IndiGo had accused Reddy of "aggressive and abusive" behaviour against its staff last month.
"The issue is amicably resolved and IndiGo has decided to lift the said ban with immediate effect. Mr Reddy is withdrawing the case he has filed," an IndiGo spokesperson said after a compromise was reached, ending Reddy's month-long boycott during which he reportedly hired an aircraft to fly to Delhi to cast his vote in the presidential election.
The development came a day after the Hyderabad High Court issued "urgent" notices to several airlines, ministry of civil aviation, aviation regulator Directorate General of Civil Aviation (DGCA) on a petition filed by Reddy challenging the ban.
The decision taken by IndiGo followed a meeting between its officials and Reddy today, which was mediated by MP YS Chaudhary.
An Air India spokesperson said the airline has also decided to remove the ban.
SpiceJet spokesperson said, "We have lifted the ban".
On June 15, Reddy got into a verbal spat with IndiGo ground staff at Visakhapatnam airport and threw a printer kept at the airline's counter after he was informed that boarding for his flight to Hyderabad had closed.
Soon after IndiGo announced its decision to not fly the MP, the other airlines had followed suit.
Reddy was the second MP after Shiv Sena's Ravindra Gaikwad to be banned from flying domestic airlines. A flying ban was imposed on Gaikwad in March this year after he repeatedly hit an Air India officer with slippers for not providing him a business class seat on an 'all economy' flight.
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