Categories: Travel

Bidders race to revive grounded airline, SpiceJet & SkyOne lead the charge, ET TravelWorld

Picture used for representation.

The Indian aviation sector is abuzz with excitement as bidding giants Ajay Singh, Chairman, and Managing Director of SpiceJet, in collaboration with Busy Bee Airways, and Sky One, led by Chairman Jaideep Mirchandani, compete to resurrect GoFirst Airlines from its grounded state. These bids, submitted to the Resolution Professional (RP) for consideration by the Committee of Creditors, signify a crucial step towards the potential revival of GoFirst.

SpiceJet’s bid to revive GoFirst outlines a comprehensive plan wherein the airline would serve as the operating partner for GoFirst, offering essential staff, services, and industry expertise. The collaboration aims to generate synergies between the two carriers, optimise resource allocation, and strengthen market positioning within the Indian aviation industry. Ajay Singh expressed optimism about revitalising GoFirst and leveraging its strengths for mutual growth and success.

On the other front, Sky One Chairman Jaideep Mirchandani affirmed the bid submission for GoFirst, citing the airline’s vast aviation experience across the globe as a testament to its confidence in the acquisition. Sky One’s interest in GoFirst stems from its coveted slots at domestic and international airports, international traffic rights, and substantial user base, making it a reliable investment opportunity.

A number of simultaneous events made Jan 2024 a nightmare for air travellers. These included the worst spell of fog that north India saw in years, airports in some other regions also affected by poor visibility and closure of the main CAT III runway at Delhi, leaving only one CAT III runway during the worst fog period. An aircraft delayed at any one of the north Indian airports-especially the biggest base Delhi-would have a cascading effect on all the other flights.

The bidding process comes amid GoFirst’s recent challenges, including difficulties with Pratt & Whitney engines that led to the airline’s voluntary insolvency application to the National Company Law Tribunal in May 2023. With a 60-day extension granted by the National Company Law Tribunal for GoFirst’s moratorium, potential investors have a window of opportunity to submit proposals for the carrier’s revival.While SpiceJet aims to leverage GoFirst’s brand recognition and existing infrastructure to drive growth, Sky One’s strategic acquisitions across the global aviation sector position it as a formidable contender in the bidding race. Sky One, headquartered in Sharjah, United Arab Emirates, offers a wide array of aviation services, including cargo charters, training, maintenance, repair, and overhaul (MRO).

As the Indian aviation industry braces for unprecedented growth, the bids from SpiceJet and Sky One signify a collective effort to inject new life into GoFirst Airlines and propel it towards a brighter future in the skies.