New Delhi: Shares of SpiceJet are in focus as the airline said on Friday said its chief Ajay Singh, along with Busy Bee Airways, has submitted a bid for bankrupt budget airline Go First. The stock of the low-cost air carrier surged 11.28 percent to close at Rs 70.81 apiece on the BSE. During the day, shares of the company hit an intra-day high of Rs 71.9, up 13 percent.
In a release on Friday, SpiceJet said its Chairman and Managing Director Ajay Singh and Busy Bee Airways submitted a joint bid for bankrupt Go First – which stopped flying on May 3, 2023. It must be noted that the travel portal EaseMyTrip’s co-founder and CEO Nishant Pitti is a majority shareholder in Busy Bee Airways.
Also, Pran Sathiadasan, one of the directors at Busy Bee Airways Private Limited, is a director at Fly Dubai and therefore the airline is expected to benefit from this development.
According to data available from the corporate affairs ministry, Busy Bee Airways was incorporated on April 19, 2017 in Delhi and has a paid-up capital of Rs 1 lakh.
SpiceJet — which has been facing multiple headwinds, including financial woes and legal battles — is raising funds and has received an amount of Rs 744 crore. The company has also initiated the process to raise an additional Rs 1,000 crore, the release said.
On February 13, the NCLT extended the deadline to complete the insolvency resolution process of Go First by another 60 days. The airline shuttered operations due to financial woes caused by persisting issues with Pratt & Whitney engines that had resulted in the grounding of its aircraft.
With agency inputs
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