HEATHROW AIRPORT TERMINAL 5 | A PROJECT MANAGEMENT CASE STUDY

Описание: What is the measure of success for Heathrow airport? Is it the passengers' satisfaction with their experience, or is it something else? It is now clear that, despite BAA's tagline : “Making Every Journey Better ” and although 65 million passengers pass every year through the world's busiest international airport, passengers were not a key stakeholder in the conceptualization and management of Heathrow airport Terminal 5. From a business point of view, passengers are the airlines' customers and BAA Ltd. rather sees them as enablers of business. One of the big differences between Heathrow Terminal 5 and Beijing Terminal 3 is that the latter focused on the experience that millions of visitors would experience coming to China in 2008 for the Olympics whilst the former is privately-owned and their focus is not on the passengers' experience, but rather on renting commercial space.
The measure of success for Terminal 5 is not passenger enjoyment or technical efficiency, it is the revenue generated by passengers spending money in the shops. So the focus of the Terminal 5 project was on opening the restaurants and shops on time in order to generate rent revenue, rather than delaying the opening in order to resolve luggage handling issues. One could question the wisdom of this short-term revenue-driven approach, as I now know many people that will not fly BA in order to avoid Terminal 5. The House of Commons Transport Committee report specifically blamed BA and BAA for the chaos at Terminal 5 and stated that the event in March was a source of “national embarrassment” (HCTC, 2008, p.3). In sum, although the physical project was delivered on time and budget, the program is a failure from a PR and passenger point of view.
Heathrow Airport Terminal 5 – Successful project, failed program
On opening day, which was 28th March 2008, the baggage handling ‘system' failed and almost 300 flights in and out of Heathrow Airport were cancelled during the first five days, affecting 36,584 passengers. On 30 March 2008, Jonathan Russell (2008) wrote in The Telegraph: “Never mind that delivery of the £4.3bn building, the largest single-span structure in Europe, was on time and to budget; in the public eye it will always be associated with the chaos of cancelled flights and lost luggage.” 
So, what had happened? Though as per the project success measures. Heathrow Airport T5 Project was completed on Time, on Budget & as per the Scope.
Welcome everyone today we're going to fly out to Heathrow Airport in London England to talk about the terminal 5 and what happened on its opening day...

So, why build a new terminal in the first place well British Airways had three primary needs:
⦁ they wanted to maintain their ranking as the number one airport in Europe
⦁ they wanted to improve scalability as air travel is expected to double by 2027
⦁ and they wanted to take advantage of economies of scale

Project History:
Planning, designing, constructing, and preparing Terminal 5 was an enormous and risky undertaking that spanned 26 years. Both British Airways (the national airline of the United Kingdom) and BAA (the organization responsible for operating Heathrow Airport) played a primary role in the project. But despite the size of the project and its inherent risks, the parties involved were able to deliver it on-time and on-budget.

Vision and Objectives:
The vision of the project was to transform Heathrow into the world’s greatest airport. British Airways aimed to move all of their operations under a newly constructed Terminal 5 to lower costs and improve the customer experience via economies of scale. As air travel was expected to double by 2027, British Airways expected to increase passenger capacity from 55 million to 90 million per year, while handling approximately 12,000 bags per hour.