Facing the threat of stern government action, private airlines which carry about one lakh domestic passengers each day tonight called off their strike on August 18 giving relief to air travellers after two more carriers pulled out of the planned unprecedented stoppage.

Under attack from the government, the agitating private airlines who are demanding a bailout package, have kept bookings open for customers who want to fly on August 18, the day they have threatened to go on strike.

Cracks started appearing on Saturday in a grouping of airlines that was planning to suspend flights on August 18 to protest high jet fuel prices and taxes, with budget carrier IndiGo saying it would operate as usual.

In an unprecedented protest action, eight major private airlines, which carry over one lakh passengers a day, on Friday decided not to operate domestic flights on August 18 demanding immediate bailout and threatened to suspend their services indefinitely if the government does not intervene urgently.

Angry over "non payment" of their salaries, the ground handling staff of Kingfisher Airlines went on a flash strike at the IGI airport in New Delhi on Tuesday.