T5 debacle could cost BA £50m in lost flights and payouts

Brokers Collins Stewart said flight cancellations, compensation payments and other costs would total between £20million and £50 million in the current financial year.

So far BA has had to cancel nearly 300 short-haul flights and has a back-log of around 15,000 passenger bags.

Transport Secretary Ruth Kelly was today accused of "running for cover" as the chaos at the airline's new Heathrow terminal ran into a second week.

Ms Kelly faced calls to make a full statement to the House of Commons after being accused of failing to act quickly enough.

Shadow transport secretary Theresa Villiers branded Ms Kelly as one of the "great and the good - happy to sip champagne at the opening ceremony and then run for cover" when things went wrong.

Mrs Villiers said: "She should have acted more quickly. Heathrow is a shop window on the world. Someone must get a grip on what action must be taken."

Mrs Villiers also condemned BA bosses - including chief executive Willie Walsh - for not anticipating the problems. "We were assured T5 was ready and it would offer travellers a much improved experience," she said. "Manifestly, T5 is not ready and the experience for travellers has been far from improved." Her remarks referred to claims that BA check-in staff had not been properly trained on the relevant computer before T5 opened and that it failed to test the baggage handling system adequately.

She added that serious allegations had been made about "lax security controls" at the terminal. "Ruth Kelly must provide answers to reassure the public that everything possible is being done to keep them safe."

Ms Kelly issued one statement over the weekend - two full days after the opening fiasco at T5. She said: "I have spoken with BA and [airport owners] BAA and while the problems at Terminal 5 are for them to resolve I have made clear that the Government stands ready to assist where appropriate."

BA has drafted in 400 volunteers to clear the backlog caused by the luggage system collapse. The airline has admitted the main causes of the fiasco were "teething problems" including "car parking provision for staff, delays in staff security screening and staff familiarisation with the terminal", and said today that the same issues were to blame for the continuing problems. A spokesman warned disruption would continue the rest of the week but diminishing each and every day."

The baggage system appeared to be working this morning but BA planned to cancel 54 flights today and another 54 tomorrow, with the total number of cancellations likely to reach 500 by next weekend.

Many travellers spent the night in the terminal and complained of a lack of information, broken lifts and inadequate facilities to store luggage, sleep and eat.

Diego Fologuren, a 26-year-old teacher, waited 11 hours for her flight home to Los Angeles, only to find it had been cancelled. She said: "I arrived at Terminal 5 at 10.45pm yesterday and had to sleep here overnight while waiting for my flight which was supposed to leave at 8.50am.

"When I queued up to check-in this morning they just told me my flight had been cancelled because they didn't have enough crew. I have no idea when the next is and have just been told to wait in a really long line for information. I feel my eyes want to close but I just can't because there is nowhere to sit or leave my bags. There was just one café open and nothing else all night and there was nowhere to sleep."

BA said the LA flight suffered a shortage of cabin crew because of illness. "All the other flights cancelled from the terminal are short-haul destinations," a spokeswoman said."

Stephen Griffiths, a 48-year-old driver from Anglesey, drove through the night to Heathrow from north Wales when his elderly parents' flight to Manchester was cancelled after they flew in from LA. He spent the night in his car outside because all hotels in the area were full.

He said: "My parents are both pensioners and I couldn't leave them here at this huge terminal without a connecting flight. This is an absolute disgrace and I hope somebody reimburses me for the cost of a missed day of work. I would never fly BA again. Why don't they just go back to the old system?"

Paul Trowbridge, 52, from Yateley, arrived at T5 for the third time in a week this morning. His flight to Copenhagen on Thursday was cancelled, then his rebooked flight on Friday was also cancelled, forcing him to abandon plans for a romantic anniversary weekend with his wife. Today he turned up to travel to Copenhagen for a meeting. He said: "The whole experience has been crazy."