cabin-crew

LONDON—A strike at British Airways planned for next week has been averted after newly appointed heads at both the airline and union agreed to a potential deal aimed at ending the long-running dispute, but those proposals still need to be approved by cabin-crew employees before a conclusion can be reached.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

Unite, which will ballot about 10,000 cabin-crew members over the next month, said it recommends they accept the deal that would see staff travel concessions restored without any loss of seniority.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

Other terms outlined include a two-year pay deal, with pay increases for cabin-crew members capped at 2.9% in fiscal year 2011-2012 and 3% in 2012-2013.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

Should cabin-crew employees vote to accept the deal, it is likely to be considered a credit to newly appointed BA Chief Executive Keith Williams and United's recently promoted Mr. McCluskey, who would have managed to break the two-year standoff.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

BA last year endured 22 days of strikes that cost it in excess of £155 million $253.4 million after cabin-crew employees opposed BA's decision to reduce the number of cabin-crew members on long-haul flights out of London's Heathrow Airport to 14 from 15 and hire new cabin-crew staffers on cheaper salaries, with the latter saving BA about £65 million.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

A spokesman for BA said: "Our agreement with Unite involves acknowledgement by the union that the cost-saving structural changes we have made in cabin-crew operations are permanent."

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

United's strategy works when the winds are calm, and it allows the airline to operate less expensive aircraft with fewer cabin-crew members to an array of European cities that wouldn't generate enough traffic to justify larger planes.

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Mr. Chin, who was named acting chief executive in early July, earlier served as chief executive of Silk Air, the short-haul unit of Singapore Airlines Ltd., and as the head of the flag carrier's cabin-crew operations.

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About one-quarter of cabin-crew employees lost their right to travel benefits after they went on strike in March last year.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011

He said industrial action had been due to start next week, but if cabin-crew employees approve the deal, it will be implemented starting on July 1.

British Airways, Union Reach Deal Kaveri Niththyananthan 2011