Air Arabia demands USD1m in compensation from Nepalese Government

Air Arabia is reportedly demanding USD1 million in compensation from the Nepalese Government for cancelling its Kathmandu-Kuala Lumpur route (monstersandcritics.com, 25-Jan-2011). The carrier was previously granted permission to operate services on the route on 02-Dec-2010 but had the authorisation rescinded on 12-Dec-2010 following a parliamentary directive and pressure from Nepal Airlines. Nepal Airlines claimed Air Arabia operating on the route would hurt its business.