SpiceJet shares surged over 13% on Friday after the airline’s Chairman and Managing Director (CMD) and Busy Bee Airways jointly submitted a bid for GoFirst airline following the release of Directorate General of Civil Aviation (DGCA) data that showed that it managed to hold onto its market share in January.

SpiceJet share hit an intraday high of Rs 72.29, 13.6% higher than its previous closing price on the Bombay Stock Exchange (BSE). The stock closed 11.28% higher at Rs 70.81. 

SpiceJet CMD Ajay Singh, in his personal capacity, has submitted a joint bid for GoFirst with Busy Bee Airways Private Limited, aiming to potentially reshape the landscape of the Indian aviation sector and strengthen SpiceJet’s market position. 

In the collaboration, SpiceJet will serve as the operating partner for the new airline by providing staff, services and industry expertise, potentially leading to improved cost management and revenue growth.

Two weeks earlier, SpiceJet also completed raising the first tranche of capital infusion worth Rs 744 crore through the allotment of securities on a preferential basis, with additional subscriptions pending regulatory approval. SpiceJet initiated several measures anticipating significant annual savings following the recent fund infusion.

Further, the Directorate General of Civil Aviation’s (DGCA) January 2024 data released today stated that domestic air passenger traffic grew 4.7% year-on-year to 1.31 crore in January, wherein SpiceJet has managed to hold on to its market share at 5.6%.