Air NZ set to get jet delivery date soon

Air New Zealand hopes to hear soon about new delivery dates for two Boeing 777 jets held up on the production line by industrial action.

A tentative agreement has been reached between unions representing 19,000 workers and Boeing, bringing an end to a three-week strike that has shut down production at the company's plants.

To end the strike, Boeing proposed a three-year contract that will increase pension payments and drop a requirement for workers to pay more of medical insurance costs.

It said the International Association of Machinists and Aerospace Workers recommended that members ratify the offer on Thursday.

Air New Zealand's new jets are included in as many as 30 plane deliveries delayed because of the strike. It has been forced to alter the schedule for the 777s, which will be used primarily on routes connecting New Zealand and Asia.

They will be the first 777s fitted with premium seats arranged in a "herring-bone" format, where each passenger has aisle access.

One of the jets is nearly finished and could be ready for delivery within weeks.

Boeing workers will receive a bonus equal to 8 per cent of a year's pay if the contract is approved. They will also get US$3000 ($4400) bonuses at the end of next year and 2007.

A 5.5 per cent wage increase over three years has been dropped.

The machinists, who make and assemble aircraft parts, have struck at Boeing six times in the past 57 years, the average walkout lasting about two months.