With the outstanding payments being released by the management, the Indian Commercial Pilots Association (ICPA) decided not to resort to any industrial action as planned from May 10.
The dues which accrued following the implementation of a new pay structure have been pending since January.
The total amount released today was not immediately available.
"The management today paid our flying allowance dues, which it had been defaulting since January," ICPA sources said.
The association had also threatened not to operate flights over the issue.
"We have got written commitment from your office that the flying allowance will be paid on May 5 but looks like the management has gone back to its old feat of defaulting on commitments. This is greatly affecting our livelihood, defaulting on EMI's and further commitments," ICPA had said in a letter to Air India Director (Finance) yesterday.
"In lieu of the above, we will be directing our members not to undertake any flying duties till our legitimate payment towards flying allowance is made as per Ministry of Civil Aviation approval," it further said.
An airline official said the subsistence allowance dues has also been paid to the pilots.
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