Why Nusli Wadia's SOS Couldn't Save Go First

What went wrong with the low-cost airline? Here’s the inside story

- Mihir Mishra,Varun Sood

On 25 March, the fight to save Go Airlines (India) Ltd finally landed before Michael Lee, an emergency arbitrator in Singapore.

Talks between the Indian company, which ran the airline Go First, and American engine manufacturer Pratt & Whitney, had ended in a deadlock. The engine maker did not replace or provide spare engines for the faulty ones, crippling the low-cost carrier’s operations, Go Airlines held. By March, half of the airline’s fleet of 54 Airbus 320 (neos) were grounded.

Nusli Wadia, the 79-year-old chairman of the Wadia Group, which owned Go Airlines, logged in for the virtual hearing, along with Varun Berry, the former chairman of Go Airlines. Pratt & Whitney was represented by Hendrick ‘Rick’ Deurloo, president of the company’s Commercial Engines division.

“The organization will fall apart," Wadia told the arbitrator.

Besides quick delivery of the engines, he wanted Pratt & Whitney to award $416 million to the carrier, on account of the losses it had incurred. The engine maker, apparently, had compensated InterGlobe Aviation, India’s largest airline company, for similar engine failures. InterGlobe Aviation runs IndiGo.

The engines in dispute are called Gear Turbo Fan (GTF) engines—they have a gear box between the fan and a low-pressure shaft. This design results in lower fuel consumption and is also less noisy compared to other engines. IndiGo is the only other Indian airline that operates Airbus 320 (neos) with GTF engines.

“We understand that financial relief is being provided to our competitor because they said so on their investor call," Wadia told Lee. “I would look for some relief, financial relief, to help us along the way for the next six months".