A strike during the bank holiday would cause chaos for thousands

Unions and managers are trying to head off a 24-hour walkout by check-in staff and baggage handlers on 27 August.

The date was set by the T&G union after its members on Wednesday voted overwhelmingly for action.

The GMB union is urging British Airways to "repackage" its new pay offer, to avert a crippling strike.

Ed Blissett, chief negotiator for the GMB was upbeat after Thursday's talks.

"We have made very significant progress and I am very hopeful of reaching a resolution to this dispute," Mr Blissett said.

"We are within touching distance of a deal although there is still a little way to go.

"BA has given us a new document which we will consider overnight but I am more confident than ever that we will not have a strike."

'More confident'

Earlier on Thursday, BA director of customer service and operations Mike Street said that there would be "no new offer on the one tabled 36 hours ago" by the airline.

However, after talks were adjourned he said: "We have made substantial progress and I am very much more confident."

"I hope we can bring this to a satisfactory conclusion."

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If the BA strike still goes ahead, airports including Heathrow, Gatwick, Manchester, Birmingham, Glasgow and Edinburgh are set to be hit by massive disruption on the first day of the August bank holiday weekend.

BA estimates it carries 100,000 passengers a day at that time.

The airline had offered a revised deal of an 8.5% pay rise as well as a one-off payment of �1,000 if they take less than 16 days sick leave between October 2004 and September 2006.

'Last resort'

BA says its staff take an average 17 days off sick each year, against a UK average of seven days.

T&G chief negotiator Brendan Gold said the company should not link pay to absence rates.

Mr Gold said BA management should reflect on Wednesday's vote in favour of strike action and of the anger of union members.

AIRPORTS FACING DISRUPTION Birmingham Edinburgh Gatwick Glasgow Heathrow Manchester

"Taking strike action is the last resort but the consistent failure by BA to address the issues seriously has led to our people feeling they have no alternative," he said.

BA urged the T&G to re-ballot its members on the terms of its new offer.

A third union, Amicus, is also taking part in the pay talks, but as yet has no plans to ballot its members on possible action.

United strike

Separately, ground staff working for US carrier United Airlines at London's Heathrow airport have also voted to go on strike.

About 700 baggage handlers and check-in staff agreed to industrial action on Thursday after rejecting a pay offer from United, the T&G union said.

There was no word on the date or duration of the strike.