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BA Pilots Threaten Strike Action Over Pensions

12th January 2006 British Airways pilots have warned that the airline's radical plans to tackle its pension scheme deficit could end in strike action, the Financial Times reported.

BALPA (The British Airline Pilots Association), which represents 2,800 of BA's 3,000 pilots, said its members were prepared to act to safeguard pensions. This would be the first strike by BA pilots.

Balpa's challenge to BA is the first by any of the workforce to the airline's plan to lower the £1.4bn deficit, one of the biggest shortfalls of any UK company.

The FT quoted Jim McAuslan, Balpa's general secretary, as syaing 'BA pilots are standing absolutely firm on this issue. They are incensed. From what the company says they could lose up to 36 pct of their pension entitlement.'

BA has one of the biggest pension deficits compared with its stock market value of any of the companies in the FTSE-100 index.

Mr McAuslan said last night that BA was "prioritising paying off other debt, creating cash, looking for shareholder return and investing in new aircraft. We are bottom of the pile". Balpa plans to challenge BA's version of its pensions predicament.

British Airways are currentlt conducting a consultation exercise with its 46,000 employees to prepare the ground for sweeping changes in pension entitlements.

TD Travel will keep all clients informed if this situation develops.

Further Information
British Airways - www.ba.com
BALPA - www.balpa.org.uk

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