SpiceJet promoter Ajay Singh and Sky One have submitted resolution plans to revive Go First eight months after its closure.

While Singh has teamed up with an entity called Busy Bee Airways Pvt Limited, Sharjah- headquartered aviation firm Sky One has bid separately.

The separate bids offer a ray of hope for the Wadia-group owned airline that suspended operations last May due to a cash crunch resulting from Pratt & Whitney engine woes.

The airline has lost most of its workforce and is battling lessors to save 49 of its 54 Airbus aircraft from seizure. A source said the grounded airline’s has creditor claims of more than ₹15,000 crore including nearly ₹3800 crore due to banks.

Revival plans

Lenders are expected to discuss the revival plans at committee of creditors meeting early next week and decide further course of action. The National Company Law Tribunal has already granted an extra 60 days to complete insolvency process.

In a statement, Singh said the bid has the potential to reshape the Indian aviation landscape in the country. SpiceJet will act as an operating partner for the “new airline” providing essential staff, services and industry expertise.

“For SpiceJet, serving as the service provider presents significant opportunities for revenue expansion and it can optimize resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering. Furthermore, coordinated route planning initiatives are poised to enhance passenger traffic and drive ticket sales for both airlines,” Singh said.

Indian aviation

“We have submitted the bid for Go First and look forward to the next stage. Given our vast aviation experience across the globe, we are confident about the acquisition. Indian aviation is at the cusp of unprecedented growth and we are glad to play a part in it,” said Jaideep Mirchandani, Chairman, Sky One.

Go First still has overseas traffic rights for destinations in West Asia and South East Asia. It’s slots too have been temporarily awarded to other airlines which could prove as an asset for revival.

“Any new owner would have to negotiate with lessors and Pratt & Whitney. The restart of operations could require infusion of upto ₹150 crore towards working capital. Additionally approvals would need to be taken from Airbus and regulators for ungrounded of the aircraft,” said an aviation sector consultant.

Go First has an ongoing arbitration claim against Pratt & Whitney and has demanded around ₹8000 crore for losses caused due to grounding of aircraft.