BA reveals pensions concerns
British Airways has spelled out what staff could expect if the unthinkable happened and the company became insolvent.
Two national flag carriers, Swissair and Belgium’s Sabena, have gone bust since September 11, but BA has not been among other airlines that teetered on the knife-edge of bankruptcy.
News that staff might get around 40% less than their promised pension benefits if BA were to become insolvent was included in the latest edition of its staff newsletter, the Financial Times reported.
It said: ‘Although there is no indication from British Airways that it will not support the schemes in future, the actuary has, nevertheless, looked at what the position might be if that support no longer existed.’
The company’s unions said they would co-operate with BA in negotiations on how to address the deficit in its pension scheme, which was £900m at the end of March.