A two-day strike planned by British Airways (BA) cabin crew was called off on Monday at the last minute after over 120 hours of negotiations between the airline and the union.

Willie Walsh, BA's chief executive, said the two sides "have reached a satisfactory conclusion to all the significant issues. This is a major step forward for us," Sky news reported Monday afternoon.

The view was also shared by the Union, as Tony Woodley from the Transport and General Workers Union said the deal provided a new beginning.

"A multitude of problems have been allowed to build up over time. We've laid the bedrock now to remove a two-tier pay system and sort out the pensions," he said.

The airline said it was expecting to operate a "full flying program."

The 48-hour strike planned to start on Tuesday has been over sickness leave for the cabin crew and pay.

Since the deal came a bit late, a BA spokesman cautioned customers wishing to travel on any reinstated flight should contact the company or their travel agent to confirm bookings before setting out to the airport, as some flights on Tuesday at the London Heathrow Airport may not have a full catering service on board.

"Any affected customers on those flights which do not have full catering will be offered vouchers to spend in the airport," the spokesman said.

Analysts said if the strike took place, it could cost the economy 2.5 million pounds (some 5 million U.S dollars) a day as a result of disruption to business.