Air India pilot unions on Thursday withdrew their directive which restricted members from accepting revised salary agreements.
The change in stance from unions comes as Air India stepped up efforts to attract pilots from Go First that temporarily stopped operations last week.
Air India has offered higher allowances and service rewards for pilots under the new structure that was unveiled last month.
The Indian Commercial Pilots Association and Indian Pilots Guild however asked their members not accept the revised compensation and employment offers calling the company proposals unfair labour practices.
On its part the management executives termed the union protest as misconceived and said majority of the pilots had signed the revised terms.
In a communication to their members on Thursday, the two unions said the directive was withdrawn following assurances given in the online townhall meeting and in the interest of the aspirations of Air India.
"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 unions said.