Derek Stevens, British Airways' finance director, said the two pension schemes sponsored by his company are more likely to increase their investment in private equity if they merge. The proposed merger is being hotly contested by members of the larger pension scheme, which is in surplus.

Stevens, who is also the chairman of the trustees, said that in the absence of a merger, the older scheme would have to invest more in gilts. He said: 'Actuarial rules force you to because you have to sell the assets to pay pensioners' benefits and you don't want to take the risk of selling when the market happens to be low.