NokScoot, a joint-venture between Thailand's Nok Air and Singapore's low-cost Scoot, will be liquidated. The latest decision was taken by the company's board of directors, who decided that NokScoot would not be able to recover from the current pandemic, which has hit airlines across the globe severely.
A NokScoot Boeing 777-200 registered HS-XBA. Photo by Benjamin Liew | AeroNewsX
NokScoot was founded back in 2014 and operates a fleet of 7 Boeing 777 aircraft, majorly comprising of economy class seats. Prior to the latest decision NokScoot operated to destinations in 5 different countries from its hub in Thailand.
In a statement, the board of directors said: "Unprecedented challenges arising from the Covid-19 pandemic have further exacerbated the situation."
450 jobs are affected by the latest move.
Prior to the coronavirus pandemic, NokScoot was already struggling. The carrier hadn't managed to report a full-year profit since it was created back in 2014. The coronavirus pandemic has pushed NokScoot into even deeper financial struggles.
“Consequently, Scoot does not see a path to recovery and sustainable growth for NokScoot. In considering other possible alternatives, Scoot also offered to sell its 49 percent stake in NokScoot to Nok Air for a nominal sum of 1 Thai Baht. This was not taken up. We regrettably had to then make the joint decision to move ahead with the liquidation. Thailand remains an important market for the Singapore Airlines Group. Singapore Airlines, SilkAir and Scoot are committed to continuing to serve customers in Thailand with their existing operations.”
The board of directors voted to liquidate the company, earlier today. The suggestion will be brought to shareholders in a general meeting in a fortnight.