British Airways owner IAG has struck a deal with one of its pension funds to defer £450million of pension deficit contributions to save cash until the airline can start flying again at full capacity.
The agreement with the New Airways Pension Scheme means BA will defer monthly contributions of £37.5million due between October 2020 and September 2021 until March 2023.
Under the deal, British Airways will pay interest on the deferred cash and put property assets as a security, which will remain in place until the airline has repaid the pension contributions.
BA will also temporarily stop to pay dividends to IAG until the end of 2023.
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