'The airline will operate its full schedule of services on all sectors with all crew reporting for their normal duties,' he said in a statement.

President of the National Aviators Guild (NAG) Girish Kaushik said the dispute had been solved and the pilots would return to work as usual.

'An amicable settlement has been reached, it was like a misunderstanding in the family,' he said.

The understanding includes reinstatement of four pilots whose services were terminated by the airline recently, informed Congress parliamentarian from Mumbai North Sanjay Nirupam.

However, the issue of the union would be decided by the Registrar of Trade Unions, said Nirupam, who played a critical role in breaking the five-day deadlock in which the airline has reportedly suffered losses in excess of Rs.1 billion.