Another bid for GoFirst has come from Sharjah-based Sky One. A third company, Safric Investments, has also expressed interest in the airline. Thanks to these three entities, the National Company Law Tribunal had on February 13 extended the deadline for GoFirst to complete the resolution process by 60 days. Go did not receive any bids in the first attempt. Safric Investments has a presence in New York, Abidjan and Dubai. It contributes to the development of the African continent through strategic investments.
However, the Pitti-Singh joint bid could make GoFirst the first airline to be revived under India’s bankruptcy law as Jet Airways’ revival is almost stalled. “The combination has both funds (from Pitti) and airline experience (Singh). Like all travel agencies, EaseMyTrip too has a huge money hole as GoFirst tickets have been sold without refunds. Go and Pratt & Whitney (PW) An arbitration case is going on between PW in Singapore. Go is likely to get a significant amount from there as its collapse mainly resulted in PW’s faulty engines for the Airbus A320 family aircraft with almost half of the planes being grounded for months. Due to inability to accommodate and even deliver replacement engines,” people in the know said. Whoever takes over the airline will get arbitration proceedings.
“Go First has been an integral part of the Indian aviation ecosystem for the last one and a half decades. It is noteworthy that, holding majority shares of Busy Bee Airways, I have, in my individual capacity, supported a joint bid to revive airline in the interest of employees and all stakeholders,” says Pitti.
Singh needs funds to keep SpiceJet afloat and becoming the operating arm of the revived GoAir could provide him a lifeline. SpiceJet has around 9,000 employees and is planning to reduce the workforce by laying off more than 1,000 people. GoFirst’s bankruptcy filings show that the erstwhile Wadia Group airline owes Rs 6,521 crore to creditors, including banks. The revival means they will also get something and it is not a 100% write-off.
SpiceJet says it is currently in the midst of a revival plan and has completed the first tranche of Rs 744 crore as capital infusion. Singh said: “GoFirst has immense potential and can be revived to work in close synergy with SpiceJet, which will benefit both the carriers. Coveted slots, international traffic rights and orders for over 100 Airbus Neo aircraft Apart from this, GoFirst is a trusted brand among travellers.. I am happy to contribute to the efforts aimed at revitalizing this airline and leveraging its strengths for mutual growth and success.
Jaideep Mirchandani, chairman of Sky One, the other bidder, said, “We had sent an expression of interest. Have now submitted the bid for GoFirst and look forward to the next phase. Given our vast aviation experience around the world, we Confident about it.” acquisition.”
