FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
FURNISHED PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
5 January, 2007
BRITISH AIRWAYS Plc
(Registrant's Name)
Waterside HBA3,
PO Box 365
Harmondsworth UB7 0GB
United Kingdom
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule101(b)(1)
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7)
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organised (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
CONTENTS
1. Support for pension changes
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
BRITISH AIRWAYS Plc
By: /s/_________________________
Name: Alan Buchanan
Title:Company Secretary
Date (Date Month Year)
INDEX TO EXHIBITS
Exhibit No. Description
1. Support for pension changes
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 GBP2.1 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 GBP800 million into the
fund subject to acceptance of benefit changes. Together with a one-off employee
saving of GBP400 million and changes to future benefits, the NAPS pension
deficit will be reduced by more than half from an existing GBP2.1billion to
GBP0.9 billion and the company's annual contributions will be around GBP280
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 GBP928 million in 2003 to GBP2.1 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 GBP235 million - the equivalent of
five times members' contributions. Without future benefit changes,
contributions would have to increase to GBP497 million per annum.
- Under the proposal BA will pay the GBP800m one-off cash injection with
GBP250 million this month and GBP550 million in April.
- The company will also pay up to GBP150 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, without 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.
END