Scoot, which owns 49% of NokScoot, regrets to announce that the Board of Directors of NokScoot have passed a resolution today to liquidate the company. NokScoot’s shareholders will deliberate the same resolution at a General Meeting to be held in about 14 days.
NokScoot, a joint venture between Scoot and Thailand-based airline Nok Air, has been unable to record a full-year profit since its inception in 2014. Much of this was contributed by the difficulties in growing the network, and the intense competitive environment. Unprecedented challenges arising from the COVID-19 pandemic have further exacerbated the situation.
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% stake in NokScoot to Nok Air for a nominal sum of THB1. This was not taken up.
We regrettably had to then make the joint decision to move ahead with the liquidation.
Scoot greatly appreciates the support that the Thai travelling public and customers have shown NokScoot since 2014.
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.