Pension agreement concluded

British Airways PLC
07 February 2007



PENSION AGREEMENT CONCLUDED



British Airways and the trustees of the New Airways Pension Scheme have (NAPS)
formally agreed the funding plan including benefit changes to tackle the £2.1
billion deficit in the scheme.



The plan, which was agreed in principle with the trustees last year, includes
annual company contributions of some £280 million for the next ten years and a
one-off cash injection of  £800 million.  It also includes benefit changes to
take effect from April 1 and an additional £150 million in cash over the next
three years, subject to the airline's financial performance.



The benefit changes will deliver an immediate deficit reduction of some £400
million and a saving of some £80 million a year.



British Airways' chief financial officer Keith Williams, said: 'This brings to a
close our lengthy consultation process on pensions.  It provides greater
stability and certainty for all 70,000 NAPS members and frees the company to
move forward into an exciting phase of investment and growth.'



                                      ends



February  7, 2007            024/KG/07




Notes to editors:



Benefit changes include



  • Normal retirement age at 60 with an accrual rate of 1/60 and contribution
    rates of 8.5 per cent.
  • Normal retirement age at 65 with an accrual rate of 1/60 and contribution
    rates of 5.25 per cent.
  • Normal retirement age of 55 with an accrual rate of 1/60 and contribution
    rates of 17.5 per cent.
  • Options to buy improved accrual rates.
  • Lifting the cap on total pension contributions from 15 to 30 per cent
  • Introducing tax efficient ways of making pension contributions.

  • Future pensionable pay rises capped to inflation
  • Pension growth in retirement (LPI) remains at five per cent.





Staff can still choose to retire earlier than the normal retirement age but with
a reduced pension.



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 programmes, 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 report. 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 itemise 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. Information on some
factors which could result in material difference to the results is available in
the company's SEC filings, including, without limitation the company's Report on
Form 20-F for the year ended March 2006.




                      This information is provided by RNS
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