Go First Airlines, which recently filed for bankruptcy, has blamed engine maker Pratt & Whitney for its financial woes and is now seeking emergency arbitration to prevent it from going out of business. The airline had accused the US firm of supplying “faulty” engines and failing to replace them on time, which resulted in half of its fleet being grounded.
Go First Airlines has approached a district court in the US state of Delaware to enforce an arbitration order made in Singapore in March, which had directed Pratt & Whitney to assist the airline and supply serviceable spare engines. However, Pratt & Whitney argued in the Delaware court last week that Go First Airlines’ claim was “unfounded” and that the dynamics of the dispute had changed since the arbitration order was made.
Pratt & Whitney also stated that it faces more risks after Go First Airlines was granted bankruptcy protection and asked the court to either put it on hold or dismiss the airline’s request. But Go First Airlines said in a filing with the Delaware court that Pratt’s argument “fails”.
According to the emergency arbitrator, there is a very real danger that Go First Airlines will go out of business unless relief is given, at least in respect of the delivery of engines. The stay that Pratt sought would cause the harm that the emergency arbitration awards were designed to prevent, the filing added.
In summary, Go First Airlines’ dispute with Pratt & Whitney has escalated, and the airline is now seeking emergency arbitration to prevent bankruptcy. Pratt & Whitney has argued that Go First Airlines’ claim is unfounded and has asked the court to put the airline’s request on hold or dismiss it altogether. However, the emergency arbitrator has warned that Go First Airlines could go out of business if relief is not given soon.
