Go First crisis: Pratt & Whitney claims airline has lengthy history of missing financial obligations
Pratt & Whitney, the aircraft engine manufacturer which has been blamed by cash-strapped airline Go First for allegedly supplying ‘faulty’ engine, has now responded to the allegations. “GoFirst has a lengthy history of missing its financial obligations to Pratt”, the spokesperson said.
FollowA day after the carrier filed for insolvency, officials with the American aircraft maker Pratt & Whitney (P&W) claimed on Wednesday that Wadia Group's no-frills airline Go First had a lengthy history of missing payments. According to officials, "Go First has a long history of failing to meet its financial obligations to Pratt."
In its statement, the aircraft maker also stated that it will continue to prioritise its supply schedules for all of its clients in accordance with a March 2023 arbitration involving the airline.
"Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritise delivery schedules for all customers. Pratt & Whitney is following the March 2023 arbitration judgement about Go First. We will not comment more because this is now a legal matter," the company stated in a statement.
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According to Go First's statement with the National Company Law Tribunal (NCLT), in March this year, an emergency arbitrator appointed under the Singapore International Arbitration Centre (SIAC) rules determined that Go First's current financial position was due in part, if not entirely, to the number of grounded aircraft caused by the unavailability of P&W engines.
The arbitrator further ordered Pratt & Whitney to deliver and transport at least ten serviceable spare leased engines to Go First by April 27, 2023, and ten additional spare leased engines each month until December 2023, allowing the airline to resume full operations.
"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 regarding the timeframe for the provision of spare leased engines in the future," the airline stated.
Due to a severe liquidity shortage and a grounded fleet, the airline cancelled its flights scheduled for May 3, 4, and 5. The airline is in financial trouble owing to Pratt & Whitney's failure to provide engines, which has resulted in the grounding of 28 of its 57 aircraft.
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