BA averts cabin crew strike threat after agreement with employees

British Airways has averted the threat of a damaging 48-hour strike by its cabin crew. In a brief statement yesterday, the airline said it had reached agreement with the Trade and General Workers' Union, which represents about 11,000 of BA's 14,000 cabin crew staff.

Europe's third-largest airline said it would try to reinstate as many as possible of the 1,300 flights it had cancelled today and tomorrow, although it acknowledged that many of the 140,000 travellers affected had already changed their plans.

The TGWU said it had had won a 4.6 per cent pay increase for its members this year, with BA agreeing to a pay rise equal to the RPI measure of inflation next year. A deal on sick leave has also been reached.

The last-minute agreement will be seen as a victory for Willie Walsh, BA's chief executive, who was brought in from Irish airline Aer Lingus in 2005 with the reputation of a tough negotiator on industrial relations issues.

"We are pleased that our negotiations with the T&G have resulted in an agreement that removes the threat of strikes," Mr Walsh said in a statement.

"We have always said that our cabin crew do an excellent job and we believe this agreement lays a firm foundation to enable us to provide even higher standards of onboard service for customers in the future.

"Unfortunately, the decision has come too late to prevent disruption to the travel plans of tens of thousands of our customers."

Following the settlement, BA said it expected to operate a full programme of flights today and tomorrow. It advised passengers to reconfirm their travel arrangements on reinstated flights.

Industry analysts had estimated that the two-day stoppage would cost BA £30 million without taking into consideration the loss of longer-term business as a result of damage to the airline's reputation. The union had threatened to stage two further three-day strikes in February.

The talks, which were led by Tony Woodley, general secretary of the TGWU and Mr Walsh, were over two main issues: BA's management of sickness absence and widely different pay rates for cabin crew staff employed before and after 1997.

BA shares closed up 2.75 per cent, at 542p, after the deal.