Just days after news came through that NokScoot was returning leased aircraft and reducing staff numbers due to dampened demand for air travel, news broke out of the airline calling it a day!
NokScoot would only last for 6 years, the airline surfaced after a joint venture between Nok Airlines & Singapore based Scoot Airlines (a subsidiary of Singapore Airlines) back in 2014. It operated out of Don Mueang airport in Bangkok as a budget carrier that would go onto serve medium and long-haul routes within Asia with seven leased Boeing 777-200 aircraft.
The airline didn’t turn a profit during its 6 years of operation and had been struggling since its inception. The airline faced difficulties in expanding their network, stiff competition and Covid-19 happened to be the final nail in the coffin.
According to Seat Breakdown for Thai Carriers, Nok Scoot had the lowest compared to other Thai Carriers, it was up by 10.4% from the previous year.
However, other LCC like Thai Air Asia X another medium to long haul carrier increased their seat capacity by over 30%. It’s no surprise that stiff competition was amongst the reasons that NokScoot had to liquidate the business, a small player compared to other carriers in the Thai market.
NokScoot isn’t the only carrier that ran into problems, Thai Airways had filed for bankruptcy proceedings last month and in business rehabilitation mode.
With demand not set to return to pre-COVID-19 levels for a few years, we could see more carriers filing for bankruptcy!
Source: Bangkok Post, Cirium & Flight Global