GoFirst, a Wadia Group airline, formerly known as Go Air, is going through some serious turmoil as the budget low-cost brand has suspended all its flights till May 12, while bookings for the month has been stopped further. The issue erupted after GoFirst announced filing of an application for voluntary insolvency proceedings with the NCLT. The airline blamed engine maker Pratt & Whitney (P&W) from the US for not supplying the required engines for its fleet of Airbus A320 aircraft. This resulted in grounding of half of the airline’s fleet, affecting cash flow.
Recently, sources working closely with Pratt & Whitney in an interview with PTI blamed GoFirst for financial irregularities and said the airline “has a long history of defaulting on its financial obligations.” First Go, Now, in a detailed press release, explained how the crisis unfolded while blaming the engine manufacturer for the troubles for the airline. Here’s a deeper look at the issue that led to the GoFirst bankruptcy.
Why choose Pratt & Whitney in the first place?
In Fleet with Go First, aircraft manufacturer Airbus certified two engines to power the new A320neo: Pratt’s PurePower PW1127G-JM engine and a CFM engine. Pratt & Whitney billed themselves as the next generation of engines, with the expectation that each engine would have a lifetime of approximately 15,300 hours on the wing before its first full interval shop visit. The expected lifetime of the engines was an important consideration for Go First to proceed with the Pratt & Whitney engines.
In addition, Pratt offered better business terms than its competitors, including financing through their affiliates (UTF) for pre-delivery payments. Pratt promised via a signed side letter in 2012 that if an engine failed within its initial 6,000 hours (or 4,200 take-off and landing cycles) of normal operation, Pratt would repair that engine and Will repair at no charge for the first go.
Understanding the Problem with P&W’s GTF Engines
Pratt & Whitney’s GTF engines suffered from numerous defects and a high rate of failure effectively from day one. There were software and combustion problems and in early September 2016, less than four months from the entry into service of the first GTF engine installed on the first batch of aircraft, GoFirst had to remove the GTF engine due to a “combustion chamber” crisis. .
The Pratt & Whitney engine problem has been an industry-wide problem and many airlines have suffered from it. According to Go First, these GTF engines were developed on an unproven, ‘new’ technology platform, tested prematurely and forced into the market with performance figures to attract airline attention which was never achieved. Engine problems included issues with the engine’s software, start-up time, starter, main gear box and fan blades, but the major issues were with the combustor (i.e., there was corrosion in the combustion chambers, known as a ‘combustion crisis’). was known in.’).
While initially aircraft on the ground were sporadic, a fault with the Low Pressure Turbine (“LPT”) blades resulted in aircraft on the ground (AOG) starting to spike. GoFirst’s first batch of aircraft had an AOG rate of approximately 3.8% for its existing fleet in November 2019. But that AOG rate then rose sharply, reaching 23% in January 2020 and remaining elevated through March 2020.
The Director General of Civil Aviation (DGCA) examined these technical issues “to review the premature engine removal of PW1100G-JM engines installed on Airbus A320 Neo aircraft”. DGCA said in the statement, “After induction of A320 Neo aircraft equipped with PW1100G engines into service, significant technical issues have been experienced on these engines worldwide:
a) Combustion Chamber Distress-Block B and Block C
b) Affecting pre mod and post mod failures
c) N2 transient tremor
d) Failure of Low Pressure Turbine (LPT)
e) HPC (High Pressure Compressor) rear knife edge seal failure
f) Gear box malfunction
The combustor (which is in the hot section (i.e., the front) of an aircraft engine) degraded much faster than that, leading to premature failures and engine shutdown, Go First said. Despite several modifications, issues with its combustor still persist and as of December 2022, 24 GTF engines with the Block D modification were scrapped in India alone due to HPT stage 1 corrosion.
Go First removed 510 GTF engines between 2016 and February 2023: 289 engine changes resulting in at least 28 different defects and 221 engine swaps. 15% of total Pratt & Whitney GTF operated aircraft are grounded due to faulty engines globally (178 aircraft out of 1,219 aircraft grounded by March 2023).
The worst affected region is India where 65 out of 178 aircraft are grounded. Out of total 60 global customers, only 4 customers have fielded more than 25% of the aircraft and 2 of them are Indian customers.
Grounding of Go First Aircraft
According to Go First, he made significant efforts over the years to cooperate with Pratt in an effort to reach solutions to serious, old issues. The grounding of nearly 50% of its fleet due to the gradual failure of Pratt & Whitney engines, while it continues to incur 100% of its operating costs, has set GoFirst back Rs 10,800 crore in lost revenue and additional expenses Are.
GoFirst has paid Rs 5,657 crore to lessors in the last two years, of which around Rs 1600 crore was paid towards lease rent for non-operational grounded aircraft. GoFirst initiated an arbitration against Pratt & Whitney under the 2016 rules of the Singapore International Arbitration Center (SIAC) – seeking compensation and other final reliefs in excess of Rs 8000 crore – as well as interim, emergency relief.
According to the airline, in a decision dated March 30, 2023, the emergency arbitrator found that the number of aircraft grounded due to the unavailability of Pratt & Whitney engines caused a substantial portion, if not the entirety, of GoFirst’s current financial situation. , was largely due. The airline further states that if Pratt & Whitney had complied with the emergency arbitrator’s award, all GoFirst aircraft would have been operational by September 2023.