Gate Gourmet signs BA meals deal

The Gate Gourmet strike led to flight chaos for BA

In-flight caterer Gate Gourmet has signed a new deal with British Airways, ending a long running saga surrounding its operations at Heathrow airport.

The agreement followed the resolution of a staff dispute at the caterer. No details of the deal have been released.

In August, BA offered to increase the value and length of its contract - but only if Gate Gourmet resolved the row.

Gate Gourmet staff went on strike over the dispute, a move which led to BA's operations at Heathrow being grounded.

"We are very pleased that the deal has been signed," Gate Gourmet's UK managing director Eric Born said in a statement.

Reports have suggested BA will increase the annual value of the deal with Gate Gourmet by £10m ($17.7m) to around £140m and extend the length of the agreement by two years.

The dispute broke out on 10 August when Gate Gourmet sacked 670 staff after they illegally walked out in protest at its restructuring plans.

A day later BA ground staff at Heathrow walked out in sympathy, forcing the airline to shut down operations at the airport - resulting in the loss of £30m as it cancelled 700 flights.