NokScoot’s Board of Directors has passed a resolution to liquidate the company. Its shareholders will deliberate the same resolution at a general meeting to be held in about 14 days.
A press statement said, “NokScoot, a joint venture between Scoot and Thailand-based airline Nok Air, has been operating in very challenging circumstances since its inception in 2014. Some of the challenges include difficulties in growing the network and a very intense competitive environment.
“Unprecedented challenges arising from the Covid-19 pandemic have further exacerbated the situation. Consequently, the Board of Directors does not see a path to recovery and sustainable growth for the airline.”
To date, 425 employees have been retrenched with full retrenchment benefits in compliance with Thai labour laws. A small team of employees will stay on to manage and see through the liquidation process to completion, after which they will receive similar retrenchment benefits.
A further update will be provided once an administrator is appointed for creditors to lodge their claims.