Virgin cabin crew scores pay deal and calls off strike

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It followed a blunt warning from Sir Richard Branson, who wrote to 4,800 staff telling them that if they were unhappy they should consider working elsewhere, including British Airways.

The union Unite had threatened the airline with industrial action starting tomorrow in a row over pay.

Last night Virgin Atlantic announced that it had struck a two-year deal.

It added: "Unite has called off the industrial action planned for 9, 10, 16 and 17 January.

"Both parties agreed that the prolonged discussions had been potentially damaging to the current relationship between the company, its cabin crew and the union."

The deal includes a 4.8 per cent increase in year one and a guarantee of keeping pace with inflation - based on the Retail Price Index - in year two.

It also allowed for previously agreed rises to other variable elements of cabin crew pay and a commitment by both parties to review the consultative structure.

Sir Richard Branson, President of Virgin Atlantic, said: "The outcome is a triumph of commonsense and means that our passengers need not worry about getting to their destinations.

"This agreement will enable us to focus on continuing to offer the best service to our customers."

Unite national officer Brian Boyd said: "This agreement recognises the important contribution cabin crew make to the business."