It is evident that with Pratt & Whitney refusing to abide by the directions in the arbitration award…and with further engine failures expected in the next 3-4 months, the operations of Go First will be made unviable,” the carrier added. “Go First deeply regrets the current situation, which has forced it to apply to the NCLT. “As a result, Go First was left with no option but to commence an arbitration against Pratt & Whitney under the 2016 Rules of the Singapore International Arbitration Centre – seeking compensation in excess of INR 8000 crores and other final relief – as well as to seek interim, emergency relief as permitted by those rules,” the airline said. The carrier said that its management repeatedly sought to engage with P&W regarding frequent issues with the engines, but the engine maker did not respond “constructively”, and despite its contractual obligation to provide a spare leased engine within 48 hours of an engine failure, it refused to provide necessary spare engines and even refused to repair the faulty engines. “The culmination of these actions will result in a severe depletion in the number of aircraft available for Go First to operate going forward, thereby making it further unfeasible for Go First to continue its operation and meet its financial obligations,” the airline said. Go First said that as a result of P&W’s actions, some lessors repossessed aircraft and drew down letters of credit, apart from notifying further withdrawal of aircraft. This is despite several on-going commitments made by Pratt & Whitney over the years, which it has repeatedly failed to meet,” the airline said. “Go First has been plagued by this issue since January 2020 and in this period the percentage of grounded aircraft due to Pratt & Whitney’s faulty engines has grown from 7% in December 2019 to 31% in December 2020 to 50% in December 2022. The regulator also asked the airline to submit the list of measures taken to mitigate inconvenience caused to passengers due to these cancellations, and also provide a plan of action to operate its scheduled flights for May 5. In the notice, the DGCA said that Go First did not give any written intimation to the regulator regarding the flight cancellations, and was, therefore, non-compliant with the norms. Meanwhile, the Directorate General of Civil Aviation (DGCA) issued a showcause notice to Go First over cancellation of all its flight scheduled for May 3 and 4. Go First is the first Indian carrier since Jet Airways to go to the NCLT under the Insolvency and Bankruptcy Code.
0 Comments
Leave a Reply. |