Heathrow Terminal 5 Failure (SFU students case study)

Summary

Heathrow's Terminal 5, a massive £4.3 billion project, aimed to elevate Heathrow as Europe's top airport by increasing capacity and improving efficiency. Despite being completed on time and budget, the opening day was marred by significant IT and logistical issues, leading to 250 flight cancellations and 23,000 misplaced bags. The debacle tarnished Heathrow and British Airways' reputation and resulted in a drop in share prices, highlighting the importance of thorough operational testing.

Takeaways

• 🛫 **New Terminal Necessity**: British Airways aimed to maintain its ranking as Europe's top airport, improve scalability due to the expected doubling of air travel by 2027, and capitalize on economies of scale.
• 🏆 **Ambitious Goals**: The objectives for Terminal 5 included increasing passenger capacity, reducing transfer times, and consolidating all British Airways flights to enhance operational efficiency.
• 🏗️ **Project Scale**: Terminal 5 is the largest freestanding structure in Great Britain, with 110 aircraft stands, over 17 km of baggage conveyors, and a project cost of 8.5 billion US dollars.
• 📈 **Long-Term Project**: The project spanned over 22 years, involving 60,000 people, 163 IT systems, and 180 IT suppliers, with over 400,000 hours dedicated to systems engineering.
• 📅 **Phased Approach**: The project was methodically broken down into planning, design, construction, and operational readiness phases, each with specific durations and objectives.
• 🌐 **Public Involvement**: A 4-year public inquiry was conducted during the planning phase to ensure transparency and incorporate public feedback.
• 🛠️ **Innovative Construction**: Just-in-time construction material delivery and low-risk contracts with vendors were employed to manage the construction phase efficiently.
• 🧑‍💻 **Operational Testing**: Over 15,000 volunteers participated in testing the terminal's operations, and advanced systems emulations were used to test the new baggage handling system.
• 🚫 **Opening Day Failures**: Despite being delivered on time and on budget, the opening day was marred by logistical issues, IT system failures, and malfunctioning infrastructure like elevators and transit systems.
• 📉 **Consequences**: The opening day issues led to 250 canceled flights, over 23,000 misplaced pieces of luggage, damaged reputation for Heathrow and British Airways, and a drop in British Airways' share price.
• 🔍 **Learning from Failure**: The British Airways CEO acknowledged the disappointment and expressed the need to learn from the early issues to improve future operations.

Q & A

Why was a new terminal built at Heathrow Airport?

British Airways wanted to maintain their ranking as the number one airport in Europe, improve scalability due to the expected doubling of air travel by 2027, and take advantage of economies of scale.

What were the specific objectives for Terminal 5 at Heathrow Airport?

The objectives included increasing passenger capacity, cutting transfer times between flights, and moving all British Airways flights to Terminal 5 to leverage economies of scale.

How large is Terminal 5 and what are some of its features?

Terminal 5 is the largest freestanding structure in Great Britain, with 110 aircraft stands and over 17 km of bag conveyors.

What was the cost and duration of the Terminal 5 project?

The project cost 8.5 billion US dollars and lasted for over 22 years.

How was the project managed to ensure it was delivered on time and on budget?

The project was broken into four major phases: planning, design, construction, and operational readiness. Innovative processes like just-in-time construction material delivery and low-risk contracts with vendors were applied.

What were some of the logistical issues on the opening day of Terminal 5?

Logistical issues included a closed car parkade, poor signage, lack of employee parking, IT failures of the baggage system, inability of employees to log into computer systems, and non-functioning elevators and transit systems.

What were the consequences of the IT failures on the opening day?

There were 250 canceled flights affecting travelers and over 23,000 misplaced pieces of luggage, leading to a loss of reputation for Heathrow and British Airways, and a drop in share price for British Airways.

How did British Airways CEO Willie Walsh describe the opening day of Terminal 5?

Willie Walsh described it as 'our finest hour' and acknowledged disappointment, stating that they learned lessons from the issues that went wrong.

What was the significance of Terminal 5 for British Airways operations?

Terminal 5 was significant because it allowed British Airways to have their core operations under one roof for the first time in almost 40 years, promising a more efficient operation and improved customer service.

What was the public inquiry process about and how long did it last?

The public inquiry process was part of the planning phase to add transparency and gather feedback. It lasted for 4 years.

How many volunteers were involved in the operational readiness phase of Terminal 5?

Over 15,000 volunteers were involved in the operational readiness phase to test every aspect of the terminal.