Airline vs manufacturer: Go First Airline and Pratt & Whitney’s engine saga unfolds in court

In a raging legal dispute over the supply of engines, Pratt & Whitney has informed a Delaware court that it currently has no engines available for India’s Go First airline, emphasizing that the airline also lacks rights over them. 

Reuters reports that the two companies are in a fierce battle as Go First seeks to enforce an arbitration order obtained in Singapore against Pratt & Whitney, blaming the US firm for its financial woes and accusing it of failing to deliver engines on time. Pratt & Whitney, however, vehemently denies these claims, considering them to be unsubstantiated.

Go First Airline, formerly known as GoAir, has been granted bankruptcy protection in India, with a court-appointed administrator working to revive the struggling airline. This has triggered a bitter confrontation with several of Go First’s lessors, who have terminated their lease agreements and are attempting to repossess the planes.

During a recent court hearing, Pratt & Whitney’s lawyer argued that Go First no longer possesses any rights over the engines following the termination of the leases. The counsel stated, “There are no engines available to be sent to Go First… these leases have been terminated, and they (engines) cannot be sent because Go First has no right to them.”

Disputing this claim, Go First’s counsel argued that Pratt & Whitney’s position was incorrect, citing the bankruptcy process in India, which imposes a freeze on any plane repossession by lessors. Therefore, according to Go First’s counsel, the airline maintains its right over the planes and the engines, emphasizing its critical role in its revival.

At the heart of the disagreement lies an arbitration order issued on March 30 by a Singapore arbitrator, which directed Pratt & Whitney to assist Go First by supplying serviceable spare engines. Go First Airline, citing engine issues, had grounded half of its fleet of 54 Airbus A320neo planes. Pratt & Whitney, however, disputes the enforceability of the arbitration order, further adding to the complexity of the ongoing legal proceedings.

As the legal battle between the two parties unfolds, the Directorate General of Civil Aviation (DGCA) has issued a directive to Go First Airline, asking the airline to submit a comprehensive restructuring and revival plan within the next 30 days. 

The plan is expected to encompass crucial aspects of Go First’s operations, including the availability of its operational aircraft fleet, the status of required post holders, pilots, essential personnel, and maintenance arrangements. Through these details, the regulatory body aims to assess Go First’s preparedness to resume full-scale operations.

(With inputs from Reuters)