FlyDubai eyes India’s domestic market via potential Busy Bee-Go First deal: Report

Busy Bee has approached Go First's Committee of Creditors (CoC) to acquire the airline’s trademarks, flying licence, and airport slots while steering clear of its physical assets, according to the report.

The potential acquisition would allow Busy Bee to revive the Go First brand, securing key operational rights, including bilateral and domestic flying rights, trademarks, and the airline’s website domain.

A senior executive involved in the discussions reportedly said that FlyDubai, a subsidiary of Dubai Aviation Corporation, is one of several airlines negotiating a potential partnership with Busy Bee to operate a new domestic airline in India under the Go First brand.

Busy Bee was incorporated in April 2017 by Pran Sathiadasan, FlyDubai’s Director of Commercial Operations for Southeast Asia. FlyDubai is owned by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai.

Under India’s Foreign Direct Investment (FDI) policy, 100% FDI is allowed in Scheduled Air Transport Services and Domestic Scheduled Passenger Airlines, with up to 49% permitted through the automatic route. Any investment beyond 49% requires government approval, while Non-Resident Indians (NRIs) can invest 100% through the automatic route.

Busy Bee has reportedly proposed a deal worth around ₹1,000 crore ($115 million) for Go First’s trademarks and licences, though discussions remain at an early stage.

Go First, formerly operated by India’s Wadia Group, ceased operations and filed for voluntary insolvency under India’s Insolvency and Bankruptcy Code (IBC) in May 2023. The National Company Law Tribunal (NCLT) ordered the airline’s liquidation in January 2025 after the CoC failed to secure a viable resolution plan.

The budget carrier owes ₹6,521 crore to creditors, including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.

Go First’s troubles deepened as aircraft lessors challenged the bankruptcy proceedings, seeking to reclaim their leased planes. India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), initially resisted deregistration but eventually allowed it in May 2024 following legal clarifications. By then, Go First’s entire fleet had been handed back to lessors.

With no operational aircraft and mounting liabilities, the airline’s creditors opted for liquidation in September 2024.

Last month, the National Company Law Appellate Tribunal (NCLAT) reportedly asked Busy Bee to approach the airline’s lenders and negotiate a deal to acquire the airline.