British Airways has reached a deal with its four main trade unions on a package of reforms to tackle its £2.1bn pension deficit.
The deal will be recommended by the unions to the workforce after months of negotiations and should lift the threat of industrial action at the airline.
British Airways said it would make a one-off payment of £800m to the pension fund, for the 33,500 people who hold a company pension. Its annual contributions will be about £280m for the next decade.
The proposed payments require staff to accept changes, including increasing the age of retirement to 65.
The Transport and General Workers’ Union, which is BA’s largest union with 20,000 members, said the proposal included different contribution levels.
A British Airways spokesperson said the deal “effectively tackles one of the most fundamental issues we face”.
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