NokScoot, which was established in Thailand in 2014 by Nok Airlines, is a 49%-owned associated company of Scoot TigerAir, which is a wholly-owned subsidiary of Budget Aviation Holdings.
See: SIA Engineering to establish line maintenance JV in Thailand with NokScoot
Budget Aviation Holdings is a wholly-owned subsidiary of Singapore Airlines.
Following the liquidation, SIA will record a total one-off charge of $123.6 million for the first quarter ending June 30.
The charge comprises a $106.9 million charge mainly due to impairment of SIA’s book value of seven Boeing 777-200 aircraft which had been leased to NokScoot. It also includes provisions by Scoot of $16.7 million to cover its share of liquidation and related costs.
Had the one-off charge occurred in FY19/20 ended March 31, SIA’s FY19/20 loss per share would have increased by 10.4 cents, representing a 58.1% deterioration.
It would also have reduced SIA’s consolidated net tangible assets (NTA) per share by 1.5% or 0.11 cents, to 7.45 cents as at March 31.
See also: SIA plunges into 4Q loss of $732.4 mil as air travel collapses
Shares in SIA closed 2 cents lower, or 0.5% down, at $3.82.
