25th Oct 2019 15:57
(Alliance News) - International Consolidated Airlines Group SA said Friday the pension ddeficit for its UK flag carrier subsidiary British Airways was reduced to GBP2.4 billion following its most recent valuation.
As part of its recent triennial valuation, the Trustee of its New Airways Pension Scheme and IAG signed an agreement which showed the British Airways pension scheme technical deficit at the end of March 2018 fell to GBP2.4 billion from GBP2.8 billion in March 2015.
Consequently, British Airways agreed to pay GBP450 million per year fixed deficit contributions until March 2023.
This is compared to the previous deal which committed BA to paying GBP300 million per year in fixed contributions as well as up to GBP150 million per year in variable contributions dependent on the cash position of the firm.
BA has also increased its flexibility to make payments to its owner, IAG. The airline can now pay up to 50% of its pre-exceptional items post-tax profit, up from 35% previously.
Shares in IAG were 0.3% lower at 516.60 pence in London on Friday.
By Ahren Lester; [email protected]
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