To rescue Go First Airlines from its financial challenges, SpiceJet’s CMD Ajay Singh and Busy Bee Airways, which is largely owned by EaseMyTrip CEO Nishant Pitti, have unveiled a rescue plan involving a total infusion of Rs 1,600 crore into the struggling airline.
According to sources, the consortium has put forth a proposal that includes the acquisition of Go First for Rs 1,000 crore, backed by collateral and a corporate guarantee. Additionally, Singh and Pitti have proposed to inject an additional Rs 600 crore into Go First, specifically for restarting the airline’s operations.
Singh and Pitti’s consortium is competing against Sky One, the other bidder for Go First in these voluntary insolvency resolution proceedings. Sharjah-based Sky One mainly operates chartered helicopter and cargo services. The bids will now undergo due diligence, which is expected to conclude in the second half of March.
Go First, promoted by the Wadias, filed for voluntary insolvency before the National Company Law Tribunal (NCLT) in May last year. The crisis-hit airline attributed its decision to engine supplier Pratt & Whitney (PW), alleging that the increasing incidents of failures of engines supplied by the US-based firm’s International Aero Engines forced its hand.
Go First ceased operations on May 3, 2023.
The consortium led by Singh and Pitti collectively presented on February 16 a bid for the acquisition of Go First Airlines.
The National Company Law Tribunal (NCLT) in Delhi on February 13 approved the resolution professional’s (RP) request for a 60-day extension to conclude the corporate insolvency resolution process (CIRP) of Go First.