DELAWARE- According to a court filing with the US District Court of Delaware, Go First (G8), the crisis-hit Indian airline, has been denied emergency arbitration in its dispute with Pratt and Whitney, the US engine maker, as reported by news agency Reuters on July 27.
The airline had previously filed for bankruptcy protection in May, attributing the grounding of approximately half of its 54 Airbus A320neos to “faulty” Pratt and Whitney engines.
US Court Denies Emergency Arbitration of Go First
The Indian airline accused the US company of supplying defective engines. Subsequently, failing to replace them promptly led to the grounding of a significant portion of its fleet.
However, the court was informed by the Raytheon-owned engine maker that the claims made by Go First were baseless and lacked any valid evidence. They stated that the allegations were without merit and had no foundation.
Earlier this month, Go First initiated the process of seeking investor interest in the company by appointing a court-appointed administrator.
Interested parties are invited to submit their expressions of interest (EoI) by August 9, the final date for submission.
New Engine Lease Pact
Moneycontrol has reported from various sources that Pratt & Whitney (P&W), the engine manufacturer, and Go First, the bankrupt Indian carrier, are in ongoing discussions following a recent Singapore tribunal decision.
The tribunal ordered P&W to supply five engines per month to Go First until December, sparking negotiations for a new lease agreement.
An executive closely associated with P&W revealed that the current talks aim to secure an agreement where the airline will be supplied with approximately 30 new GTF engines starting in December.
The proposed lease arrangement may involve P&W receiving payment in smaller tranches rather than a lump sum upfront. Furthermore, P&W has expressed its willingness to handle the maintenance and servicing costs of the engines.
Should both parties reach a consensus on the new terms, it would lead to the termination of the previous engine lease agreement between P&W and Go First. This decision reflects Go First’s plans to expand operations in 2024 once it resumes its services.
Go First (G8), on 25 July 2023, conducted the first test flight since its grounding on May 3 from the Mumbai Airport (BOM).
The airline utilized the Airbus A320neo, registered as VT-WGD. Further, it is a 6.7-year-old aircraft; Airbus delivered it to G8 back in 2016.
Feature Photo: Harsh Tekriwal (@avgeekwithlens) • Instagram photos and videos
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