BRITISH Airways is to raise the retirement age for its pilots and other workers to tackle a £1bn deficit in its pension fund.

Union leaders were told that the airline will pay £500m into the scheme once the planned changes were accepted.

The compulsory retirement age for pilots and cabin crew is 55, but BA plans to increase that to 60.

Chief executive Willie Walsh 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 all."

Mr Walsh said the planned changes would reduce the anticipated deficit in the pension scheme by £450m.

Ed Blissett, national officer of the GMB union, said the proposals would have a highly detrimental effect on BA workers.

BA said that if changes to the pension scheme were not introduced, the deficit and level of contributions would grow, because people were living longer and long-term interest rates remained low.

The airline announced that the retirement age for cabin crew will rise to 65, meaning some workers will have to work ten years longer.