SpiceJet’s chairman Ajay Singh, alongside Busy Bee Airways, has submitted a bid for GoFirst.
“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,” Singh said.
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.
“For SpiceJet, serving as the service provider presents significant opportunities for revenue expansion. By leveraging its established infrastructure and operational capabilities, SpiceJet can optimize resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering,” Spicejet said in a statement.
Furthermore, coordinated route planning initiatives are poised to enhance passenger traffic and drive ticket sales for both airlines. By strategically aligning their flight schedules and destinations, SpiceJet and the new airline can capture a larger share of the market and cater to diverse passenger needs effectively, the statement further said.
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 1000 crore. SpiceJet already holds valid shareholder approval to raise up to INR 2500 crore through QIP, eliminating the need for further shareholder approval.
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Published: 16 Feb 2024, 02:56 PM IST