India’s Go First backs emergency arbitration in Pratt & Whitney dispute

(Reuters) – India’s Go Airlines said on Monday it needed 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 declaration, arguing that the US company supplied “faulty” engines and failed to replace them on time, putting half of its fleet out of action.

Go Airlines, also known as Go First, has approached a Delaware district court to enforce an arbitration order issued in Singapore in March that ordered Pratt to assist the airline and provide it with serviceable spare engines.

Last week, Pratt & Whitney argued in a Delaware court that Go First’s claim was “unfounded” and that the dynamics of the dispute had changed. The engine maker said it faced more risks after Go First was granted bankruptcy protection and asked the court to delay or deny the airline’s application.

Go Airlines said in a filing with a Delaware court that Pratt’s argument “failed.”

The airline quoted the emergency arbitrator as saying in the filing that there was a very real risk that Go First would go out of business unless relief was given, at least with regard to the delivery of the engines.

The lawsuit added that Pratt’s stay would cause the harm that the emergency arbitration awards were designed to prevent.

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)