NEW DELHI: SpiceJet CMD Ajay Singh has submitted a bid to revive defunct GoAir in his personal capacity along with Busy Bee Airways Pvt Ltd. Jaideep Mirchandani’s Sky One has also submitted a bid for GoAir.
Ajay Singh had bid for Air India too when government was divesting the Maharaja who eventually went back to founder Tata Group. SpiceJet has been facing a cash crunch for over two years now due to which it has been delaying payment to stakeholders – including salary, PF & TDS of employees. The airline is reducing its workforce by 15% for cost cutting.
Ajay Singh 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. I am happy to contribute to the efforts aimed at reviving this popular airline and leveraging its strengths for mutual growth and success.”
Sky One chairman Jaideep Mirchandani 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.”
GoAir had got grounded last summer when the promoter Wadia Group pulled the plug in it. Since then an attempt has been made to revive it under the Bankruptcy law — unsuccessfully so far like Jet Airways. Singh and Busy Bee submitted their joint bid on February 16.
The lenders will examine it and take a call. Whether this bid can have the airline flying again remains to be seen.
SpiceJet says it is currently in the midst of a revival plan, having completed the first tranche of capital infusion amounting to Rs 744 Crore, with additional subscriptions pending regulatory approval. The company has also initiated the process to raise an additional Rs 1000 crore. SpiceJet already holds valid shareholder approval to raise up to Rs 2500 crore through QIP, eliminating the need for further shareholder approval.
“SpiceJet’s role as the operating partner for the new airline involves providing essential staff, services, and industry expertise. This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry,” SpiceJet said in a statement.
“For SpiceJet, serving as the service provider presents significant opportunities for revenue expansion… SpiceJet can optimise resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering,” it added.
