Pratt & Whitney Pursuing Legal Recourse Against Go First's 'Allegations Without Merit'

The tussle between Go First Airlines and Pratt and Whitney P&W) can now take a legal turn as the US jet manufacturer has defended itself against the budget airline's claim that P&W is responsible for its financial condition and bankruptcy.

"Go First's allegations that Pratt & Whitney is responsible for its financial condition are without merit. Pratt & Whitney will vigorously defend itself against Go's claims, and is pursuing its own legal recourse," a P&W spokesperson told ANI. The airline, owned by the troubled Wadia Group, had earlier blamed P&W for the faulty engines that led to its ongoing financial crisis, and was later forced to file an involuntary bankruptcy petition.

Also read: Go First Gets Bankruptcy Protection: What It Means For Airline And Its Future

Go First has cancelled all its flights till May 19 citing operational reasons, "Go First flights until 19th May 2023 are cancelled. We apologise for the inconvenience caused and request customers," it had said in a statement.

On Wednesday, the National Company Law Tribunal (NCLT) admitted Go First's plea for voluntary insolvency and admitted for the initiation of Corporate Insolvency Resolution Process (CIRP) proceedings. NCLT has granted Go First protection under moratorium from recovery by lessors and lenders.

NCLT, in its order, said that, "we admit the plea of Go Airlines for insolvency proceedings. It said that we appoint Abhilash Lal as IRP (insolvency resolution professional)."

"The suspended board of directors will cooperate with the IRP. Suspended directors are also ordered to deposit Rs 5 crore to make the immediate expenses," the order read.

Soon after NCLT order, Go First Airline Chief Executive Officer Kaushik Khona on Wednesday said in an exclusive interview with ANI, "I think this is a historic decision. It's going to really help the process...Millions of prayers have been heard and I think we could not have got a better order than this... We are very happy that we got this order, an admission and a moratorium."

"The airline was grateful for the entire process of NCLT and noted that this is in line with the spirit of the Insolvency and Bankruptcy Code (IBC). I am sure this is in line with the spirit of IBC so that we are able to take the decision on the revival, which obviously the IRP (Insolvency Resolution Professional) will do," Khona told ANI.

Jet Engines manufacturer P&W earlier also stated that GoFirst has a long history of missing financial commitments to Pratt & Whitney. "Pratt & Whitney continuously offered its support over several years and particularly through COVID. Go First leadership chose to pursue litigation," P&W official told ANI.

According to P&W, "The GTF engine powers more than 1,600 aircraft delivered to over 60 airline customers worldwide, and continues to deliver its promised fuel efficiency and emissions reductions, as we work to improve durability."

Days after Go First grounded its aircraft, major international carrier Lufthansa on Thursday temporarily grounded a third of its 'Airbus A220' fleet in Zurich, Switzerland, citing some issues with the Pratt & Whitney engines.

"Lufthansa temporarily grounds a third of its Airbus A220 fleet in Zurich due to Pratt & Whitney engine issues," Lufthansa said in a statement on Thursday. Headquartered in the US, Pratt and Whitney is a leading player in the design, manufacturing, and servicing of aircraft engines.