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NEW DELHI: US aerospace major Pratt & Whitney (PW) has hit back at Go First, which has blamed its filing for voluntary bankruptcy on the former’s inability to supply engines due to which half of the airline’s Airbus A320neo fleet has been grounded for months. PW sources claims “GoFirst has a lengthy history of missing its financial obligations to Pratt.”
In a statement, PW said: “Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritise 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.” GoFirst which has 61 aircraft in its fleet on Tuesday said it moved NCLT under Insolvency Bankruptcy Code (IBC) “due to the ever-increasing number of failing engines supplied by PW which has resulted in Go First having to ground 25 aircraft (nearly 50% of its Airbus A320neo aircraft fleet) as of May 1, 2023.” The airline, which has been on cash and carry by oil and airport companies, claims the groundings have cost it Rs 10,800 crore in terms of lost revenue and expenses incurred. It has sought Rs 8,000 crore as compensation from PW.
GoFirst started flying in November 2005 while IndiGo took to the skies in August 2006. While IndiGo today has a fleet of over 310 aircraft, the Wadia Group airline did not grow for many years. Go started flying international in 2018. Pratt’s engine issues for the Airbus A320neo family of planes have affected both IndiGo and GoAir but the former managed them better with a multi-pronged strategy including a large fleet, opting for two engine suppliers and taking wide bodies on wet lease. “GoAir has seen multiple top level changes since inception and there has not been stability that could allow growth. Also, timely fund infusion and regular aircraft induction was missing. So both GoAir and IndiGo, have no similarity to each other other from starting around the same time,” said multiple industry insiders. While PW engine issue no doubt badly hurt Go First, the move to file for voluntary bankruptcy has been a culmination of several events.
However, Go First is seen as a “relatively clean” airline in terms of operations and balance sheet that may find some serious investor — unlike Jet Airways whose revival has not happened so far. SpiceJet has been trying to find an investor for years in vain till now. “In the last decade, there were at least two occasions when a foreign airline and an Indian one wanted to buy a stake in Go Air. But the promoter ask was too high and the transaction did not happen. Now a resolution professional will take this call,” said sources.
With 61 aircraft, GoAir’s 600-700 pilots, trained cabin crew and other staff will be an attractive hiring pool for both IndiGo and Air India. “We have started getting queries from Go pilots,” said a senior official of one of these airlines.
In a statement, PW said: “Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritise 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.” GoFirst which has 61 aircraft in its fleet on Tuesday said it moved NCLT under Insolvency Bankruptcy Code (IBC) “due to the ever-increasing number of failing engines supplied by PW which has resulted in Go First having to ground 25 aircraft (nearly 50% of its Airbus A320neo aircraft fleet) as of May 1, 2023.” The airline, which has been on cash and carry by oil and airport companies, claims the groundings have cost it Rs 10,800 crore in terms of lost revenue and expenses incurred. It has sought Rs 8,000 crore as compensation from PW.
GoFirst started flying in November 2005 while IndiGo took to the skies in August 2006. While IndiGo today has a fleet of over 310 aircraft, the Wadia Group airline did not grow for many years. Go started flying international in 2018. Pratt’s engine issues for the Airbus A320neo family of planes have affected both IndiGo and GoAir but the former managed them better with a multi-pronged strategy including a large fleet, opting for two engine suppliers and taking wide bodies on wet lease. “GoAir has seen multiple top level changes since inception and there has not been stability that could allow growth. Also, timely fund infusion and regular aircraft induction was missing. So both GoAir and IndiGo, have no similarity to each other other from starting around the same time,” said multiple industry insiders. While PW engine issue no doubt badly hurt Go First, the move to file for voluntary bankruptcy has been a culmination of several events.
However, Go First is seen as a “relatively clean” airline in terms of operations and balance sheet that may find some serious investor — unlike Jet Airways whose revival has not happened so far. SpiceJet has been trying to find an investor for years in vain till now. “In the last decade, there were at least two occasions when a foreign airline and an Indian one wanted to buy a stake in Go Air. But the promoter ask was too high and the transaction did not happen. Now a resolution professional will take this call,” said sources.
With 61 aircraft, GoAir’s 600-700 pilots, trained cabin crew and other staff will be an attractive hiring pool for both IndiGo and Air India. “We have started getting queries from Go pilots,” said a senior official of one of these airlines.
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