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PR Fuel: A Terminal Public Relations Nightmare
It is the worst nightmare of anyone involved in event
planning: The event turns into a disaster. Such was the case
last week in London, where British Airways ("BA") and BAA,
which operates Heathrow Airport, opened Terminal 5.
The hype surrounding T5, as it is known, started in
September 2002 when ground was broken on the $8.6 billion
structure. Designed by award-winning architects Rogers Stirk
Harbour and Partners, T5 is the largest free-standing
building in the United Kingdom. It took over 60,000 people
working over 100 million person-hours to transform a former
sludge works, divert two rivers and tunnel eight miles. T5
was built on time and on budget to handle 30 million
passengers annually and process 12,000 pieces of luggage per
hour. Her Majesty Queen Elizabeth II officially opened T5 on
March 14th, and the facility opened for business March 27th.
The visit by Queen Elizabeth II was the last bit of good
news for BA and BAA. Since Terminal 5 opened, BA and BAA
have dealt with the following problems, most of which have
been related to baggage handling operations:
-- Over 430 cancelled flights.
-- Between 20,000 and 30,000 pieces of luggage were
separated from their owners, including 15,000 pieces that
were being sent to Milan, Italy to be sorted and returned to
passengers from mainland Europe.
-- Detailed blueprints of the terminal's fire alarm system
were found about 20 miles away and given to a newspaper
reporter, who said that security analysts believed the
information could have been of benefit to someone planning a
terrorist action.
-- Financial analysts estimated on Monday that the problems
could cause a loss of $50 million in revenues for BA. The
company could face additional losses related to customer
compensation and fines from European Union regulatory
agencies.
-- Rival airlines and private jet services reported
increases in bookings, saying they were helping stranded BA
passengers.
-- A "flash mob" descended on the terminal on opening day to
protest continued expansion at Heathrow.
-- Newspaper, radio and television editorials have slammed
BA, BAA and the executives in charge of the entities.
-- Media outlets have run countless stories of passengers
whose plans were dashed, such as a young couple whose
wedding was ruined when their flight was cancelled and their
baggage was lost.
-- BA destroyed thousands of copies of a full-color internal
newsletter commemorating the opening of T5 that was to be
distributed to the company's 40,000-plus employees.
-- A plan for the Olympic torch to arrive at T5 next week
was scrapped.
BA went on an all-out PR blitz prior to T5's opening.
Company executives hailed the facilities opening, claiming
that its high-tech baggage handling and advanced check-in
systems would speed customer arrivals and departures. Human
error, however, seems to be the cause of many of T5's
problems.
Check-in agents were not on duty when the terminal opened at
4:00 AM on its first day of operation and baggage handlers
had trouble getting to the site that day. Poor communication
from BA and BAA caused stressed out travelers to complain
more vigorously, causing additional delays as personnel
shifted from operational activities to customer service.
The opening of T5 is one of the worst operational disasters
in recent business history, perhaps only rivaled by a
baggage system issue that caused a sixteen-month delay in
the opening of Denver International Airport in 1996. (In
that case, the new airport sat empty as engineers
unsuccessfully tried to fix the problem.)
Moreover, while Bear Stearns imploded recently, the
company's operations were barely affected. BA, meanwhile,
has seen problems cascade across its operations due to the
flight cancellations.
BA and BAA have been publicly blaming one another for the
problems at T5, though most of the media and public's ire is
aimed at BA, the terminal's only occupant. Government
officials who were supportive of the project have also been
targets of criticism.
BA's handling of the T5 crisis has been poor, at best.
Company executives cheerfully suggested on Day 1 that
problems would be resolved quickly. Operational executives
on the ground at T5 then appeared in front of the media to
make boilerplate comments. In the meantime, BA's public
relations organ was operating a few miles away in its
offices, unaware of what was really going on at T5 and
relying on second-hand information.
Taking much of the blame for the T5 disaster has been BA
Chief Executive Officer Willie Walsh. After initially trying
to suggest that T5's problems were nothing huge, Walsh has
relented, saying recently that he takes the blame for the
disaster and acknowledging that the company screwed up.
Julie Simpson, BA's head of corporate communications, has
also been castigated. Simpson joined the company less than a
year ago after serving as an advisor to former Prime
Minister Tony Blair. She has been criticized for essentially
doing what a PR person does when something goes horribly
wrong - resorting to boilerplate press releases and taking
no questions.
While there were suggestions in the media that the T5
opening possibly would not go smoothly, no one could have
predicted that the event would turn into an unmitigated
disaster ... no one except the PR people of BA and BAA.
The PR people at BA and BAA should have been dreaming up
nightmare scenarios of how to handle a crisis. They should
have been on the scene on opening day (I would have set
aside office space in the terminal for them) and in constant
communication with executives and operational managers. The
PR people should have cleared T5 of media, arguing that they
were interfering with operations and making the situation
worse.
T5 is an operational disaster and one that could have been
avoided. The PR problem that accompanied the mess could not
have been avoided, but it could have been handled much
better. It's obvious that the PR staffs of BA and BAA were
simply not prepared. They were too busy hyping and not
worrying about contingency plans. Their peers at rival
airlines, meanwhile, have taken full advantage of the
situation.
Sadly, BA, BAA and the affected passengers may not be the
only people licking their wounds.
"The shambles we have seen at Heathrow's new Terminal 5
comes as little surprise. It is yet another depressing
chapter for the UK's crumbling transport system and sends a
depressing message to businesses around the world. This is a
PR disaster at a time when London and the UK are positioning
themselves as global players. We can only hope that this
will provide a wake up call as we gear ourselves up to host
the Olympics in 2012."
That statement came from, of all organizations, The British
Chambers of Commerce.
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Ben Silverman is currently the Director of Development and a
Contributing Editor for Indie Research
(http://www.indieresearch.com), an independent investment
research service. Previously, Ben was a business news
columnist for The New York Post and the founder/publisher of
DotcomScoop.com. He can be reached via email at
bensilverman@gmail.com.
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