To take off, Go Air must get relief from Singapore court
Go First Airlines have agreed to infuse fresh funds to revive the carrier, an order from the Singapore arbitration court expected later this month is crucial for Go First's survival. If the court does not grant Go First relief and direct Pratt & Whitney (P&W) to replace faulty engines, the airline cannot fly, possibly putting the whole recovery process into jeopardy, people familiar with the process said. While the Singapore International Arbitration award had directed P&W to dispatch around 20 engines by December 2023, the engine maker had subsequently challenged it citing payment failure by the airline and the ongoing global supply chain shortage.
In its petition which was reviewed by ET, P&W has claimed that the airline owes it over $100 million. A person aware of Go First's business plan said that current trends show that a minimum of six engines could fail by November 2023. Resolution professional Shailendra Ajmera didn't comment on the matter.
«The hearing in the Singapore arbitration case concluded in the last week of June. An order is expected by next week which will clearly set out whether Go First will have any engines at all, which is a prerequisite for the airline to start flying again,» said a second person familiar with the process. Last week, ET reported that the committee of creditors (CoC) for Go First Airlines approved an in-principle interim funding of ₹425 crore so that the grounded carrier manages to fly again soon.
The funding is, however, subject to the carrier being given clearance by the aviation regulator DGCA. Permissions linked to the funding are the DGCA's green light to allow the airline to operate. The regulator will conduct a security audit of the airline's preparedness.
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