Reports from Nepal indicate the country’s civil aviation authority have rescinded the permit for Air Arabia to operate flights between Kathmandu and Kuala Lumpur.
It is believed Nepal Airlines lobbied government officials to stall Air Arabia in order to protect one of its most lucrative routes.
The route is widely used by Nepalese migrant workers travelling to Malaysia for employment.
The Civil Aviation Ministry said the deal with the Sharjah-based airline had been scrapped following a directive from parliament’s international relations committee.
However, an Air Arabia representative in Nepal said the flights would come into operation this month as agreed between the two countries.
“We are not challenging the parliamentary committee’s decision but simply following the law,†the representative said.
Nepal tourism secretary Kishor Thapa warned there could be consequences: “The government will have to suffer if any problem arises from this,†he said.
