Go First has 'long history of non-payment': Pratt & Whitney on airline's allegations over bankruptcy

Responding to the accusation by Go Airlines, which blamed its bankruptcy on Pratt & Whitney (PW)’s inability to supply engines, the US engine manufacturer issued an official statement drawing attention to what it called Go First’s “lengthy history of non-payment”.

The Wadia Group-owned budget carrier on Tuesday filed for voluntary insolvency proceedings before the National Company Law Tribunal (NCLT), Delhi, attributing the decision to protracted delays in sourcing GTF (geared turbofan) engines supplied by Pratt & Whitney.

“Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritise delivery schedules for all customers,” the statement issued by Pratt & Whitney said.

Also Read | Go First Airways owes financial creditors $798 million, shows bankruptcy filing

In March this year, an emergency arbitrator appointed as per Singapore International Arbitration Centre (SIAC) rules found Go First's current financial position was due to the number of grounded aircraft caused by the unavailability of P&W engines, according to Go First's statement with the National Company Law Tribunal (NCLT). The arbitrator also ordered Pratt & Whitney to release and dispatch at least 10 serviceable spare leased engines by April 27, 2023 to Go First and 10 more spare leased engines per month until December 2023 so the airline could re-establish its full scale of operations.

However, the airline in its statement on Tuesday pointed out, “Pratt & Whitney has refused to comply with the emergency arbitrator’s order and to date, it has provided no spare leased engines at all nor provided any certainty with respect to the timeframe for the provision of spare leased engines in the future. It has also failed to induct faulty engines for repair.” Go First further said that had Pratt & Whitney complied with the emergency arbitrator’s award, all its aircraft would have been operational by August/September 2023.

To this, Pratt & Whitney said, “P&W 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.”

“PW is always compliant with its contacts, and it is public knowledge there is compensation being paid to IndiGo. Why wouldn't PW do that for Go, if the issue wasn't larger,” a source close to the matter told DH on Tuesday, not wanting to be named.