NOK Airlines and Singapore Airlines (SIA) subsidiary Scoot have jump-started the creation of a new LCC by acquiring Pete Air.
In a regulatory filing on the Singapore Exchange yesterday, SIA announced that Scoot has officially entered a joint venture agreement with Nok to create the Bangkok-based NokScoot Airlines.
Said the Singapore flag carrier in the statement: “Thailand is Asia’s premier tourist destination and a logical hub for Scoot to expand to. The joint venture airline aims to develop a new market segment and to offer Thai consumers and travellers to Thailand more travel options. Acquiring Pete Air instead of setting up a greenfield venture, would expedite the startup of NokScoot.”
Both airline companies will initially hold 43.75 per cent share capital, a figure that will rise to 49 per cent following subsequent restructuring within the new company. Pueannammitr, set up by the management of Nok Air, will own the remaining two per cent.
The airlines have raised an initial aggregate share capital of two billion baht (US$61.6 million).
NokScoot’s commencement of operations is subject to regulatory approvals.
News of the joint venture broke late last year when SIA and Nok Airlines signed an MoU to start a new Bangkok-based LCC that will be based in Don Mueang airport and fly medium to longhaul routes.
