Budget airline FlyDubai planning to enter India's domestic aviation market
What's the story
Dubai-based budget airline FlyDubai is considering a foray into India's domestic aviation market.
The airline is looking to expand through a partnership with Busy Bee Airways, which is in talks with lenders to acquire the bankrupt Indian airline Go First.
Busy Bee's bid mainly focuses on acquiring the brand of Go First instead of its physical assets.
Acquisition strategy
Bid for Go First: A focus on intangible assets
Busy Bee has shown interest in acquiring Go First's trademarks, flying license, and airport slots.
The company is especially keen on acquiring bilateral and domestic flying rights, trademarks, as well as online properties like the website 'www.gofirst.co.in.'
"The bidder is primarily focused on acquiring the brand associated with Go First rather than its assets," a senior banker involved in the discussions said to Moneycontrol.
Strategic alliance
FlyDubai's potential partnership with Busy Bee
FlyDubai, a subsidiary of the Dubai Aviation Corporation, is in talks with Busy Bee to jointly operate the new domestic airline here under the Go First brand.
An executive involved in the discussions said, "A partnership with FlyDubai would not only offer a competitive edge but also provide Indian travelers with more choices and better connectivity."
The discussions are still in their preliminary stages.
Deal proposal
Busy Bee proposes ₹1,000cr deal for Go First's assets
Busy Bee has offered a deal of approximately ₹1,000 crore for Go First's trademarks and licenses.
The airline's future is still uncertain as it has been grounded for almost two years after it filed for bankruptcy in May 2023.
In January this year, the National Company Law Tribunal (NCLT) had ordered Go First's liquidation as it failed to resume operations.
Bid approval
Busy Bee seeks NCLAT approval to bid for Go First
Busy Bee has approached the National Company Law Appellate Tribunal (NCLAT) seeking approval to bid for Go First, with a written proposal being submitted to the creditors.
This comes after a similar attempt by Nishant Pitti, the ex-CEO of travel-booking platform EaseMyTrip, who had shown interest in supporting Go First's revival.
The NCLAT is likely to hear Busy Bee's case on February 19.