New Delhi: Spicejet's Chairman and Managing Director Ajay Singh and Busy Bee Airways Private Limited on Friday jointly submitted a bid for the GoFirst airline. The bid has been submitted by Ajay Singh, along with Busy Bee Airways Private Limited. "I firmly believe that GoFirst holds immense potential and can be revitalised to work in close synergy with SpiceJet, benefiting both carriers", said Singh in a statement.
"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", he further said.
Bogged down by financial woes, GoFirst stopped flying in May last year and is undergoing an insolvency resolution process. 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", the airline said.
SpiceJet is currently in the midst of a revival plan, having 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. Last week, the airline in a bid to save costs on a reduced fleet announced plans to lay off 15 per cent 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.
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