'Go First an insolvent airline, not a victim’: Pratt & Whitney at Delaware court

Pratt & Whitney, the Los Angeles-based engine maker at the eye of the Go First storm, argued at a Delaware court against the Indian airline’s bankruptcy filing. It said that Go First is an “insolvent airline” that breached its obligations, and not a victim.

The engine-maker said in the filing that Go First was not a "victim in need of urgent legal redress" but in reality an "insolvent airline that materially breached its contractual obligations”.  The company also argued that the blame that Go First has put on it is unfounded and that its financial situation is the result of the airline’s years-long failure to pay for the maintenance and lease charges, which led Pratt & Whitney to suspend its services. 

Go First approached the Delaware court to enforce the arbitration award in Singapore against Pratt & Whitney. It argued that the US firm’s faulty engines led the airline to ground nearly half its fleet, which led to heavy losses. The arbitrator, on March 30, asked the engine-maker to assist the airline and supply serviceable spare engines for its A320 neo planes. 

International Aero Engines (IAE) that counts Pratt & Whitney as a shareholder, opposed the enforcement of the arbitration award in Delaware, and said that the dynamics of the dispute has changed. It argued that Pratt & Whitney faces more risks after the NCLT granted bankruptcy protection to Go First. 

"The risks for IAE, which were high to begin with, have increased significantly since Go First’s bankruptcy,” it said, asking the court to either put the airline’s order on hold or to dismiss. 

Meanwhile, Pratt & Whitney said that it will pursue legal action against Go First. “Go First airline’s allegations that Pratt & Whitney is responsible for its financial condition are without merit. Pratt & Whitney will vigorously defend itself against Go First’s claims, and is pursuing its own legal recourse,” said a Go First spokesperson. 

Separately, Go First CEO Kaushik Khona had said that the airline is seeking $1.1 billion in damages from Pratt & Whitney. 

Also read: Go First at NCLT: What are the airline’s allegations against Pratt & Whitney?

Also read: ‘Allegations without merit’: Pratt & Whitney pursuing legal recourse against Go First