Ajay Singh and Nishant Pitti Bid INR16 Billion for Insolvent Airline Go First

In a significant development in the aviation industry, Ajay Singh, Chairman and Managing Director of SpiceJet, and Nishant Pitti, majority shareholder of Busy Bee Airways, have jointly proposed a bid of INR16 billion (USD193 million) to acquire the bankrupt low-cost carrier Go First. The bid, as reported by Reuters citing sources from a committee of creditors (CoC) meeting on February 23, 2024, includes INR10 billion (USD120.7 million) earmarked for the acquisition of the airline and an additional INR6 billion (USD72.3 million) allocated for the costs associated with restarting its operations.

This development follows reports that the duo plans to divest several of Go First’s assets, including its real estate holdings and slot pairs, as part of their strategy to revive the airline. Go First ceased operations in May 2023, leading to creditors filing claims totaling INR65.21 billion (USD786.8 million). Notable claims include INR19.87 billion (USD239.7 million) from the Central Bank of India, INR14.3 billion (USD172.5 million) from the Bank of Baroda, INR13.2 billion (USD159.3 million) from Deutsche Bank, and INR580 million (USD7 million) from the IDBI Bank.

In competition with Singh and Pitti’s offer, Sharjah-based Sky One Airways has also submitted a bid to acquire Go First. However, the financial specifics of Sky One Airways’ bid remain undisclosed, adding an element of uncertainty to the bidding process.

The bid by Singh and Pitti, if successful, could significantly alter the landscape of India’s aviation sector, offering a potential lifeline to the troubled low-cost carrier. The move underscores the strategic interest in Go First, highlighting the value seen in the airline’s assets and the opportunities for restructuring and growth. As the CoC evaluates the proposals, the aviation community eagerly awaits the outcome, which could mark a new chapter for Go First and its stakeholders.