38.6c New Delhi, India, Thursday, May 23, 2024
Business

GO FIRST Airlines Forced to File for Insolvency Due to Engine Supplier's Negligence! Urgent Hearing Tomorrow at NCLT

By LawStreet News Network      03 May, 2023 09:47 PM      0 Comments
GO FIRST Airlines Forced to File for Insolvency Due to Engine Supplier's Negligence! Urgent Hearing Tomorrow at NCLT

GO FIRST, one of India's leading low-cost airlines, has filed for insolvency before the National Company Law Tribunal in New Delhi, citing the increasing number of failing engines supplied by Pratt & Whitney's International Aero Engines, LLC.

As of May 1, 2023, GO FIRST had to ground around 50% of its total fleet of aircraft due to the engine failures. The airline stated that it was forced to file the petition as its exclusive engine supplier, Pratt & Whitney, failed to comply with the award issued by an emergency arbitrator appointed in accordance with the 2016 Arbitration rules of the Singapore International Arbitration Centre.

The arbitrator directed Pratt & Whitney to take all reasonable steps to release and dispatch serviceable spare leased engines without delay to GO FIRST. However, the engine supplier failed to comply with the award, leaving GO FIRST with no choice but to file for insolvency.

Senior Advocate P Nagesh appeared before the Principal bench of NCLT on May 3, 2023, requesting the urgent listing of the petition. The Principal bench has acceded to the request and listed the petition for May 4, 2023, as the first item.

P Nagesh Sr. Advocate, along with Advocates Pranjal Kishore, Suhas Puthige, Akshay Sharma, and Shouryaditya, appeared for GO FIRST.

The airline's insolvency filing is a significant setback for the Indian aviation industry, which has already been grappling with the COVID-19 pandemic's impact on air travel. GO FIRST was one of the few airlines that managed to remain profitable despite the pandemic's challenges.

The insolvency proceedings will have a significant impact on GO FIRST's employees, creditors, and passengers. The airline has assured its customers that it will continue to operate its flights as scheduled and honor all bookings and refunds.

The insolvency proceedings will also have a far-reaching impact on Pratt & Whitney, which supplies engines to several other airlines globally. The engine supplier will have to answer tough questions on its quality control processes and customer service policies.

The aviation industry will be closely watching the developments in the GO FIRST case, which could set a precedent for similar cases in the future.



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

supreme-court-dismisses-plea-for-review-of-judgment-on-article-370
Trending Judiciary
Supreme Court dismisses plea for review of judgment on Article 370 [Read Order]

SC dismisses petitions challenging its ruling on Article 370, affirming the Centre's decision to revoke J&K's special status and create two Union Territories.

22 May, 2024 12:55 PM
manish-sisodia-bail-court-cites-great-betrayal-of-democratic-principles-in-liquor-policy-case
Trending Judiciary
Manish Sisodia Bail: Court Cites "Great Betrayal of Democratic Principles" in Liquor Policy Case

Delhi HC rejects Manish Sisodia's bail plea in the liquor policy scam case, calling his conduct a "great betrayal of democratic principles" and a misuse of power.

22 May, 2024 01:11 PM

TOP STORIES

ed-to-seek-court-nod-for-custody-of-accused-if-not-arrested-till-cognisance-of-complaint-sc
Trending Judiciary
ED to seek court nod for custody of accused, if not arrested till cognisance of complaint: SC [Read Judgment]

The Supreme Court ruled that the Enforcement Directorate must seek court approval for custody of an accused if not arrested before the court takes cognizance of a complaint.

17 May, 2024 01:38 PM
fundamental-right-to-health-includes-consumers-right-to-be-made-aware-of-quality-of-products-sc
Trending Judiciary
Fundamental right to health includes consumers' right to be made aware of quality of products: SC [Read Order]

Right to health includes consumers' right to know product quality. Advertisers must submit self-declarations for ads to ensure transparency and accountability: SC

17 May, 2024 01:43 PM
sc-asks-ed-to-file-response-to-sorens-plea-for-interim-on-may-20
Trending Judiciary
SC asks ED to file response to Soren's plea for interim on May 20

SC asks ED to file a response by May 20 to Hemant Soren's plea for interim bail during Lok Sabha elections, with a hearing scheduled for May 21.

17 May, 2024 06:12 PM
sc-notice-to-ec-on-plea-by-adr-for-release-of-voters-turnout-data
Trending Judiciary
SC notice to EC on plea by ADR for release of voters turnout data

SC issues notice to EC on ADR plea to release voter turnout data. SC demands EC to disclose vote counts within 48 hours after each phase of the 2024 Lok Sabha polls.

18 May, 2024 11:16 AM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email