British Airways (BA) has offered airport staff at TGWU and GMB, the two trade unions that are threatening industrial action, an 8.5 per cent wage increase.

BA admitted that it had received an official notice of a strike from the unions, which could result in its operations at major UK airports, including Heathrow and Manchester, grinding to a halt.

The airliner is anxious to resolve the pay dispute to avoid scenes similar to those witnessed in July 2003, when a disagreement over swipe cards lead to grounded BA flights and a company loss in the region of £35m.