South Asian Business news and information

Nepal is a poor country and until now, Nepal was not considered to be a very attractive market for the airlines industry. Nepal is emerging as an attractive tourist place and because of peace and stability the number of tourist in Nepal will increase in the coming years. On the other hand, a lot of Nepalese workers are working in Gulf countries. Air Arabia has decided to take Nepalese market seriously.

I found a news release in website of Air Arabia. I am giving a part of it here:

Air Arabia (PJSC), the first and largest low-cost carrier (LCC) in the Middle East and North Africa, announced today that it will establish a new hub in the Nepalese capital, Kathmandu, providing the Sharjah-based LCC with a platform from which to serve markets stretching across South and Central Asia, the Far East, Middle East and Indian Subcontinent. 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 (DOI).

Under the terms of the agreement, Air Arabia and Yeti Airlines will jointly establish a new low-cost carrier, 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 Inaugural flight taking off to Sharjah before the end of month of January 2008 followed by operations to selected destinations in India as well as to Doha and Kuala Lampur in Malaysia.

The irony is that when foreign airline carriers are now coming in Nepal, the Nepalese carrier is suffering a lot.