LONDON, England (CNN) -- The long-awaited opening of a multi-billion dollar new terminal at London's Heathrow airport suffered a major setback Thursday when a high-tech baggage handling system malfunctioned, causing major delays amid flight cancellations.

Protesters opposed to airport expansion make their views known in the new terminal.
CNN's Richard Quest said passengers with baggage were no longer being checked in as the airport's Terminal 5 should have been entering one of the busiest periods of the day.
"The news is simply grim at Terminal 5. I understand that the entire baggage system has failed and they've stopped checking in passengers with baggage," Quest said.
"It couldn't have happened at a worse time."
Watch Quest describe "grim" scene. »
Heathrow's new terminal, which cost $8.6 billion and was two decades in the making, boasts sophisticated luggage system designed to handle 12,000 bags an hour.
British Airways, the only airline using the terminal, confirmed that passengers could now only check in with hand luggage.
BA director of operations Gareth Kirkwood said: "We sincerely apologize to those customers who have suffered disrupted journeys or baggage delays. We always knew the first day would represent a unique challenge."
Airport operator BAA and British Airways are banking on the luggage system to improve a reputation for chaotic handling that has helped the airport earn the nickname "Hassle Heathrow."
Initial glitches in the baggage handling led to the cancellation of at least 34 flights on Thursday. BA earlier admitted some "teething problems" had caused incoming or outgoing flights to be canceled and some flights and services to be delayed on Thursday.
"It's almost open," Jeff Bryan joked after he and his wife spent 90 minutes waiting for their luggage after an overnight British Airways flight from Miami to Heathrow. "We didn't mind because we're not in a rush, but a lot of people were," he told The Associated Press.
Adding to the opening day woes were protest by campaigners opposed to the airport's expansion.
Sound off: What do you think about Heathrow's expansion?
Later a "flash mob" protest, involving several hundred demonstrators opposed to airport expansion, took place at T5. CNN's Richard Quest, describing the protest, said the day had started out well for BAA but was turning into a "shambles."
Watch angry protesters throng airport »
The protesters stripped off their outer clothes at 11 a.m. to show red T-shirts emblazoned with the slogan "Stop Airport Expansion."
Made up of local residents and environmental groups, the demonstrators are concerned that a third runway and a sixth terminal will be created at Heathrow, the world's busiest international airport.
Supporters say expansion of Heathrow, which lies to the west of London in a densely populated area, is vital for the city's economy. Environmentalists say though that expanding London's three main airports -- Heathrow, Gatwick, and Stansted -- will only add to harmful climate change.
John Stewart, chairman of a local residents' group opposed to airport expansion, said: "We recognize there are problems for passengers in the existing Heathrow terminals and many of our members use Heathrow.
"This is not a demonstration against T5 so much as against what T5 means and that is extra flights, as many as 80,000 a year at Heathrow."
With 60 aircraft stands actually attached to two new buildings, "T5" can handle dozens of planes at the same time -- including the new Airbus A380 superjumbo -- and can process 12,000 bags an hour. All of this is for just one occupant: British Airways.
It's a new era for BA and the 30 million passengers who will pass through T5 each year. Both have suffered for years at the four older terminals of what's been derided as "Hassle Heathrow."
"I've been very critical of the airport," BA Chief Executive Willie Walsh told CNN before the opening. "(It's) because of the problems we have faced as a result of poor infrastructure at the airport.
Watch Walsh talk about new terminal »
"So we now have the infrastructure. We have a state of the art baggage system; we've got a state of the art terminal building. We've got lounges like you have never seen before and it will be down to us and it will be down to the people at British Airways to make it a success."
See images of the new airport building. »
Part of this strategy is to get passengers to the airport earlier to avoid delays. Travelers will be encouraged to check in online, and there will only be 54 of the classic check-in desks compared to 96 self-check-in kiosks.
No passengers will be allowed through if they arrive less than 35 minutes before their flight. For those having to wait in the terminal, airport operator BAA built T5 with 112 shops and restaurants, including celebrity British chef Gordon Ramsey's first airport eatery.

Critics say T5 is just a massive shopping mall and Virgin Atlantic calls it a gift for its rival BA, but the terminal's architect says his creation is a throwback to old-fashioned travel.
"We wanted to make the experience of being in an airport exciting. We wanted to capture the spirit of travel," architect Richard Rogers told CNN. "The greatest stations, whether it is New York or London, the 19th century stations did exactly that." E-mail to a friend ![]()
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