: Jun 29, 2020 -
: 6:08 am
Thailand’s low-cost carrier NokScoot Airlines Co Ltd, which is partly owned by Singapore Airlines Ltd, said its board of directors has decided to liquidate the company as the COVID-19 pandemic dimmed prospects for its recovery
The airline, a joint venture between Singapore-based Scoot Tigerair Pte Ltd and Nok Airlines PLC, has not recorded a full-year profit since its inception in 2014.
“Unprecedented challenges arising from the COVID-19 pandemic have further exacerbated the situation,” the company said in a statement on Friday.
The board of directors of NokScoot passed a resolution to liquidate the troubled airline and the shareholders will deliberate the same resolution at a NokScoot general meeting in two weeks.
Scoot said it does not see “a path to recovery” and sustainable growth for NokScoot.
While the company has considered other possible alternatives, Scoot said it also offered to sell its 49 per cent stake in NokScoot to Nok Air for a nominal sum of THB1 (S$0.045).
The offer was not taken up.
“We regrettably had to then make the joint decision to move ahead with the liquidation,” Scoot said.
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