Alstom could be BA 'scapegoat'

M&E contractor Alstom may be used as a scapegoat by airline BA to explain major delays to its £250 million "blueprint" World Cargo Centre, it was alleged this week.

Sources claim that BA is experiencing serious delays to the centre's software interfacing system, which it has developed in-house.

The claims follow Alstom's decision to withdraw from its £90 million contract to install hi-tech handling systems in the Cargo Centre last week. Alstom has issued a writ alleging breach of contract.

An insider said: "BA is having problems with its interfacing software. The word is that it is not ready to be installed and that Alstom will provide a convenient scapegoat."

Another source said: "It seemed very odd that all of a sudden BA was creating problems on a contract that was 90 per cent complete. If you cause problems, you cause delays, which with a deadline so close seems a strange thing to do."

Alstom was running up to six months late on the project before its dispute with BA, but was still hopeful of meeting the 17 January deadline. However, site sources now say the project will not be finished before the millennium.

"Work has ground to a halt. All the subcontractors' contracts have been terminated and 100 electricians have lost their jobs. You can't start that up again overnight," said one electrician.

But others are claiming that Alstom was running late because of a major technical problem.

"The problem lies in the consignment area. In the past six months there's been very little production because of a technical hitch. They have been working frantically to overcome the problem but they just couldn't solve it."

Alstom and BA refused to comment on the dispute. Asked about delays to the IT system, a BA spokesman said: "We are confident we will be going live at the Cargo Centre in accordance with our plans and will give details of our phased migration to customers in the next three weeks."