British Airways, Harmondsworth, England, will defer £450 million ($630 million) in scheduled contributions to the New Airways Pension Scheme until September as the sponsoring employer continues to battle the impact of the coronavirus pandemic.
The airline company agreed with the trustees to defer monthly contributions of £37.5 million between October 2020 and September 2021, a regulatory filing said Monday. The company had already agreed during negotiations with the trustees to temporarily defer contributions that had been due in October, November, December and January, a notice on the pension fund's website said.
The sponsoring employer will repay the £450 million in contributions, plus interest, at the end of the existing recovery plan, previously due to end in March 2023.
British Airways also said it will provide property assets as security for the pension fund, remaining in place until it has repaid the deferred contributions. A spokeswoman for the airline's parent company, International Airlines Group, said the assets are part of British Airways' property portfolio at Heathrow, such as maintenance bases. The Waterside building at Heathrow — British Airways' head office — is not included, she said.