homeaviation NewsGoFirst attracts two bids under IBC: SpiceJet's Ajay Singh and Sharjah based Sky One Airways
GoFirst attracts two bids under IBC: SpiceJet's Ajay Singh and Sharjah-based Sky One Airways
Also, Sharjah-based aviation company Sky One Airways has submitted the second bid for the Go First. Jaideep Mirchandani, Chairman of Sky One, said, "We have submitted the bid for Go First and look forward to the next stage - which is due diligence."
Crisis-hit SpiceJet on Friday (February 16) said Ajay Singh, chairman and managing director, and Busy Bee Airways Private Ltd, have jointly submitted a bid for grounded airline GoFirst.
The bid has been submitted by Singh in his personal capacity along with Busy Bee Airways Private Ltd, SpiceJet said in a statement. GoFirst, which stopped flying on May 3, 2023, amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process.
Also, Sharjah-based aviation company Sky One Airways has submitted the second bid for the Go First. Jaideep Mirchandani, Chairman of Sky One, said, "We have submitted the bid for Go First and look forward to the next stage - which is due diligence."
"Given our vast aviation experience across the globe, we are confident about the acquisition. Indian aviation is at the cusp of unprecedented growth and we are glad to play a part in it," Mirchandani said.
SpiceJet's role as the operating partner for the new airline involves providing essential staff, services, and industry expertise. For SpiceJet, serving as the service provider presents significant opportunities for revenue expansion.
"By leveraging its established infrastructure and operational capabilities, SpiceJet can optimise resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering," the airline said.
Meanwhile, the National Company Law Tribunal on February 13 extended the deadline for another 60 days to complete the resolution process of Go First. A two-member bench of the Delhi-based NCLT admitted the plea filed by the resolution professional (RP) of Go First seeking an extension of the timeline to complete the corporate insolvency resolution process (CIRP).
SpiceJet is currently in the midst of a revival plan, having completed the first tranche of capital infusion amounting to ₹744 crore, with additional subscriptions pending regulatory approval.
The company has also initiated the process to raise an additional ₹1000 crore. SpiceJet already holds valid shareholder approval to raise up to ₹2,500 crore through QIP, eliminating the need for further shareholder approval.
Ajay Singh, chairman and managing director of SpiceJet, said, "I firmly believe that GoFirst holds immense potential and can be revitalized to work in close synergy with SpiceJet, benefiting both carriers.
Apart from coveted slots at domestic and international airports, international traffic rights, and an order for over 100 Airbus Neo planes, GoFirst is a trusted and valued brand among flyers."
Shares of SpiceJet Ltd ended at ₹70.81, up by ₹7.18, or 11.28% on the BSE.
First Published: Feb 16, 2024 4:27 PM IST
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