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The new offer is worth the previously-offered 8.5% over three years, fully pensionable, plus a �1,000 lump sum for "reasonable attendance".

Union leaders, who have so far rejected any previous deals and plan strike action for later this month, are now considering the fresh BA proposal.

At present action is threatened for one of four days: 27, 28, 29 or 30 August.

The strike would mainly affect Heathrow and Gatwick over the bank holiday period, but could hit another seven UK airports if TGWU members vote to take part.

BA managers have been holding talks with the GMB, TGWU and Amicus unions, in a bid to find a way to defuse the situation.

'Fair pay offer'

Under the terms of the new offer, staff would earn an extra �1,000 if absent from work no more than 16 days in a two year period.

The payments would be in addition to the offer of 8.5% over three years, with the first 2.5% backdated 10 months to 1 October last year.

We are looking for something above inflation for those low-paid workers Ed Bassett, GMB

BA said its employees currently call in sick on 17 days every year on average, against a UK national average of seven days.

"We have made the offer for the sake of our customers," said Mike Street, BA director of customer services.

"I am very hopeful that our staff will view this as a move by the company to resolve this problem... we want this over."

He added: "We are trying to give a fair pay offer in difficult circumstances."

Mr Street said the unions had been asking for 14.5% over three years, and that the new offer met that claim.

"The unions asked us to consider an incentive scheme to help tackle our absence issue and we believe this is an innovative way to reward staff with reasonable attendance records," he added.

BRITISH AIRWAYS - RECENT HISTORY May 2000 - Rod Eddington replaces Bob Ayling as chief executive. Begins strategy of cutting jobs and routes, while focusing on attracting business travellers May 2001 - signs of progress as BA reports a jump in profits to �150m September 2001 - BA says it is to cut 7,000 jobs as the air industry is hit by the September 11 terror attacks February 2002 - BA says it is to cut a further 5,800 jobs May 2002 - reports a loss of �200m, its worst since the firm was privatised in 1987 May 2003 - returns to the black with a profit of �135m July 2003 - a wildcat strike by ground staff causes massive disruption and costs BA �40m May 2004 - BA introduces surcharge on ticket prices as soaring oil prices push up the cost of fuel May 2004 - reports a surge in profits to �230m August 2004 - unions threaten strike action by ground staff over pay deal

He called on unions to ballot their members on the new offer.

Union leaders from the GMB, TGWU and Amicus are examining the new BA proposal, and have yet to comment.

Later this week the TGWU is due to announce the result of a ballot among its 8,000 members working for BA.

Many observers believe it is unlikely the unions will make a decision about the BA new offer until the result of that ballot is known towards the end of the week, probably Friday.

"We're pleased the company has put forward a new offer to the unions, however the content will need to be considered by the bargaining groups for ground support staff and check-in workers," said TGWU chief negotiator Brendan Gould.

Mr Barber said the union planned to meet with those groups on Tuesday and Wednesday.

"The company is moving in the right direction, but the new money on the table is linked to certain conditions, so we will need to consider how we can now move forward."

About 3,000 check-in staff, based mainly at Heathrow and Gatwick and represented by the GMB union, have already voted in favour of industrial action.

The GMB said it also has members at airports in Birmingham, Manchester, Newcastle, Edinburgh and Aberdeen who are backing the move.

No final move on a strike will be made without the agreement of all the unions involved.

'Valuable work'

GMB national officer Ed Blissett said it was too early to respond to BA's offer, and that talks would continue.

Earlier in the day he told the BBC: "We are going to explore every avenue to avoid industrial action over the Bank Holiday."

He said the union action was so that "staff are properly paid for the valuable work they do for the company".

"We are looking for something above inflation for those low-paid workers, who need to make real gains so they can live in this (Heathrow) area."

Any strike would run for 24 hours from 0430 BST (0330 GMT) over the busy August holiday period.

BA expects to carry 100,000 passengers a day over the Bank Holiday weekend and GMB negotiator Allan Black admitted the effects of a strike could be devastating.

Profits issue

The TGWU has published new figures which it said estimated the cost of settling the dispute would be �10m a year.

It said average wages of BA staff had increased by well below the rate of inflation, while profits had soared.

The unions have previously rejected a pay offer worth 8.5% over three years, or 10.5% if the money did not count towards pensions.

They say basic earnings for baggage handlers are about �14,000 a year, while check-in and administration staff, many of whom are women, earn between �2,000 and �3,000 less.

Check-in workers staged an unofficial walkout at Heathrow Airport last summer over working conditions, which left 100,000 passengers stranded and cost BA �40m.