SpiceJet is reportedly considering a takeover of troubled Indian low-cost carrier Go First, which has been grounded since May 2023.
In a filing with the Bombay Stock Exchange (BSE), SpiceJet informed that it was considering a bid for Go Airlines (India), which trades under the brand “Go First”, and that the board had started the process to raise $270 million of fresh capital to strengthen the company’s financial position and invest in its further growth.
In the last couple of years, SpiceJet has experienced financial problems of its own, with creditors suing the airline on several occasions. The most recent of these legal battles took place in early December 2023, when SpiceJet won a court case in Dubai to recover a Boeing 737-800 that had been temporarily grounded while a leasing company tried to impound the aircraft’s engines.
SpiceJet shares have been rallying in the last few weeks. In the four weeks to December 18, 2023, share price went up by 82%. The airline also recently announced its intention to become listed on India’s National Stock Exchange.
Two other companies are also said to be interested in Go First, Sharjah-based aviation services company Sky One and Safrik Investments, a financial firm best known for its investments in Africa.
As per Go First, on December 15, 2023, the airline once again postponed the resumption of services until February 2024 at the earliest, prompting speculation in the industry as to whether it will ever fly again.