British Airways faces massive pension plan top-ups

British Airways PLC is to face additional contributions to its two pension schemes of £133m (€191.12m) a year.

The news comes after a regular review by actuaries showed a shortfall in one pension scheme and a dwindling surplus in the other.

The airline runs the Airways Pension Scheme (APS) and the New Airways Pension Scheme (NAPS), which have a combined £9bn (€12.93bn) of assets under management.

BA blamed the sharp fall in world equity markets combined with increasing life expectancy for this problem.

The three-yearly review revealed the APS surplus, which had been £820m (€1.17bn) at the last valuation in March 2000, dropped to £45m (€64.65m).

The NAPS deficit has risen from £221m (€317.5m) in March 2000 to £928m (€1.33bn ) in March this year.

Finance director John Rishton said: "British Airways remains committed to its existing pension schemes but these funding increases are a substantial additional burden, particularly in the current difficult trading environment."

Both APS and NAPS are final salary schemes that are closed to new members. The company introduced the British Airways Retirement Plan (BARP) in April this year for new staff.