Thai-based medium/long-haul budget airline NokScoot will enter liquidation and shut down operations.
NokScoot- a joint venture between Nok Airlines of Thailand and Singapore Airlines' Scoot – has cited its inability to recover from the impact of the COVID-19 pandemic on the airline.
According to a report on The Bangkok Post, the airline's board made the decision to liquidate the carrier and will be officially announced in a shareholder meeting within the next two weeks.
“Unprecedented challenges arising from the Covid-19 pandemic have further exacerbated the situation,” the NokScoot board said in its statement on Friday.
Prior to the development that the airline would be liquidated, NokScoot announced it would restructure the company and lay off more than half of its staff. It would also return three of its aircraft to Scoot.
Founded in 2014, the airline has struggled to stay competitive in the aviation market in Thailand with stiff competition in the country and region. With its main hub at Bangkok's Don Mueang Airport, the airline operates a fleet of five Boeing 777-200ER aircraft to cities in China, Japan, Taiwan, and India.
Nok Airlines owns the majority 51% stake in the carrier along with Scoot (49%).