Expressed interest with resolution professional to buy Go First: SpiceJet

Cash-strapped SpiceJet on Tuesday confirmed to the BSE that it has expressed interest in purchasing Go First from the insolvent airline's resolution professional (RP), Shailendra Ajmera.

SpiceJet itself has been facing a cash crunch for the past 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. 

Meanwhile, its board had on December 12, approved the raising of Rs 2,241.5 crore in fresh capital from 63 entities, including financial institutions, foreign institutional investors, high-net-worth individuals, and private investors, through the issuance of equity shares and warrants.

On December 12, the airline reported a consolidated net loss of Rs 449.04 crore for the second quarter of 2023-24, reflecting a 46 per cent year-on-year (Y-o-Y) decrease in net loss. 

A few days back, it was reported that SpiceJet and two other entities had shown preliminary interest in buying Go First. The last date to submit the expressions of interest (EoIs) for Go First was September 28. 

"Please note that SpiceJet has expressed interest with the resolution professional of Go First and wishes to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet. The Board of the company has recently approved and initiated the process of raising fresh capital of about $270 million to strengthen its financial position and provide resources to invest in growth plans," SpiceJet told the BSE on Tuesday.

The airline is currently operating about 1,430 flights per week, which are 23 per cent fewer services compared to a year ago, according to aviation analytics firm Cirium. The airline has been posting annual losses since 2018-19. Last year, it posted a consolidated net loss of Rs 1,513 crore.

SpiceJet had in October told the Delhi High Court that it was "struggling to stay afloat" after the low-cost carrier was ordered to pay the dues to its former owner Maran. 

Naveen Jindal-led Jindal Power Limited (JPL) submitted an EoI for Go First in October. However, Jindal did not submit a financial bid after its due diligence.