BA plans to set retirement age at 60

Published: 17/11/06

As part of its attempts to reduce its 2.1 billion pound pension scheme deficit, British Airways has agreed to set its retirement age at 60 rather than 65, although staff will need to increase their contributions over the next few years in order to make up their part of the shortfall. The airline had originally set the age at 65 in order to ensure that staff would pay more into the pot, but this move met with stiff opposition, and concessions were made.

Full agreement between the two sides is still some way away, and exact figures are still to be agreed on contributions, but both management and union spokesmen hope that common ground can be found, and there will be no need for staff to go on strike in order to make their point.

BA has been attempting to find a way to resolve the pension issue in order to stabilise its outgoings for the next few years as it looks at a number of expansion opportunities including the possible take over of an American carrier in order to gain more slots for lucrative transatlantic cheap flights to Orlando and other US destinations.

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