16 November 2009
The Pensions Regulator (TPR) is yet to examine the deal between
British Airways (BA) and Iberia, as it was only informed at the
same time as the deal was announced.
BA is hopeful that it can reach a deal with its trustees over
the pension scheme's estimated deficit of £3-4bn, although the two
sides have not yet agreed the assumptions to be used for
valuation.
Under the terms of the merger, Iberia would be entitled to
terminate the deal if BA is required to contribute more to cover
the pension scheme shortfall and BA will now look to negotiate a
deal with the TPR to secure more time to cover the deficit.
