Highlights:
- FlyDubai is exploring an entry into India’s domestic airline market via Go First.
- Busy Bee Airways has bid ₹1,000 crore to acquire Go First’s trademarks & flying rights.
- FDI rules allow up to 49% automatic investment in domestic airlines; beyond that needs government approval.
- EaseMyTrip’s Nishant Pitti had earlier bid ₹1,800 crore for Go First’s intellectual properties.
- India’s aviation sector is set for a shake-up with new players entering the market.
FlyDubai’s Interest: A Game-Changer for Indian Aviation?
Dubai-based low-cost carrier FlyDubai is in talks to partner with Busy Bee Airways to start a domestic airline in India. The deal could see FlyDubai enter India’s high-growth aviation market via the defunct airline Go First.
Busy Bee Airways is negotiating with Go First’s creditors to acquire its trademarks, flying rights, and airport slots.
FlyDubai could enter India’s domestic market through a partnership model.
Why This Matters:
- FlyDubai is owned by the Investment Corporation of Dubai (ICD), making it a government-backed carrier.
- This move aligns with India’s growing demand for air travel and increasing competition in the aviation sector.
What’s FlyDubai’s Strategy?
According to industry insiders, FlyDubai is not interested in Go First’s physical assets (such as its land in Thane). Instead, it is targeting:
- Go First’s flying licence & air traffic rights
- Bilateral & domestic flying slots
- Trademarks & online assets (like the Go First website)
A senior banker involved in the discussions said, “The bidder is primarily focused on acquiring the brand associated with Go First rather than its assets.”
Busy Bee Airways, originally incorporated in 2017 by Pran Sathiadasan (a senior FlyDubai executive), is leading the charge to acquire Go First’s brand and launch a new airline in India.
FDI Rules & Regulatory Challenges
What Does India’s FDI Policy Say About Airline Investments?
- 100% FDI is allowed in Scheduled Air Transport Services & Domestic Scheduled Passenger Airlines.
- Up to 49% FDI is permitted through the automatic route.
- Beyond 49% requires government approval.
- 100% FDI is allowed for NRIs under the automatic route.
Why This Matters:
- If FlyDubai wants majority control, it will need government clearance.
- Busy Bee Airways (an Indian entity) could help FlyDubai navigate the FDI restrictions.
Busy Bee vs. EaseMyTrip: The Bidding War for Go First
Busy Bee Airways’ Bid
- ₹1,000 crore bid for Go First’s trademarks & flying rights.
- Wants to revive Go First as a new airline brand.
- Focused on partnerships with global carriers like FlyDubai.
EaseMyTrip’s Nishant Pitti’s Bid
- Earlier bid ₹1,600 crore, later raised to ₹1,800 crore.
- Wanted to revive Go First under new management.
- Pitti recently stepped down as CEO of EaseMyTrip but remains active in aviation investments.
Busy Bee’s case will be heard by NCLAT on February 19 to determine if its bid can move forward.
What’s Next? Will Go First Take Off Again?
Potential Outcomes:
- If Busy Bee & FlyDubai succeed, India may get a new domestic airline under the Go First brand.
- If the deal collapses, Go First may face complete liquidation.
- If the DGCA revokes Go First’s airport slots permanently, reviving the airline could become impossible.
