Cash-Strapped SpiceJet CEO Ajay Singh Jointly Bids For GoFirst Airlines Revival

Due to financial difficulties, Go First suspended its operations in May last year and is currently undergoing insolvency resolution procedures.

In a collaborative effort, Ajay Singh, the Chairman and Managing Director of SpiceJet, along with Busy Bee Airways Private Limited, has submitted a bid for the financially distressed GoFirst. An official from SpiceJet confirmed that the bid was made by Ajay Singh in his personal capacity, in conjunction with Busy Bee Airways Private Limited.

twitter

¡°SpiceJet's role as the operating partner for the new airline involves providing essential staff, services, and industry expertise. 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,¡± said the official.

SpiceJet's Strategic Bid for GoFirst Aims For Revenue Expansion and Operational Optimization

With a focus on revenue expansion, SpiceJet aims to capitalise on its established infrastructure and operational capabilities. By optimising resource allocation across various functions such as maintenance, ground handling, and engineering, the airline anticipates achieving greater efficiency and profitability,¡± said the airline spokesperson.

PTI

¡°Moreover, coordinated route planning initiatives between SpiceJet and the new airline are expected to stimulate passenger traffic and drive ticket sales. By strategically aligning flight schedules and destinations, both carriers seek to capture a larger market share and cater to diverse passenger needs effectively,¡± he said.

SpiceJet Is In The Middle Of Fund-Raising

SpiceJet has undertaken a revival strategy and recently concluded the first phase of capital infusion, securing Rs 744 crore, with pending regulatory approval for additional subscriptions. The company is in the process of raising an extra Rs 1,000 crore. SpiceJet has existing shareholder approval to raise up to Rs 2,500 crore through QIP, eliminating the need for further shareholder endorsement.

Spicejet domestic passengers 2023/The Print

Ajay Singh said, ¡°I firmly believe that GoFirst holds immense potential and can be revitalised to work in close synergy with SpiceJet, benefiting both carriers. 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. I am happy to contribute to the efforts aimed at reviving this popular airline and leveraging its strengths for mutual growth and success.¡±

(With IANS inputs)