The New Zealand Air Line Pilots' Association (NZALPA) confirms that on Friday evening members employed by Air New Zealand subsidiary, Air Nelson Ltd, reached a settlement in their bargaining for a new collective agreement.

"Negotiations were hampered by unnecessary delays in completing the drafting required to complete the process" said NZALPA President Glen Kenny. "We are pleased that a settlement has been reached. The required ratification process will now commence, which will take a few weeks to complete."

If successfully ratified, the new agreement will see pilots achieve salary increases of almost 8% over a three year period, and enhanced superannuation entitlements. The parties have also committed to exploring a different pay scheme that could result in more efficient rostering and that better rewards pilots for productive flight hours.

As a consequence of achieving a settlement, NZALPA has withdrawn the low level industrial action that was scheduled to commence on Monday.