Monday, October 17, 2016

Fuel efficiency costs Boeing $45 million

After dragging its heels initially, state-run Air India has finally coaxed American plane maker Boeing to pay compensation for lower fuel efficiency than promised in B787 Dreamliner aircraft.

The aviation behemoth has agreed to pay $45 million for additional fuel burn to the airline. But industry sources said the compensation would not be given upfront in cash. Instead, credit memo of this amount would be issued to the airline, which would be settled against future payment made by Air India towards aircraft purchase.

The airline has nine wide-body aircraft, six B787s and three B777s, on order which it hopes to get by March 2018. A proposal to order five more wide-body airplanes is under consideration.
17/10/16 Nirbhay Kumar/Deccan Chronicle
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