British Airways Reaches Deal On $5.5B Pension Deficit

Law360, New York (June 22, 2010, 5:48 PM EDT) -- British Airways PLC said Tuesday that it had reached a deal to address its £3.7 billion ($5.5 billion) pension deficit, which could put it a step closer to finalizing its merger with Spain's Iberia Group.

The agreement with trustees of British Airways' two pension schemes will keep the pensions from closing by maintaining the company's annual contributions at the current level of about £330 million, with increases every year in keeping with inflation expectations of 3 percent.

For one plan, the New Airways Pension Scheme, the...
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