Singapore International Arbitration Centre (SIAC) has asked engine supplier Pratt & Whitney (PW) to provide engines to crisis-hit Go First airline. According to the order, P&W will have to provide five engines per month to the airline between August and December this year.
Earlier in March, Go First had approached the tribunal against its engine supplier citing delays in delivery of engines. The tribunal in an interim order had then asked PW to provide at least 10 spare engines to the airline by April 27. Go First had claimed that the supplier did not comply with this order.
Go First had filed for bankruptcy on May 2 and since then, it has not operated its flights citing operational reasons. The voluntary insolvency petition of the airline was admitted by the National Company Law Tribunal and the tribunal also placed a moratorium on its financial obligations.
In its petition, Go First had cited the delay in delivery of engines as one of the reasons for its woes. The latest order from the Singapore tribunal comes as a relief for the crisis hit airline which is trying to revive its operations.
As per reports, the airline has submitted a revival plan to the Directorate General of Civil Aviation (DGCA). It plans to operate around 160 flights across 78 routes. The aviation regulator reportedly conducted an audit of airline’s facilities and is studying the revival plan before giving the green light. Lenders of Go First have also committed funding of Rs 450 crore.
While the airline tries to revive operations, it is also facing legal challenges filed by its lessors who are looking to repossess their aircraft. The lessors had approached National Company Law Appellate Tribunal (NCLAT) against the NCLT order but the appellate tribunal dismissed the petition. However, it allowed the lessors to approach NCLT again over the question of termination of lease.
