The recent setback in the extradition of underworld don Anees Ibrahim from Dubai to India appears to have had its impact on the aviation ties between India and UAE.
Dubai's Emirates Airlines has cancelled its 16 special flights to India, which were originally planned to meet the Christmas and New Year holiday rush.
Sources said the Directorate General of Civil Aviation did not give Emirates permission for the special flights.
Indian authorities' reservations over allowing special flights reportedly arose over the reluctance of Dubai authorities to initiate extradition process against Ibrahim, wanted in India in connection with several cases including the serial bomb blasts in Mumbai in 1993, sources said.
India was said to have been upset that even as it was seeking Anees' custody, he was allowed to leave for Pakistan.
Meanwhile, Emirates said in a statement that "due to unforseen circumstances, the additional flights for the Christmas/New Year season have been cancelled to Mumbai and Chennai".
The Dubai-based airline said it was working to reallocate passengers with bookings onto its scheduled flights, which connect five cities to India as well as onto other carriers.