British Airways’ pension deficit has reportedly grown to £2bn, doubling since its last valuation in March 2003.
The amount was revealed to unions yesterday in a meeting with management, signalling months of negotiations on pay and pensions, according to the Financial Times.
The newspaper said that if the scheme were to close and wind up, it would result in a debt of £3-4bn, compared to BA’s market value of £3.6bn.
BA declined to comment on the details of the meeting, saying the talks were confidential, but a spokesman confirmed that the company has sought to inform the union representatives about the exact financial position.
“We did outline to them some of the challenges facing the company and the scale of the deficit,” he said.