Details are emerging in Indian media identifying entities that have lodged expressions of interest (EOIs) to buy insolvent Go First (GOW, Mumbai International). Applications closed on September 28, with the front runner reportedly Indian steel company Jindal Power. While several local and foreign airlines have also submitted EOIs, at least two foreign applicants are believed to be out of contention because their EOIs did not satisfy certain stipulated conditions.
Out-of-pocket lenders are reportedly backing any Hisar-based Jindal Steel & Power bid. Go First's resolution professional, Shailendra Ajmera, has so far accepted claims worth USD2.9 billion from operational and financial creditors. The airline's biggest lenders included the Central Bank of India, the Bank of Baroda, IDBI Bank, and Deutsche Bank. Go First suspended operations in May 2023. It has since secured approval from India's Directorate General of Civil Aviation (DGCA) to restart, albeit on a scaled down basis and under certain conditions. However, the airline has not yet managed to resume operations.
Jindal is a publicly listed company on the Bombay Stock Exchange with a market capitalisation of INR695 billion Indian rupees (USD8.35 billion). The Jindal family, now headed by Naveen Jindal, owns around 60.5% of the shares on issue.
The company was issued with a non-scheduled air operators permit by India's Directorate General of Civil Aviation in 2008 and formerly operated a Cessna 560 XL/XLS registered as VT-JSS (msn 560-5594). However, that aircraft was written off after a runway excursion at Vidyanagar in mid-2020.
According to sources close to talks, having lodged the EOI, Jindal is now conducting due diligence and attempting to value Go First's remaining assets. It is unclear whether they propose restarting Go First themselves or want to take on a strategic partner. However, interested parties cannot access the insolvent company's financial records without formally submitting an EOI.
While media reports do not name the two ineligible foreign carriers, the Deccan Herald reports that Planit Travglobal, the sole general sales agent/distributor of flydubai (FZ, Dubai International), had lodged an EOI containing details of a bid valued at INR270 billion (USD3.24 billion) and was an early front-runner. However, lenders later rejected the bid due to non-fulfilment of certain unspecified conditions, although Planit reportedly met the eligibility criterion set out in the EOI.
Also now known to have lodged bids are Spirit Airlines, easyJet, Malaysia Airlines, and local prospective startup Jettwings Airways. It is yet to be determined if all the named foreign airline applicants had their EOIs accepted. Jettwings has secured a no-objection certificate from India's Ministry of Civil Aviation to start scheduled passenger operations. Previously, ch-aviation has reported that the startup wants to launch E175 services focused on northeast India as soon as it secures its air operator's permit from the DGCA.
