BA agrees deal with unions on pensions

The agreement, which brings the airline closer to addressing its pension deficit, removes a potential obstacle in the airline's merger with Iberia Lineas Aereas de Espana SA, according to Bloomberg.The company's pension deficit had increased to £3.7 billion by the end of 2009.

The dispute between BA and the Unite trade union over pay and staffing is a separate matter. Trustees and the pension regulator now need to accept the proposals concerning pensions.