SpiceJet chairman and managing director Ajay Singh in his personal capacity and Busy Bee Airways Private Ltd have submitted a joint bid for the grounded Go First airline.

The budget carrier in a statement said SpiceJet will take up the role of an operating partner by providing essential staff, services and industry expertise to the new airline if the bid turns successful.

Go First, which stopped flying on May 3, 2023, amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process.

Apart from Singh, Sharjah-based Sky One, and Africa-focused firm Safrik Investments have reportedly shown interest in Go First.

“I firmly believe that GoFirst holds immense potential and can be revitalised to work in close synergy with SpiceJet, benefiting both carriers," Singh said in a statement on Friday.

“Apart from coveted slots at domestic and international airports, international traffic rights, and an order for over 100 Airbus Neo planes, Go First is a trusted and valued brand among flyers,"

SpiceJet said that this collaboration is expected to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry.

In a bid to save costs on a reduced fleet, SpiceJet this week announced plans to lay off 15 per cent of staff, or nearly 1,500 employees, to save around Rs 100 crore per year. The layoffs have already begun and the exercise is expected to be completed by March.

Earlier this week, the National Company Law Tribunal (NCLT) approved a 60-day extension of its moratorium to Go First, giving the airline additional time to finalise its corporate insolvency resolution process.

The resolution professional (RP) overseeing Go First's case, Shailendra Ajmera, had informed the court the airline received interest from three potential buyers, all of whom have already deposited funds, prompting the request for more time to seal the deal.

This marks the NCLT's second extension, following a previous 90-day extension granted on November 23 last year, which ended on February 4.

The second extension was given as Jindal Power decided not to proceed with its plan to bid for the airline after vetting its financial statements.