Air Malta's management and the committee of the Union of Cabin Crew yesterday signed a new five-year collective agreement, ending months of acrimony.

The agreement covers the period from April 1, 2008, to March 31, 2013.

According to the airline, talks had been going on for almost two years.

A spokesman for Air Malta said the financial increases have been tied to increased levels of productivity and flexibility.

Air Malta said that in these tough times both for the airline business and the global economic scenario, a critical factor during these negotiations was the airline's continued financial recovery.

A spokesman for the UCC said that both the union and its members were happy with the agreement.

The negotiations were tough and lengthy but ultimately showed the willingness of both parties to achieve a mutually beneficial agreement that paved the way for a harmonious industrial relationship, the UCC said.

In an attempt to put pressure on the airline to conclude the new contract, the UCC had issued two sets of directives in June, including a work-to-rule order and reduced in-flight service to passengers.

The union went on to warn Air Malta that unless tangible improvement was registered in the airline's pay package for cabin crew it would order members to report for work two hours late. Consequently, all flights would have been delayed. The threat had been met with criticism from the airline and various tourism-related organisations in Malta.