EaseMyTrip CEO Withdraws from Go First Acquisition Race

Nishant Pitti, the co-founder and CEO of EaseMyTrip, announced a strategic shift by withdrawing his involvement in the acquisition process of Go First (formerly GoAir). This decision allows him to prioritize EaseMyTrip’s long-term goals and growth initiatives.

“After cautious thought, I’ve decided to move back from the Go Previously offered actually,” Pitti expressed. “This permits me to devote my concentration to other vital needs that adjust better to our drawn out vision and development targets. Our obligation to extraordinary worth and administration stays immovable as we explore new open doors,” he added.

The withdrawal coincides with EaseMyTrip reporting a net loss of Rs 15 crore for the first quarter of 2024. This stands in stark contrast to the Rs 31 crore profit reported during the same period in the previous year. Pitti attributed this loss to the write-off of outstanding debts owed by Go First.

The Bidding Landscape and Go First’s Challenges

The acquisition process for Go First, which rebranded from GoAir, witnessed two primary contenders. A joint bid of approximately Rs 1,600 crore was submitted by a consortium consisting of SpiceJet chairman Ajay Singh and Busy Bee Airways, a company affiliated with Pitti.The other huge bid came from Jaideep Mirchandani’s Sky One Aviation routes.

Go First, previously owned by the Wadia Group, filed for insolvency in May 2023. The airline attributed its financial woes to engine failures from Pratt & Whitney, which led to a significant number of grounded aircraft. The crisis deepened with the de-registration of 54 aircraft by the aviation regulator. Go First currently owes approximately Rs 6,521 crore to lenders, with significant debts owed to major banks like Central Bank of India and Bank of Baroda. The airline’s total liabilities are estimated to be around Rs 11,000 crore.

With Pitti’s withdrawal, the future of Busy Bee Aviation’s involvement and Singh’s individual pursuit of the acquisition remain uncertain. Sky One Airways’ bid now stands as the sole contender.

Go First’s Uncertain Future

The future of Go First remains precarious, further complicated by an ongoing legal battle with Pratt & Whitney at the Singapore Court of Arbitration. The airline has filed a claim of Rs 8,000 crore in compensation from the engine supplier, holding them responsible for its financial distress.