The low-cost carrier FlyDubai, based in Dubai, is reportedly in discussions to potentially initiate
a new domestic airline in India through a partnership with Busy Bee Airways. Busy Bee is
currently in negotiations with creditors to obtain the trademarks, flying licenses, and airport
slots of the insolvent Indian airline Go First, as reported by Moneycontrol.
According to media sources, Busy Bee, which first showed interest in acquiring Go First in
March 2024, intends to revive the airline’s brand without taking on its physical assets. The
company is particularly interested in acquiring Go First’s trademarks, domestic flying rights,
and digital assets, including its website. Busy Bee does not plan to acquire the large land
parcel owned by the airline in Thane, located near Mumbai.
FlyDubai, which is owned by the Investment Corporation of Dubai (ICD), is seeking to
collaborate with Busy Bee on this initiative.
Busy Bee was established by Pran Sathiadasan, who serves as the director of Commercial
Operations for Southeast Asia at FlyDubai. The Dubai-based airline views this as a strategic
opportunity to build a robust presence in India’s competitive aviation industry.
What are the FDI regulations?
Under the current Foreign Direct Investment (FDI) regulations, 100 percent FDI is permitted in
India’s aviation sector; however, investments exceeding 49 percent require government
approval. Non-resident Indians (NRIs) can own 100 percent under the automatic route, which
may facilitate the execution of this partnership.
Busy Bee proposed Rs 1,000 crore
According to the report, although discussions are in the preliminary stages, sources indicate
Busy Bee has made an offer of approximately Rs 1,000 crore for Go First’s trademarks and
licenses. Go First, which has been grounded since May 2023 following its bankruptcy filing,
has been ordered to liquidate by the National Company Law Tribunal (NCLT) in January 2025.
Busy Bee is also awaiting authorization from the National Company Law Appellate Tribunal
(NCLAT) to proceed with its bid. Meanwhile, former EaseMyTrip CEO Nishant Pitti had previously made a joint bid for Go First’s intellectual property, increasing it to Rs 1,800 crore before resigning from his position as chief executive.
Industry analysts view the collaboration between FlyDubai and Busy Bee as a strategic effort to
tap into the increasing demand for air travel in India. With the rapid expansion of India’s
aviation sector, the potential revival of the Go First brand could provide travelers with more
choices and enhance connectivity within the nation.
The core of the contention revolves around Busy Bee Airways’ request to submit a new
resolution that may facilitate the revival of Go First. Attorney Aggarwal alleged that the
insolvency administrator failed to furnish his client with comprehensive details regarding Go
First’s assets, liabilities, and financial condition. Nevertheless, such transparency is crucial for
formulating a sensible and feasible rescue proposal.
Aggarwal further emphasized that the liquidation of Go First would negatively impact not only
the creditors but also the consumers. A decrease in the number of operational airlines would
diminish competition and could lead to increased airfare.
Analysis of the unsuccessful 2024 bid
In the previous year, Pitti and Singh jointly attempted to acquire Go First, but their bid fell short of the expectations set by the insolvency administrator and the creditors’ committees. Their
proposal included an initial payment of merely five billion rupees (approximately US$58 million)
alongside a share of profits from an ongoing legal battle with Pratt & Whitney. However, this
offer was considered insufficient in light of Go First’s substantial liabilities.
A court ruling mandating the deregistration of Go First’s aircraft and their return to the lessors
ultimately prompted Pitti and Singh to withdraw from the acquisition process. This decision
dashed hopes for an expedited resumption of operations and contributed to the choice to
liquidate.
The subsequent developments Busy Bee Airways’ appeal against the liquidation is currently under consideration by the Department National Company Law Appellate Tribunal (NCLAT). However, the landscape remains challenging: Go First’s creditors appear to view liquidation as the most viable avenue to recover at least a portion of their claims. For Busy Bee Airways, though, rescuing Go First represents not only a gamble for the airline’s future but also for the vitality of the Indian aviation industry.
Busy Bee seeks NCLAT’s consent to bid for Go First
Busy Bee has reached out to the National Company Law Appellate Tribunal (NCLAT) to obtain
approval for its bid for Go First, having submitted a written proposal to the creditors.
This request follows a similar initiative by Nishant Pitti, the former CEO of the travel-booking
platform EaseMyTrip, who expressed interest in aiding Go First’s revival.
The NCLAT is expected to hear Busy Bee’s case on February 19
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