Washington, D.C. 20549

                        REPORT OF FOREIGN PRIVATE ISSUER

                FURNISHED PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
                       THE SECURITIES EXCHANGE ACT OF 1934

                                  23 March 2006

                               BRITISH AIRWAYS Plc
                               (Registrant's Name)

                                 Waterside HBA3,
                                   PO Box 365
                              Harmondsworth UB7 0GB
                                 United Kingdom

Indicate by check mark whether the registrant  files or will file annual reports
under cover of Form 20-F or Form 40-F.

                    Form 20-F   X             Form 40-F

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule101(b)(1)

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Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7)

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Form 6-K if submitted to furnish a report or other  document that the registrant
foreign  private  issuer  must  furnish  and make  public  under the laws of the
jurisdiction  in which the  registrant  is  incorporated,  domiciled  or legally
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country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press  release,  is not required to be and has
not been distributed to the registrant's  security holders, and, if discussing a
material  event,  has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.

Indicate by check mark whether by furnishing the  information  contained in this
Form,  the  registrant  is  also  thereby  furnishing  the  information  to  the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                             Yes              No   X

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):


1. Pension proposal


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorised.

                                             BRITISH AIRWAYS Plc

                                             By:   /s/_________________________
                                                   Name: Alan Buchanan
                                                   Title:Company Secretary
                                                   Date  23 March 2006

                                INDEX TO EXHIBITS

Exhibit No.                 Description

1.                          Pension proposal


British Airways has drawn up a proposal to clear the GBP1 billion past service
actuarial deficit in its New Airways Pension Scheme (NAPS).

The airline plans to keep a final salary pension scheme with no changes to
pension benefits already earned and no increase in staff contribution rates.

There will however, be changes to members' benefits that relate to future

The airline will make a payment of GBP500 million into NAPS after the changes
are accepted.

The key changes for future service are:

  - Normal retirement age raised
  - Slower accrual rate
  - Pensionable pay increases no more than inflation
  - Pension increases on retirement capped at 2.5 per cent each year
  - Company and staff to share impact of changes in life expectancy

Willie Walsh, chief executive, said: "This is a solution that will provide
competitive, affordable pensions for the future. These changes are necessary to
clear the past deficit and to contain the amount of future funding needed. It
means working longer to get a similar annual pension, but one that is more
secure. This should address the pension problem at British Airways once and for

"After the changes are accepted, the airline will make a payment of
GBP500 million into the fund. This is on top of the GBP350 million the company
will have paid towards the past deficit by December 2006."

The next valuation begins this month with the results expected in October. If
changes to the scheme are not introduced the deficit and level of future service
contributions are expected to grow because people are living longer and
long-term interest rates remain low.

Mr Walsh added: "The changes to members' future benefits will reduce the
anticipated deficit by GBP450 million.  We will also be able to make
contributions for future service we can afford.

"This package of measures is vital if we are to achieve a competitive cost base,
deliver a 10 per cent operating margin, be fit for growth and invest in our

The proposals follow an extensive staff communications programme for active NAPS


March 23, 2006

Notes to Editors:

  - The New Airways Pension Scheme (NAPS) NAPS has 33,794 active members,
    20,269 deferred and 15,185 pensioners.

  - The airline closed NAPS to new members in 2003 but members continue to
    accrue benefits.

  - NAPS provides a final salary pension based on length of service multiplied
    by pensionable pay, divided by 56 for ground staff and 52 for flying staff.

  - In 2003, the airline introduced British Airways' Retirement Plan (BARP)
    for new joiners, including chief executive Willie Walsh who joined in May
    2005. BARP is a defined contribution scheme

  - At March 31, 2005 the NAPS FRS17 pre-tax deficit was around GBP2 billion.
    The post-tax FRS17 equivalent figure is GBP1.4 billion.

  - The NAPS actuarial deficit at March 2003 was GBP928 million.

  - From January 2004 to the end of 2006 British Airways will have paid
    GBP350 million off the past deficit.

  - BA's contribution to NAPS last year was GBP235 million.

  - Normal retirement age (NRA) will rise to 65 to coincide with age
    legislation, expected to be introduced in the UK in October 2006.

  - The current compulsory retirement age for pilots and cabin crew is 55;
    the normal retirement age is also 55.  For cabin crew NRA will rise to 65.
    To reduce the impact, for the first five years this will rise to 60.

  - For pilots, some countries including France and the USA apply
    restrictions to flying and overflying as a captain beyond 60.  For this
    reason the normal retirement age will rise to 60.  If the flying
    restrictions are removed in the future, the airline will raise NRA to 65 and
    adjust accrual and contributions in line with other staff.

  - For those with an NRA of 65 the accrual rate will be reduced from1/56 to 1
    /60 and contribution rates remain unchanged at 5.25 per cent.  For those
    with an NRA of 60 the accrual rate will adjust from 1/52 to 1/56.

  - The option to retire before NRA remains, but on a smaller pension.  Staff
    will have the option to save more through defined contributions or through
    other pension plans.