British Airways has ousted the chair of the airline’s pension plan trustees after reports of a row over investment strategy.
The airline has confirmed that Paul Spencer’s five-year contract will not be renewed after it expires at the end of next month.
Sources told The Sunday Times that the decision followed a call from Mr Spencer, who also chairs the BT and Rolls-Royce schemes, to shift part of the pension fund’s assets into bonds rather than equities – something that could have increased the required cash injections from the parent group.
The airline is already taking legal action against an earlier decision of the pension fund’s trustees to increase contributions.
BA’s pension scheme has total liabilities of €29.2bn, according to the company’s most recent report. Its assets are valued at €29.3bn, meaning that it is, just, in surplus.