British Airways has reached an agreement with its four main unions to reduce its $4.8 billion(£2.1 billion)pension deficit.

The carrier will make a one-time contribution of $1.8 billion and annual contributions of about $638 million for the next decade.

“We have come a long way with our staff, trustees and trade unions on this issue,” says the airline’s chief executive, Willie Walsh. “We can now move forward on our plans for fleet renewal and replacement.”

To comment on this story email craig.sebastiano@rci.rogers.com.