AIR India is to pull the plug on its popular service linking Birmingham to the "golden city" of Amritsar.
The airline took the decision to protect its valuable slots at Heathrow Airport but business leaders have expressed their frustration at the move, saying it sent out a "bad message" which could damage Birmingham's image on the international trade stage.
Flights from Birmingham International Airport will be suspended from late October. The service - which links Amritsar via Birmingham to Toronto in Canada - lands at BIA six times a week and more than 100,000 people have used it so far this year.
Jerry Blackett, chief executive of Birmingham Chamber of Commerce, said: "This is very bad news for the region, given our focus on India. We hope to see another carrier fill the vacuum."
However, there are hopes that Air India, which launched the service just over three years ago, might resume operations from at BIA next spring.