Air India's two pilot unions on Thursday decided to accept the revised service norms and new compensation structure offered by the airline.
The Indian Commercial Pilots Association (ICPA) and the Indian Pilots Guild (IPG) had opposed the carrier's revised compensation structure introduced on April 17.
The latest decision follows a virtual town hall meeting between pilots and the airline's chief of operations R S Sandhu last week, wherein the latter had assured that all demands will be looked into.
"Upon the assurances given in the online ‘Townhall Meeting for all pilots’ and in the interest of the aspirations of Air India, The Tata Group and our passengers, the joint directive stands withdrawn," the two unions said in a joint statement on Thursday.
The development also comes at a time when crisis-hit budget carrier Go First has gone into insolvency resolution proceedings.
While ICPA represents pilots operating the narrow-body Airbus fleet, IPG has pilots who fly wide-body Boeing aircraft.
As dedicated Air Indians, "we believe it is crucial to express our readiness to settle the dispute at hand and find an amicable resolution for the benefit of both parties," the statement said.
On April 17, the Tata Group-owned carrier came out with a revised compensation package and new service terms and conditions for pilots and cabin crew of Air India, Air India Express and AIX Connect.
The two unions had rejected the new service terms, saying they were unilateral, draconian and anti-labour.
"Over the past year, our attempts to reach a resolution have been hindered by a lack of cooperation from the management. Their unwillingness to address our concerns and apathetic attitude has resulted in a prolonged stalemate and escalating tensions," the statement said.
The unions also said they decided to withdraw the directive upon assurance given during the online town hall meeting of all pilots.