P&W denies responsibility for Go First's financial crisis, pursuing legal recourse
Engine maker Pratt & Whitney has once again clarified that it has nothing to do with the deterioration of Go First's financial health.
The NCLT granted a moratorium to the airline giving it protection from any extreme action by lessors or lenders.
The court also directed Insolvency & Resolution Professional Abhilash Lal to maintain the status of the airline as an ongoing concern, ensure no employees are laid off and pursue the arbitration proceedings.
Speaking to CNBC-TV18 Go First CEO Kaushik Khona said the supply of engines by Pratt & Whitney is the key concern.
"NCLT has directed IRP to follow through on the arbitration proceedings," Khona said.
The airline in its statement on May 2 had said it has sought compensation of approximately Rs 8,000 crores in the arbitration at Singapore International Arbitration Centre.
"Go First is no longer in a position to continue to meet its financial obligations. If the airline succeeds in the arbitration, it is hoped that Go First will be able to address the liabilities of its creditors, small and large," the airline had said.
But Pratt & Whitney in its latest statement said Go First's allegations that it is responsible for the airline's financial condition are without merit.
"Pratt & Whitney will vigorously defend itself against Go’s claims and is pursuing its own legal recourse," the statement said.
The airline while filing for insolvency blamed Pratt & Whitney for its downfall.
It claimed the grounding of close to 50 percent of its A320neo fleet due to the serial failure of Pratt & Whitney’s engines, while it continued to incur 100 percent of its operational costs, has set Go First back by Rs 10,800 crores in lost revenues and additional expenses.
The airline said it has paid Rs 5,657 crores to lessors in the last two years of which approximately Rs1,600 crores was paid towards lease rent for non-operational grounded aircraft from the funds infused by the Promoters & Govt's ECLGS.
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