Support for pension changes

British Airways PLC
05 January 2007





SUPPORT FOR PENSION CHANGES



British Airways today (January 5, 2007) welcomed the decision by its trade
unions in the BA Forum to recommend changes to its New Airways Pension Scheme
(NAPS), which has a £2.1 billion deficit.



The British Airways Forum represents the airline's four unions and is
recommending   acceptance of the proposal and will now consult with members
formally.



The company has agreed to make a one off contribution of £800 million into the
fund subject to acceptance of benefit changes. Together with a one-off employee
saving of £400 million and changes to future benefits, the NAPS pension deficit
will be reduced by more than half from an existing £2.1billion to £0.9 billion
and the company's annual contributions will be around £280 million a year for
the next ten years.



British Airways' chief executive, Willie Walsh, said:  'This is great news.
Together with the NAPS Trustees and staff, we have found a shared solution that
helps secure the pensions of our 33,500 NAPS members and removes a major blocker
to future investment in British Airways.  This brings the NAPS deficit and
ongoing contributions to a level which is affordable by British Airways and
effectively tackles one of the most fundamental issues we face.'



A funding plan to clear the NAPS deficit over 10 years was agreed with the
pension scheme trustees in 2006, subject to members accepting changes to future
benefits.



ends



January 5, 2007                                                       002/KG/07



Notes to editors:

Details of the proposed pension arrangements for NAPS will be released following
communications to employees on Monday.



Other background information:

•  The NAPS actuarial deficit rose from £928 million in 2003 to £2.1 billion in 
   2006 despite a doubling of BA's contributions and a recovery of the stock 
   market.

•  BA's contribution to NAPS in 2005/6 was £235 million - the equivalent of 
   five times members' contributions.  Without future benefit changes, 
   contributions would have to increase to £497 million per annum.

•  Under the proposal BA will pay the £800m one-off cash injection with 
   £250 million this month and £550 million in April.

•  The company will also pay up to £150 million more in contributions over 
   the next three years subject to meeting certain financial targets.

•  NAPS has 33,794 active members, 20,269 deferred and 15,185 pensioners. The
   airline closed NAPS to new members in 2003 but members continue to accrue 
   benefits.

•  In 2003, the airline introduced British Airways' Retirement Plan (BARP) for 
   new joiners, including chief executive Willie Walsh who joined in May 2005. 
   BARP is a defined contribution scheme.

•  NAPS is a final salary scheme based on length of service multiplied by 
   pensionable pay, currently divided by 56 for ground staff and 52 for air 
   crew with normal retirement age of 60 for ground staff and 55 for aircrew.


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, wihout 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
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 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. 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.


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