Air Arabia to open new hub in Nepal to serve Asia and Middle East

SHARJAH, UAE – Air Arabia, the first and largest LCC in the Middle East and North Africa, announced on Sunday that it will establish a new hub in the Nepalese capital, Kathmandu, providing the LCC with a platform from which to serve markets stretching across South and Central Asia, the Far East, Middle East and India. This announcement follows the signing of a joint venture agreement between Air Arabia and Yeti Airlines, the market leader in domestic air travel in Nepal and approval from Nepal Government’s Department of Industries. Under the terms of the agreement, Air Arabia and Yeti Airlines will jointly establish a new LCC based in Kathmandu that will provide affordable and convenient service to a broad range of international destinations. Air Arabia, a major shareholder in the new company, will apply its successful low-cost business model to the management of Nepal’s first international LCC. The new carrier is expected to begin operations with the inaugural flight taking off to Sharjah before the end of January 2008 followed by operations to selected destinations in India as well as to Doha and Kuala Lumpur.

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