BA suffers defeat over plan to merge pension fund schemes

AN ATTEMPT by British Airways to merge its old and new pension schemes into one and take a contributions holiday was overwhelmingly defeated yesterday in a ballot of members, writes Michael Harrison.

The result of the vote among members of the old BA pension scheme was 78.5 per cent against and 21.5 per cent in favour. The turnout was 62 per cent. Mike Post, a retired BA captain who has led the campaign, said the vote amounted to a clear mandate to keep the two schemes separate.

Meanwhile, BA's move to apply for a code-share with its alliance partner, American Airlines, has come under attack from the rival carrier British Midland. The BM chairman, Sir Michael Bishop, said that the code-share, allowing the two airlines to sell tickets on each others flights, should not be considered by regulators until an "open skies" policy was in place across the Atlantic.

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