Go First has lengthy history of missing financial obligations, claims engine maker Pratt & Whitney
The engine manufacturer also said in its statement that it will continue to prioritise its delivery schedules for all its customers in compliance with a March 2023 arbitration related to the airline.
- May 3, 2023,
- Updated May 3, 2023 9:56 AM IST
Officials associated with the American engine manufacturer Pratt & Whitney (P&W) said on Wednesday that Wadia Group's no-frills airline Go First has a long history of missing payments, a day after the carrier filed for insolvency. Officials told news agency ANI: "Go First has a lengthy history of missing its financial obligations to Pratt".
The engine manufacturer also said in its statement that it will continue to prioritise its delivery schedules for all its customers in compliance with a March 2023 arbitration related to the airline.
P&W said in its statement noted: "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".
In March this year, an emergency arbitrator appointed, according to the Singapore International Arbitration Centre (SIAC) rules, found Go First's current financial position was due in part, if not entirely, to the number of grounded aircraft caused by 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 return to its full operations.
The airline said: "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 if P&W were to comply with the arbitrator's orders, it will be able to return to full operations by August-September 2023. The airline added it deeply regrets the inconvenience faced by customers, travel partners, creditors, suppliers, and employees.
The airline cancelled its flights scheduled for May 3,4, and 5 due to the severe cash crunch and grounded fleet. The airline is facing financial woes due to the non-supply of engines by Pratt & Whitney, leading to grounding 28 planes of its 57 aircraft fleet.
Following this, civil aviation regulator Directorate General of Civil Aviation (DGCA) issued a notice to Go First for not informing flyers beforehand about flight cancellations. The airline, however, said it would refund the passengers for all cancelled tickets.
Also read: 'Customer care not taking calls': Go First flyers fume as bankrupt airline cancels flights
Also read: Go First crisis: Airline owes $798 million to financial creditors
Officials associated with the American engine manufacturer Pratt & Whitney (P&W) said on Wednesday that Wadia Group's no-frills airline Go First has a long history of missing payments, a day after the carrier filed for insolvency. Officials told news agency ANI: "Go First has a lengthy history of missing its financial obligations to Pratt".
The engine manufacturer also said in its statement that it will continue to prioritise its delivery schedules for all its customers in compliance with a March 2023 arbitration related to the airline.
P&W said in its statement noted: "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".
In March this year, an emergency arbitrator appointed, according to the Singapore International Arbitration Centre (SIAC) rules, found Go First's current financial position was due in part, if not entirely, to the number of grounded aircraft caused by 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 return to its full operations.
The airline said: "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 if P&W were to comply with the arbitrator's orders, it will be able to return to full operations by August-September 2023. The airline added it deeply regrets the inconvenience faced by customers, travel partners, creditors, suppliers, and employees.
The airline cancelled its flights scheduled for May 3,4, and 5 due to the severe cash crunch and grounded fleet. The airline is facing financial woes due to the non-supply of engines by Pratt & Whitney, leading to grounding 28 planes of its 57 aircraft fleet.
Following this, civil aviation regulator Directorate General of Civil Aviation (DGCA) issued a notice to Go First for not informing flyers beforehand about flight cancellations. The airline, however, said it would refund the passengers for all cancelled tickets.
Also read: 'Customer care not taking calls': Go First flyers fume as bankrupt airline cancels flights
Also read: Go First crisis: Airline owes $798 million to financial creditors