FCC

Go First Bankers Enlist Burford Capital for Pratt & Whitney Lawsuit

2024-08-26

The lenders of Go First airline have hired Burford Capital to pursue litigation against engine manufacturer Pratt & Whitney, intensifying their legal efforts in the ongoing dispute over engine supply issues. Go First, which has faced significant disruptions in its operations due to Pratt & Whitney?s alleged failure to deliver engines on time, was forced to ground many of its aircraft.

Burford Capital, a global leader in legal finance and investment, has been engaged to provide financial backing and legal expertise for the lawsuit. This step marks a crucial move by Go First?s lenders, as they seek to recover losses and restore the airline?s financial health.

Go First had filed for insolvency earlier, blaming the engine supply delays from Pratt & Whitney as a major factor in its financial struggles. The airline argued that the manufacturer?s failure to meet its contractual obligations caused extensive losses and disruptions, leading to the grounding of more than half of its fleet.

This litigation is expected to be a significant legal battle, with potential ramifications for the aviation industry, particularly concerning contractual obligations between airlines and engine manufacturers. Go First?s lenders are determined to pursue all possible legal avenues to ensure compensation and safeguard the future of the airline.

The involvement of Burford Capital is seen as a strategic move that could strengthen the lenders' position, giving them the financial support needed to challenge Pratt & Whitney effectively in court.