GoFirst Has A Lengthy History Of Missing Financial Obligations: Pratt & Whitney

The airline was forced to ground more than half of its fleet due to the non-supply of engines by Pratt & Whitney (P&W).

Cash-strapped airline Go First filed for insolvency protection on Tuesday. ( Image Source :Getty )

New Delhi: A day after cash-strapped airline Go First filed for insolvency protection, its engine supplier Pratt & Whitney (P&W) said that the airline has a "lengthy history of missing its financial obligations," ANI reported citing Pratt and Whitney officials.

 

Filling for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) on Tuesday, the airline blamed the cash crunch caused by the "serial failure" of engines supplied by Pratt & Whitney that forced the airline to ground more than half of its fleet.

 

The US-based engine maker in a statement said, "Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers. Pratt & Whitney is complying with the March 2023 arbitration ruling related to Go First."

"As this is now a matter of litigation, we will not comment further," it added.

 

GoFirst which has 61 aircraft in its fleet on Tuesday said that it moved NCLT “due to the ever-increasing number of failing engines supplied by PW which has resulted in Go First having to ground 25 aircraft (nearly 50% of its Airbus A320neo aircraft fleet) as of May 1, 2023.”

The airline was forced to ground more than half of its fleet due to the non-supply of engines by Pratt & Whitney. The carrier, which has been in operation for more than 17 years and is owned by the Wadia group, took this step following arbitration proceedings in Singapore and the filing of a lawsuit in a US court to enforce an arbitration award.

As per PTI, Go First in a detailed statement said that has been forced to apply to the National Company Law Tribunal (NCLT) because of the recurring and persistent issues with the GTF (Geared Turbofan) engines supplied by P&W.

The agreements between Go First and Pratt & Whitney required the latter to repair the engines or provide an adequate number of spare leased engines. However, Pratt & Whitney has failed to fulfill these obligations, the report said. 

Go First said that Pratt & Whitney failed to follow an order issued by the Singapore International Arbitration Centre (SIAC) emergency arbitrator to deliver at least 10 leased serviceable spare engines by April 27 and another 10 spare leased engines each month until December 2023. This led to the airline being unable to comply with its financial obligations and hence forced to approach the NCLT.

"If Pratt & Whitney had followed the directions laid down in the award, Go First would have been able to return to full operations by August/September 2023 leading to Go First's financial rehabilitation and survival. Pratt & Whitney has failed to provide any further serviceable spare leased engines at all at the date of this press release and has stated that there are no further spare leased engines available," the statement said.

The airline in its statement said that it regrets the disruption and inconvenience that the latest move will cause to its customers, travel partners, creditors, and suppliers, and, in particular, to its own employees.