The board of NokScoot airline resolved to permanently terminate its operation for seeing no possibility of rehabilitation after the coronavirus disease 2019 (COVID-19) pandemic.
The board expected NokScoot shareholders to endorse the resolution in their meeting in 14 days. The employment of 425 staff was terminated and they will receive compensation according to law.
The budget airline was the joint venture of Thailand’s Nok Air and Singapore’s Scoot airline and was established in 2014. It faced many challenges including fierce competition and COVID-19 compounded its situation. The board of the airline did not see the possibility of its rehabilitation and sustainable growth. So far, 425 staff have been laid off.
Some staff stayed to work on liquidation and would also be compensated for their job loss.
NokScoot stated that it would elaborate more when a liquidator is appointed and creditors file their demands. (TNA)