NokScoot Airlines to be liquidated
NokScoot Airlines’ board of directors decided to liquidate the low-cost airline, a statement from the airline said.
NokScoot’s shareholders will deliberate on the resolution and decide on the liquidator during an annual general meeting on July 14.
NokScoot, a joint venture between Singapore Airline’s low-cost arm Scoot and Thailand-based airline Nok Air, has been unable to record a full-year’s profit since its inception in 2014. Much of this was contributed to the difficult in expanding its network in an intensely competitive environment, and unprecedented challenges arising from the Covid-19 pandemic have further exacerbated the situation.
Scoot, meanwhile, offered to sell its 49 per cent stake in NokScoot to Nok Air for a nominal sum of Bt1, but the offer was not accepted.
Nok Airlines Plc on Friday also informed the Stock Exchange of Thailand the board’s resolution to terminate NokScoot Airlines.
According to the SET filing, NokScoot Airlines has been suffering continuous losses, which was worsened by the Covid-19 pandemic. The airline’s equity has been negative since 2019.
NokAir, meanwhile, said that the liquidation of NokScoot poses no direct or indirect impact to the company’s normal operations.
