Flight of Opportunity
Ajay Singh made the application in his personal capacity, along with Busy Bee Airways Private Limited; SpiceJet will serve as the operating partner for the new airline.
SpiceJet’s stock soared 12% on Friday after its CMD Ajay Singh and Busy Bee Airways Private Limited jointly bid for the crisis-hit GoFirst carrier.
Ajay Singh submitted the offer in his personal capacity, along with Busy Bee Airways Private Limited.
SpiceJet will function as the new airline’s operating partner, supplying workers and services, according to an exchange filing.
SpiceJet expects this agreement to provide synergies between the two carriers, resulting in enhanced cost management, revenue growth, and a stronger market position in the Indian aviation industry.
SpiceJet’s stock was up 12% on the BSE at 1510 hours on Friday, trading at Rs 71.
“As the new airline’s operating partner, SpiceJet provides critical staff, services, and industry expertise. This agreement is expected to create synergies between the two carriers, resulting in better cost management, revenue development, and a stronger market position in the Indian aviation industry.
“For SpiceJet, serving as the service provider opens up huge revenue prospects. SpiceJet can optimize resource allocation and generate cost efficiencies across a variety of operations, including maintenance, ground handling, and engineering, by using its existing infrastructure and operational capabilities, according to the airline.
Ajay Singh, SpiceJet’s Chairman and Managing Director, stated: “I am confident that GoFirst has enormous potential and can be revived to work in close coordination with SpiceJet, benefiting both carriers. Aside from coveted slots at domestic and international airports, international traffic rights, and an order for more than 100 Airbus Neo planes, GoFirst is a trusted and valued brand among travelers. I am delighted to contribute to the efforts to revive this popular airline and leverage its strengths for mutual growth and success.”
SpiceJet is currently in the midst of a rehabilitation plan, having completed the first tranche of capital injection for Rs 744 crore, with additional subscriptions awaiting regulatory permission. The company has also started the process of raising an additional Rs 1000 crore. SpiceJet already has valid shareholder approval to fund up to Rs 2,500 crore through QIPs.
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