Saturday, February 22, 2025

FlyDubai plans entry into Indian aviation market by acquiring Go First

 

Dubai-based airline looks to partner with Busy Bee Airways to establish a domestic carrier in India

PRAVASISAMWAD.COM

Dubai’s budget airline FlyDubai is exploring opportunities to enter India’s domestic aviation sector through a partnership with Busy Bee Airways.

Busy Bee is currently in discussions with creditors to acquire the trademarks, flying licenses, and airport slots of the bankrupt Indian airline Go First, as reported by Moneycontrol, reported business-standard.

FlyDubai-backed Busy Bee aims to revive Go First’s brand without acquiring physical assets

Busy Bee Airways, which first expressed interest in acquiring Go First in March 2024, plans to relaunch the airline by obtaining its intellectual property, including trademarks, domestic flying rights, and digital assets such as its website. However, the company has no intention of acquiring Go First’s real estate assets, including its land parcel in Thane, near Mumbai.

FlyDubai, owned by the Investment Corporation of Dubai (ICD), is backing Busy Bee’s bid to establish a foothold in the Indian market. Notably, Busy Bee was founded by Pran Sathiadasan, who also serves as FlyDubai’s Director of Commercial Operations for Southeast Asia. Industry insiders see this as a strategic move by the Dubai-based carrier to expand its influence in India’s booming aviation industry.

Regulatory hurdles and investment plans

Under India’s Foreign Direct Investment (FDI) rules, 100% foreign investment is allowed in the aviation sector, but any stake beyond 49% requires government approval. However, non-resident Indians (NRIs) are permitted to hold 100% ownership under the automatic route, potentially facilitating this partnership.

  • According to reports, Busy Bee has offered approximately Rs 1,000 crore for Go First’s trademarks and licenses

  • Go First, which filed for bankruptcy in May 2023, was ordered to liquidate by the National Company Law Tribunal (NCLT) in January 2025

  • The deal is still in its early stages, pending approval from the National Company Law Appellate Tribunal (NCLAT)

Meanwhile, former EaseMyTrip CEO Nishant Pitti had previously submitted a joint bid of Rs 1,800 crore for Go First’s intellectual property before stepping down as the company’s chief executive.

FlyDubai’s strategic move to tap into India’s growing aviation market

A partnership between FlyDubai and Busy Bee could help address India’s rising demand for domestic air travel. With the aviation industry expanding rapidly, the revival of the Go First brand could improve connectivity and provide travelers with more flight options across the country.

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Pawan Bhola
Pawan Bhola
Pawan Bhola’s professional expertise lies in BusinessDevelopment. He has been working for Synerggie, Oman for the past 8 years. An MBA in Marketing,art flows naturally in him and now embarking on an exciting writing journey.

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