Boeing offers Air India $500 million for Dreamliner delay

New Delhi: US aircraft maker Boeing has offered to pay $500 million to Air India as compensation for the delay in deliveries of new-age B-787 Dreamliner aircraft. The package is more than three times what Boeing was willing to pay earlier, but the civil aviation ministry says it is still inadequate.
"It appears now that Boeing intends to offer half-a-billion dollars as compensation to Air India," a senior civil aviation ministry official told ET. "But this is too less and we are trying to ensure better compensation." Boeing India President Dinesh Keskar refused to give details.
" Air India is our valued customer and we will not discuss the issue of compensation in media," he said. Air India had ordered 27 Dreamliner jets in 2006, which were to be delivered by September 2008. But Boeing says it can hand over the first of these planes only in the quarter beginning July.
AI Claims $1-Billion Loss
Dreamliner is a 250-seater aircraft made of composite materials and is considered very fuel-efficient. The multi-version aircraft has a list price between $140 million and $200 million. Air India says the delay in handing over the jets has caused the airline both opportunity and operational losses amounting to over $1 billion.
27/05/11 Anindya Upadhyay/Economic Times

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Categories: Air India May 2011, Foreign May 2011