A day after Go First filed for voluntary insolvency resolution citing "failing engines supplied by Pratt & Whitney’s International Aero Engines," the US-based aircraft engine manufacturer has reacted to the statement.
According to the company, Go First has a lengthy history of missing its financial obligations to Pratt. "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", an official spokesperson for the company told ANI.
This came as Go First alleged that it has been facing engine-related issues for some time now. A statement by the company said grounded aircraft "due to Pratt & Whitney's faulty engines" ballooned from 7 per cent of its fleet in December 2019 to 50 per cent in December 2022. This cost the company a loss of 108 billion rupees ($1.32 billion).
Go First's grounding came two months after reports emerged that the company was considering legal action against American aerospace conglomerate Raytheon Technologies, parent of engine manufacturer Pratt & Whitney, for not providing compensation for dozens of A320neo aircraft grounded due to engine supply delays.
Half of Go First's fleet had to be grounded due to the service reliability of the PW1100G-JM geared turbofan (GTF) engines. Though Go First has sought compensation, the engine maker has so far refused to pay.
Raytheon Technologies had earlier acknowledged that its GTF engines had had reliability issues, reported Reuters. The report added that Pratt & Whitney was quoted saying it was affected by industry-wide supply chain pressures and that it expects those to ease later this year, which would support increased output of new and overhauled engines.
Meanwhile, Go First reportedly owes financial creditors 65.21 billion Indian rupees ($798 million). As of April 30, Go First Air had not defaulted on any of these dues, it said in the bankruptcy filing. "However, considering the present financial situation of the corporate applicant defaults to financial creditors would be imminent," the filing said.
Lenders were caught unaware by the bankruptcy filing and a meeting is being planned, a Reuters report added. Though the lenders had met Go First's management a few weeks ago, no intimation was given.
"I am a little stunned to hear of them file for bankruptcy," said Mark Martin, CEO at aviation consulting firm Martin Consulting LLC. "I still feel that this might not be the end of Go First. This must be a vehicle and a means for somebody new to take over," he told Reuters.