Qantas can expect at least three years without industrial action from its licensed engineers after Fair Work Australia endorsed a deal struck between the engineers' union and the airline.

The decision will lock in increases in base pay of 3 per cent a year until it ends in 2014, and "substantially continues the terms and conditions that have operated in the past" between the parties, Fair Work Australia said.

The deal excludes some of the Australian Licensed Aircraft Engineers Association's more expensive claims, including their push for a new hangar and campaign for expanded job security protection.

The Qantas chief executive, Alan Joyce, grounded the airline's fleet last October and said Qantas would lock out thousands of workers in response to industrial action over job security by three unions representing engineers, pilots and baggage handlers.

Mr Joyce welcomed the Fair Work Australia decision and said it was a "relief".