Commentaries

More debt won’t solve BA’s pensions headache

July 17, 2009

Issuing a bond or taking out a bank loan to support a pension fund deficit is not a solution to a problem. It is simply a way of funding one future liability with another. At best it defers the problem; at worst it can magnify it.

Ouch! BA’s pension deficit is set to pass 3 billion pounds

July 16, 2009

It’s a bit rough on BA that the triennial review of its pension funds should have co-incided with the bottom of the equity market at the end of March, since the result will be a deficit in excess of 3 billion pounds.