Etihad Airways will cease its flight operations to Dhaka on 29 October, mainly, as industry insiders believe, due to commercial reasons.
The Abu Dhabi-based company filed service changes with the Bangladesh authorities last week without giving any reason for its decision to suspend service.
The airline has also sent a letter to travel agents in Bangladesh to inform them of the suspension.
However, industry insiders have attributed the suspension to commercial reasons.
"I talked to the Etihad authority. I have been informed that they have a lion's share in Air Arabia Abu Dhabi. After stopping Dhaka flights, the company will focus more on Air Arabia," a top leader of the Association of Travel Agents of Bangladesh told The Business Standard.
"On the other hand, they are thinking about using aircraft on other routes except Bangladesh," he added.
In the letter, Etihad said passengers with Etihad tickets would be refunded the full amount with no penalty or administrative fee. Passengers with return tickets who have only used one way will be refunded the cost of their unused return flight.
The airline currently operates Dhaka-Abu Dhabi-Dhaka once a day with a Boeing 787-9 Dreamliner until 28 October.
Dhaka joined Etihad's network in October 2006, initially with A330-200 aircraft operating five weekly flights.
Currently, two airlines – Air Arabia Abu Dhabi and Biman Bangladesh Airlines – are operating flights on the Dhaka-Abu Dhabi route.
At present, 33 foreign airlines are operating flights in Bangladesh. Twelve more airlines have expressed their desire to operate flights to Bangladesh in the future.