Flight crew walks past a giant poster of NokScoot office at Don Muang airport in Bangkok, Thailand, Saturday, June 27, 2020. Thailand’s low-cost carrier NokScoot, which is partly owned by Singapore Airlines, said its board of directors decided to liquidate the company as the coronavirus pandemic dimmed prospects for its recovery. (AP Photo/Nathathida Adireksarn)

BANGKOK — Thailand’s low-cost carrier NokScoot, which is partly owned by Singapore Airlines, said its board of directors decided to liquidate the company as the coronavirus pandemic dimmed prospects for its recovery.

The airline, a joint venture between Singapore-based Scoot 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 Friday.

It said shareholders will meet in about two weeks to consider the resolution.

Singapore Airlines, which owns 49% of NokScoot through Scoot, said it does not see a path to recovery and sustainable growth for NokScoot.

It said it offered to sell its stake in NokScoot to Nok Air for a nominal sum of 1 Thai baht, but it was not taken up. “We regrettably had to then make the joint decision to move ahead with the liquidation,” it said.

The decision leaves 450 employees out of work.

NokScoot flew from Bangkok to Singapore, Taipei, and destinations in China and Japan using a fleet of Boeing 777-200 aircraft leased from Singapore Airlines.



For more news about the novel coronavirus click here.

What you need to know about Coronavirus.




For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150.





The Inquirer Foundation supports our healthcare frontliners and is still accepting cash donations to be deposited at Banco de Oro (BDO) current account #007960018860 or donate through PayMaya using this link .


Read Next


EDITORS’ PICK


MOST READ

Don’t miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: 2019-nCoV, aviation, Business, China, closure, coronavirus, COVID-19, Health, international news, liquidation, nCoV, nCoV update, News, Nok Airlines, NokScoot, novel coronavirus, outbreak, pandemic, Scoot, Singapore Airlines, Tourism, Travel, Virus, world, world news, wuhan

For feedback, complaints, or inquiries, contact us.

Source Article