Malaysia Airlines and EasyJet among bidders for Go First

Besides Naveen Jindal's Jindal Power Ltd, the beleaguered airline Go First has drawn interest from players such as Malaysia Airlines, Europe’s EasyJet and US-based Spirit Airlines, informed a source close to the action, who did not wish to be identified. Guwahati-based regional airline Jettwings Airways has also submitted its EoI for Go First Airlines, the airline said in a statement on Thursday. Go First’s Resolution Professional Shailendra Ajmera, however, did not respond to DH’s mail seeking confirmation on the names in the fray. 

Earlier, Planit Travglobal, the sole general sales agent (GSA)/distributor of Dubai-based carrier Flydubai in India since 2011, was the frontrunner in the bidding process with a deal size of Rs 27,000 crore. Only, earlier this month, the bid was rejected due to nonfulfilment of certain conditions,  though the party met the eligibility criterion as set for expression of interest, sources in the know told DH.

The company was looking to bid as a part of a consortium along with a financial investor. As a strategic investor, it fulfilled the criterion of having a net worth of at least Rs 500 crores or an annual turnover of at least Rs 1,000 crores. 

According to one of the sources, the company lost the bid due to the non-payment of the earnest money deposit (EMD) in the given time. Along with the submission of the EOI, prospective resolution applicants were mandated to provide Rs 5 crores as an EMD, the letter inviting EOIs said. 

An expression of interest is the first step in the bidding process and may not result in a financial bid. The last day to submit EoIs was pushed to September 28 after which a committee of lenders met to assess the applications.

It is still unclear whether Jindal is looking to acquire the airline outright or act as a strategic investor. The company is understood to have submitted the EoI a month ago to get "a sense of the valuation of assets". It is currently carrying out due diligence and will only go ahead with the formal bid if things seem fine. It also expects to get the asset at a relatively cheaper value, a source close to the development said.

“If the Jindal deal works out, they may partner with a foreign airline to take things forward,” another source aware of the development told DH. 

Hisar-based Jindal Steel and Power Ltd is a non-scheduled operator permit holder i.e. charter operator, running by the name of India Flysafe Aviation Ltd, with a fleet of six aircraft including nine-seater Cessna 560XL aircraft and a 37-seater Embraer EMB-135LR. Details of the other aircraft are available on the Directorate of Civil Aviation’s website. This would be an opportune move by the company, which has been eyeing a potential business in the aviation sector, one of the sources told DH.

Go First, which suspended operations on May 2, 2023, is running against the clock to get back to the skies. Since filing for bankruptcy, the airline has received upwards of Rs 20,000 crore in claims from its operational and financial creditors along with multiple cases from lessors to repossess their aircraft. In July, DGCA gave Go First a conditional nod to resume operations with 15 aircraft to operate 114 daily flights. However, the defunct airline was unable to revive its operations.