MUMBAI- In an effort to address the financial difficulties faced by Go First Airlines, SpiceJet’s (SG) CMD Ajay Singh and Busy Bee Airways, primarily owned by EaseMyTrip CEO Nishant Pitti, have introduced a rescue plan involving a comprehensive infusion of Rs 1,600 crore into the struggling airline.
Sources reported by CNBC-TV18 indicate that the consortium has presented a proposal encompassing the acquisition of Go First for Rs 1,000 crore, supported by collateral and a corporate guarantee. Furthermore, Singh and Pitti have suggested an additional investment of Rs 600 crore to facilitate the restart of Go First’s operations specifically.
Go First 1,600 Crore Revival Plan
Singh and Pitti’s group competes with Sky One, the other bidder for Go First, in the ongoing voluntary insolvency resolution proceedings. Sky One, based in Sharjah, primarily engages in chartered helicopter and cargo services.
The submitted bids will now undergo due diligence, which is anticipated to conclude in the second half of March.
Go First, promoted by the Wadias, initiated voluntary insolvency proceedings before the National Company Law Tribunal (NCLT) in May of the preceding year.
The airline, grappling with a crisis, attributed its decision to file for insolvency to engine supplier Pratt & Whitney (PW). It alleged that the increasing occurrences of engine failures from the US-based firm’s International Aero Engines compelled the airline to take this step.
60-Days Extension
On February 16, the group headed by Singh and Pitti jointly submitted a bid for the acquisition of Go First Airlines.
The National Company Law Tribunal (NCLT) in Delhi granted a 60-day extension on February 13 to fulfill the resolution professional’s (RP) request for concluding the corporate insolvency resolution process (CIRP) of Go First.
Operations of Go First were halted on May 3, 2023.
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