Go First said, on Monday, that it needed an emergency arbitration in its dispute with Los Angeles-based engine maker Pratt & Whitney that it blamed for its financial condition. The emergency arbitration, it said, must be enforced in Delaware to prevent the airline from going out of business.
The airline approached the Delaware district court to enforce an arbitration order passed in Singapore in March. The Singapore order asked Pratt & Whitney to assist the airline and supply serviceable spare engines.
The engine-maker argued in the Delaware court last week that Go First’s claim was ‘unfounded’ and that the dynamics of the dispute had changed. It said that it faces more risks after Go First was granted bankruptcy protection, and asked the court to put the airline’s request on hold or dismiss it.
It added 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 engine-maker further argued that the airline’s financial situation is of its own making and the result of its years-long failure to pay for the maintenance and lease charges, which led Pratt & Whitney to suspend its services.
16/05/2023 Business Today
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