New Delhi: Soon after an assurance was given by Air India CMD Rohit Nandan to clear salaries, over 28,000 Air India employees, called off their poroposed strike. 

“We received their (strike) notice today. We have given them a payment schedule under which we will clear all the overdues by June. The strike has been called off," Rohit Nandan said after a meeting with union representatives in New Delhi.

The notice for 'no pay, no work' agitation had been given by eight major unions of the airline, representing pilots, engineers and cabin crew among others, to protest the delay in payment of their salaries, productivity-linked incentive (PLI) and other allowances by over three months.

Earlier on Thursday, the meeting between union leaders and the management had failed to yield any result.

The unions had earlier sought the Prime Minister's intervention to resolve the crisis, failing which they had threatened to go on agitation from April two.

The management had promised a staggered payment schedule to clear the dues in the next two months, expecting that by then Air India would get funds through the equity infusion of Rs 4,000 crore announced in the budget 2012-13.

The unions, however, had remained unsatisfied and had decided to go ahead with their protest action, saying they had not received any "firm" assurance on their dues.

Air India faces a whopping Rs 67,000 crore debt and has reported a loss of close to Rs 6,900 crore this fiscal. The airline was also facing an average operational loss of about Rs ten crore daily.