Go First encountered yet another challenge as EaseMyTrip, one of its bidders, declared the withdrawal of its bid. The airline, which ceased operations, had a fleet of 54 aircraft that had been grounded since May 3 of the previous year. Earlier this month, the Directorate General of Civil Aviation (DGCA) de-registered all 54 of these aircraft.
On Saturday, Nishant Pitti, the founder and CEO of EaseMyTrip, announced that the company has opted to retract its offer for the airline. Pitti was involved in a group led by Singh that had put forward the highest bid of Rs. 1,600 crores. Nonetheless, prospects of the airline’s recovery were dashed following a Delhi High Court ruling on April 25, directing the DGCA to de-register all of their planes.
Pitti said “After careful consideration, I have decided to withdraw from the GoAir bid in my capacity. This decision allows me to better focus on other strategic priorities and initiatives that align with our long-term vision and growth objectives. Our commitment to delivering exceptional value and service remains unwavering as we continue to navigate new opportunities and challenges.”
Go First, which filed for bankruptcy in May last year, had received two financial bids as part of its bankruptcy process. SpiceJet chairman and managing director Ajay Singh submitted a bid along with Busy Bee Aviation Pvt Ltd, in which EaseMyTrip has a 51% stake. Sharjah-based Sky One Aviation also bid for the airline.
Mark D Martin of Martin Consultancy said “Sadly it’s curtains for Go First. Though if lessors reached a settlement with the airline on switching from Pratt and Whitney (whom Go First said was the cause of their grounding) to CFM leap engines, Go First could have been saved.”
Brajesh Singh, President of Arthur D. Little India Pvt Ltd, remarked that the demise of an airline in a developing nation is concerning for the aviation industry. Citing past instances like Sahara, Kingfisher, and Jet Airways, he highlighted the sector’s challenges despite economic growth and infrastructure improvements.
Go First, previously under the ownership of the Wadia group, halted its services during the busiest summer period, causing significant disruption for Indian travelers. It is anticipated to forfeit its allocated slots as the airline hasn’t utilized any of them for over a year. Formerly ranked as the fifth-largest airline in India in terms of scheduled departures, Go First’s operations have come to a standstill, impacting its standing in the aviation industry.