Pratt & Whitney engines ground Go First airline, Wadia alleges Rs 10,000 crore damages

Blaming Pratt & Whitney (P&W) engines for the grounding of Go First airline, Wadia Group Chairman Nusli Wadia asserted that the U.S. company has inflicted damages exceeding Rs 10,000 crore on the airline. Wadia revealed the P&W engines exhibited failures from the earliest delivery in 2017, occurring not just once but on multiple occasions.

Wadia mentioned that P&W tried to take some steps to solve these flaws but in vain. He further noted that when P&W persuaded Go First to adopt their new engines, it was based on the assurance of reliability and performance up to 1,000 hours before requiring maintenance.

Before the COVID-19 pandemic, P&W reportedly repaired the engines without charge and compensated for grounded aircraft. However, post-pandemic, they started demanding payments for repairs, contrary to the contractual agreement.

By December 2022, the number of Go First aircraft grounded due to faulty engines had reached 53, resulting in a staggering loss of Rs 10,800 crore for the airline. In 2023, the Singapore International Arbitration Centre directed P&W to deliver 10 engines by April 2023 and 10 monthly until December 2023, a directive allegedly ignored by P&W, according to Wadia.

Experts in the report suggested that P&W’s actions might have broader implications as it serves as a crucial defense supplier to India, with the engine issues causing losses not only to the airline but also impacting the overall economy.

A board member of Go First revealed that P&W failed to compensate or replace the faulty engines, leading to the cancellation of Go First’s IPO. Despite promoters injecting an additional Rs 3,500 crore to revive the airline, the situation remained untenable. In early 2023, SpiceJet expressed interest in acquiring Go First, with its board approving the raising of Rs 2,241.5 crore in fresh capital.