NokScoot To Shut Down
2 min readNokScoot To Shut Down
Breaking news, NokScoot is set to shut down after their Board of Directors has passed a resolution at a General Meeting to be held in about 14 days. NokScoot, a joint venture between Scoot and Thailand based airline Nok Air and they have been operating since 2014.
The announcement for NokScoot to Shut Down is on their official website at http://www.nokscoot.com/en/board-of-directors-pass-resolution-to-liquidate-nokscoot/
The complete statement is as below:
NokScoot regrets to announce that its Board of Directors has passed a 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 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.
Nokscoot greatly appreciates the staunch support that the traveling public and customers have shown since 2014.
Source: http://www.nokscoot.com/en/board-of-directors-pass-resolution-to-liquidate-nokscoot/
NokScoot operated medium and long-haul Asian routes serving seven cities in China and three in Japan, including New Delhi, Singapore and Taipei, from Don Mueang International Airport in Bangkok. This is NokScoot and not Nok Air. Aviation industry is hard hit by the COVID-19 pandemic and it is sad to see NokScoot to shut down.
Less competition which might not be a good sign. Still…this shows the devastating effects of the pandemic. Sigh…
Kesian staf