To assist Go First Airlines in overcoming its financial difficulties, SpiceJet’s Chairman and Managing Director Ajay Singh, along with Busy Bee Airways, largely owned by EaseMyTrip CEO Nishant Pitti, have revealed a rescue plan involving a total investment of Rs 1,600 crore into the struggling airline.
As per sources reported by CNBC-TV18, the consortium has proposed a plan that includes acquiring Go First for Rs 1,000 crore, supported by collateral and a corporate guarantee. Additionally, Singh and Pitti have suggested injecting an extra Rs 600 crore into Go First specifically to restart the airline’s operations.
The consortium led by Singh and Pitti is vying against Sky One, another bidder for Go First in the voluntary insolvency resolution proceedings. Sky One, based in Sharjah, primarily operates chartered helicopter and cargo services. The bids will undergo due diligence, expected to be completed in the latter half of March.
Go First, promoted by the Wadias, initiated voluntary insolvency proceedings before the National Company Law Tribunal (NCLT) in May of the previous year. The airline attributed its decision to engine supplier Pratt & Whitney (PW), citing increasing engine failure incidents from the US-based firm’s International Aero Engines.
Go First ceased its operations on May 3, 2023. The consortium led by Singh and Pitti collectively submitted a bid for the acquisition of Go First Airlines on February 16.
The National Company Law Tribunal (NCLT) in Delhi granted approval on February 13 for the resolution professional’s (RP) request for a 60-day extension to finalize the corporate insolvency resolution process (CIRP) of Go First.
