Aviation regulator DGCA had flagged safety issues concerning Tecnam aircraft over a month before a Tecnam P2006T training aircraft crashed in Kanpur on August 27, killing a trainee pilot and an instructor.
Kalrock Capital-Murari Lal Jalan combine has emerged as the frontrunner. A consortium of Imperial Capital and FSTC is the other bidder.
The pilot-turned-airline owner and his partner Biraja Jena plan to launch FlyBig, which has secured 16 routes under the fourth phase of UDAN, the government's regional connectivity programme.
The winning bid attracted over 99 per cent votes, with lenders overwhelmingly voting for a revival instead of recovery through liquidation.
