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NEW DELHI: Three entities, Ajay Singh, Chairman and Managing Director of SpiceJet, Busy Bee Airways Pvt Ltd and Sky One, have formally submitted bids for acquiring Go First, which is under an insolvency resolution proceeding before National Company Law Tribunal.
While Ajay Singh has placed the bid in his personal capacity in partnership with Busy Bee Airways Pvt Ltd, he anticipates that if successful, the collaboration between Go First and the airline promoted by him, SpiceJet, will generate synergies, leading to improved cost management, revenue growth and a strengthened market position.
“I firmly believe that Go First 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, Go First 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, said Ajay Singh in a statement.
Sky One, is a Sharjah-based company and is engaged in undertaking chartered helicopter and cargo operations.
“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,” said Jaideep Mirchandani, Chairman, Sky One.
In May of 2023, Wadia Group promoted low-cost airline Go First filed an application for voluntary insolvency resolution proceedings before National Company Law Tribunal on account of severe liquidity crunch due to grounding of several aircraft precipitated by non-availability and repair of engines from manufacturer Pratt & Whitney.
The bid from Ajay Singh, comes at a time when SpiceJet itself is facing liquidity issues. On Monday, SpiceJet communicated that it will lay off a certain percentage of its workforce as a cost cutting and manpower rationalization measure in an effort to save Rs. 100 crore annually.
However, SpiceJet claims that it has completed the first tranche of capital infusion amounting to Rs. 744 crore and has also initiated the process to raise an additional Rs 1,000 crore. The airline holds valid shareholder approval to raise up to Rs. 2,500 crore through qualified institutional placement.
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