SpiceJet CMD Ajay Singh, along with Busy Bee Airways Pvt Ltd, submitted a bid to revive defunct GoAir in his personal capacity. Jaideep Mirchandani’s Sky One also submitted a bid for GoAir.
Ajay Singh previously bid for Air India when the government was divesting the Maharaja, which eventually returned to founder Tata Group. SpiceJet has been facing a cash crunch for over two years, leading to delays in stakeholder payments, including employee salaries, PF, and TDS. The airline is reducing its workforce by 15% for cost-cutting purposes.
Statements from Ajay Singh and Jaideep Mirchandani on GoFirst Bid
Ajay Singh firmly believed in the immense potential of GoFirst and highlighted its synergy with SpiceJet. He emphasized the benefits for both carriers, citing coveted airport slots, international traffic rights, and a substantial order for Airbus Neo planes. Singh affirmed his commitment to revitalizing GoFirst and leveraging its brand value for mutual growth and success.
Jaideep Mirchandani, Sky One chairman, confirmed the bid submission for GoFirst and anticipated the next due diligence stage. With confidence stemming from their extensive aviation experience worldwide, Mirchandani expressed optimism about the acquisition. He emphasized the pivotal role Sky One aims to play in the unprecedented growth of Indian aviation.
GoAir Revival Efforts and SpiceJet Revival Plan
Last summer, GoAir grounded operations when the promoter Wadia Group withdrew its support. Attempts to revive the airline under bankruptcy law, akin to Jet Airways, have been unsuccessful thus far. Singh and Busy Bee submitted their joint bid on February 16, awaiting examination and decision by lenders to determine the airline’s fate.
SpiceJet is currently executing a revival plan, having completed the first tranche of capital infusion totalling Rs 744 Crore. Additional subscriptions are pending regulatory approval, with the company initiating the process of raising an additional Rs 1000 crore. SpiceJet holds valid shareholder approval to raise up to Rs 2500 crore through QIP, eliminating the need for further shareholder approval. The outcome of these measures will determine the airline’s trajectory moving forward.
SpiceJet’s Role in the New Airline Partnership
In a statement, SpiceJet outlined its role as the operating partner for the new airline, entailing the provision of essential staff, services, and industry expertise. The collaboration aims to generate synergies between the two carriers, enhancing cost management, revenue growth, and market position within the Indian aviation industry.
SpiceJet highlighted significant opportunities for revenue expansion as the service provider. It emphasized the potential to optimize resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering.
SpiceJet, Sky One, and Busy Bee Submit Bank Guarantee for Go First Airlines
SpiceJet promoter Ajay Singh and Sky One and Busy Bee have submitted the bank guarantee and expression of interest for bankrupt Go First Airlines. The lenders are considering extending the resolution process deadline by two months. Singh applied individually, while Busy Bee, associated with Plan IT, is a new applicant. Safrik Investments and NS Aviation did not submit guarantees.
The three entities will receive more information on Go First to develop a formal plan. Creditors may vote again to extend the resolution timeline beyond the current deadline. This development occurred on 25 January.
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