is it a good idea
Well consolidation is a natural part of business. There are far too many airlines servicing too few people. Over supply has caused fares to spiral downwards and become not viable. This has led to chaos in this industry.
Deccan went, then Sahara, GO has never minced it's words that they want to exit so if they are getting a deal they should. This will leave AI KF JET SPICE INDIGo and a clutch of smaller regional players (paramount included)
In the end another one maybe even 2 might go in order to have a viable business model. This will be good for the industry. From the passenger perspective, well no more 1 buck fares for sure, but I don't see the prices becoming so un affordable also (remember Indian Railways still exists).
Once the new terminals (integrated ones) open in Delhi and then Mumbai there is a potential for Indian airlines to use thier geographical advantage and get transit business from the ME as well as Africa which currently is going to EK.
Slow and steady and it will pan out, meanwhile all those who have rushed in with no reserves will need to exit.
Personally I would not buy GO if I was an airline operator. There is no dearth of routes and aircraft availible.
Deccan Sahara should have been allowed to go bust. Would have woken all up earlier. Similarly they should allow the next airline to go bust so reality sinks into investors, flying public and the government.