SpiceJet Promoter Ajay Singh Bids for Go First Amidst Competition

SpiceJet promoter Ajay Singh and Busy Bee Airways Private Ltd (BBAPL) have submitted a bid for the insolvent airline Go First, which ceased operations in May last year. 

Concurrently, Sharjah-based aviation services company Sky One has also announced its bid for the airline, intensifying the competition for the acquisition.

Details of the Ajay Singh and Their Bid Proposals:

Ajay Singh, chairman and managing director of SpiceJet, expressed confidence in Go First’s potential for revitalization and synergy with SpiceJet, emphasizing the benefits for both carriers. 

BBAPL, with shareholders Paul Gomes and Pran Sathiadasan, has seen a notable turnaround in its financial performance, recording a profit in the latest fiscal year.

On the other hand, Sky One, led by chairman Jaideep Mirchandani, highlights its extensive aviation experience and expresses confidence in the acquisition process. The bids come amidst Go First’s coveted assets, including airport slots, international traffic rights, and a substantial aircraft order.

SpiceJet Financial Challenges and Fundraising Efforts:

While SpiceJet faces financial difficulties and legal disputes, including issues with former owner Kalanithi Maran and various lessors, the airline has pursued fundraising measures. 

Recent approvals to raise capital through equity and warrants reflect efforts to address cash crunches and stabilize operations.

Legal Complexities and Competitive Landscape:

Legal complexities surrounding Go First’s assets, including aircraft repossessions by lessors and ongoing court battles, add uncertainty to the acquisition process. Despite previous expressions of interest from entities like Jindal Power, no financial bids materialized after due diligence.

SpiceJet Cash Infusions and Utilization of Government Schemes:

SpiceJet has utilized various avenues to raise cash, including government schemes like the Emergency Credit Line Guarantee Scheme (ECLGS). 

Infusions from Ajay Singh and ongoing efforts to address financial challenges underscore the airline’s resilience amidst industry turbulence.