NAPS DEFICIT FUNDING AGREED

British Airways PLC
15 November 2006




NAPS DEFICIT FUNDING AGREED

British Airways and the trustees of the New Airways Pension Scheme (NAPS) have
agreed in principle a ten year funding plan to tackle its £2.1 billion deficit.


The airline will increase its one-off cash injection from £500 to £800 million
and offer to pay up to £50 million a year for the next three years subject to
the airline's year end cash balances remaining above £1.8 billion and on staff
accepting future benefit changes.


The agreed funding plan between the company and trustees assumes an increase in
British Airways' annual contributions to over £250 million and close to the
value of the proposed members benefit reductions.


The benefit reductions include raising the normal retirement age to 65, a lower
accrual rate, inflation capped pensionable pay increases, capped pension
increases on retirement and sharing life expectancy. NAPS will remain a final
salary scheme.


British Airways' chief financial officer Keith Williams, said: 'I am pleased to
announce an agreement in principle with the Trustees on this important issue.
This funding plan will secure our past and future pensions.  It is the right way
forward for NAPS, our staff and for the company.


'The £800 million cash payment into NAPS is a very significant injection into
the fund relative to the company's market capitalization. Together with the
benefits changes, more than half the deficit will be tackled immediately'.


The airline has been consulting with its trade unions on the proposed benefit
changes and is scheduled to meet them tomorrow (16 November). The trustees are
keen for the company and its trade unions to reach a common understanding.



                                      ends



November 15, 2006                      118/KG/06



Note to editors:



• The NAPS actuarial deficit has risen from £928 million in 2003 to £2.1
  billion despite a doubling of BA's contributions and a recovery of the stock
  market.

• BA's contribution to NAPS last year was £235 million - the equivalent
  of five times members' contributions.  Without future benefit changes,
  contributions would have to increase to £497 million per annum.

• On advice from Price Waterhouse Coopers, the trustees have said BA
  could not afford contributions much above current levels and could not use all
  its cash reserves to pay off all the deficit because it would put the 'long 
  term viability of BA in jeopardy'.

• Under the proposal BA will pay around £250 million by 31 December and £550 
  million in April next year. The payments are conditional upon acceptance of
  the proposals.

• In addition the company will provide financial guarantees to NAPS of £150 
  million. These will fall away if the additional payments are made into the
  fund.

•  NAPS has 33,794 active members, 20,269 deferred and 15,185 pensioners.

•  The airline closed NAPS to new members in 2003 but members continue to
   accrue benefits.

•  In 2003, the airline introduced British Airways' Retirement Plan (BARP)
   for new joiners, including chief executive Willie Walsh who joined in May
   2005. BARP is a defined contribution scheme.



Certain information included in these statements is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward looking statements.



Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation, discussions of
the Company's Business Plan programs, expected future revenues, financing plans
and expected expenditures and divestments. All forward-looking statements in
this report are based upon information known to the Company on the date of this
report. The Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise.



It is not reasonably possible to itemize all of the many factors and specific
events that could cause the Company's forward looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2006.



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