British Airways Pension Deficit Now GBP3.7 Bln

British Airways said on Monday that its pension deficit had increased to GBP3.7 billion pounds (USD$6 billion), giving Spain's Iberia a get out clause if it wants to call time on their long-planned merger.

BA said an actuarial review had revealed a GBP1 billion deficit at its Airways Pension Scheme (APS) and a further GBP2.7 billion black hole at its New Airways Pension Scheme (NAPS).

That compares with a funding gap of GBP1.5 billion identified by trustees at the end of March 2008. "The airline and trustees will now work together to develop a recovery plan, a process which will involve the company consulting with employees and their trade unions," the company said, adding that the deadline for the process was June 30.

Get the full story at: Airwise