VIRGIN ATLANTIC STRIKES CALLED OFF

Thousands of members of the Unite union were due to stage two 48 hour walkouts from Wednesday and again from January 16 after rejecting a two-year wage deal worth 4.8% in year one and the rate of inflation in year two.

Last ditch talks produced a deal, which Virgin founder Sir Richard Branson described as a "triumph of common-sense."

The two sides said in a joint statement that the dispute had been potentially damaging to the relationship between the company, its cabin crew and the union.

The agreement remains a two-year deal worth 4.8% followed by a rise in line with inflation, as well as a commitment to review aspects of cabin crew pay next year.

Sir Richard said: "Our cabin crew are the best flying and continue to provide the highest standards of customer service. This agreement will enable us to focus on continuing to offer the best service to our customers."

Brian Boyd, national officer at Unite, added: "This agreement recognises the important contribution cabin crew make to the business and I am of the firm opinion that we now have the opportunity to ensure an improved relationship with Virgin Atlantic in the future."

Virgin said last week it was receiving calls from staff volunteering to work during the strike after Sir Richard wrote to all employees making it clear the pay offer would not be increased.