The beleaguered airline Go First is up for sale, with two bidders expressing interest. While the consortium of SpiceJet’s Ajay Singh and EaseMyTrip’s Nishant Pitti has garnered considerable media attention, another contender, Sharjah-based aviation services provider Sky One, has quietly submitted its bid. In an email interview with Swaraj Baggonkar, chairman of Sky One Jaideep Mirchandani , elaborated on the motivations driving their bid to acquire Go First. Edited excerpts.
Sky One is traditionally an air charter and MRO services providing company. It does not have any experience in running and owning a passenger airline company. Why should it look at Go First?
Sky One has extensive experience of incubating, transforming and setting up airline start-ups. In the last 12 months, we have done this for two passenger and two cargo airlines – so our experience is in sync with what Go First needs. While air charter and MRO are strong suits for us, it is our ability to read the market requirements and a company’s strength and we are hopeful of doing the same again.
What is the central reason behind putting in the bid for Go First?
We look at Go First for two reasons — it has been a successful passenger airline and it has value within India’s booming travel sector.
Go First does not own any of the planes it operates. Lessors won’t hesitate to take back their planes. What has attracted Sky One to Go First?
About 80% of the commercial fleet in India is leased, so this is the industry norm, not a Go First-specific issue. Sky One has been at the helm of airplane leasing for a long time. We have worked closely with almost all lessors and hence we understand their sentiments perfectly. We also have experience in negotiating the best solutions, and we are confident that we will be able to reach the deals to help turn Go First into a sustainable and successful airline.
Restarting a grounded airline is a very complicated and tough task; Jet Airways is the best living example. Wouldn’t setting up a new airline from scratch provide a more stable option instead?
We have been leasing and trading aircraft since 2008, and we come with a rich expertise in providing 360-degree aviation solutions. Our understanding of the industry, combined with the growing opportunities in the Indian aviation sector and the valuable assets that come with Go First, such as international routes and airport slots, make us confident that we can turn this into a sustainable and successful business.
How much is Sky One willing to pay for Go First?
At this time, we have shared a detailed plan with the RP (Resolution Professional) and we’d be happy to make it public once the bid is (hopefully) approved.
How will Sky One raise funds for the acquisition? Are you looking to bring in investor partners?
Sky One has submitted the bid without a partner and we will be going ahead with the acquisition. We may consider investors as well as external consultants and experts at a later stage, while running the airline, if required.
In the event Sky One wins the bid, how will it negotiate with the lessors?
We have been in the business of leasing airplanes since 2008. We have worked with many lessors, and those networks are one of our strongest suits.
Jettwings and Jindal Power had put in bids on the first attempt but they opted out. Has there been any changes in the bid rules this time?
The final round has received two bids – one is from Sky One and the other is from Mr. Ajay Singh with BusyBee. As per our information, in the next step COC (committee of creditors) will negotiate with every bidder for value maximization subject to the bids being compliant with IBC law and the RFRP document issued by COC. Then finally (one shortlisted bidder) it needs to be approved by NCLT. Please check with the authorities to confirm the exact process or changes, if any.
What about the slots that Go First had? Does the winning bidder get the slots just as simply or would there be negotiations involved with the DGCA?
We are not the right authority for clarity on the rules. Please check with the RP.
What assets of Go First are part of the deal? Go First holds 94 acres of prime area near Mumbai, is this going to be part of the deal too?
We are not the right authority for clarity on the rules. Please check with the RP.