- Go First, an Indian airline that filed for bankruptcy yesterday after canceling its scheduled flights for May 3 and 4, 2023, blames the crash on Raytheon Technologies Corp (NYSE:RTX) subsidiary Pratt & Whitney, which in January launched its new India Engineering Center in Bengaluru.
- Go First has blamed faulty Pratt & Whitney engines for the grounding of about half its fleet, reported Reuters.
- According to the report, Go First filed bankruptcy after Pratt & Whitney, the exclusive engine supplier for the airline’s Airbus A320neo aircraft fleet, refused to comply with an arbitration order to release spare leased engines that would have allowed the airline to resume full operations.
- Also Read: Raytheon Technologies Posts Q1 Beat, Low End Of Guidance Misses Street Expectations
- The airline stated that grounded aircraft “due to Pratt & Whitney’s faulty engines” increased from 7% of its fleet in December 2019 to 50% in December 2022. This resulted in a $1.32 billion loss in revenue and additional expenses for the airline.
- In a statement to Reuters, Pratt & Whitney said it was “committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers.”
- Price Action: RTX shares closed lower by 1.46% at $98.87 on Tuesday.
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