By Brian Groom, Business and Employment Editor

British Airways cabin crew have voted overwhelmingly to accept a peace deal, ending 18 months of conflict in one of the most bitter recent industrial disputes.

Unite said members voted 92 per cent in favour of what it described as an ?honourable settlement??, with 8 per cent against, in a turnout of 72 per cent. Almost 10,000 were balloted by the union, which declared the dispute formally over.

Unite recommended the agreement, which will see travel concessions returned to crew from whom they were removed when they went on strike last year.

In a two-year pay deal, staff will get a rise of up to 4 per cent this year and 3.5 per cent next, linked to proposed changes in productivity. The deal safeguards working arrangements for existing staff as BA introduces additional crew. It also includes a third party binding arbitration process to consider cases of those disciplined by the airline during the dispute.

The agreement is seen by industry experts as a victory for BA that should reduce the likelihood of future conflicts, albeit achieved at a cost.

Thousands of staff took part in 22 days of strikes last year, costing BA ?150m. However, the removal of at least one crew member from most long-haul flights – the original cause of the dispute – is saving the airline ?63m a year.

BA has also hired 700 crew in its so-called mixed fleet on certain routes. They earn ?17,000 a year on average, compared with ?29,000 for existing Heathrow cabin crew. That could yield ?160m annual savings within a decade.

Len McCluskey, Unite?s general secretary, who drew up the deal with Keith Williams, BA?s chief executive, said: ?Unite always firmly believed that this dispute would be solved not through conflict but through negotiation. Thankfully we have reached an honourable agreement with BA.

?The overwhelming ac- ceptance of this deal . . . means that both parties can now move forward together on securing a bright future for the airline.?

BA said: ?The skills and professionalism of British Airways cabin crew are second to none, and we are delighted this dispute is behind us. We have made permanent structural savings to our business, which is now ready to invest ?5.5bn over the next five years.??

? The Financial Times Limited 2011