NokScoot Airlines to be liquidated

[rooster59]

NokScoot Airlines to be liquidated

By THE NATION

 

 

NokScoot Airlines’ board of directors decided to liquidate the low-cost airline, a statement from the airline said.

 

 

NokScoot’s shareholders will deliberate on the resolution and decide on the liquidator during an annual general meeting on July 14.

 

NokScoot, a joint venture between Singapore Airline’s low-cost arm Scoot and Thailand-based airline Nok Air, has been unable to record a full-year’s profit since its inception in 2014. Much of this was contributed to the difficult in expanding its network in an intensely competitive environment, and unprecedented challenges arising from the Covid-19 pandemic have further exacerbated the situation.

 

Scoot, meanwhile, offered to sell its 49 per cent stake in NokScoot to Nok Air for a nominal sum of Bt1, but the offer was not accepted.

 

Nok Airlines Plc on Friday also informed the Stock Exchange of Thailand the board’s resolution to terminate NokScoot Airlines.

 

According to the SET filing, NokScoot Airlines has been suffering continuous losses, which was worsened by the Covid-19 pandemic. The airline’s equity has been negative since 2019.

 

NokAir, meanwhile, said that the liquidation of NokScoot poses no direct or indirect impact to the company’s normal operations.

 

Source: https://www.nationthailand.com/business/30390373

 

-- © Copyright The Nation Thailand 2020-06-27

 

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[ukrules]

Too much tax, not enough profits for the airlines.

 

The only people making money out of air passenger travel are the airports and the governments.

 

Is it right that the taxes and mandatory airport 'fees' are more than the actual fare itself on many flights?

[Pravda]

I think cheap flying or cheap anything is done in Thailand 

[RangerP703]

2 minutes ago, Pravda said:

I think cheap flying or cheap anything is done in Thailand 

There are some bargain around, booked a week in Phuket flying with VietJet when they had a promo in April.

 

[ezzra]

They should have a name change for better luck and re-name it Covid-air or Corona airlines...

[ukrules]

35 minutes ago, ezzra said:

They should have a name change for better luck and re-name it Covid-air or Corona airlines...

CoronAir ????

[FritsSikkink]

1 hour ago, ukrules said:

Too much tax, not enough profits for the airlines.

 

The only people making money out of air passenger travel are the airports and the governments.

 

Is it right that the taxes and mandatory airport 'fees' are more than the actual fare itself on many flights?

If you don't make money, you don't pay tax

[PatOngo]

2 hours ago, rooster59 said:

Scoot, meanwhile, offered to sell its 49 per cent stake in NokScoot to Nok Air for a nominal sum of Bt1, but the offer was not accepted.

Says it all!

[Pravda]

58 minutes ago, FritsSikkink said:

If you don't make money, you don't pay tax

 

What? Say that again?

[GinBoy2]

3 hours ago, RangerP703 said:

There are some bargain around, booked a week in Phuket flying with VietJet when they had a promo in April.

 

This is a great example of why LCC's get into trouble.

 

This flight was probably either an B737 or an A320.

 

Either way the typical fuel burn is around $3000/Hr. 

 

So a 1:30 flight from HKT-BKK cost, just for fuel alone $4500 or ~ ฿140000.

 

So both the B737 and A320 have about a 150 seat capacity, so even at 100% load factor, 150 x ฿548 = ฿82000

 

So add in landing fees, crew costs and the whole flight is a total financial disaster

Edited June 27, 2020 by GinBoy2

[BobbyL]

I have heard of Nok and Scoot, but I have never heard of Nokscoot. 

[Stargeezr]

Can you just see some country using that name in the future.  It sounds

great actually. Coron Air. or Corona Air, Hey Mexico ! New Idea headed your way.

  I do see many low cost airlines dissapearing soon, sadly.  Even maybe some

country's Flag airlines, Pakistan maybe?

Geezer

[KhunBENQ]

1 hour ago, Stargrazer9889 said:

Even maybe some

country's Flag airlines, Pakistan maybe?

Could help to save lives.

Unbelievable 40% improper/invalid pilot licenses. Sending friends for tests etc.

May 2020: touch and go without landing gear out, damaging engines.

Second attempt, engines fail, 97 killed on board.

Horrible.

 

Edited June 27, 2020 by KhunBENQ

[Bangkok Barry]

2 hours ago, BobbyL said:

I have heard of Nok and Scoot, but I have never heard of Nokscoot. 

And now it doesn't matter ????

[Bangkok Barry]

It wouldn't surprise me at all if Nok quickly followed. In my experience they cancel or delay so many flights because of lack of pilots (they pay them peanuts) that I long ago gave up flying with them.

[NanLaew]

4 hours ago, Pravda said:

5 hours ago, FritsSikkink said:

If you don't make money, you don't pay tax

 

What? Say that again?

Sorry, you'll have to wait for your citation until after Donald J Trump's tax records are released.

 

...or until hell freezes over.

[tomazbodner]

19 minutes ago, Bangkok Barry said:

It wouldn't surprise me at all if Nok quickly followed. In my experience they cancel or delay so many flights because of lack of pilots (they pay them peanuts) that I long ago gave up flying with them.

It probably will. And won't be the last either.

[blazes]

38 minutes ago, Bangkok Barry said:

It wouldn't surprise me at all if Nok quickly followed. In my experience they cancel or delay so many flights because of lack of pilots (they pay them peanuts) that I long ago gave up flying with them.

 

Why would anyone want to fly with an airline that chooses to look like Donald Duck?  What- to save maybe a thousand baht ($20 ish)....what sort of cheap mentality would put his or his family's life in jeopardy for the sake of a few thousand baht....???/

[lopburi3]

3 hours ago, BobbyL said:

I have heard of Nok and Scoot, but I have never heard of Nokscoot. 

