Thailand’s Nok Air turned down an offer to take over Scoot’s stake in NokScoot, the joint venture company whose board today voted in favour of liquidation.

Singapore’s Scoot, the regional arm of SIA Group and a 49% shareholder in NokScoot, says in a 26 June statement that it offered to sell the stake to Nok Air for a token sum of one baht.

“This was not taken up,” says Scoot. It adds that NokScoot has been unable to make a full-year profit since it was founded in 2014.

“Much of this was contributed by the difficulties in growing the network, and the intense competitive environment. Unprecedented challenges arising from the Covid-19 pandemic have further exacerbated the situation,” it says.

“Consequently, Scoot does not see a path to recovery and sustainable growth for NokScoot.”

Scoot adds that Thailand remains an “important market” for the SIA Group and that its group airlines – Singapore Airlines, SilkAir and Scoot – are “committed to continuing to serve customers in Thailand with their existing operations”.