Go First backs emergency arbitration in dispute with Pratt & Whitney

The airline argued that the US firm supplied "faulty" engines and failed to replace them on time, resulting in the grounding of half of its fleet

(Reuters) - India's Go Airlines said on Monday it needed an emergency arbitration in its dispute with engine maker Pratt & Whitney to be enforced in Delaware to prevent it from going out of business.

The Indian airline blames the Raytheon Technologies-owned engine maker for its financial woes and recent bankruptcy filing, arguing that the U.S. firm supplied "faulty" engines and failed to replace them on time, resulting in the grounding of half of its fleet.

Go Airlines, also known as Go First, has approached a district court in Delaware to enforce an arbitration order made in Singapore in March, which ordered Pratt to assist the airline and supply serviceable spare engines.

Last week, Pratt & Whitney argued in the Delaware court that Go First's claim was "unfounded" and the dynamics of the dispute had changed. The engine maker said it faces more risks after Go First was granted bankruptcy protection and asked the court to put on hold or dismiss the airline's request.

Pratt's argument "fails," Go Airlines said in a filing with the Delaware court.

There is a very real danger that Go First will go out of business unless relief is given, at least in respect of delivery of engines, the airline quoted the emergency arbitrator as saying in the filing.

The stay that Pratt sought would cause the harm that the emergency arbitration awards were designed to prevent, the filing added.

Pratt & Whitney did not immediately respond to a request for comment.

 

(Reporting by Jyoti Narayan in Bengaluru; Editing by Chris Reese and Rosalba O'Brien)