SpiceJet promoter Ajay Singh, along with Busy Bee Airways Pvt Ltd, has formally submitted a bid to acquire the distressed carrier GoFirst, the airline confirmed on Friday. Describing the bid as a “significant strategic move with the potential to reshape the landscape of the Indian aviation sector,” SpiceJet highlighted that Ajay Singh filed the bid in his personal capacity.
According to the proposed terms, SpiceJet is set to become the operating partner for the restructured airline, offering its expertise, services, and staff. The collaboration aims to capitalise on existing infrastructure and operational capabilities to drive substantial revenue growth.
Ajay Singh expressed optimism about revitalising GoFirst, stating that it holds immense potential and could synergize effectively with SpiceJet. He emphasised the importance of strategic alignment in flight schedules and destinations to expand market share.
Highlighting GoFirst”s assets, including valuable airport slots, international traffic rights, and an order for over 100 Airbus Neo planes, Singh affirmed his commitment to reviving the airline for mutual benefit and success.
“I am happy to contribute to the efforts aimed at reviving this popular airline and leveraging its strengths for mutual growth and success,” he said.
SpiceJet”s announcement of its bid for Go First last December sparked investor interest, boosting its shares by over seven percent. Today”s news had a similar effect, with shares rising by more than 11 percent, indicating investor confidence in the potential collaboration.
In a bid to streamline operations and reduce costs amid a downsized fleet, SpiceJet recently announced plans to lay off 15% of its workforce, aiming to save approximately ₹100 crore annually. SpiceJet, once India”s second-largest airline, has raised ₹744 crore as part of its refinancing plan and aims to secure an infusion of ₹2,250 crore in fresh capital.
These measures are part of the airline”s strategy to achieve profitability and capitalize on opportunities in the Indian aviation industry.
Meanwhile, Go First, which filed for bankruptcy protection in May last year, faces significant debt owed to creditors such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank. The National Company Law Tribunal recently granted a 60-day extension for its moratorium, allowing additional time for the resolution process, during which three potential buyers have expressed interest.
