New Delhi: The day-long strike by airline employees proposed for February 20 to demand revocation of tax on free-pass perk has been called off, following government's assurance for considering the matter favourably, union leaders said.

"We have received a communication from the Finance Ministry saying that they would consider our demand favourably. So we have decided to call off the strike," Vaskar J Deka, regional secretary of Air India Employees' Guild said.

Welcoming the decision of the National Action Committee of All Airline Employees, the umbrella body of 15 unions of the aviation industry, which had called the strike, Civil Aviation Minister Shahnawaz Hussain said, "I am happy that the problem has been resolved amicably and the air travellers will not face any problem."

He said the Finance Ministry's views that the issue of free pass perk would be considered favourably was conveyed to the unions late on February 18 night.

All the employees belonging to domestic, including private, and international airlines, were to go on a 24-hour nationwide strike beginning 6.00 am (IST) on February 20.

The Finance Ministry letter, which was sent to the National Action Committee, said, "The matter relating to exempting the free/concessional tickets provided to airline employees as perquisites under the Income Tax Act, 1961, has been favourably considered by the Finance and Company Affairs Minister. The same may be communicated to all concerned."

Later, a joint statement signed by leaders of all unions and federations under the banner of the Committee said in view of this communication, "The Committee has withdrawn its one-day token strike, as the demand has been acceded to by the Finance Ministry."

The statement was signed among others by leaders of Air India Employees Guild, Air India Cabin Crew Association, Air Corporations Employees Union, Indian Commercial Pilots Guild, Indian Pilots Guild, Forum of Foreign Airline Employees in India, All India Aircraft Engineers Association and Indian Aircraft Technicians Association.

PTI