 "Go First has history of missing financial obligations: P&W on allegations")
Pratt & Whitney on Wednesday responded to the allegations made by Go First Airline against the American engine maker in its bankruptcy filing. The Indian airline said that the "ever-increasing number of failing engines supplied by Pratt & Whitney's international Aero Engines" led to the grounding of 25 A320 neo jets.
Pratt & Whitney, in response, said that the airline has a "history of missing its financial obligations".
"Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritise delivery schedules for all customers. Pratt & Whitney is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment further," the company said, as reported by news agency ANI.
"Go First has a lengthy history of missing its financial obligations to Pratt," it added.
Earlier, Go First also said that Pratt & Whitney refused to comply with an award issued by an emergency arbitrator to provide the carrier with at least 10 usable engines by April 27, and an additional 10 every month until December 2023.
On Tuesday, the airline filed for voluntary insolvency resolution proceedings in the National Company Law Tribunal (NCLT) and cancelled its flights on May 3, 4, and 5.
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Go First, owned by the Wadia Group, owes financial creditors Rs 6,521 crore. As of April 30, Go First Air had not defaulted on any of these dues, it said in the filing, as reported by news agency Reuters.
"However, considering the present financial situation of the corporate applicant defaults to financial creditors would be imminent," the filing said.
The filing lists the Central Bank of India, Bank of Baroda, IDBI Bank, Axis Bank, and Deutsche Bank among Go First's financial creditors.
The airline's total liabilities to all creditors stand at Rs 11,463 crore, the filing shows. This includes dues to banks, financial institutions, vendors, and aircraft lessors.