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Nepal’s Civil Aviation Ministry rescind's operation permit for Air Arabia; Lonrho shares up 4.4%

Analysis

Nepal's Civil Aviation Ministry reportedly rescinded an operation permit for Air Arabia to operate services between Kathmandu and Kuala Lumpur following concerns from Nepal's International Relations and Human Rights Committee that the competition would hurt business for Nepal Airlines. Air Arabia previously planned to launch six times weekly services on the route from 16-Dec-2010.

Summary
  • Nepal's Civil Aviation Ministry revoked Air Arabia's operation permit for the Kathmandu-Kuala Lumpur route due to concerns about competition with Nepal Airlines.
  • Air Arabia had planned to launch six times weekly services on the route from 16-Dec-2010.
  • Air Arabia's shares experienced a slight gain on the stock market.
  • Kuwait National Airways, Air Mauritius, and Kenya Airways saw a decline in their shares, while Jazeera Airways, 1time, and Lonrho experienced gains.
  • The stock market performance of African and Middle Eastern airlines was mixed on 14-Dec-2010.
  • Data source: Centre for Asia Pacific Aviation, Reuters & Bloomberg.

Meanwhile, Air Arabia's (+0.6%) shares gained slightly on Tuesday (14-Ddc-2010).

Middle East and African shares were a mixed bag on Tuesday with Kuwait National Airways (-1.4%), Air Mauritius (-1.2%) and Kenya Airways (-0.6%) down while Jazeera Airways (+1.6%), 1time (+2.4%) and Lonrho (+4.4%) shares gained ground.

Selected African and Middle Eastern airlines share price movements: (% change): 14-Dec-2010

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