Go First CEO Announces Legal Battle Against Pratt & Whitney, Seeking $1.1 billion in Damages

Go First seeks $1.1 billion in damages from Pratt & Whitney

Go First, the low-cost Indian airline formerly known as GoAir, has announced that it is seeking $1.1 billion in damages from engine maker Pratt & Whitney over what it claims is the company's responsibility for its financial collapse. In an interview with a media agency, Go First CEO Kaushik Khona revealed that the airline will sue the engine maker in multiple jurisdictions to seek damages. Khona explained that the airline had lost almost $55,000 each day over the past three years, resulting in over 20,000 aircraft on ground (AOG) days. He claimed that this translates to a compensation of $1.1 billion that the airline could claim from Pratt & Whitney alone.

Go First intends to tap into multiple jurisdictions across the world, including the US, Germany, Japan, Europe, and Singapore, to ensure that it receives the compensation it seeks. Despite the insolvency filing, Khona noted that the promoters of the airline, the Wadia group, have received interest from external sources to raise capital, but they cannot currently be discussed with the lenders of the airline. He also stated that the Wadia group had raised fresh equity of Rs 290 crore in the last 10 days of April, just before the insolvency filing.

Last week, Go First announced that it was initiating voluntary insolvency proceedings with the National Company Law Tribunal due to financial difficulties caused by faulty engines provided by Pratt & Whitney. In response, the engine manufacturer denied the allegations and claimed that the airline was irregular in making payments. Go First plans to resolve its issues soon, having proactively cancelled flights in the meantime.

Conclusion: Go First, the budget airline that recently filed for voluntary insolvency, is seeking $1.1 billion in damages from engine manufacturer Pratt & Whitney, which it blames for its financial difficulties. Go First's CEO, Kaushik Khona, stated that the airline would sue the engine maker in multiple jurisdictions to seek damages. The Wadia group, the promoters of the airline, have raised fresh equity of Rs 290 crore to support the airline. However, the airline faces financial difficulties due to faulty engines provided by Pratt & Whitney, which the engine manufacturer denies.

About Go First

Go First, formerly known as GoAir, is a low-cost airline based in Mumbai, India. It was founded in 2005 by Jehangir Wadia, son of the prominent Indian industrialist Nusli Wadia. The airline operates a fleet of Airbus A320neo aircraft and flies to over 30 destinations across India and abroad.

Go First prides itself on being a low-cost carrier with a focus on providing affordable air travel to the masses. The airline offers a no-frills service, with passengers being charged for additional services such as meals, seat selection, and extra baggage allowance.

In recent years, the airline has faced financial difficulties and has struggled to compete with other low-cost carriers in the Indian market such as IndiGo and SpiceJet. In June 2021, the airline rebranded itself from GoAir to Go First in an attempt to reposition itself in the market and attract more customers.

Important News Tags and Headlines for Readers

Go First CEO says airline to sue Pratt & Whitney for $1.1bn in damages

Indian airline Go First to initiate legal action against Pratt & Whitney

Go First blames Pratt & Whitney for collapse, seeks $1.1bn damages

Go First CEO announces legal battle against Pratt & Whitney for $1.1bn

Pratt & Whitney faces $1.1bn lawsuit from Indian airline Go First

Low-cost Indian airline blames engine maker for its collapse