'It was definitely not British Airways' finest hour'

IT HAS been the constant refrain of the past two days at the world's busiest international airport: "I will never fly British Airways again!"

But if past evidence is anything to go by, BA will survive this week's disastrous start to Terminal 5, just as it has shrugged off an extraordinary series of public relations disasters including staff walkouts, lost baggage, price-fixing and constant delays.

The change should have been an aviation triumph after the giant glass and steel palace was widely praised, including by the Queen.

Instead, the opening of T5 on Thursday was followed by the cancellation of more than 100 flights, dozens of planes leaving without luggage and passengers sleeping on its brand new floors.

Willie Walsh, BA's chief executive, admitted yesterday it had been fairly and squarely the airline's fault. "I take responsibility for what happened," he said. "The buck stops with me."

He said a series of problems had caused the shambles, from staff having difficulty getting into car parks and through security, to computer glitches.

The terminal's hi-tech baggage system is thought to have worked normally, but The Scotsman understands there were problems with baggage being transferred to and from aircraft because BA staff were unfamiliar with road layouts.

The airline's share price fell by 3 per cent yesterday, watchdogs predicted that BA would face more than £1 million in compensation claims, and Max Clifford, the public relations consultant, described the chaos as "a demonstration of how to get everything wrong".

BA, which moved 70 per cent of its Heathrow flights to T5 on Thursday, is now reviewing the planned switch of a further 20 per cent next month.

Angry and frustrated passengers complained of lack of information, poor signage and empty BA desks in the new terminal. Arguments broke out as travellers jostled in queues.

In stark contrast, in the airport's ageing Terminal 1, which BA had just vacated, its main rival Bmi revelled in the extra breathing space which came with the removal of 40 per cent of the building's passengers.

Nigel Turner, its chief executive, said: "Things are running like clockwork."

He might even have allowed himself a wry smile that not only will Bmi and its partner airlines be now grouped in a tried-and-tested terminal, but they stand to get an even more advanced one than BA's when it is replaced with a new complex within five years.

That will come as cold comfort to BA, with Mr Clifford claiming Heathrow had become an international laughing stock. He said: "It's a total disaster and a huge embarrassment, because they've had plenty of time to plan this, and there's no possible excuse."

But such is the power of the BA brand – an icon which has withstood a string of strikes and operational crises – would be soon forgotten if Terminal 5 settles into smooth operation.

Jamie Bowden, a former BA customer service manager, who now advises airlines, said: "If BA can solve the underlying problems relatively quickly, a lot of people will forgive it. The national psyche is to want BA to work and be a strong airline.

"However, if this turns into lingering disruption, the business community especially will start avoiding BA and people round the world will reconsider flying with the airline."

Mr Bowden said that if T5 could be made to work, it would be one of the best in the world, transforming Heathrow's – and its biggest airline's – reputations. He said: "Everything that Heathrow needs to get away from its reputation as a hellhole is there."

But to succeed, Mr Bowden said staff as well as passengers required a major charm offensive from BA. He said: "Some staff were in tears at what happened on Thursday and said it had been the most humiliating day of their life. That's a tremendously demotivating position to be in."

BA has become synonymous with bad news in air travel, partly because of its dominance at Heathrow, where it accounts for 40 per cent of flights.

It has suffered widespread disruption including from strikes and threatened walkouts by catering staff, cabin crew and check-in staff.

There have also been mountains of lost baggage caused by Heathrow's overwhelmed system and BA replacing its own check-in and baggage staff with an outsourced firm in Scotland last year.

The airline also faces claims by millions of passengers after being fined £270 million last year for colluding with rivals Virgin Atlantic over increasing fuel surcharges.

To add to its woes, a BA Boeing 777 crash landed on its final approach to Heathrow in January, and anti-expansion protesters clambered on top of one of its Edinburgh-bound aircraft at the airport last month.

However, despite such chronic turbulence, Europe's third largest airline has remained resilient, announcing last month a one-third rise in nine-month profits to £788 million.

Citi Global Wealth Management predicted yesterday that BA traffic figures next week would show passenger numbers had risen by 2 per cent this month, with business and first class travellers up by 5 per cent.

Laurie Price, director of aviation strategy at analysts Mott McDonald, said: "Passengers' memories tend to be relatively short and it is not as if BA is the only airline having difficulties.

"Offering vouchers or discounts for passengers who have been disrupted would help.

"A total of 55 carriers will be moving terminal at Heathrow following the opening of Terminal 5 and this may cause problems for other carriers too.

"Moving to Terminal 5 was always going to be a very difficult exercise, and however extensive the preparations, they will never be the same as the real thing.

"The pity is that it was hyped so high – so there was some way to fall this time."

Douglas McNeill, an analyst at BlueOar Securities, also downplayed the lasting effect on BA.

He said: "I don't think it will be material, but it's certainly bad for sentiment and not good for the BA brand. You'd need several days of severe disruption to really impinge on BA's financial performance."

For the airline, Mr Walsh insisted the problems were caused by teething troubles rather than strategic errors, and he would not resign. He said: "I am going nowhere – I am going to make this work.

Mr Walsh said he did not feel the terminal had been opened too early, saying successful tests had given them confidence to go ahead.

He also denied suggestions that staff had raised concerns and given warnings about potential problems before the opening. He said he also believed they had enough staff on duty to cope.

He said: "We disappointed many people and I apologise sincerely. There were problems in the car parks, airport areas, computer glitches and the baggage system. In isolation, they would not have had the impact they did, but in combination they led to a level of disruption we never took control of during the day.

"Our performance was not good enough. We did not deliver for our customers and we should have.

"British Airways will be in this terminal for 40 years. It is not going to be judged on the basis of the first few days – and it is up to us to ensure that it becomes the resounding success the travelling public deserves."