BRITISH AIRWAYS is set for showdown talks with cabin crew unions tomorrow over redundancies and cost cuts. Failure to agree could spark industrial action in the peak summer holiday period.

The airline has set a deadline of Tuesday for a deal with all its union groups. While pay cuts were settled with pilots and engineers in the past few weeks, there has been no settlement with cabin crew or ground staff.

BA insiders say the cabin crew talks are proving the most difficult, with negotiators from both sides meeting at Heathrow’s Renaissance hotel for the past three weeks.

The airline said yesterday that talks were continuing. Company sources said there was a likelihood the deadline would be missed, even though a deal was possible.

The airline has recorded its biggest annual loss in 2008-9. Willie Walsh, the chief executive, along with the other board members, has forgone his salary for July.

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