US engine-maker flags Go First’s ‘lengthy history’ of non-payment after being blamed for insolvency

Low-cost carrier Go First on Tuesday alleged it had to ground 25 aircraft or about 50% of its Airbus A320neo aircraft fleet — as of 1 May — due to issues with Pratt & Whitney engines.

A Go First aircraft | Representational image | Twitter/@GoFirstairways

New Delhi: A day after low-cost airline Go First filed for bankruptcy blaming US-based Pratt & Whitney (P&W) for ‘faulty engines’, the engine-maker has hit back saying the airline has a “lengthy history” of missing its financial obligations to the company.

The Wadia Group-owned airline on Tuesday said it was forced to file an insolvency application to protect the interests of all stakeholders “due to the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines, LLC”.

In an emailed official statement, the engine maker said it was “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”.

A source at the firm, however, said “GoFirst had a lengthy history of missing its financial obligations” to P&W.

In a three-page, strongly-worded statement, Go First on Tuesday alleged it had to ground 25 aircraft or about 50% of its Airbus A320neo aircraft fleet — as of 1 May — due to issues with Pratt & Whitney engines. Pratt & Whitney is the exclusive engine supplier for Go First’s Airbus A320 neo aircraft fleet.

The Wadia Group said due to the grounding while continuing to incur 100% of operational costs, the airline was set back by Rs 10,800 crores in lost revenues and additional expenses. “Moreover, Go First has paid Rs 5,657 crores to lessors in the last two years of which approximately Rs 1,600 crores was paid towards lease rent for non-operational grounded aircraft from the funds infused by the Promoters & Government of India’s Emergency CreditLine Guarantee Scheme,” their statement read.

The company also said the Go First management had repeatedly sought to engage with Pratt & Whitney on the engine issue, but Pratt & Whitney did not respond constructively. “Instead, despite its contractual obligations to provide a spare leased engine within 48 hours of failure, it refused to provide sufficient spare leased engines to Go First and refused to repair Go First’s engines.”