Thailand's budget carrier Nok Air and Singapore Airlines' budget carrier Scoot Scoot have signed a memorandum of understanding to establish a new low-cost airline.
Named NokScoot, the new airline will be based in Bangkok, operating from Don Mueang International Airport.
Nok and its alliance will own a 51 per cent stake and Scoot will own a 49 per cent per cent in the new venture. The initial investment is estimated at Bt2 billion.
“We are excited at the prospect of expanding Nok’s presence overseas, and to be doing so with the assistance of Scoot. It has always been Nok’s goal to offer Thais more choice and more value, of which this venture is yet another example. We’re also excited at the opportunity to encourage more inbound tourists, to boost the Thai economy,” said Nok Air CEO, Patee Sarasin.
Scoot CEOCampbell Wilson said that the expansion is driven by the fact that Thailand is Asia’s premier tourist destination and logical hub for Scoot to expand to.
"We at Scoot are very pleased to be working with Nok, an established and respected Thai low-cost airline, on the establishment of NokScoot. In supporting Nok with Scoot’s experience in medium-haul widebody operations, we look forward to developing a new market segment and offering Thai consumers and travellers to Thailand more travel options.”
Scoot also formed partnership in Taiwan and India as demand for budget travel grows across Asia.