Heathrow East could be 15 months late

Heathrow's £1.5bn "Olympic" airport terminal designed to welcome millions of visitors to the UK in time for the London 2012 Games may not be open on time, according to reports.

The Heathrow East project which will replace Terminals 1 & 2 is understood to have run into problems over cost and the ability to keep the airport running during remodelling.

As a result, the terminal could be delivered between six and 15 months late and is not expected to be finished until the end of 2012 at the earliest.

The admission from BAA came during hearings in which airlines protested at plans to raise landing charges by up to 50%.

Meanwhile a BAA spokesperson said that it was the Heathrow owner's "ambition" was that the terminal was to be finished in time for the Games.