contingency plans would be in place if pilots went ahead with strike action.

Yesterday the pilots' union, British Airline Pilots' Association (BALPA), said it had given BA notice that it would strike from midnight, Bermuda time, on July 16, unless progress is made in pay talks.

But the Island's BA general manager Philip Troake said: "Contingency plans have been prepared and in the meantime it is business as usual.'' It is expected that details of the contingency plans will be announced early next week.

The pilots are concerned that they are taking the brunt of cost-cutting measures and are angry that they have been offered a pay rise of just half a percent above the British rate of inflation.

Yesterday, Chris Dark, general secretary of BALPA, told a news conference: "In the last 36 hours, no efforts have been made by the company to address the problems we face.'' Under British law, the British Airline Pilots' Association, 90 percent of whose members have voted for strike action, only has to give the company seven days notice. It said it was giving extra notice because it wants the pay dispute settled.

July 16 is the date set for British Airways' annual meeting of shareholders.

The union said letters sent to it by BA "do not carry the situation forward.'' The union has said a strike could cost the airline 40 million ($62 million) a day.