AI compensation for 787 delay once final delivery schedule known: Boeing
28 Aug 2009
New Delhi: Boeing has said it will consider Air India's demand for compensation for delay in delivering the B787 Dreamliner only after it comes to know the final delivery schedule of the jet. Air India, which has 27 B787s on order, has reportedly asked for $700 million in compensation.
In a 2006 contract Boeing contracted to supply Air India with 68 aircraft, including 27 B787, 23 B777 and 18 B737 series at an estimated cost of Rs35,000 crore.
According to Boeing India president Dinesh Keskar, it is only after the first flight of the 787 Dreamliner, or the announcement of its final delivery schedule, will it be proper for the company to estimate the final quantum of the compensation to be paid out to Air India.
Meanwhile, Air India has asked Boeing to defer supply of six B777 aircraft, which are expected to be ready for delivery in period 2010-11. This will entail Air India paying out penalties to Boeing.
Boeing is scheduled to deliver four B777s next year and another two by the end of the third quarter of 2011.
Air India, is currently trying battling union unrest even as it tries to work out a restructuring plan for itself in order to qualify for state funds. A state-owned entity, the airline has accumulated losses of over Rs7,200 crore.
