Willie Walsh not happy IAG/BA HQ to be demolished for 3rd runway (and IAG will partly have to pay)

This is not April Fools news.  Willie Walsh has only learned, from looking at an Airports Commission map, that the head offices of BA are to be demolished to make way for the Heathrow 3rd runway.  Walsh is CEO of IAG, which owns British Airways – and BA has more than half the flights using Heathrow. The head office of both IAG and BA is at Waterside, in Harmondsworth – and would be under the 3rd runway.  Walsh said he received no formal warning of the proposed demolition of his headquarters, which only opened in 1998 at a cost of £200 million and sits in a 115-hectare (280-acre) manmade park. Walsh said the HQ was “a fantastic environmental achievement on our part”.  Walsh’s grievance over his doomed HQ has been compounded by the prospect of being effectively charged for the compensation bill.  IAG will receive compensation, but this will largely come from charges to airlines – so IAG would largely have to compensate itself. The scale of increased charges to airlines, because of the cost of building the new runway, terminal etc, will be determined by the CAA.  Walsh said: “That compensation goes into the regulatory asset base and we end up paying 56% of that. We can’t have a situation where I end up paying for the destruction of my own head office.” This office fiasco may have contributed to Wash’s antipathy to Heathrow’s plans. At the recent AOA conference he described Heathrow as “fat, dumb and happy.” at the Airport Operators Association conference in London.
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BA boss shocked to find out that third Heathrow runway will raze his HQ

waterside-ba-headquarters-to-be-bulldozed

Willie Walsh, the chief executive of BA’s parent company IAG, claimed that despite the group being responsible for about half of all flights at the London hub, he received no formal warning of the proposed demolition.

He said: “We were never actually informed or advised by Heathrow that they intended to knock down our headquarters.”

However, it looks unlikely to stay that way. “The first I saw of it was when the Airport Commission report came out and I saw a map and I thought, that looks very close to Waterside,” Walsh said. “Then I discovered it actually went right through Waterside.”

Walsh’s grievance over his doomed HQ has been compounded by the prospect of being effectively charged for the compensation bill.

While all properties in the path of the runway will be compulsorily purchased at 25% over the market price, the way Heathrow’s charges are set by the Civil Aviation Authority means that airlines are likely to pay more to operate from the airport as expansion costs grow.

Walsh said: “That compensation goes into the regulatory asset base and we end up paying 56% of that.

“We can’t have a situation where I end up paying for the destruction of my own head office.”

The IAG boss accused Heathrow of failing to hold proper discussions with airlines about creating a cost-effective airport and expansion plan.

He said: “I don’t think they have the capacity to engage. They’ve never had to go out there and encourage airlines to operate from [Heathrow], unlike every other airport … Heathrow sits there fat, dumb and happy, waiting for the queue to build up.”

In approving Heathrow’s expansion plans last month, the government said that increased domestic flights from around the UK would be a precondition.

But Walsh stated that his airlines would not operate routes to airports such as Newquay in Cornwall, “even if [Heathrow chief executive] John Holland-Kaye got down and begged me”.

https://www.theguardian.com/travel/2016/nov/22/ba-boss-shocked-to-find-out-that-third-heathrow-runway-will-raze-his-hq

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