EaseMyTrip CEO pulls out of race for Go First airline

Nishant Pitti, CEO of travel website EaseMyTrip, announced on Saturday that he is no longer pursuing the acquisition of Go First, the bankrupt airline. Pitti stated that this decision allows him to focus on other strategic initiatives that better align with EaseMyTrip’s long-term goals.

This news comes after a consortium led by Pitti’s Busy Bee Airways, alongside SpiceJet’s Ajay Singh, submitted a bid for Go First, which is currently undergoing insolvency proceedings. The fate of Singh’s involvement remains unclear.

Pitti’s withdrawal follows a recent Delhi High Court ruling that allows lessors to reclaim 54 airplanes leased to Go First. Experts believe this decision could significantly hinder Go First’s revival as it reduces the airline’s attractiveness to potential buyers.

Previously, Pitti had indicated a willingness to adapt his offer in light of the court order. This announcement regarding his withdrawal coincides with EaseMyTrip reporting a quarterly loss, though they achieved a yearly profit.

Go First ceased operations in May 2023 and entered insolvency proceedings shortly thereafter. Other than the consortium led by Pitti, Sharjah-based Sky One FZE also expressed interest in acquiring the airline.

The National Company Law Tribunal (NCLT) has extended the deadline for finalizing Go First’s insolvency resolution process several times, with the latest extension pushing the deadline to June 3rd, 2024.

The Delhi High Court on 26 April 2024 directed the Directorate General of Civil Aviation (DGCA) to process the applications filed by several lessors for deregistration of their 54 planes so that they could take them back from the crisis-hit Go First airline. The high court said the process of deregistration should be done within five days of the order.

The court also restrained the resolution professional (RP) appointed under the insolvency law to manage the airline, and its directors from moving or taking away the planes or spare parts, documents, records and any other material.

The Delhi bench of National Company Law Tribunal (NCLT) on 10 May 2023 admitted the insolvency petition filed by Go Airlines India ltd (Go First) under Section 10 of the Insolvency and Bankruptcy Code (IBC).

Go First filed for voluntary insolvency proceedings last week, attributing the grounding of about half its 54 Airbus A320neo planes to faulty Pratt & Whitney engines. 

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