On Monday, Go Airlines asked India’s corporate law tribunal to immediately rule on its bankruptcy appeal, citing lessors’ attempts to repossess planes.
The cash-strapped Indian airline Go First filed for bankruptcy less than a week after “faulty” Pratt & Whitney engines grounded half its Airbus (AIR.PA) A320neo fleet.
Go First’s lawyers asked the tribunal to swiftly rule on its request since lessors seek to seize the planes, which might further disrupt operations.
Pratt & Whitney, part of Raytheon Technologies (RTX.N) and Go First’s only engine supplier, told an arbitration that the airline’s allegation of defective engines causing its collapse was “astounding” and unsupported.
Pratt said Go First collapsed due to “its own poor management and events like Covid” in legal filings.
The National Company Law Tribunal reserved its ruling on Go First’s bankruptcy plea last week.
Lessors can now protect their assets. GY Aviation Lease, SMBC Aviation Capital, and Pembroke Aircraft Leasing requested at least 20 planes from India’s aviation authority.
Go First is India’s first significant airline failure after Jet Airways’ 2019 bankruptcy.
In a bankruptcy petition with the tribunal, Go First reported 65.21 billion rupees ($798 million) in financial creditors’ debt as of April 28.
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