British Airways (BA) has reached provisional agreement on an actuarial basis to calculate the deficits of its pension schemes.
On the basis of this agreement, the deficit in the Airways Pension Scheme would be £1billion and the deficit in the New Airways Pension Scheme would be £2.7billion.
The troubled airliner said it would work together to develop a recovery plan, a process which will involve the company consulting with employees and trade unions.
Meanwhile, BA cabin crew and Unite the union have stood firm on plans to hold a 12-day strike over employment conditions starting on 22 December.
Unite said more than 12,500 cabin crew were balloted following BA’s imposition in November of new working arrangements, including the reduction of crew numbers on all flights, which cabin crew have said will hit passenger service, as well as their earnings and career prospects.
A statement from British Airways said: “British Airways is extremely disappointed Unite is planning massive disruption for hundreds of thousands of our customers over the Christmas and New Year holiday period.
“A 12-day strike would be completely unjustified and a huge over-reaction to the modest changes we have announced for cabin crew which are intended to help us recover from record financial losses.
“Unite’s cynical decision betrays a total lack of concern for our customers, our business and other employees within British Airways.”
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