British Airways Hit by Heathrow Fiasco

With its new terminal marred by logistical snafus, BA faces harm to image and bottom linejust as costs and competition are set to soar
British Airways CEO Willie Walsh talks to reporters at Terminal 5 at Heathrow airport on Mar. 28 in London. Peter Macdiarmid/Getty Images

It took five years and $8.6 billion to build, but the disastrous opening of the new Terminal 5 at London's Heathrow airport has managed to seriously damage the image of British Airways (BAY.L) in less than a week. "BA's reputation is more tarnished from this problem than from any other in the last three years," says Howard Wheeldon, senior strategist at brokerage BCG Partners. It has caused "collateral damage to customer confidence."

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