The budget airline was scheduled to operate its flights to Goa from June 18 thrice a week, to cater to the nearly 500,000 Goans who live in the UAE.
The airline, however said the people who had booked their tickets will either get a complete refund or will be provided alternative arrangements, a West Asian daily reported.
"Those who had purchased their tickets from us are not that large in numbers. We are right now working out options so that they do not waste even a single day and are able to travel to Goa," Jayshree Ramchandran, marketing Manager of AIE, was quoted as saying by the Gulf News.
Currently Indian airlines operate direct flights to Goa twice a week. Indian, which used to operate thrice a week direct flights to the state, had also stopped its operations as of March 30 due to low seat bookings.
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One of the reasons being cited for the airline's shelving of its operations is load sustainability after the peak season comes to an end, the daily said.
"The peak season is from June to December but after that the question is whether or not our flights will operate in its full capacity. Indian already has two flights going to Goa per week and if we were to operate three flights the total number of flights to the state will be five," said Ramchandran.