TALKS between British Airways and union bosses reach crisis point today - the deadline set by the airline to agree huge cost cutting, including more than 3,000 job losses.

If no deal is reached BA faces another summer with the threat of strikes.

Balpa, the pilots' union, has agreed a pay and productivity deal but others representing ground staff are understood to be far from any agreement.

BA has announced a record annual loss of £401 million. It has cut 2,500 jobs in a year and plans to make up to £300 million of saving on wages over the next two years.

BA is desperate to avoid any threats of strikes during the holidays and is offering staff a range of options including voluntary redundancies, part-time working or lengthy unpaid leave. It announced last week that nearly 7,000 staff had agreed to voluntary pay cuts.

An internal letter from Willie Walsh, BA's chief executive, warned staff: "We are now in a fight for survival."

A union source close to the talks said BA could probably achieve the job losses without compulsory redundancies.

He said: "Morale is at rock bottom in many departments and there is a large number of people who want to go provided the terms are right."

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