Actually it is/was a joint venture between Singapore Scoot/Thailand Nok and mainly served low fare Taiwan/Japan/China and India tourist routes to Bangkok.

Edited June 27, 2020 by lopburi3

[Isaan sailor]

Gonna miss those Nok flight attendants in yellow (the girls), and the brown bag of goodies they gave us...

But in the upcountry airports, we will miss them.  Their presence in a two airline airport served to drive prices down.  Now AirAsia can raise prices...

Edited June 27, 2020 by Isaan sailor

[Bangkok Barry]

49 minutes ago, blazes said:

 

Why would anyone want to fly with an airline that chooses to look like Donald Duck?  What- to save maybe a thousand baht ($20 ish)....what sort of cheap mentality would put his or his family's life in jeopardy for the sake of a few thousand baht....???/

Well, I tend to judge an airline on more than its paint job. Cartoons, you might not know, are popular among Asians, even adults, Japan Airlines has one painted with Hello Kitty all over it, but it's still a very good airline. No reason not to fly them, just because they cater to the many adult Asians who have the mind of a child.

[DJ54]

2 hours ago, KhunBENQ said:

40% improper/invalid pilot licenses

This is very troublesome... how they got away with it.... why would they buck the system.. ..  pilots have a lot of responsibility to keep the passengers as safe as possible,...  when I think about it makes very angry..

can’t toy with these things...

 

Same as with Boeing.. tools found in fuel tanks.,. How the heck does that happen.... disappointing at best.... stupidity for sure....

[hotchilli]

9 hours ago, ukrules said:

Too much tax, not enough profits for the airlines.

More like over saturation of LCC's, the profit margin is minimal to stay competitive, unless the company strategy is on the ball and flexible it won't last 5 minutes.

[NanLaew]

2 hours ago, Isaan sailor said:

Gonna miss those Nok flight attendants in yellow (the girls), and the brown bag of goodies they gave us...

But in the upcountry airports, we will miss them.  Their presence in a two airline airport served to drive prices down.  Now AirAsia can raise prices...

I don't think AirAsia are flying Thai domestic at the moment, are they?

[DrTuner]

I truly hope casual mass tourism has gotten a covid headshot. There's barely a place left on the planet that hasn't been spoiled by the roving swarms of mass tourist locusts. Airlines like these enabled the destruction. Good riddance.

[lopburi3]

17 minutes ago, DrTuner said:

I truly hope casual mass tourism has gotten a covid headshot. There's barely a place left on the planet that hasn't been spoiled by the roving swarms of mass tourist locusts. Airlines like these enabled the destruction. Good riddance.

PanAm prices for the new normal HiSo tourists.????

 

[GinBoy2]

3 hours ago, Isaan sailor said:

Gonna miss those Nok flight attendants in yellow (the girls), and the brown bag of goodies they gave us...

But in the upcountry airports, we will miss them.  Their presence in a two airline airport served to drive prices down.  Now AirAsia can raise prices...

This isn't the demise of the domestic Nok, yet.

 

This is NokScoot which simply served overseas markets from BKK, rather unsuccessfully it appears since it never made a profit from day 1.

 

I just read that SQ will take a S$125M write down charge on their books as part of the wind down. Ouch!

[lee b]

10 hours ago, RangerP703 said:

There are some bargain around, booked a week in Phuket flying with VietJet when they had a promo in April.

 

Honesly not bad. The taxi from Phuket airport to your hotel will probobly cost more lol

[ukrules]

9 hours ago, FritsSikkink said:

If you don't make money, you don't pay tax

Lol, sure you do, every ticket that's sold is taxed, there's also a government tax included in the fare for leaving the country when you fly out of Thailand, years ago you used to pay it at the airport on arrival but it's not billed directly to the airline and I think they increased it to about 750 Baht.

 

There are many hidden taxes which vary by country.

 

Example - UK to Bangkok

 

Economy - duty alone is £80 plus airport charges and other taxes

That's 17% of a £450 flight going directly to the government and it's before UK airport fees and Thailands taxes and fees

 

Business Class - duty is £176 plus all the rest mentioned above

That's 8 or 9% of the price of a reasonably priced business class flight between the UK and Bangkok.

 

This is just the passenger duty part of it and airport fees, etc

 

I think sometimes there's a little left over for the airline.

[GinBoy2]

18 minutes ago, ukrules said:

Lol, sure you do, every ticket that's sold is taxed, there's also a government tax included in the fare for leaving the country when you fly out of Thailand, years ago you used to pay it at the airport on arrival but it's not billed directly to the airline and I think they increased it to about 750 Baht.

 

There are many hidden taxes which vary by country.

 

Example - UK to Bangkok

 

Economy - duty alone is £80 plus airport charges and other taxes

That's 17% of a £450 flight going directly to the government and it's before UK airport fees and Thailands taxes and fees

 

Business Class - duty is £176 plus all the rest mentioned above

That's 8 or 9% of the price of a reasonably priced business class flight between the UK and Bangkok.

 

This is just the passenger duty part of it and airport fees, etc

 

I think sometimes there's a little left over for the airline.

I know everyone loves to hate airlines.

 

But it really is a horribly low margin business, where you invest billions in hardware, to 'hopefully' make pennies in profit.

 

Thats why this whole lockdown has been devastating, since it's a real hand to mouth cash flow operation to pay for liabilities for all airlines.

 

Even for airlines who grounded their entire fleets they are still on the hook at many major hubs to pay fees to retain slots, that why so many are flying totally empty aircraft just to maintain their slots.

 

We all wanted airline travel to be cheap, and compared to that golden age of glamorous air travel in the 60's it's a fraction of the cost per mile today than it was back then. And this is the price we have to collectively pay