Go First Grounded: Pratt & Whitney Accused Of Faulty Engines, Airline Files For Insolvency

Go First Files for Voluntary Insolvency, Citing Pratt & Whitney's Faulty Engines

Budget airline Go First has filed for voluntary insolvency, blaming Pratt & Whitney, the aircraft engine manufacturer, for allegedly supplying faulty engines, which resulted in the grounding of half of its A320neo fleet.

 

Pratt & Whitney has responded to the allegations, stating that Go First has a lengthy history of missing its financial obligations to the company The manufacturer of the engines has given priority to the delivery schedules for all of its customers, and is following the March 2023 arbitration ruling concerning Go First. As this is now a matter of litigation, the company will not comment further.

 

Go First Accuses Pratt & Whitney of Non-Compliance with Emergency Arbitrator's Order

According to Go First, the engine supplier refused to comply with an award by an emergency arbitrator appointed by the Singapore International Arbitration Centre (SIAC) under the 2016 Arbitrator Rules.

 

Pratt and Whitney were required to dispatch ten serviceable spare leased engines by April 27, 2023, and ten more per month until December 2023, as per the order. The airline alleged that the engine supplier didn't provide any certainty about the timeframe for providing spare leased engines in the future and has not inducted faulty engines for repair.

 

Pratt & Whitney's Failure to Deliver Leased Engines Impacts Go First's Profitability in Indian Aviation Market

Go First has accused Pratt & Whitney of failing to comply with the emergency arbitrator's order, resulting in the grounding of its aircraft fleet. The airline stated that Pratt & Whitney's failure to comply with the emergency arbitrator's award forced it to take steps to enforce the award in the United States and other international jurisdictions.

If Pratt & Whitney had followed the emergency arbitrator's ruling, all of Go First's planes would have been running by August or September 2023, resulting in profitable operations in the rapidly developing Indian aviation market.

 

Go First insolvency highlights the impact of COVID-19 on the Indian aviation industry

As Go First files for insolvency, the Indian aviation industry continues to suffer amid the COVID-19 pandemic. The industry has faced several headwinds in the past few years, including regulatory issues, high operating costs, and intense competition.

 

However, the industry was showing signs of recovery before the pandemic struck, with the Indian government's efforts to improve infrastructure and ease regulations. With the pandemic's impact, airlines' financial health has deteriorated, resulting in layoffs and fleet reductions.

 

Indian aviation industry seeks government and stakeholder support amidst pandemic aftermath

In conclusion, Go First's decision to file for voluntary insolvency is another blow to the Indian aviation industry. The dispute with Pratt & Whitney highlights the challenges that airlines face in maintaining their fleets and ensuring profitability. As the industry navigates the pandemic and its aftermath, it will require support from the government and stakeholders to overcome the challenges and emerge stronger.