Iberia has pension escape clause from merger with British Airways

Iberia reportedly established an escape clause under its merger agreement with British Airways, if a ruling on the UK carrier's pension debt shortfall is greater than Iberia deems affordable. British Airways has approximately USD5.6 billion in pension debts and operates two pension schemes; the Airways Pension Scheme, which closed in 1984 and the New Airways Pension Scheme, which closed in 2003. The UK pensions regulator could force greater costs on British Airways to resolve its pension debt shortfalls.