Budget carrier SpiceJet on Friday said that its promoter and managing director, Ajay Singh has submitted a bid along with Busy Bee Airways to acquire grounded airline Go First. (Photo: DC File)
Mumbai: Budget carrier SpiceJet on Friday said that its promoter and managing director, Ajay Singh has submitted a bid along with Busy Bee Airways to acquire grounded airline Go First. Singh said that he has submitted the bid in his personal capacity. Go First has also received a second bid from Sharjah based Sky One.
Without disclosing financial details, SpiceJet in a statement said that it would serve as an operating partner for the new airline and provide 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, said the statement from SpiceJet.
SpiceJet, once India’s second-largest airline, has raised funds from investors, including Singh, and a government credit line over the past year to repay lessor dues and revive its grounded fleet. It even cut jobs earlier this week to save $12 million annually according to Reuters.
“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."
The bid marks a significant strategic move that has the potential to reshape the landscape of the Indian aviation sector and position SpiceJet for substantial growth in the industry, it said.
Go First ceased operations in May of last year and is currently undergoing insolvency proceedings. But its lenders have more recently been considering liquidating the airline after failing to secure new investors.
SpiceJet shares closed 11.3 per cent higher on Friday.
Without disclosing financial details, SpiceJet in a statement said that it would serve as an operating partner for the new airline and provide 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, said the statement from SpiceJet.
SpiceJet, once India’s second-largest airline, has raised funds from investors, including Singh, and a government credit line over the past year to repay lessor dues and revive its grounded fleet. It even cut jobs earlier this week to save $12 million annually according to Reuters.
“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."
The bid marks a significant strategic move that has the potential to reshape the landscape of the Indian aviation sector and position SpiceJet for substantial growth in the industry, it said.
Go First ceased operations in May of last year and is currently undergoing insolvency proceedings. But its lenders have more recently been considering liquidating the airline after failing to secure new investors.
SpiceJet shares closed 11.3 per cent higher on Friday.
( Source : Deccan Chronicle )
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