Two financial bids have reportedly been submitted to India’s Go First airline as part of its bankruptcy proceedings, according to a report by the news agency Reuters quoting two bankers present at a creditors’ meeting held on Friday. SpiceJet’s managing director, Ajay Singh, and Busy Bee Airways jointly put forward a bid of 16 billion rupees ($193.10 million) for the airline, as per the report.
“The plan includes additional fund infusion to restart the airline’s operations,” Reuters quoted a banker saying.
“Our bid for launching the airline remains confidential, guarded by the Committee of Creditors (CoC) until a successful bidder is announced,” stated Nishant Pitti, the majority shareholder of Busy Bee Airways.
Additionally, the airline has received a financial bid from Sharjah-based Sky One Airways, which is lower than the competing bid, according to the report. In addition, the due diligence on the bids is expected to be completed next month.
In an interview with IANS, Sky One Airways’ Chairman Jaideep Mirchandani provided further insight into their strategy to revitalise the financially challenged Go First airlines. Mirchandani voiced assurance in the airline’s steady growth path and underscored Sky One’s dedication to enhancing operational efficiency. He also highlighted the substantial growth opportunities in India, predicting increased demand for passenger airlines and related support sectors alongside the rise in domestic travellers.
In May last year, Go First, backed by the Wadias, initiated voluntary insolvency proceedings before the National Company Law Tribunal (NCLT). The airline, facing crisis, attributed its decision to engine supplier Pratt & Whitney (PW), claiming that the growing number of engine failures from the US-based firm’s International Aero Engines compelled its action. Subsequently, Go First halted operations on May 3, 2023.
According to Go First’s bankruptcy filing, the airline has creditors, including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to which the carrier owes a total of 65.21 billion rupees.
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