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British Airways’ new employee pension scheme should result in annual savings of GBP80m (US$112m), IAG said. BA closed its New Airways Pension Scheme (NAPS) to future accrual and its British Airways Retirement Plan (BARP) to future contributions from March 31. They have been replaced with a flexible benefits scheme, incorporating a new defined contribution pension scheme, called the British Airways Pension Plan (BAPP), which offers a choice of contribution rates and the ability to opt for cash instead of a pension. BA CFO Steve Gunning said: “This is an important step in managing the risk in NAPS and ensuring the airline has an appropriate cost-base for the future. The new arrangements include a market-competitive defined contribution scheme and will stop the build-up of further liabilities and risk in NAPS." <br/>

A cash incentive scheme proposed to reduce Canberra to Sydney flight cancellations has been bluntly dismissed as a "stunt" by Qantas. Over the weekend Canberra Airport MD Stephen Byron wrote to Qantas and Virgin Australia, offering A$100,000 to the airline with the lowest monthly cancellation rate on the capital to Sydney route. But Qantas Domestic CE Andrew David said the airline was already committed to bringing down cancellations, and dismissed the need for an extra incentive. The cancellation rate for Canberra to Sydney flights was 3.2% in February, compared to a nationwide cancellation rate of 1.3%. "Cancelled flights cost us money. The suggestion that we're cancelling flights because it suits us is just wrong." David said. <br/>Virgin Australia group executive Rob Sharp said they also rejected the premise of the letter. <br/>