Originally Posted by
Litebulbs
The way I understood the pensions payment of £1.3b, was that it was overpayments made to remedy the deficits in the two plans. If my understanding is wrong, then thank you for correcting me, but I was only making my assumptions after reading this -
As far as NAPS is concerned, BA pay £240m per year which basically covers the previous pension deficit and future pension accrual. The balance of the £1.3b probably includes APS deficit payments and BARP contributions and possibly the one off payment made by BA to flying staff pensions to allow for the 10 year change from 55 year to 65 NRD compared to ground staff's 5 year change. (negotiated by Balpa btw for all flight and cabin crew
)
So there's £240m/year being paid year on year which comes straight off the bottom line, and that's not going to change. (Ideally for us that would increase but BA have already said they can't afford it).
So, as mentioned above, you can't strip necessary costs like pension contributions out of the profit/loss account and say 'we're profitable if you don't include .....' The only way to reduce losses or make profits is to reduce unnecessary costs.
That's what WW is trying to do now.