This Time, Over Plan To Overhaul Airline's Pensions

Stop us if this sounds like something from OUR side of the pond...

British Airways plans to pick up the pace of overhauling its pension plan, a move that is certain to embitter some BA workers and could even spark more strikes in Europe.

The airline's new CEO, Willie Walsh, recently sent a letter to employees, warning that the company's pensions would likely be revised in January, according to a BA spokesman who spoke with the Daily Mail on Monday.

As Aero-News reported in real time August 12th, BA flights throughout Europe were grounded when baggage handlers and others staged a wildcat strike at Heathrow. They walked out in sympathy with hundreds of Gate Gourmet workers who were summarily fired the previous Friday.

The British flag carrier's pension plan is currently underfunded by an estimated $2.46 billion and it's number one with a bullet on Walsh's list of things to address as he takes control of BA. More than likely, British press reports indicate, Walsh will over two simple alternatives: Increase your pay-in or reduce your pay-out. There appears to be no third choice in the short-run.

British Airways, however, denied reports that it would offer employees a cash bonus if they opted out of the pension plan altogether.

"Company contributions cannot be increased if it is to invest in new people, planes and new products," BA said in an internal statement obtained by the Daily Mail.

The problem appears so dire that BA is reportedly considering resurrection of its failed merger plans with American Airlines.

FMI: www.britishairways.com