Go First filed for voluntary insolvency proceedings before the Mumbai bench of the National Company Law Tribunal (NCLT)
Go First insolvency has sent shockwaves in the Indian aviation space. Just hours after the Indian carrier filed for voluntary insolvency, US aerospace major Pratt & Whitney (P&W) has reportedly said that Go First had a ‘lengthy’ history of non-payment.
According to a report in the Economic Times, Pratt & Whitney, a prime party that Go First is blaming for its downfall has said that the airline did not pay its dues in time and had defaulted multiple times.
“Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers. PW 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 publication quoted Pratt & Whitney’s official statement as saying.
For the unversed, Go First filed for voluntary insolvency proceedings before the Mumbai bench of the National Company Law Tribunal (NCLT). It mentioned that the call has been taken in response to the decision of protracted delays in sourcing airworthy engines from PW.
The report adds that Go First has also filed a lawsuit against Pratt & Whitney in a Delaware federal court, seeking enforcement of an arbitration award that directs PW to provide the airline with engines as in the event of non-compliance, the airline runs a risk of shutting operations.