SpiceJet chairman and managing director Ajay Singh has submitted a joint bid with Busy Bee Airways Private Ltd for GoFirst airline.

The joint bid was submitted on Friday and the airline said that while the bid has been filed by Singh in his personal capacity, SpiceJet will take up the role of an operating partner by providing essential staff, services, and industry expertise to the new airline if the bid turns successful. “I firmly believe that GoFirst holds immense potential and can be revitalized to work in close synergy with SpiceJet, benefiting both carriers,” Singh said in a statement on Friday. “Apart from coveted slots at domestic and international airports, international traffic rights, and an order for over 100 Airbus Neo planes, GoFirst is a trusted and valued brand among flyers,” Earlier this week, the National Company Law Tribunal (NCLT) approved a 60-day extension for its moratorium to GoFirst, giving the airline additional time to finalize its corporate insolvency resolution process (CIRP). The resolution professional (RP) overseeing Go First’s case, Shailendra Ajmera, had also informed the court that the airline has received interest from three potential buyers, all of whom have already deposited funds, prompting the request for more time to seal the deal. SpiceJet today said that this collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry. In a bid to save costs on a reduced fleet, budget carrier SpiceJet this week announced plans to lay off 15% staff, or nearly 1,500 employees to save around 100 crore per year. The lay-offs have already begun and the exercise is expected to be completed by March. “As part of our turnaround and cost-cutting strategy, following the recent fund infusion, SpiceJet has initiated several measures, including manpower rationalization, aimed at achieving profitable growth and positioning ourselves to capitalize on the opportunities in the Indian aviation industry,” a SpiceJet spokesperson had said on the lay-offs. The airline, which used to operate a fleet of over 120 aircraft pre-pandemic, now operates around 41 aircraft which includes 10 leased aircraft on wet lease. SpiceJet, which has been witnessing financial headwinds since 2020, recently completed a capital infusion aggregating to 744 crore by allotted shares and warrants on a preferential basis. The airline is due to complete another tranche of capital infusion via equity and warrants from remaining subscribers. “SpiceJet is currently in the midst of a revival plan… The company has also initiated the process to raise an additional 1,000 crore. SpiceJet already holds valid shareholder approval to raise up to 2500 crore through qualified institutional placement, eliminating the need for further shareholder approval,” the airline said in a statement. The airline expects to leverage its established infrastructure and operational capabilities, optimize resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering. It is also optimistic on setting up coordinated route planning initiatives to enhance passenger traffic and drive ticket sales for both airlines. By strategically aligning their flight schedules and destinations, SpiceJet and the new airline can capture a larger share of the market and cater to diverse passenger needs effectively, the airline added. As per the latest data from the Directorate General of Civil Aviation, the airline held a market share of 5.6% in the domestic aviation market in January compared to over 16% in pre-pandemic year of 2019. Spicejet shares traded near their 52-week high of 77.50 on Friday following the DGCA data. According to analysts, the fact that the low-cost carrier managed to hold on to its market share in January boosted sentiment for the stock. Livemint tops charts as the fastest growing news website in the world to know more.
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