A strike at cash-strapped Kingfisher Airlines has been called off after the carrier offered to pay three months of salary.
Workers have not been paid for seven months and there had been speculation they may not accept the airline’s offer after a 25-day walk out.
The private Indian airline’s licence has been suspended amid concerns over finances and safety.
“All employees have agreed to resume duty right now. They are on duty as we speak,” Kingfisher chief executive Sanjay Aggarwal was quoted as saying by Reuters.
“We are all in this together and looking forward to getting the airline going in the next few weeks.”
Kingfisher has debts of £870 million and owes money to airports and tax authorities as well.
Management needs to convince India’s Directorate General of Civil Aviation to reinstate its licence, which was suspended last week as Kingfisher failed to address concerns over safety.
The carrier has not flown since the start of October after the employee protest turned violent.