Indian low-cost carrier Spicejet has indicated its interest in bidding for grounded rival operator Go First.
Go First initially suspended flights on 2 May amid financial challenges and the unavailability of around half of its Airbus A320neo fleet – an issue about which it has been at loggerheads with engine manufacturer Pratt & Whitney over the support of its PW1100Gs.
Administrators for the airline, which remains grounded, in July launched a tender seeking a new investor for the operator.
SpiceJet, which has faced financial challenges and fleet groundings of its own this year, has been working on raising funds across the year to strengthen its finances. The latet of these is a plan approved earlier this month for a fresh Rs22.5 billion ($270 million) share issue.
In a stock exchange statement today, SpiceJet says it has ”expressed interest with the Resolution Professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet”.
It says the $270 million fresh capital it has initiated will ”strengthen its financial position and provide resources to invest in growth plans”.
Indian DGCA statistics show the two carriers had a broadly similar share of the Indian domestic market in 2022, well behind market leader IndiGo. Go First was the third biggest carrier accounting for an 8.8% share, while SpiceJet was the fourth biggest in holding an 8.7% share of domestic traffic.
Two other companies, Sky One and Safrik Investments, have both been reported locally as having expressed interest in Go First.
