SpiceJet’s bid to acquire Go First could reshape Indian aviation industry

SpiceJet, in partnership with Busy Bee Airways, has submitted a joint bid to acquire the troubled carrier Go First, which has been grounded since May 2023. SpiceJet promoter Ajay Singh submitted the bid in his personal capacity, and if successful, SpiceJet will be the operating partner for the new airline, providing staff, services, and industry expertise.

The bid is a “significant strategic move (with the) potential to reshape the landscape of the Indian aviation sector,” SpiceJet said. Singh believes that Go First holds immense potential and can be revitalized to work in close synergy with SpiceJet, benefiting both carriers.

The acquisition 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. SpiceJet had previously announced its interest in acquiring Go First in December 2023, pending clearance of due diligence.

SpiceJet’s shares rose by more than 11% after the announcement. The bid is a significant development in the Indian aviation industry, which has been hit hard by the COVID-19 pandemic. The acquisition of Go First by SpiceJet and Busy Bee Airways is expected to reshape the Indian aviation sector and create a new airline that can capture a larger market share.

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