Nok Air (DD, Bangkok Don Mueang) and Singapore Airlines (SQ, Singapore Changi) management have taken a significant step forward in the formation of their proposed low-cost, long-haul operation, NokScoot (Bangkok Don Mueang). In a statement issued to the Singaporean bourse last week, the carriers announced they had agreed on the final structure of the carrier with both each to hold a 49% stake with the remaining 2% to be held by Pueannammitr Co.
"A Joint Venture Agreement has been signed between Scoot, Nok Mangkang Co., a Special Purpose Vehicle set up by Nok Air (“Nok Mangkang”), and Pueannammitr Co. Ltd, a company formed by the management of Nok Air (“PNM”), to set up the JV Airline by way of acquiring an existing company, Pete Air Co, Ltd. (“JVC”), which is already holding an Air Operator’s Licence."
Subject to regulatory approval, the joint-venture firm will subsequently be renamed NokScoot Airlines Co., Ltd with each party to invest an initial aggregate amount of SGD80million (USD63.98million).
Under the venture's original plans, NokScoot will launch in the second half of this year using "two or three" B777-200(ER)s sourced from Singapore Airlines' LCC subsidiary, Scoot (TR, Singapore Changi). The aircraft will be repainted into Nok Air's livery but operate under the NokScoot brand name.
Initial services will include East Asia, Japan, South Korea and northern China.
