SpiceJet’s Ajay Singh Joins Forces with Divyalaya Gofirst Airlines in a Bid to Rescue the Struggling Airline
It looks like the Indian aviation industry is buzzing with some major developments. SpiceJet and GoAir have stepped up to rescue GoFirst from its financial turmoil. SpiceJet’s managing director, Ajay Singh, is not holding back as he joins hands with Busy Bee Airways for a joint bid to acquire GoFirst.
The news broke through an official exchange filing by SpiceJet, and it seems like they are not alone in the race. Sky One has also thrown their hat in the ring with a bid to take over GoFirst. It’s now in the hands of the lenders who will have the final say after evaluating these bids.
GoFirst has been facing some serious challenges with engine issues, causing them to ground a significant part of their fleet. The blame game is on as the company points fingers at Pratt & Whitney for the problematic engines. This led to the suspension of GoFirst’s flights back on May 3, 2023, and their subsequent journey into insolvency.
Ajay Singh seems optimistic about the potential partnership with GoFirst, believing that it could open up new avenues for both airlines. GoFirst holds some valuable assets like prime airport slots, international traffic rights, and a hefty order book of over 100 Airbus planes.
Meanwhile, SpiceJet is also on its path to recovery with a substantial investment already made. They plan to play a crucial role as an operating partner for the new airline, offering their staff and services to support the transition.
To give the interested parties more time, the resolution process deadline for GoFirst has been extended by another 60 days. And it seems like investors are liking this news too, with SpiceJet’s share price shooting up by 11.28% to 70.81 rupees.
This acquisition bid is definitely one to watch as it unfolds in the coming days, shaping the future of the Indian aviation sector.