SINGAPORE- In a significant development for Go First (G8), a court in Singapore has ruled that engine manufacturer Pratt & Whitney must deliver five engines per month to the airline between August and December.
This decision is a glimmer of hope for the Wadia-owned carrier, which recently filed for insolvency proceedings in India’s National Company Law Tribunal (NCLT).
The airline, previously known as Go Airlines, ceased operations due to financial difficulties and was forced to ground more than half of its 54 planes due to supply issues from Pratt & Whitney.
Singapore Court Decision on Go First
The supply of engines is a crucial step towards the potential resumption of Go First Singapore’s grounded operations.
However, it is important to note that the airline is still grappling with a separate legal battle against its aircraft lessors, who are seeking to repossess their assets due to payment defaults.
On March 13, 2023, Go First registered a complaint with the Singapore International Arbitration Centre (SIAC) against US Based Pratt & Whitney regarding the delays in engine deliveries.
As an interim relief on March 31, the SIAC ordered Pratt & Whitney to promptly dispatch a minimum of 10 serviceable leased engines by April 27 and an additional 10 engines per month until December. The recent court ruling supersedes the previous order.
Pratt and Whitney Spokesperson Remarks
A spokesperson for Pratt & Whitney expressed compliance with the interim arbitration ruling. Further stated their intention to vigorously defend themselves during the forthcoming proceedings to address the underlying business and legal issues.
It is worth noting that the SIAC’s order does not cover “any third-party engines that are in the MRO process, as to which the engine lessors have communicated contrary disposition directions based on their pre-moratorium termination of leases with the Claimant.”
Additionally, the court emphasized that any costs incurred by Pratt & Whitney in complying with the order would be considered part of the insolvency resolution process.
Go Airlines, in its petition to the National Company Law Tribunal, had asserted that the faulty engines supplied by Pratt & Whitney forced the grounding of over half of its fleet in April 2023.
The airline further claimed that the unavailability and engine failures had resulted in a staggering loss of over Rs 10,800 crores.
This recent court directive provides a glimmer of hope for Go First Singapore as it seeks to overcome its financial challenges and resume its operations.
The airline will closely monitor the developments and eagerly await the delivery of the engines, which are crucial for its revival.
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