FlyYeti.com, the budget airline majority owned by Air Arabia, will suspend operations starting mid-July due to political uncertainty in Nepal, the company said.

The move comes only six months after the airline began operations.
 
The company said its ability to renew aircraft leasing agreements, which expire mid-July, had been impaired, citing "the political environment," according to a statement posted on the flyyeti.com website.

FlyYeti said it hoped to resume operations when conditions stabilise.

"The current uncertainty, combined with a difficult operating conditions in Nepal and a presently opaque regulatory environment, has led the management of FlyYeti.com to decide that it is in the best interest of the company and its passengers to temporary suspend operations," the group said.

The startup airline served Abu Dhabi, Doha and Kuala Lumpur with weekly flights. Air Arabia is one of two listed airlines in the Gulf. - Reuters