Boeing offers $45-m compensation to AI

New Delhi: American aircraft manufacturer Boeing Company has offered an interim compensation of $45 million in cash to Air India on account of delay in delivery of the B787 Dreamliner.
The compensation is mere a 5% of the $900 million the state-owned carrier had demanded from the Seattle-based company. An airline source said Boeing has offered $10 million in credit over and above the cash part. Air India has communicated the Boeing proposal to the government.
“The issue is between the airline and Boeing. Air India has communicated to us about the compensation Boeing has offered. Our view is that Air India should not settle for interim compensation. After three years of delay, Boeing is offering just a total of $55 million leaving the issue for unending negotiations,” a top aviation ministry official told FE.
12/07/11 Nirbhay Kumar/Financial Express

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Categories: Air India Jul 2011, Foreign Jul 2011