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A320neo

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business2 years ago

Go First's Bankruptcy Sparks Concerns Over Airline Industry Finances.

Go First, formerly known as Go Airlines, has filed for bankruptcy, citing "faulty" Pratt & Whitney engines as the reason for grounding about half its fleet. The airline had chosen the geared turbofan (GTF) engines for their fuel efficiency, quieter operation, and lower maintenance requirements. However, the engines were found to have problems with fan blades, oil seals, and combustion chamber lining. Go First and Pratt & Whitney had a compensation agreement until 2019, but financial disputes arose in 2022 over engine replacement and maintenance. Pratt proposed a plan to supply replacement engines at a lower rate, leading Go First to file for emergency arbitration. The number of aircraft grounded due to "faulty engines" has increased from 7% to 50% of Go First's fleet, costing the airline $1.3 billion in lost revenue and added expenses.