EaseMyTrip founder Nishant Pitti withdraws acquisition bid for Go First
Nishant Pitti, the CEO of online travel company EaseMyTrip, has announced the withdrawal of his firm's bid for the defunct airline Go First. The decision was made to focus on leveraging EaseMyTrip's core strengths and resources for sustainable growth and success. EaseMyTrip reported a net loss of ₹15 crore for the fourth quarter ending March 31, 2024, a significant drop from the net profit of ₹31 crore during the same period in the previous fiscal year (FY).
Court ruling impacts valuation prospects
The latest development comes in the wake of a Delhi High Court ruling allowing lessors to deregister and take possession of the 54 Go First's planes. This decision has significantly affected the airline's valuation prospects for its creditors. Prior to Pitti's withdrawal, EaseMyTrip and SpiceJet promoter Ajay Singh had bid for Go First. The court ruling has added a new layer of complexity to the already challenging situation surrounding the defunct airline.
Go First's legal battle with engine maker P&W
Go First is engaged in a legal battle with engine maker Pratt & Whitney (P&W) at the Singapore Court of Arbitration. The airline is seeking about ₹8,000 crore compensation, attributing its bankruptcy to P&W engine failures which resulted in grounding several aircraft.
