgrace" and proposals for a third runway "go against Britain's economic interests".

Under BAA's plans, the number of passengers at Heathrow could double from the current 68 million. But Ayling warns that the proportion of transfer passengers at Heathrow has already tripled since 1992.

According to Ayling, the Civil Aviation Authority, which regulates BAA, has created a number of "perverse incentives" for it to pursue expansion at all costs to boost the airport's passenger and flight numbers. "BAA is an almost recession-proof business, paid by the number of flights and the number of passengers it can squeeze in and out of Heathrow," he argues.

Ayling's solution involves: Cutting transfer flights so Heathrow operates at 80% capacity instead of 99%. Adding a runway at Stansted or Gatwick. Breaking up BAA, which operates London's three main airports. Stripping the Civil Aviation Authority of its role in regulating BAA.

Comments

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Jim said on 5 May 08:

Maybe it is time to question whether or not privatisation of BAA two decades ago was a mistake. Maybe, just maybe, the Spanish owners and executives of BAA are not equal to the task of running airports in England.

Compare the news reports of recent weeks regarding Heathrow and the new terminal in Beijing. We don't need to recount here again the chaos in competence at Heathrow. But, about the same time, the new Terminal 3 at Beijing opened without fanfare and without any major problems.

Beijing's Terminal 3 is twice the size of the Pentagon and is now the largest building in the world. The massive glass and steel building was designed by renowned British architect Norman Foster.

Perhaps Mr Foster should be brought home to straighten out future airport projects in the UK. It might also be worthwhile to import some Chinese project managers.

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