Ease My Trip CEO withdraws bid for Acquiring Go First

Go First, founded as GoAir, was an Indian low-cost airline based in Mumbai, Maharashtra. It is owned by the Indian business conglomerate, Wadia Group. It commenced operations on 4 November 2005 and operated a fleet of Airbus A320 aircraft in an all-economy configuration. A year ago, in May 2023, Indian budget carrier Go First approached the National Company Law Tribunal (NCLT) to file for bankruptcy.

Ease My Trip Withdraws Bid for Go First

More than three months after initially submitting a joint bid for the bankrupt airline Go First, Nishant Pitti, CEO of travel portal EaseMyTrip, announced on Saturday his decision to withdraw from the process. The bid, which was made in collaboration with SpiceJet’s Chief Ajay Singh, involved Pitti’s company, Busy Bee Airways, where he holds the majority stake. 

Despite their initial interest and efforts to acquire Go First, Pitti has decided to step back from the acquisition plans. This development marks a significant change in the ongoing efforts to resolve the future of Go First, leaving questions about the airline’s next steps as it has lost one of its suitors with this withdrawal.

Who Has Submitted Bids for Go First Earlier?

In May of last year, the Wadia Group’s low-cost airline filed for voluntary insolvency resolution with the National Company Law Tribunal due to a severe liquidity crunch. This financial crisis was driven by the grounding of several aircraft, which was caused due to the non-availability and repair delays of engines from manufacturer Pratt & Whitney. 

The insolvency filing has attracted several bids, including a joint bid from Singh and Pitti. Additionally, Sky One, a Sharjah-based company that specializes in chartered helicopter and cargo operations, has also placed a bid to rescue the struggling airline. These bids represent efforts to revive the airline amidst its financial troubles.

Conclusion: The withdrawal of EaseMyTrip CEO Nishant Pitti from the bid will significantly impact the resolution process for Go First. The airline, already suffering from severe financial distress, now faces additional uncertainty. With Sky One’s bid still on the table, the future of Go First depends on the remaining offers. The outcome will not only affect Go First’s fate but also influence the competitive dynamics of India’s aviation sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.