Air India wants to cancel 777 order, Boeing offers single-aisle planes

Mumbai: US aircraft manufacturer Boeing is understood to have offered Air India 10 single-aisle planes in lieu of three long-haul Boeing 777s, an order which the national carrier wants to cancel.
Negotiations between the two companies have been continuing for quite some time over the issue but no final decision has been reached yet, airline sources said here.
"Air India wants to cancel the delivery of three Boeing 777-300 Extended Range aircraft. But Boeing made an offer saying it was ready to deliver ten 737-800-aircraft in place of these three planes with a staggered delivery schedule," they said, adding hard negotiations are going on as a host of issues are involved.
"Differences over pricing remains an irritant in striking the deal as Air India wants these aircraft to be supplied at the prices that prevailed when the orders were placed.
"But the Boeing thinks otherwise," the sources said.
In 2005, Air India had placed orders for 68 aircraft with Boeing which included 18 B 737-800 planes, 27 Dreamliners (B787-800) and another 23 B-777 aircraft.
Of the 23 Boeing 777s, 15 are B 777-300 ER planes and eight Boeing 777-200-LR aircraft.
Air India has already taken delivery of 18 B 737-800s and 8 B 777-200 LRs. Of the 15 B 777-300 ER aircraft, it has received 10 planes while five more are to be delivered to it over a period of next 15 months.
02/05/10 PTI/Daily News & Analysis

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Categories: Foreign May 2010, NACIL May 2010