BAA under scheme deficit burden
Losses at airport operator BAA have tripled in the first six months of the year, partly due to a growing defined benefit scheme deficit, its results showed.
The company, which runs Heathrow, Gatwick and Stansted, posted pre-tax losses of £525.7m in the first six months of 2009. Losses a year ago stood at £135.3m.
The results said pre-tax exceptional charges of more than £400m contributed heavily to the losses.
It said these included a £218.5m non-cash charge for the group's share of the change in the period in the BAA group's defined benefit pension scheme deficit.
It said: "The increase in the deficit since December 31, last year occurred mainly in the second quarter of this year and reflected primarily increased scheme liabilities due to changes in the forecast inflation curve."
However, the firm said it did not anticipate the need to make additional cash payments to the pension fund to address the deficit in the foreseeable future as the group had already committed to making annual cash payments to the fund of approximately £70m until 2011.
At June 30, this year, the actuarial valuation of the BAA defined benefit pension scheme showed a deficit of £249.8m and the Unfunded Pension Scheme and Post Retirement Medical Benefits showed a deficit of £19.9m.
In June, last year, this stood at £187.5m surplus for the DB scheme and £22.3m deficit for UURBS.
The results said pre-tax exceptional charges of more than £400m contributed heavily to the losses.
It said these included a £218.5m non-cash charge for the group's share of the change in the period in the BAA group's defined benefit pension scheme deficit.
It said: "The increase in the deficit since December 31, last year occurred mainly in the second quarter of this year and reflected primarily increased scheme liabilities due to changes in the forecast inflation curve."
However, the firm said it did not anticipate the need to make additional cash payments to the pension fund to address the deficit in the foreseeable future as the group had already committed to making annual cash payments to the fund of approximately £70m until 2011.
At June 30, this year, the actuarial valuation of the BAA defined benefit pension scheme showed a deficit of £249.8m and the Unfunded Pension Scheme and Post Retirement Medical Benefits showed a deficit of £19.9m.
In June, last year, this stood at £187.5m surplus for the DB scheme and £22.3m deficit for UURBS.
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