NokScoot’s executives, on Friday, have decided to shut the operations of the airline down, according to the statement released by the company.
NokScoot’s board of directors cited that the regional airline can no longer brunt the coronavirus’s impact on its operations.
Additionally, the shareholders of NokScoot are set to deliberate the course of action, resolution, and decision to liquidate the company.
The stockholders are set to meet for the deliberation on July 14th.
Just three days ago, NokScoot announced that the company would lay off more than 50 percent of its workforce.
The company has also stated that they will be trimming the airline’s fleet from five planes down to two.
The airline company was established as a joint venture between Nok Airlines Plc and Singapore-based Scoot.
Since its inception in 2014, the joint venture failed to record a single year’s profit.
NokScoot’s decline and continuous loss, worsened by Covid-19, forced the hand of the executives to liquidate the company instead.
The board of NokScoot said:
“Unprecedented challenges arising from the covid-19 pandemic have further exacerbated the situation.”
NokScoot operated several regional routes serving seven cities in China and three in Japan, as well as New Delhi, Singapore, and Taipei.
Source: Bangkok Post