DUBAI- Dubai-based LCC, flydubai (FZ), is reportedly exploring the possibility of launching a new domestic airline in India. FlyDubai is looking to partner with Busy Bee to acquire Go First Airways.
This move from FlyDubai comes as Busy Bee negotiates with creditors to acquire the trademarks, flying licenses, and airport slots of the now-bankrupt Indian airline Go First.
Photo: flydubaiFlyDubai Go First Deal
Busy Bee first expressed interest in acquiring Go First in March 2024. However, rather than purchasing physical assets, the company aims to revive the airline’s brand by acquiring its trademarks, domestic flying rights, and digital assets, including its website. Notably, Busy Bee has no plans to acquire Go First’s large land parcel in Thane, near Mumbai.
According to a report by Moneycontrol, Busy Bee has made an offer of approximately Rs 1,000 crore for Go First’s trademarks and licenses. This offer is still under discussion as the company awaits approval from the National Company Law Appellate Tribunal (NCLAT) to proceed with its bid.
Meanwhile, former EaseMyTrip CEO Nishant Pitti had earlier submitted a joint bid for Go First’s intellectual property, raising it to Rs 1,800 crore before stepping down from his role.
Photo: avgeekwithlens/ Harsh TekriwalFlyDubai’s Interest in Go First
FlyDubai is a UAE-based airline. The airline is owned by the Investment Corporation of Dubai (ICD). The airline sees this partnership as an opportunity to establish a foothold in the Indian domestic aviation market.
Busy Bee was founded by Pran Sathiadasan, who serves as the director of commercial operations for Southeast Asia at FlyDubai. His involvement further strengthens the ties between the two entities and could facilitate FlyDubai’s expansion into India.
FlyDubai aims to leverage Busy Bee’s acquisition of Go First’s slots and licenses to operate domestic routes in India if the partnership materializes. This would be a strategic move considering the rapid growth of the Indian aviation sector and increasing air travel demand.
India’s FDI Regulations in Aviation
India’s aviation sector is open to Foreign Direct Investment (FDI), with certain restrictions. Under current regulations:
- 100% FDI is allowed in the aviation sector, but investments exceeding 49% require government approvals.
- Non-resident Indians (NRIs) are permitted to hold 100% ownership under the automatic route, making it easier for companies like Busy Bee to establish operations without regulatory hurdles.
- Foreign airlines are permitted to invest up to 49% in Indian carriers but cannot own a controlling stake.
These regulations could play a key role in shaping FlyDubai and Busy Bee’s strategy. Since FlyDubai is a foreign airline, any direct investment exceeding 49% in an Indian airline would require government approval. However, if the investment is structured through an NRI-led entity like Busy Bee, it will proceed more smoothly under the automatic route.
Photo: flyDubaiWhat This Means for Indian Aviation
India’s aviation industry is experiencing rapid growth, with increasing demand for air travel across both domestic and international sectors. The revival of Go First’s brand under Busy Bee, with FlyDubai’s backing, will introduce more competition and improve connectivity within the country.
As discussions progress, the collaboration between FlyDubai and Busy Bee could redefine India’s domestic aviation landscape. This will help in bringing more affordable and accessible travel options to passengers. This will also strengthen FlyDubai’s presence in one of the world’s fastest-growing aviation markets.
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The post Flydubai Eyes New Airline in India with Go First Acquisition appeared first on Aviation A2Z.
