BA to defer GBP450m of pension contributions

British Airways has agreed to defer GBP450m of pension deficit contributions and will pay no dividends to its parent IAG for the next three years in a recovery plan aimed at boosting its liquidity. The company will defer monthly contributions of GBP37.5m from October 2020 to September this year as part of an agreement with pension trustees. BA will provide property assets as security, which will remain in place until the airline has repaid the deferred contributions to the New Airways Pension Scheme, or Naps. The GBP450m of accumulated contributions plus interest will now be repaid monthly in a revised scheme to March 2023, adding to the end of the existing recovery plan. BA will be barred from paying dividends to IAG before the end of 2023 after it secured a government guarantee that is designed to help its recovery from the impact of coronavirus and Britain’s exit from the EU. From 2024, any dividends paid will be matched by contributions to Naps of 50% of the value of the payouts. Story has full details.<br/>