British Airways planes.

The British Airlines Pilots Association (BALPA) says its members will walk off the job beginning July 16 -- and will not return to work until all grievances over pay and working conditions are resolved.

However last night Bermuda's BA general manager Philip Troake said in the meantime it was "business as usual'' and reiterated that contingency plans will be put in place in the event of a strike.

After six hours of talks yesterday both sides said more talks will continue today. "We wish to secure a settlement of this dispute as soon as possible.

These are inevitably difficult negotiations and we look forward to a resumption of talks,'' the two parties said in a joint statement.

BALPA has refused British Airways' offer of across-the-board pay increases of 3.6 percent this year, and bigger increases for pilots on short-haul European routes out of London's Gatwick Airport, which also serves Bermuda.

The short-haul pilots are paid up to $80,600 a year, compared with an average of about $116,250 per year for pilots operating out of London's Heathrow Airport.

BA said it must keep costs lower at Gatwick, which is used more by bargain-hunting vacation travellers.

But profits have soared at British Airways, and the union has clamoured for more money.

With the strike deadline drawing near, the union's secretary-general, Chris Darke, proposed a meeting with British Airways executives so the union could present new ideas on how to resolve the differences.

Neither the union nor the company would elaborate on what was being discussed or where the negotiators were meeting.

The union said Mr. Darke was meeting with the British Airways chief executive, Robert Ayling.

But a British Airways source, speaking on condition of anonymity, said the carrier had sent a "top-level'' delegation but not quite as high as Ayling.

British Airways said Mr. Ayling met last week with the company's board of directors and got clearance to use whatever tactic was necessary, including closing the European operations at Gatwick as a last resort. "BALPA are shocked that that statement could come out, pre-talks,'' said a spokesman for the union, Ken Stevens.

British Airways has offered to narrow the pay differences between pilots at Gatwick and Heathrow by offering the Gatwick pilots about nine percent more pay, but the airline would insist on increased productivity.

The union viewed that as a "complete sham'' because the company was giving with one hand and taking away with another, Mr. Stevens said.

British Airways said it was creating contingency plans to operate as many flights as possible if the pilots walk out, but spokeswoman Heather Harris acknowledged "it's going to be severe disruption'' if the strike proceeds.

Before the talks started BA had not ruled out using foreign pilots to cover for the strikers, a move which the union said was doomed to fail.

"The fact is that before a foreign pilot could fly a BA aircraft they would have to be assessed by a BA training captain, the vast majority of whom are BALPA members, who of course will be on strike,'' Darke said.