flydubai eyes India market, plans to start new airline by reviving Go First

Some good news for aviation sector at the start of the week. Looks like Go First might take to the skies after all. Busy Bee Airways is currently in discussion with Go First lenders to acquire the stakes of Go First and flydubai, a Dubai-based low-cost airline is planning to start a domestic airline in India by partnering with Busy Bee Airways.

Sources have claimed that Busy Bee has approached Go First's Committee of Creditors (CoC) to acquire its trademarks, flying licence, and airport slots.

Busy Bee had initially placed its bid to acquire Go First in March 2024. Almost a year later the company has once again expressed its interest in reviving the grounded airline.

According to a recent report by Moneycontrol, Busy Bee is keen on securing bilateral and domestic flying rights, trademarks, and online properties, such as the website, 'www.gofirst.co.in'. “The bidder is primarily focused on acquiring the brand associated with Go First rather than its assets,” the report states.

Mathrubhumi could not independently verify the report.

Looks like Busy Bee is not interested in Go First’s tangible assets like its land parcel in Thane, Maharashtra.

Interestingly Indian aviation and FDI laws have its own tale to tell. As per the Foreign Direct Investment (FDI) policy, 100% FDI is allowed in Scheduled Air Transport Services and Domestic Scheduled Passenger Airlines, with up to 49% permitted through the automatic route. Investments beyond 49% require government approval.

As per sources, Busy Bee has offered INR 100 crores for trademarks and licences of Go First and has also sought approval from the National Company Law Appellate Tribunal (NCLAT) to bid for Go First. Discussions are currently in the primary stage.

Prior to Busy Bee, EaseMyTrip’s chief executive, Nishant Pitti had expressed his interest to revive Go First and even submitted a joint bud of INR 1600 crore, which he later increased by INR 1800 crore.

NCLAT is expected to hear Busy Bee’s case on February 19.

This potential collaboration might open a new chapter in India’s competitive aviation sector