BA sends warning on pensions

BENEFIT cuts loom for the 100,000 members of British Airways' pension schemes following news that they could expect less than 60% of their entitlement if the airline files for bankruptcy.

The fund issued the warning to all members by letter. Bankruptcy is not likely, but the warning helps to illustrate the scale of the crisis. BA said it remains in talks with unions and is seeking a 'sensible solution'.

The unions are being reasonable. Pilots' association BALPA said: 'If the company has a problem it's our problem too.'

BA's schemes have a £1.2bn deficit under accounting standard FRS17. The airline has already agreed to pay an extra £105m in contributions each year to help fill the gap.