ºÚ¶´ÉçÇø

The reorganisation that saw BAA axe 200 staff from its construction projects division cost the company £80m, it has been revealed.

In its accounts for the year ended December 31, 2007 BAA lists £80m in 'reorganisation costs', £54m of which was 'staff-related', including severence pay, redundancy packages and £26m in pension payments.

The accounts, reported by ºÚ¶´ÉçÇø magazine, also indicate further redundancies in 2008: 'As part of the programme to simplify the organisation, a significant number of managerial and back office staff will be leaving the business,' the report states.

BAA spent £977m on capital expenditure in 2006, compared to £875m in 2007, a drop the company puts down to the nearing completion of Terminal 5. Looking forward, BAA plans to spend £4.54bn at Heathrow before 2013, building Heathrow East, demolishing Terminals 1 and 2 and refurbishing Terminal 4.

In related news, Construction News (CN) reported that the decision to delay moving British Airways' long haul flights to Terminal 5 could have a knock on effect on the construction of the east terminal to replace Terminal 2.

Airlines including BA and rival BMI were due to vacate Terminal 2 on April 30, but this date has been set back six weeks, potentially delaying the demolition of Terminal 2 to make way for Heathrow East. A BAA spokesman told CN: 'It is six weeks in a long construction period and we're hoping we'll be able to recover and have everything done by the end of 2012.'