Go First's request for arbitration is opposed by Pratt & Whitney
Updated July 14, 2023
National Compnay Law Tribunal grants bankrupcy to Go First airlines. Pratt & Whitney, the American aerospace manufacturer, is reportedly set to oppose the Indian low-cost airline Go First's move to enforce arbitration in a dispute over aircraft engine payments.
Go First, formerly known as GoAir, had previously sought arbitration in Singapore over alleged defects in Pratt & Whitney's PW1100G-JM engines. They claimed that the engines were prone to in-flight shutdowns and that Pratt & Whitney had failed to address the issue adequately.
Pratt & Whitney argued that the dispute was not eligible for arbitration under the terms of the parties' agreement and sought to have the case heard in court instead.
Go First has asked the Bombay High Court to enforce the arbitration proceedings in Singapore, citing an order from the Singapore International Arbitration Centre (SIAC) that ruled in its favor. However, Pratt & Whitney is expected to challenge this move and argue that the SIAC order is not binding in India.
The case has significant implications for both companies, as well as for the wider aerospace industry. Pratt & Whitney is one of the world's leading manufacturers of aircraft engines. If the dispute with Go First is not resolved, it could potentially damage the company's reputation and lead to a loss of business.
Go First is one of India's fastest-growing airlines with ambitious expansion plans. The airline has faced significant financial challenges due to the COVID-19 pandemic and cannot afford to have a protracted legal battle with one of its key suppliers.
The case also raises important questions about the use of arbitration to resolve disputes in the aerospace industry. While arbitration can be an effective means of resolving conflicts, it is not always the best option, especially in complex cases that involve multiple parties and technical issues. In this case, it remains to be seen whether arbitration or litigation will ultimately prove to be the best way to resolve the dispute between Pratt & Whitney and Go First.
Pratt & Whitney is anticipated to oppose Go First's attempt to enforce arbitration, and the case may finally be heard in court. The resolution of this conflict will be widely monitored by many in the industry, and it may have an impact on how future disagreements are handled by aerospace firms.