Air India to seek a $840 million compensation package from Boeing

National carrier, Air India is in the process of finalising a demand for a $840-million compensation package for US aircraft maker Boeing, for the inordinate delay in the delivery of Boeing 787 Dreamliners.

According to Air India chief operating officer, Captain Gustav Baldauf, the compensation sought is a mix of different services discount and money.

Air India had ordered 27 Dreamliner aircraft, which Boeing failed to supply as per schedule. The airline had ordered 111 aircraft from Airbus and Boeing, at over $13 billion to replace its ageing fleet and leased planes.

The Dreamliners formed part of Air India's order and as per the original delivery schedule, Boeing was to start delivering of the planes from September 2008.

However, it failed to meet the timeline due to issues with its vendors and an industrial dispute with the workers. The company has now rescheduled the delivery to the second quarter of 2011.