British Airways bosses and union officials are optimistic of a successful resolution with in-flight caterer Gate Gourment.

Successful agreements are being predicted as talks continued over an improved BA deal for Gate Gourmet and the reinstatement of 670 sacked workers at the caterer.

Gate Gourmet claimed it was facing collapse in the UK unless it gets a better contract from BA.

The Transport and General Workers' Union wants all 670 staff re-employed.

As talks between the various groups continue, insiders are suggesting that the airline had further improved its new contract offer.

BA said it could not comment on the new terms of the proposed deal, but a spokeswoman said the firm was "more confident a deal could be struck".

Gate Gourmet said BA has offered to pay more money for its meals, but the airline has insisted there will be no deal unless Gate Gourmet changes its working practices.

There has also been press speculation that senior government officials have been unofficially putting pressure on both BA and Gate Gourmet to secure a successful deal.

In the meantime the caterer was said to be recognising it had to re-employ the sacked workers, according to the T&G.

However, a possible stumbling block in the separate talks continues to be Gate Gourmet's insistence that about 200 "trouble-makers" should not get their jobs back.

"There are some real militant elements, some real trouble-makers that led that action - and those will never come back to the company," Gate Gourmet chairman David Siegel told the BBC.

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