SpiceJet considers buying grounded Indian carrier Go Air

Shortly after reporting a quarterly loss, SpiceJet Ltd. has announced it is considering acquiring the insolvent Go Airlines India Ltd., which stopped flying in May, with a goal of possibly combining the two airlines. 

The no-frills carrier is planning to submit an offer after conducting due diligence of Go, it said in a stock exchange filing Tuesday. SpiceJet intends to create a “strong and viable airline in a possible combination” with itself.

SpiceJet earlier this month said it is seeking to raise 22.5 billion rupees ($270 million) through preferential shares and warrants after reporting a net loss of 4.32 billion rupees for the three months through September. 

Go has canceled all scheduled flights until Feb. 4 as it teeters on the brink of collapse. Its chief executive stepped down at the end of November, saying he couldn’t get the airline flying again and that staff hadn’t been paid for six months. 

Jindal Power Ltd., which was a potential buyer under Go’s insolvency resolution process, has decided against making a bid.

Go has a fleet of 54 Airbus SE A320neos, all of which are grounded. 

The airline was established in 2005 by billionaire Nusli Wadia’s Wadia Group.