Weeks, after the Director General of Civil Aviation (DGCA) de-registered 54 aircraft of Go First, Nishant Pitti, co-founder & CEO of EaseMyTrip, on May 25, withdrew his bid. Pitti was one of the key bidders for the beleaguered airline.
“After careful consideration, I have decided to withdraw from the GoAir bid in my personal capacity. This decision allows me to better focus on other strategic priorities and initiatives that align with our long-term vision and growth objectives,” said Pitti, adding, “Our commitment to delivering exceptional value and service remains unwavering as we continue to navigate new opportunities and challenges.”
The EaseMyTrip CEO has been leading the consortium, which included SpiceJet MD Ajay Singh, to revive the now defunct airline. The two had submitted a bid -- first for Go First -- through Busy Bee Aviation Pvt Ltd (BBAPL).
Busy Bee Aviation Pvt Ltd is a joint venture between Pitti and Ajay Singh. Apart from being the MD of SpiceJet, Singh holds 37.95 percent in SpiceJet, apart from holding 5.92 percent by Ajay Singh HUF. Pitti holds a majority stake in BBAPL.
Pitti’s decision also coincides with EaseMyTrip posting a Rs 15 crore net loss during the January-March 2024 quarter, down from Rs 31 crore net profit in the corresponding quarter previous year. Pitti attributed the one-time loss to write-offs associated with Go First’s dues. In total Rs 74 crore has been written off that Go First owed the venture, he added.
With Pitti moving out of the fray, it is now unclear whether Ajay Singh will continue to pursue for Go First. The future of BBAPL is also uncertain with its majority stakeholder backing off. However, the second bid, filed by Sharjah-based Sky One remains.
Go First, formerly owned by the Wadia group, is embroiled in a legal battle with P&W at the Singapore Court of Arbitration in which the airline has claimed about Rs 8,000 crore compensation, blaming its bankruptcy on the failure of P&W engines forcing it to ground many aircraft.
The now defunct airline owes its creditors more than Rs 6,200 crore. Central Bank of India, Bank of Baroda and IDBI Bank are the secured creditors, with admitted claims of Rs 1,934 crore, Rs 1,744 crore and Rs 75 crore, respectively.