Heathrow Hassle Hurts London

In her first interview in the role, Kitty Ussher has told the Financial Times that the government shares business concerns about queues at passport control, the effect of security measures and the airport’s set-up.

Calling herself an “advocate” for business in government, she spoke of the unhappiness felt by executives at the so-called “Heathrow hassle” and the miserable experiences they have suffered.

In frank criticism that reflects mounting government concern, she voiced fears that multinational companies could question the rationale for holding annual or other important meetings in London. “I want multinational companies to feel really confident about housing their annual general meetings here,” she said.

“They often have it in a different financial centre every year, or board meetings, that kind of thing. I don’t want their New York or Dubai executives saying ‘Oh God, I don’t want to go through Heathrow’. I don’t want that to be an issue.”

She said of the airport: “You spend so much time being processed. That’s the issue... passports, security, just the layout of the buildings which makes it more difficult.”

Her comments come after a heavy-going start to the summer at Heathrow, where continuing delays caused by tougher security rules were compounded in early July by problems at British Airways’ baggage handling operation. The airline struggled to deal with 20,000 misplaced bags.

Also, BAA, the airport’s owner, came under fire at the weekend over its decision to seek a High Court injunction this week aimed at limiting the scope of protest actions planned at Heathrow by environmental campaigners and residents’ groups.

The latest passenger figures show the airport is losing travellers to other leading European hubs. There was a 1.8 per cent year-on-year fall in passenger traffic at Heathrow in June and a 1.2 per cent fall in the first half of this year, according to BAA.

Tony Douglas, Heathrow's chief executive, quit two weeks ago – on the eve of the hectic holiday period – after admitting the airport was “bursting at the seams” and in some places “held together by sticking plaster”.

Ms Ussher said the government was determined to prevent London’s competitiveness being eroded. BAA was responding.

The problems at Heathrow, which are being tackled by senior ministers, were one example of how she hoped to play “a brokerage role” in Whitehall for the financial services industry, giving it a voice she said it had lacked until recently.

Her first task would be to canvass business opinion on a European Commission “green” paper on retail financial services. She said Britain would take “a principles-based” approach in talks in Brussels.