Updated February 16th, 2024 at 15:36 IST

SpiceJet's Ajay Singh, Busy Bee Airways bid for cash strapped GoFirst

The bid signifies a concerted effort to infuse new vitality into GoFirst, backed by the operational prowess and industry expertise of SpiceJet.

Reported by: Business Desk
Ajay Singh | Image:Republic
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In a strategic manoeuvre set to potentially redefine aviation landscape, Ajay Singh, Chairman and Managing Director of SpiceJet, alongside Busy Bee Airways Private Limited, have jointly submitted a bid for GoFirst. The move, unveiled on Friday, February 16, 2024, marks a key moment poised to reshape the dynamics of the Indian aviation sector, positioning SpiceJet for growth opportunities.

The bid, personally spearheaded by Ajay Singh, signifies a concerted effort to infuse new vitality into GoFirst, backed by the operational prowess and industry expertise of SpiceJet. Acting as the operating partner for the proposed new airline, SpiceJet is set to provide critical staff, services, and operational support, laying the groundwork for synergistic collaboration between the two carriers.

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The partnership is expected to yield benefits in terms of enhanced cost management, revenue growth, and fortified market positioning within India's competitive aviation landscape. By leveraging SpiceJet's established infrastructure and operational capabilities, the collaboration aims to drive operational efficiencies across various functions, including maintenance, ground handling, and engineering, the company said in a press release.

Moreover, concerted efforts in route planning and scheduling alignment are poised to stimulate passenger traffic and bolster ticket sales for both airlines. Through strategic synchronisation of flight schedules and destinations, SpiceJet and the new airline envisage capturing a larger market share while effectively catering to the diverse needs of passengers.

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Currently undergoing a revival plan, SpiceJet has recently completed the first tranche of capital infusion amounting to Rs 744 crore, with additional subscriptions awaiting regulatory approval. The company has also initiated the process to raise an additional Rs 1,000 crore, with shareholder approval already secured for raising up to Rs 2,500 crore through QIP, streamlining the capital-raising process.

“I firmly believe that GoFirst holds immense potential and can be revitalized 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," said Ajay Singh, chairman and managing director, SpiceJet.

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Following this development SpiceJet shares surged as much as 14 per cent to Rs 72.29.
 

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Published February 16th, 2024 at 15:36 IST