The Go First insolvency crisis keeps taking new turns everyday. As per latest updates, the cash-strapped Go First airlines has reportedly said that it needs an emergency arbitration in its on-going dispute with engine maker Pratt & Whitney (PW).
According to a Reuters report, Go First wants this emergency arbitration to be enforced in Delaware in order to prevent it from going out of business amid its on-going insolvency issue. This is also because Go First blames PW for its financial woes, reportedly arguing that Pratt & Whitney supplied ‘faulty’ engines and failed to replace them on time which resulted in grounding half of the carriers owned by Go First.
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Looking at the case, Go First had approached a district court in Delaware in order to enforce an arbitration order that it made in Singapore in March. This instance ordered “Pratt to assist the airline and supply serviceable spare engines,” as per the report.
It adds that last week, Pratt & Whitney argued in the Delaware court that the cash-strapped Go First airlines’ claim was “unfounded” and several dynamics of the entire Go First insolvency issue had changed. The company also reportedly claimed of facing more risks as the National Company Law Tribunal (NCLT) in India had granted Go First protection from bankruptcy.
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As of now, Go First has cancelled all flight bookings till May 23, 2023 and as per experts, there are chances that this pattern of cancellations will continue for some time.
