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SpiceJet’s Ajay Singh, Amid Layoffs, Makes Bid for GoFirst Airline in Strategic Move
SpiceJet’s Ajay Singh, Amid Layoffs, Makes Bid for GoFirst Airline in Strategic Move
SpiceJet announced on Friday that Busy Bee Airways and its managing director, Ajay Singh, have jointly submitted a bid for GoFirst airline. Go First shut down in May of last year due to financial difficulties, and it is presently going through an insolvency resolution procedure.
How will the GoFirst deal affect SpiceJet?
SpiceJet said that its CEO, Singh, made the proposal in his individual capacity in a statement released on Friday. For operations, the new airline will work with SpiceJet. Staff, services, and industry knowledge will be provided. “This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry,” stated the release.
Why is Ajay Singh placing his bet on GoFirst?
SpiceJet’s chairman and managing director, Ajay Singh, thinks GoFirst has a lot of potential and that both airlines may gain from collaborating closely. “GoFirst is a respected and trusted brand among travelers, in addition to having coveted slots at both domestic and international airports, international traffic rights, and an order for more than 100 Airbus Neo aircraft. “I’m happy to support the initiatives aimed at revitalizing this well-known airline and utilizing its strengths for mutual growth and success,” he said in the statement. As of May of this year, GoFirst filed for bankruptcy. Its creditors, which include the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, are owed ₹6,521 crore.
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SpiceJet shares jump
There was a lot of purchasing activity for SpiceJet shares on Friday during trade. Today’s opening price of the shares increased to an intraday high of ₹71.90 per, indicating a significant 13 percent rise from the National Stock Exchange’s closing price of ₹63.63 on Thursday.
