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BA agrees deal with unions on pensions

British Airways has announced an agreement with trade unions concerning its pension scheme.

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.