The Transport Workers Union (TWU) has become the latest union to call a truce with Qantas and drop industrial action.

Baggage handlers, caterers and ground crews were due to walk off the job on Wednesday, but instead the union will hold a meeting with airline representatives.

TWU national secretary Tony Sheldon says the union has been buoyed by Qantas announcing it has no plans to outsource ground-handling operations.

"I think we still have some steps to go through with Qantas and most importantly with discussions about details about any arrangement to be entered into by Qantas but this announcement by Olivia Wirth today that the company is not planning on outsourcing any of its work is a positive change to the Australian workforce," he said.

Comment is being sought by Qantas.

Last week, the Australian Licensed Aircraft Engineers Association called off its planned industrial action as a challenge to Qantas to resume a full schedule of flights.

More than 500 flights have been cancelled and seven aircraft taken out of service so far because of industrial action against Qantas.

It is still unclear why the planes were grounded; Qantas said it was a direct result of a maintenance backlog because of industrial action, but unions said some of the planes had been up for sale for months.

The airline's chief executive, Alan Joyce, last week warned more strikes would force him to sack workers.