Another Airline Is Going Bankrupt!
Another airline company, damaged by an outbreak of coronavirus (Covid-19), is going bankrupt.
Low-cost airline NokScoot of the Asian country Thailand has reportedly suffered a major financial loss due to the COVID-19 outbreak and will be shut down.
Singaporean Scoot&Nok Airlines, the company’s largest partner, reported that NokScoot, which was founded in 2014, had failed to make a profit since day one. Scoot & Nok Airlines announced a liquidation decision for the company, which suffered even greater losses during the outbreak.
NokScoot, which has 450 employees, had flights from Bangkok, Thailand’s capital, to Singapore, Taipei, and destinations in China and Japan. Its fleet consisted of “Boeing 777-200” type aircraft, leased from Singapore Airlines, another major partner of the company with a 49 percent stake.
Total $ 84 Billion In Damages!
With the onset of the COVID-19 outbreak, many countries that had taken measures to prevent the spread had closed their airspace and halted their flights. The airline companies were undoubtedly the most affected economically. Airline companies around the world are estimated to have incurred a total of $ 84 billion in losses in the process.
The biggest example of this was Germany’s national airline Lufthansa. The company, which had suffered a huge financial loss due to the epidemic and was in the process of going bankrupt as it struggled with the economic crisis, had survived with state help. The German government bought a 20 percent stake in the company, paying 9 billion euros, and saved the company from sinking.
The other company going through a difficult period due to the outbreak had been KLM, the National Airline of the Netherlands. The Dutch government, in turn, provided 3.4 billion euros in aid to KLM to compensate for its losses.