FANS
I find it highly questionable that LH & BA can be involved in a transaction that ultimately results in a reduction to contractual pension commitments, and think this should be of concern to every (private sector) member of a DB scheme
I'd agree to the second part of your statement
Re the first, I think some more detail will be needed. Firstly, it has nothing to do with BA - it is IAG conducting the purchase. You might suggest the difference is academic, but I'd say not:
- BA is a UK based plc, albeit no longer listed
- IAG is a quoted company in Spain
- LH ditto in Germany
I suspect the moves here against the interest of the bmi members have only been able to happen since it is a foreign company (IAG) making the purchase. I would have hoped UK Law would enable TPR to have forced BA to take on the Pension liabilities, had BA bought bmi. A hint in this is the apparent reluctance of the TPR to allow LH to accept the liabilities?
To those in BA, the parallels might be seen as worrying - could we see the BA Pension funds also "no longer underwritten" by IAG, whilst IAG also have the financial means to adjust accounting to make BA technically bankrupt (much as LH have been said to have done to bmi)?