Pratt & Whitney Takes $181 Million Hit Due To Go First Insolvency
The company's operating profit fell 24% year-on-year to $230 million in the quarter-ended June.
Aircraft engine-maker Pratt & Whitney, which was blamed by Go First for its voluntary insolvency, will take a hit of $181 million due to a charge related to it.
The company's operating profit fell 24% year-on-year to $230 million in the quarter ended June due to the impact of "a charge related to a customer insolvency of $181 million", it said in its Q2 results press release.
The U.S.-based aerospace company didn't directly name Go First as its customer. But Go First blamed its failing engines, which forced the airline to shut operations in May.
Pratt & Whitney said that had it not been for the charge related to the customer's insolvency, the adjusted operating profit would have risen 44% year-on-year to $436 million in the June quarter.
A Singapore arbitral tribunal has directed Pratt and Whitney to supply five engines every month to insolvent carrier Go First from August until December.
