Ajay Singh, Chairman and Managing Director of SpiceJet, and Busy Bee Airways Private Limited, have jointly submitted a bid for GoFirst. The bid, submitted on February 16, 2024), marks a significant strategic move that has the potential to reshape the landscape of the Indian aviation sector and position SpiceJet for substantial growth in the industry.
The bid has been submitted by 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.
For SpiceJet, serving as the service provider presents significant opportunities for revenue expansion. By leveraging its established infrastructure and operational capabilities, SpiceJet can optimise resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling and engineering.
SpiceJet is currently in the midst of a revival plan, having successfully completed the first tranche of capital infusion amounting to INR 744 crore, with additional subscriptions pending regulatory approval. The company has also initiated the process to raise an additional INR 1,000 crore. SpiceJet already holds valid shareholder approval to raise up to INR 2,500 crore through QIP, eliminating the need for further shareholder approval, said a release.