The budget carrier NokScoot Airlines announced today, just days after announcing they were laying off four hundred employees, that they are going out of business.
The Regional carrier operated routes serving parts of China and Japan as well as New Delhi, Singapore and Taipei, from its main base at the Don Mueang airport in Bangkok.
Nokscoot said its board of directors decided on Friday to liquidate the airline, with the decision to be announced further in a general meeting of shareholders to be held in roughly two weeks. An additional estimated 450 employees will be laid off, however, will receive full benefits under Thai Law according to Nokscoot.
Nokscoot had been having difficulties even before the Covid-19 pandemic, according to financial analysts, as they were struggling to compete with several other low-cost regional carriers. NokScoot was a joint venture between Scoot and Thailand-based airline Nok Air and had reportedly been unable to record a full-year overall profit since forming in 2014. The pandemic, according to the Nokscoot board of directors, escalated the issue of profit loss and has led to the upcoming liquidation of the airline.
Singapore based Scoot owns 49% of NokScoot and made the announcement earlier today. Nok, a domestic budget airline holds 51% of the airline. At least three of the airplanes in NokScoot’s fleet will be returned to Singapore, they added in the announcement.
Additional Information can be found here: https://asianaviation.com/nokscoot-to-be-liquidated/