Pilots at the ailing state-run carrier Air India yesterday called off a strike over wage cuts in its fifth day, saying they had won government assurances that their salaries would be protected.

The airline said it was again taking bookings, having suspended reservations earlier in the week, and that its flights would return to normal by Thursday morning.

Air India, which lost a billion dollars in the past financial year, cancelled about 250 flights since pilots began calling in sick on Saturday to protest against 25-50 percent cuts in incentive pay.

V.K. Bhalla, representing the 212 striking pilots, told reporters in New Delhi the stoppage was “immediately and absolutely called off” and that they would return to work at once.

“We’ve all been given commitments that there will be no reduction of salaries,” Bhalla said. “We’re in complete cooperation with the management.”

Air India spokesman Jitender Bhargava said international flights were likely to resume by the evening, with domestic flights back on schedule by Thursday.

The pilots’ announcement came after Civil Aviation Minister Praful Patel said no changes would be made to bonus wages without prior consultation with employees.

“We still stand by that order that any future decision will be taken after a process,” he said.

The carrier has formed a committee of executive pilots and government representatives to discuss future actions.

Bhargava would not comment on whether management had offered anything to the pilots but said cuts to incentive payments would be “held in abeyance pending a decision by the committee.”

Patel added that the government would extend full support to the debt-ridden carrier but “until or unless every section of employees comes forward to support the airline” its turnaround would not be achieved.

Air India employs more than 31,000 people and productivity-linked incentives make up the bulk of its payroll expenses.

Last week the struggling airline announced its plans to cut incentive pay for 7000 employees, including pilots.

India’s airline industry has been hit by overcapacity and a sharp drop in passengers as a result of the global economic slowdown.

Saying he was “not above the government of India,” Bhalla apologised to passengers who had faced inconvenience during the strike but said it “was not because of ego.”

“We want to turn around this airline,” he said.