BA to pay US$874m for pension deficit

LONDON – British Airways Plc, Europe’s third-largest airline, will raise the retirement age of pilots and other staff and pay 500 million pounds (US$874 million) to tackle its huge pension deficit.

The airline said yesterday it hoped to clear the 1 billion pound deficit, as measured by actuaries three years ago, through a combination of higher retirement ages, a slower accrual rate and a cap on pension increases. BA’s plan for staff to work longer for a similar annual pension sent shares in the airline to near four-year highs and was received cautiously by unions, which had threatened to strike if they did not like the proposal.- Nampa-ReutersBA’s plan for staff to work longer for a similar annual pension sent shares in the airline to near four-year highs and was received cautiously by unions, which had threatened to strike if they did not like the proposal.- Nampa-Reuters