Pratt & Whitney has no engines currently available for India's Go First airline, which also has no rights over them, the counsel for the U.S. firm told a Delaware court on Thursday as the two companies engaged in a raging dispute over the supplies, Reuters reported. The Indian airline has approached the Delaware court to enforce an arbitration order it won in Singapore against Pratt & Whitney, which it blames for its financial troubles and argues the U.S. firm failed to supply engines on time. Pratt says those claims are without merit.
In the seven years that it has been around, Indian Prime Minister Narendra Modi’s signature bankruptcy reform has failed to live up to its billing, according to an analysis in the Washington Post. The 2016 insolvency law was crafted when the country was just starting to tackle what would eventually rank among the worst piles of bad loans anywhere in the world: a $200 billion-plus menace. With banks garnering bumper profits in the post-pandemic high interest-rate environment, that baggage is now much lighter, and the urgency to deal with it is lower. It shouldn’t be.
An Indian appeals tribunal upheld insolvency proceedings against Go First on Monday, throwing a spanner in the works for the airline's lessors, who are attempting to take back their planes, Reuters reported. At least three leasing companies, including SMBC Aviation Capital, had challenged a tribunal ruling granting Go Airlines (India), widely known as Go First, bankruptcy protection earlier this month.