Nepalese carrier FlyYeti suspends services

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Nepalese joint-venture budget carrier FlyYeti is suspending operations from next month because of uncertainty about its ability to renew aircraft leases.

FlyYet is a partnership between Yeti Airlines and Middle Eastern low-fare carrier Air Arabia, and has only been operating for five months. The airline has been using a Boeing 737-800 wet-leased from Spanish carrier Futura International Airways.

In a statement Kathmandu-based FlyYeti says the “current and ongoing political environment” in Nepal, and the fact that renewal of aircraft lease agreements are subject to Government approval, means there is uncertainty about extending current leases beyond their mid-July expiry date.

FlyYeti adds that the country is also suffering from “difficult” operating conditions and an “opaque” regulatory regime. The airline’s management, it says, has decided that temporary suspension of services is “in the best interest” of its passengers.

“The company will continue to monitor closely the political and market conditions in the country and hopes to resume operations when those conditions stabilise,” it says.

Nepal is undergoing a period of political upheaval following the country’s recent transformation into a republic from its previous status as a constitutional monarchy.