SpiceJet & Busy Bee Airways bid for bankrupt Go First

16 Feb, 2024

SpiceJet & Busy Bee Airways bid for bankrupt Go First

In a significant move within the aviation industry, SpiceJet promoter Ajay Singh, in collaboration with Busy Bee Airways Private Limited, has tendered a bid for the acquisition of the financially distressed airline, Go First. This bid, submitted in Ajay Singh's personal capacity, marks a strategic step towards revitalizing the operations of Go First, which has been undergoing insolvency proceedings.

SpiceJet, already a prominent player in the Indian aviation sector, has positioned itself as the operating partner for the prospective venture, committing to provide essential staff and services. The decision to venture into this bid aligns with SpiceJet's broader growth strategy, evident from its previous filing to raise fresh capital and strengthen its financial standing.

Notably, amidst SpiceJet's bid, other entities including Sky One, Safrik Investments, and NS Aviation have expressed interest in acquiring Go First. However, SpiceJet's extensive experience in managing passenger flights positions it as a formidable contender in this acquisition race.

The insolvency proceedings initiated by Go First's lenders, including Bank of Baroda and Central Bank of India, underscores the urgency of finding a suitable resolution for the airline's financial woes. Despite initial challenges, the extension granted by the National Company Law Tribunal signals renewed hope for Go First's revival under potential new ownership.

As the deadline for resolution plan submissions approaches, stakeholders eagerly anticipate the outcomes, which could reshape the landscape of India's aviation sector. For SpiceJet, this bid represents both an opportunity for expansion and a test of its resilience amid the turbulent financial environment that has plagued the airline industry in recent years