Pratt & Whitney Denies Go First's Ownership Rights To Engines, Stating Legal Dis

Pratt & Whitney no longer has engines available for India's Go First airline, which also has no rights to them, the company's counsel told a Delaware court on Thursday, as the two companies engaged in a contentious supply struggle.

The Indian airline has asked a Delaware court to execute an arbitration decision it obtained in Singapore against Pratt & Whitney, which it blames for its financial woes and claims failed to deliver engines on schedule. Pratt (RTX.N) contends that those assertions are false.

Go First has been given bankruptcy protection in India, with a court-appointed administrator attempting to resurrect the airline. This has also triggered a nasty battle with many of Go First's lessors, who have terminated their lease agreements and are attempting to recover the planes.

During a court hearing on Thursday, which Reuters attended via a court-assigned teleconferencing system, a lawyer representing Pratt argued that Go First no longer has ownership of the engines when the leases are terminated.

"There are no engines available to be sent to Go First ... These leases have been terminated and they (engines) cannot be sent because Go First has no right to them," said the Pratt & Whitney counsel.

Go First counsel contended that position was incorrect, claiming that the bankruptcy process in India prohibits any lessor from repossessing jets, and so it retains ownership of the planes and engines.

The engines, according to the Indian airline's lawyers, are vital to its resurrection.

On March 30, a Singapore arbitration ordered Pratt to assist Go First and furnish serviceable spare engines to the airline, which claimed to have grounded half of its 54 Airbus (AIR.PA) A320neo planes owing to engine problems.

Pratt claims that the arbitration order is unenforceable.