New Delhi, Feb 16 The Chairman and Managing Director of SpiceJet, and Busy Bee Airways Private Limited, have jointly submitted a bid for the cash-strapped GoFirst.
A SpiceJet airline official said that the bid has been submitted by Chairman and Managing Director Ajay Singh, in his personal capacity, along with Busy Bee Airways Private Limited.
“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.
“With a focus on revenue expansion, SpiceJet aims to capitalise on its established infrastructure and operational capabilities.
“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 currently in the midst of a revival plan, and recently completed the first tranche of capital infusion amounting to Rs 744 crore, with additional subscriptions pending regulatory approval.
The company has also initiated the process to raise an additional Rs 1,000 crore. SpiceJet already holds valid shareholder approval to raise up to Rs 2,500 crore through QIP, eliminating the need for further shareholder approval.
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.”
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