Measures would save airline £26m
A draft pay and productivity package has been agreed between BA and the British Airline Pilots' Association (Balpa).
The deal will save the airline £26m a year from October.
The union, which has 95% membership among BA's 3,200 pilots, has recommended they support the deal.
Voting on the package will take place over the coming three weeks.
Under the agreement, the pilots will take a 2.61% pay cut and a 20% reduction in their flying time allowance.
This part of the deal will save BA, which is "fighting for survival" according to its ceo Willie Walsh, £16m a year.
The second part of the deal will increase pilots' annual duty hours, bring in a shorter turn around time on short haul flights and cut crew on some long haul flights. This will save £10m a year.
In return the pilots will, from June 2011, receive BA shares worth £13m if set company targets are reached.
The pilots will not be able to sell their shares for three years.
The package also allows for 78 voluntary redundancies.
Jim McAuslan, Balpa's general secretary, said: "This is a unique agreement. We have always said that as a union we would share the pain if our members shared the gain.
"We have been doing some intensive research and polling over the last two months. Our research indicates that BA is facing a real business challenge and this is not the case of the employer crying wolf."
BA is still in talks with other sectors of its 40,000 workforce and hopes to reach agreements with them by the end of this month.
Mr Walsh has called on employees to work free for a month or take a month's unpaid leave to help the airline, which made a pre-tax loss of £401m in its last financial year, survive.
He and the airline's chief financial officer, Keith Williams have both decided to forgo their pay in July - £61,000 in Mr Walsh's case - to help the airline.