Talks between British Airways and the Unite union, which represents cabin crew, are continuing in central London after a talks deadline was extended.

The TUC, which is chairing the meetings, had set a deadline of the "close of play" on Tuesday 9 March for significant progress to be made.

This was put back to Wednesday midday, but the BBC's John Moylan said talks would continue into the afternoon.

Last month, BA crew voted for strike action over pay and working conditions.

Our correspondent said BA has admitted it is losing bookings because of uncertainty over strike action.

He added that Unite had offered £60m of cost savings to try and end the dispute.

Notice period

The union must give a week's notice of any stoppages, but it has already given assurances that members will not walk out over Easter.

Should talks end without a resolution on Wednesday and the union decide to name strike dates immediately, industrial action could begin as early as 17 March.

However, indications from those close to the talks at TUC headquarter were that if talks did break down it was by no means certain that strike dates would then be announced on Wednesday.

On Tuesday, a statement on behalf of both sides had said: "It had been hoped to be able to conclude the talks today but both sides have agreed that more time is needed and the negotiations will be resumed again under TUC auspices tomorrow [Wednesday]."

Heavy losses

The main sticking point in negotiations is BA's decision, taken in November last year, to reduce the number of crew on long-haul flights, bring in a two-year pay freeze from 2010 and offer less generous contracts to new staff.

A High Court judge has ruled that BA was within its rights to make the changes to save money.

But the measures have angered BA staff, and led to the vote for strike action.

Last month, Unite said that 81% of its members who had voted supported strike action.

In response, BA said it had lined up 1,000 staff who had volunteered to work as cabin crew if the strike does go ahead.

It also said it would hire up to 23 fully crewed planes from a charter company to help run flights from Heathrow.

BA lost £342m in the nine months to the end of December last year.

Source: BBC