British Airways PLC has reached a preliminary agreement with pension trustees on a 10-year plan for closing a 2.1 billion-pound ($3.9 billion) deficit in the program, the airline said Wednesday.
After talks with trustees, the carrier said it would increase a one-time cash contribution to 800 million pounds ($1.5 billion) from 500 million pounds ($940 million) and would pay up to 50 million pounds ($94 million) a year for the next three years if its year-end cash balances stayed above 1.8 billion ($3.4 billion).
The annual payments are dependent on BA staff approving proposed changes to future pension benefits, including an increase in the retirement age to 65. Management will consult Thursday with unions representing BA workers on the proposals.
Keith Williams, BA's chief financial officer, said the proposal was "the right way forward for (the pension plan), our staff and for the company."
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