Thailand's long-haul LCC NokScoot Airlines will enter liquidation as COVID 19 hits it business model, parent Nok Airlines said in a statement on Friday.
NokScoot, a joint venture between Thailand's Nok Air and Singapore Airlines' Scoot, was yet to record a profit since formation in 2014.
The joint venture is set to hold a shareholders meeting on July 14 to go ahead with the dissolution and to appoint a liquidator, Nok added.
Scoot said in a statement on Friday that it “does not see a path to recovery and sustainable growth for NokScoot”. In considering other possible alternatives to the liquidation, it also offered to sell its 49 per cent stake in NokScoot to Nok Air for a nominal sum of THB1 (5 Singapore cents), but this was not taken up.
“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,” it said.