International Finance

Thailand’s low-cost carrier NokScoot Airlines to enter liquidation

NokScoot Airlines liquidation
The carrier is expected to hold a meeting on July 14 with regard to the dissolution and to also appoint a liquidator

Thailand-based low-cost carrier NokScoot Airlines is set to liquidate as the coronavirus pandemic has severely affected the already struggling carrier’s business, the media reported.

The shareholders at NokScoot Airlines are expected to hold a meeting on July 14 with regard to the liquidation and also to appoint a liquidator.

NokScoot, a joint venture between Thailand’s Nok Air and Singapore Airlines’ Scoot, has retrenched 425 employees with full benefits.

The carrier said in a statement that it does not see a path to recovery and sustainable growth for NokScoot.

NokScoot Airlines said, “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.”

The coronavirus pandemic has forced carriers all over the globe to cancel operations and ground their flights to help curb the spread of the coronavirus.

Last month, the Central Bankruptcy Court in Bangkok accepted Thai Airways’ bankruptcy petition, according to reports in the media. The whole process of its debt rehabilitation is expected to take up to five years.

Thai Airways became the first airline in the Southeast Asia region to file for bankruptcy after the coronavirus pandemic hit the aviation sector worldwide.

The carrier appointed five people to jointly hold the position of plan preparer during its business rehabilitation process.

Thai Airways chairman Chaiyapruk Didyasarin and acting president Chakkrit Parapuntakul have been appointed, along with three newly appointed board members: former president Piyasvasti Amranand, as well as Boontuck Wungcharoen and Pirapan Salirathavibhaga. EY Corporate Advisory Services will also be involved in the process.

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