SpiceJet announced its interest in acquiring Go First and intends to submit an offer after conducting a thorough due diligence of the financially troubled carrier. Go First ceased operations on May 3 due to financial difficulties, primarily stemming from issues related to Pratt & Whitney engines, and is currently undergoing an insolvency resolution process.
In a regulatory filing, SpiceJet stated that it has communicated its interest to the resolution professional of Go First and plans to submit an offer post-diligence. The objective is to establish a robust and viable airline, potentially through a combination with SpiceJet.
SpiceJet shares
SpiceJet’s shares witnessed a more than 4 per cent increase, reaching Rs 66.83 apiece in morning trade on the BSE.
In intra-day trade shares of SpiceJet jumped nearly 8 per cent after the company said it has expressed interest to acquire Go First and plans to submit its offer after carrying out due diligence of the bankrupt carrier.
The stock climbed 7.77 per cent to Rs 69.20 — its 52-week high — during the trade on the BSE. It finally ended at Rs 66.08, up 2.91 per cent.
Go First flights until 04th February 2024 are cancelled
On December 15, Go First shared a latest important notice on X social media platform (formerly known as Twitter) regarding its operations. It says “Due to operational reasons, Go First flights until 04th February 2024 are cancelled.” See the post below for reference.
Due to operational reasons, Go First flights until 04th February 2024 are cancelled. We apologise for the inconvenience caused and request customers to visit https://t.co/FdMt1cRjeD for more information. For any queries or concerns, please feel free to contact us. pic.twitter.com/w6b3vM4Xsj
— GO FIRST (@GoFirstairways) December 15, 2023
Jindal Power also shown interest
Earlier Jindal Power had been identified as a potential purchaser for the airline, but the agreement did not materialise. Also, Sharjah-based aviation company Sky One and Africa-focused Safrik Investments are reported to have expressed interest in acquiring Go First, as per media reports.
Go First, formerly known as Go Air, was established in 2005 and is affiliated with the Wadia group.