British Airways is running flights as normal from Heathrow and Gatwick after averting a strike by cabin crew.
After lengthy talks, BA and the Transport and General Workers Union (T&G) reached an agreement on Monday.

However, many BA flights are expected to take off almost empty as thousands of passengers have already made alternative travel arrangements.

Pay, pensions and the management of sickness absence had been at the heart of the planned two-day strike.

The agreement, reached after more than 120 hours of talks, also means two potential 72-hour strikes earmarked for February have also been cancelled.

'Damage'

BA chief executive Willie Walsh said he was "really pleased" with the conclusion to the talks, and T&G general secretary Tony Woodley said it was "a fresh start".

But Mr Walsh rejected the notion that BA had "caved in" to the union.

Despite the resolution, there are fears over the impact of the dispute on the airline's reputation.

Aviation consultant and former BA manager Laurie Price said "damage" had been done.

"One thing we need to remember is that the vast majority of BA's serious revenue comes from a very core group of very frequent flyers," he said.

'Solid foundation'

The terms of the deal will give cabin crew a two-year wage rise of 4.6% in 2007 and a rise in line with inflation next year.

Mr Walsh called the outcome "a solid foundation for working for the future".

Mr Woodley said it had been a difficult set of negotiations to address as a multitude of problems had built up over a long period of time.

He said the deal with BA addressed absence control management, agreements to resolve what he called "a two-tier wage structure", and an agreement on pensions.

"The agreement on the table will not be bettered. It is time to get back to normal."

Cheaper flights

Since many passengers have already made alternative plans, BA had many empty seats to fill on Tuesday and Wednesday.

The airline said its "full range" of fares were available including cheap offers, but denied that it was slashing its ticket prices.

"Great value fares" that usually sell six months in advance were now available, said a BA spokesperson.

While flights have all been reinstated, some flights from Heathrow have limited catering, and passengers are being given vouchers to spend instead.

All catering on Gatwick flights is running as normal.

In separate news, a strike by Italian air traffic controllers means that there are restrictions on flights to Italy, affecting BA flights as well as other airlines, a BA spokesperson said.