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SpiceJet, led by its promoter Ajay Singh, has submitted a joint bid with Busy Bee Airways Pvt Ltd to acquire the troubled carrier Go First, formerly known as GoAir. This strategic move, if successful, holds the potential to reshape the Indian aviation sector significantly. The bid, filed by Mr. Singh in his personal capacity, marks a significant development in the ongoing efforts to revive Go First and enhance collaboration within the aviation industry.
Under the terms of the offer, SpiceJet is positioned as the operating partner for the new airline, providing essential staff, services, and industry expertise. Leveraging its established infrastructure and operational capabilities, SpiceJet aims to facilitate significant revenue expansion for the combined entity.
Ajay Singh expressed optimism about the potential of Go First, stating that it possesses “immense potential” that can be revitalized through close synergy with SpiceJet. By strategically aligning flight schedules and destinations, both carriers aim to capture a larger market share and strengthen their competitive position in the industry.
This bid comes following SpiceJet’s earlier announcement in December last year, indicating its intent to submit an offer for Go First pending clearance of due diligence. The news of this bid has already had a positive impact on SpiceJet’s stock, with shares rising by over 11 percent, reflecting investor confidence in the strategic direction of the airline.
However, this development comes amidst reports of SpiceJet’s workforce reduction measures, with plans to lay off 1,400 staff as part of cost-cutting efforts aimed at saving ₹100 crore annually. Despite its challenges, SpiceJet has been actively pursuing a refinancing plan, having raised ₹744 crore thus far, with expectations of an infusion of ₹2,250 crore in fresh capital.
Meanwhile, Sky One, based in Sharjah, UAE, emerges as the second bidder for Go First. Chairman Jaideep Mirchandani expressed confidence in the acquisition, citing the company’s vast aviation experience and India’s potential for unprecedented growth in the aviation sector.
Go First’s financial troubles date back to its bankruptcy protection filing in May last year, with subsequent challenges in securing new investors. Lenders have been considering liquidation options amidst mounting debts, with creditors including Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.
The airline has remained grounded since May 3, 2023, following its voluntary bankruptcy filing before the National Company Law Tribunal, citing delays by a United States-based engine maker. As the bidding process progresses, stakeholders await further developments that could shape the future of Go First and the broader aviation landscape in India.
Sources By Agencies
