Go First revival: Singh-Pitti consortium plans sale of land, slots, bilateral rights | Exclusive

The bid, if approved by the Committee of Creditors (CoC), aims to breathe new life into the airline within a two-month timeframe. Sources tell CNBC-TV18 that the strategy involves leveraging two of the airline's prime land parcels in Mumbai -- one in Thane and one in Powai -- to meet outstanding dues.

Sources also say that the bidders are confident Go First will be able to realise the $300 million arbitral award the airline has won from engine-maker Pratt & Whitney (P&W). One option that is likely being studied includes selling ths arbitral award to a third party for realisation, which will give Go First relatively immediate access to the funds.

Land may not be the only asset the bidders hope to monetise to get the airline back in the skies. CNBC-TV18 learns that the consortium plans to optimise the airline's assets by selling the 72 Airbus aircraft slots it currently holds to other carriers.

Go First's airport slots at various key airports including New Delhi and Mumbai, as well as international bilateral flying rights, which are in high demand, may also go under the hammer. A host of foreign airlines, especially Middle-Eastern carriers, have been seeking more rights, as these give them a greater number of seats on international routes to and from India. There is, however, no clarity yet on whether such a sale will be allowed by the Government.

The revival plan is also learnt to place a lot of reliance on the cooperation of aircraft lessors to maintain operational stability. As of now, the airline only has 18 operational aircraft, a far cry from the 54 aircraft it once operated; so if this bid wins, the consortium will engage in fresh negotiations with lessors for new aircraft to rebuild the fleet.

Staff continuity is also a big pillar of this revival plan, say sources. This hinges on the consortium managing to preserve the majority of Go First's 460 remaining employees in an attempt to ensure continuity and expertise within the workforce.

Singh and Pitti's consortium is up agatnst Sky One, the other bidder for Go First in these voluntary insolvency resolution proceedings. Sharjah-based Sky One is engaged mainly in chartered helicopter and cargo operations. Due diligence of the bids will now begin, and is expected to end in the second half of March.