SpiceJet Promoter Eyes Bankrupt GoFirst, Submits Bid with Busy Bee

SpiceJet Promoter Eyes Bankrupt GoFirst, Submits Bid with Busy Bee

SpiceJet promoter Ajay Singh, along with Busy Bee Airways Private Limited, has submitted a bid to acquire GoFirst, the low-cost airline that went bankrupt last year. Singh, who is bidding in his personal capacity, is competing with two other bidders, Tata Group and IndiGo, for the troubled carrier.

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GoFirst, formerly known as GoAir, was one of the worst-hit airlines by the Covid-19 pandemic, which led to a sharp decline in passenger traffic and revenues. The airline defaulted on its debt obligations and was dragged to the National Company Law Tribunal (NCLT) by its creditors in November 2023.

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Singh, who is also the co-founder and chairman of SpiceJet, is looking to expand his aviation portfolio by acquiring GoFirst, which has a fleet of 56 aircraft and a market share of 8.7 percent. Singh has partnered with Busy Bee Airways, a regional airline that operates under the brand name Star Air, for the bid.

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According to sources, Singh and Busy Bee have offered to pay Rs 1,500 crore for GoFirst, of which Rs 500 crore will be in cash and the rest will be in the form of debt. The bid also includes a commitment to retain all the existing employees of GoFirst and honour all the contracts with the vendors and lessors.
The bid will be evaluated by a committee of creditors (CoC) of GoFirst, which is expected to announce the winner by March 2024.

The successful bidder will have to seek approvals from the NCLT, the Directorate General of Civil Aviation (DGCA), and the Ministry of Civil Aviation (MoCA) before completing the acquisition

Source : News 18

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