Scoot, Nok Airlines agree on structure of joint venture

Scoot and Nok Airlines are taking one key step forward in their plans to set up NokScoot, a low-cost carrier based in Bangkok.

Singapore Airlines said in a statement on Thursday that the two partners have agreed on the final structure of the joint-venture airline. This follows the memorandum of understanding with Nok Airlines which was signed in December 2013.

Scoot is a wholly-owned subsidiary of Singapore Airlines.

Scoot and Nok Air will ultimately each hold a 49-per cent shareholding of the joint venture company.

The final 2 per cent will be held by Pueannammitr Co, a company formed by the management of Nok Air.

The partners plan to set up the joint venture airline by way of acquiring an existing company, Pete Air Co, which holds an air operator's licence.

The joint venture company will be subsequently renamed NokScoot Airlines Co.

The partners have agreed to invest an initial aggregate amount of S$80 million in the joint venture.

SOURCE