APS pension update

RNS Number : 6819O

British Airways PLC

01 July 2010

 



APS PENSION UPDATE

British Airways confirms that the trustees of its Airways Pension Scheme (APS) have entered into an insurance transaction with Rothesay Life, covering 20 per cent of pensioner liabilities worth £1.3 billion. 

The APS scheme has committed to pay Rothesay Life pre-determined cashflows. In exchange, Rothesay Life will make payments to APS matching 20 per cent of the actual pension payments as they arise. 

The insurance transaction provides protection for longevity risk and provides a direct match for the pension cashflows in all inflation and interest rate scenarios.  The transaction does not change contributions from British Airways and is consistent with the long-term aims of the scheme to reduce the reliance on the employer over time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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July 1, 2010                                                                                                       62/RF/10

 

NOTES TO EDITORS           

Rothesay Life Limited is an insurance company established in the UK and regulated by the Financial Services Authority.

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward looking statements.

Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of the Company's Business Plan programs, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this announcement. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

It is not reasonably possible to itemize all of the many factors and specific events that could cause the Company's forward looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy.  Further information on some of the most important risks in this regard is given in the Company's Annual Report and Accounts, which is available at our website www.bashareholders.com.

Investor Relations,  Waterside (HAA3), PO Box 365, Harmondsworth, UB7 OGB:  Tel: [phone]

 

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