Pratt & Whitney responds after Go First blames it for bankruptcy. Check statement

By India Today Business DeskCash-strapped airline, which filed for bankruptcy on Tuesday, blamed US aerospace manufacturer Pratt and Whitney (P&W) for its financial woes.

P&W has now responded to Go First’s statement, saying that the budget airline has a “lengthy history of missing its financial obligations”.

In a brief statement issued to news agency ANI, the aerospace manufacturer said, “Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers.”

“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,” it added.

Also Read | Go First files for bankruptcy, owes over Rs 11,000 croreCheck debt breakdown

However, P&W did not elaborate on how the airline had missed its financial obligations.

A day ago, Go First said it had filed for voluntary insolvency proceedings after facing a severe fund crunch. The airline suggested that the non-supply of engines by P&W forced it to take a drastic step.

“Go First has had to take this step due to the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines, LLC, which has resulted in Go First having to ground 25 aircraft (equivalent to approximately 50 per cent of its Airbus A320neo aircraft fleet) as of 1 May 2023,” said the airline in a statement.

“The percentage of grounded aircraft due to Pratt & Whitney’s faulty engines has grown from 7 per cent in December 2019 to 31 per cent in December 2020 to 50 per cent in December 2022. This is despite Pratt & Whitney making several ongoing assurances over the years, which it has repeatedly failed to meet,” it added.

“More precisely, Go First has been forced to apply to the NCLT after Pratt & Whitney, the exclusive engine supplier for Go First’s Airbus A320neo aircraft fleet, refused to comply with an award issued by an emergency arbitrator appointed in accordance with the 2016 Arbitration Rules of the Singapore International Arbitration Centre (SIAC),” Go First said.

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It said the order directed P&W to take “all reasonable steps” to release and dispatch without delay to Go First at least 10 serviceable spare leaser engines by April 27, 2023, and 10 spare leader engines per month until December 2023.

“If Pratt & Whitney were to comply with the orders in the emergency arbitrator’s award, Go First would be able to return to full operations by August/September 2023,” Go First said.

“Despite the emergency arbitrator’s order, however, at the date of this press release, Pratt & Whitney has failed to provide any further serviceable spare leased engines at all, and has stated that there are no further spare leased engines available for it to comply with the emergency arbitrator’s award.”