SpiceJet promoter Ajay Singh and Busy Bee Airways jointly bid for Go First

SpiceJet promoter Ajay Singh and Busy Bee Airways Private Ltd (BBAPL) have jointly submitted a bid for insolvent airline Go First, which ceased to fly in May last year.Moreover, Sharjah-based aviation services company Sky One announced submitting a bid for the airline.

BBAPL, an East Delhi-based company, has Paul Gomes and Pran Sathiadasan as 50-50 shareholders, according to the latest documents filed with the Ministry of Corporate Affairs in November 2023, which have been reviewed by Business Standard.

Currently, Sathiadasan is also director of commercial operations, South East Asia, Flydubai, an airline operated by the United Arab Emirates government.

According to documents, BBAPL reported no income in 2021-22, but its income rose to Rs 96,300 in 2022-23. It recorded a net loss of Rs 6,800 in 2021-22, but turned a profit of Rs 80,906 in 2022-23.

BBAPL has not submitted any documents to the Ministry of Corporate Affairs regarding changes in ownership in 2023 or 2024. BBAPL did not immediately respond to queries emailed by Business Standard regarding the bid.

Ajay Singh, chairman and managing director of SpiceJet, said in a statement he believed Go First held immense potential and could 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, he said.

While SpiceJet has recently raised certain funds, the airline has been facing a cash crunch for several quarters. It is also dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, financial services firm Credit Suisse, aircraft lessors, and engine lessors. Earlier this month, SpiceJet said it was laying off a certain percentage of employees to save up to Rs 100 crore per year.

Jaideep Mirchandani, chairman, Sky One, said: “We have submitted the bid for Go First and look forward to the next stage, which is due diligence. Given our vast aviation experience across the globe, we are confident about the acquisition. Indian aviation is on the cusp of unprecedented growth and we are glad to play a part in it.”

On January 11, SpiceJet’s shareholders gave their approval to raise Rs 2,241.5 crore through equity and warrants — Rs 1,591.5 crore by issuing equity to 58 entities and Rs 650 crore through warrants on a preferential basis to five other entities. On January 26, the first tranche of Rs 744 crore (of the Rs 2,241.5 crore) was infused into the airline.
The 63 entities include financial institutions, foreign institutional investors, high-net-worth individuals, and private investors such as the Elara India Opportunities Fund and Aries Opportunities Fund.

After Go First airline stopped operating flights on May 3, its lessors had put in applications with the Directorate General of Civil Aviation to repossess more than 40 of the airline’s 54 planes. However, the National Company Law Tribunal on May 10 last year put a moratorium on all Go First’s assets, debarring the lessors from taking their planes back. Multiple lessors of Go First have filed an appeal in the higher tribunal and courts to repossess the planes.

The resolution professional had last year called for bids. Naveen Jindal-led Jindal Power had in October 2023 submitted an expression of interest. However, Jindal did not submit a financial bid after due diligence.

SpiceJet has been using various avenues to raise cash.

In 2022-23, the airline raised Rs 449.8 crore under the central government’s Emergency Credit Line Guarantee Scheme (ECLGS).

The airline has received an additional Rs 541.3 crore under the ECLGS in 2023-24, it had said on December 12 last year.

In August 2023, Singh himself infused Rs 494.1 crore into the airline and his entities were issued fresh equity and warrants in return.