SpiceJet promoter Ajay Singh, Busy Bee Airways bid for bankrupt Go First

In a bid to acquire the bankrupt airline Go First, SpiceJet promoter Ajay Singh, alongside Busy Bee Airways Private Limited, has submitted a bid in his personal capacity, according to a report by ANI. SpiceJet announced that it would act as the operating partner for the new airline, providing staff and services.

Expressing interest in acquiring Go First, SpiceJet had previously filed a regulatory filing on December 19. The company had also announced its plans to initiate the process of raising fresh capital of approximately $270 million to bolster its financial position and support growth plans.

Apart from SpiceJet, other entities such as Sharjah-based Sky One, Africa-focused Safrik Investments, and U.S.-based NS Aviation had also shown interest in acquiring Go First. However, SpiceJet was considered a serious contender as it had more experience in handling passenger flights compared to the other airlines.

Earlier this year, Go First's lenders - Bank of Baroda, Central Bank of India, and IDBI Bank - decided to begin liquidating the airline after failing to secure new investors. The airline owes a total of Rs 65.21 billion ($784.38 million) to creditors, including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.

However, on Tuesday, the National Company Law Tribunal (NCLT) extended Go First's insolvency process by 60 days following the resolution professional's (RP) disclosure of three parties that expressed interest in taking over the carrier. However, some lessors objected to this extension.

The three interested parties, including the SpiceJet promoter, are expected to submit their resolution plans for the airline's revival by February 15.

Go First initiated voluntary insolvency proceedings on May 2, 2023 under Section 10 of the IBC, with NCLT admitting its plea on May 10.

SpiceJet itself has faced financial challenges, including an arbitral award to former promoter Kalanithi Maran and KAL Airways as part of a 2018 ruling. The airline had previously stated its struggle to remain financially afloat after being ordered to make this payment.

At its peak in 2019, SpiceJet operated 118 planes, employed approximately 16,000 staff, and held a domestic market share of 16.3 per cent in October 2019. With 516 daily flights, the airline served 51 domestic and nine international destinations.