A US court ruling has thwarted attempts by Go First (Mumbai International) to force Pratt & Whitney to supply it with aircraft engines. Last week, US Delaware District Court Judge Laura Hatcher dismissed an application by the Indian low-cost carrier to enforce a Singapore International Arbitration Centre (SIAC) decision after that tribunal recently made a final decision that ran counter to the interim ruling.
Go Airlines (India) Limited, trading as Go First, filed the motion in the US District Court in late April to enforce the arbitration's interim ruling. The matter was Go Airlines (India) Limited v. International Aero Engines, LLC (case no: 1:2023mc00249). Pratt & Whitney and some subsidiary entities are the majority owners of International Aero Engines.
Earlier this year, before Go First suspended flights and filed for voluntary administration, it obtained an interim order from the SIAC requiring Pratt & Whitney to supply it with at least ten serviceable engines by April 27, 2023, and a further ten spare leased engines per month until December 2023. Go First has consistently maintained that ongoing problems with the supply and maintenance of the Pratt & Whitney GTF PW1100G engines fitted to its Airbus fleet caused it to ground a large percentage of its fleet, resulting in a financial crisis and eventual insolvency.
In a May 11 filing in Delaware, International Aero Engines challenged the SIAC's interim order, saying it exceeded the original contractual requirements. It also raised concerns about Go First's ability to pay for the engines, calling the carrier "a chronic defaulter."
“It is unjust and inequitable for Pratt & Whitney to be compelled to send valuable engines or perform maintenance services to a company on the brink of insolvency (and now insolvent) in circumstances where there is a high likelihood that Pratt & Whitney will never be paid,” the filing read.
On July 5, the SIAC handed down its final orders, overturning its interim decision. The SIAC noted that circumstances (the insolvency) had changed at Go First while also acknowledging the inability of Pratt & Whitney to supply the mandated ten engines per month, regardless of any order. Instead, it ruled that the engine manufacturer should provide five engines a month from August 1 to December 31, 2023. "Pratt & Whitney respects the Interim Arbitration ruling and will comply with the order until it is otherwise modified," a spokesperson said at the time.
In Delaware last week, Hatcher ruled Go First's application in her court was redundant because the SIAC had vacated its interim order. Accordingly, she dismissed the case.
Meanwhile, India's MoneyControl outlet is reporting that talks are underway between Go First and Pratt & Whitney about the supply of up to 30 engines to the airline, based on the final SIAC ruling. "Both parties have been in talks for the last few weeks to reach a new lease agreement under which Pratt & Whitney will supply around 30 new GTF engines to the airline from December," a source close to the talks told the outlet.
On the table is an offer by the engine manufacturer for the airline to pay for the engines in three tranches instead of the usual single upfront payment. Pratt & Whitney has also reportedly offered to cover the maintenance and servicing costs of the engines.
“Pratt & Whitney has come to the table with a new offer to continue supplying engines to Go First following the verdict by the SIAC, and both parties are discussing terms to move forward amicably," the source said. Pratt & Whitney did not respond to ch-aviation's request for comment on the talks.
Go First has plans to relaunch, albeit on a scaled-down basis. Under its restart plan, it intends to operate 114 daily flights to eight airports around India using five aircraft. India's Directorate General of Civil Aviation has approved the restart, subject to certain conditions, including securing adequate interim funding, which the carrier is yet to lock in. Meanwhile, agitated lessors are seeking to retrieve the entire Go First fleet - all 54 aircraft are leased and currently still in India courtesy of a ruling preventing their repatriation.
