Thursday, July 06, 2023

Go First crisis: SIAC directs P&W to deliver 5 engines per month to airline from Aug 1

The Singapore International Arbitration Centre (SIAC) on Thursday directed Pratt & Whitney (P&W) to deliver five engines per month to crisis-hit Go First airline starting August 1, 2023.

SIAC directed P&W to supply Go First with 20 engines by December 2023.

On March 13, 2023, Go Airlines had appealed to the Singapore International Arbitration Centre (SIAC) against Pratt & Whitney and its engine delays.

On May 10, the National Company Law Tribunal (NCLT) had admitted the airline’s voluntary insolvency resolution petition and appointed Abhilash Lal as the IRP to manage the carrier.

With a moratorium in force on financial obligations and transfer of assets of Go First in the wake of the insolvency resolution proceedings, the lessors are unable to deregister and take back the aircraft leased to the carrier.

Go First stopped flying in early May due to cash problems and after it had to ground more than half of its 54 planes because of supply issues from the American engine maker.

Go First said it has been forced to seek voluntary insolvency resolution proceedings due to "serial failure" of Pratt & Whitney engines resulting in grounding of 50 per cent of the fleet and is no longer in a position to continue to meet its financial obligations.

Go First had said it has been forced to apply to the National Company Law Tribunal (NCLT) because of the recurring and persistent issues with the GTF (Geared Turbofan) engines supplied by P&W.

Go First will challenge the Delhi High Court's ruling permitting its lessors to inspect the aircraft as there are inconsistencies with the order passed by the National Company Law Tribunal in the case, according to the grounded airline's resolution professional.

06/07/2023 Business Today

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