SpiceJet promoter Ajay Singh, in collaboration with Busy Bee Airways Pvt Ltd, has made a bid to acquire Go First, the troubled carrier. The bid, considered a “significant strategic move,” envisions reshaping the Indian aviation sector. Singh, submitting the bid personally, outlines that SpiceJet would be the operating partner for Go First, providing staff, services, and industry expertise to leverage existing infrastructure for revenue expansion. Singh emphasizes the immense potential of Go First, expressing confidence in its revitalization in synergy with SpiceJet. The proposal aims to strategically align flight schedules and destinations for capturing a larger market share.
SpiceJet’s announcement in December regarding a potential offer for Go First, pending due diligence clearance, had previously boosted SpiceJet shares. The latest bid led to an over 11% increase in SpiceJet’s shares. This development follows SpiceJet’s recent measures to reduce its workforce, targeting a 15% reduction to save ₹100 crore annually.
Another bidder, Sky One from Sharjah, UAE, has submitted a bid for Go First, expressing confidence in the acquisition due to its extensive global aviation experience.
Go First, facing financial troubles, filed for bankruptcy protection in May last year. Lenders, failing to secure new investors, have been contemplating liquidation. The airline, grounded since May 3, is undergoing financial challenges listed in its bankruptcy filing, which includes creditors such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.