Middle Eastern carrier RAK Airways is blaming higher costs and political instability for its decision to suspend operations at the beginning of the year.
RAK Airways, based at Ras Al Khaimah in the United Arab Emirates, had been serving several regional routes with Airbus A320s.
But the carrier says that market conditions and rising operating costs, as well as instability in the region, have resulted in "increased pressures" on the airline.
"We believe this [suspension] decision is in the best interest of the airline and its shareholders," the carrier states.
"We will take this time to re-evaluate the best options available for RAK Airways' future as well as those that fit the industry requirements of the emirate of Ras Al Khaimah.”
RAK Airways had been operating to destinations including Doha, Peshawar, Islamabad, Lahore, Jeddah, Riyadh, Kozhikode and Kathmandu.