Air Arabia is calling for compensation from the Nepalese government for cancelling its Kathmandu-Kuala Lumpur route.
The budget airline, based in the United Arab Emirates, has asked for US$1 million in a letter addressed to Civil Aviation Minister Sharat Singh Bhandari, the company’s Nepal agent confirmed to local media.
Last December Kathmandu granted the Sharjah-based airline a permit to operate flights between Kathmandu and Kuala Lumpur, but rescinded the authorisation following a parliamentary directive 10 days later.
The government came under pressure from Nepal Airlines. The national flag carrier said the competition would hurt its business.
The route is widely used by Nepalese migrant workers travelling to Malaysia for employment.
Air Arabia said that it took several hundred bookings before its operating permit was revoked for the route, which was scheduled to go into operation on December 16.
