Hopes of a deal on cutting costs at British Airways were raised today, easing the threat of industrial action which would cause travel chaos for thousands of passengers.

Talks between the airline and union leaders have been continuing for months after BA said it wanted to cut 3,500 jobs and make changes to working practices.

Union officials will meet near Heathrow airport on Friday to be updated on the negotiations, which have been held under the auspices of the conciliation service Acas.

One union source said the two sides were "edging towards a deal", although other officials warned there were still "profound" issues to be resolved, including outsourcing and working practices.

Some union officials believe they have achieved an agreement that job cuts will be voluntary, ending the threat of compulsory lay-offs, which was one of the sticking points in the talks.

"The Acas process has been long and arduous, but it would now be true to say that the unions and the company are edging towards a deal," one source told the Press Association.

But another official said there was only a "glimmer of hope" that a deal will be achieved.

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