SINGAPORE (June 26): Singapore Airlines (SIA) announced that the board of directors of NokScoot Airlines has passed a resolution to liquidate NokScoot on Friday.

NokScoot’s shareholders will deliberate the same at its general meeting, to be held in 14 days.

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.