Papua New Guinea's national airline, Air Niugini, is dropping plans to sack up to 250 workers.
Last month the company said that this was its plan because of a need to cut costs.
Air Niugini workers asked it to reconsider and after weeks of negotiation between the National Airline Employees Association and management, that plan has been suspended.
The National reports a new approach to cutting staff levels that maintains staff morale and performance at the highest levels possible.
It says through a freeze on recruitment, natural attrition, retirement and a voluntary redundancy programme the work force will be reduced and compulsory redundancies would be a last resort only.