Boeing offers Air India interim compensation of $45 million

New Delhi: Commercial aircraft manufacturer, Boeing Co, may have made an interim offer of $45 million to Air India by way of compensation for delay in delivery of the 787 Dreamliner. The state-owned carrier has 27 of these aircraft on order.

Apparently, $10 million has been offered in credit and the rest in cash. Sources said Air India has communicated the Boeing offer to the government.

According to senior government officials, though the matter concerns the airline and the manufacturer, the government view is that Air India ought not to settle for interim compensation.

Meanwhile, ministry of aviation sources have revealed that as per the contract with Boeing, Air India is entitled for a compensation of $145 million and that this was beyond dispute.

After a huge delay of three years, Boeing is offering a mere 5% of the $900 million asked for by Air India, inviting the suspicion that the issue will remain embroiled in unending negotiations. Air India has asked for damages that include losses incurred from lost business opportunities, other than disruptions caused to their fleet turnaround and business plans. 

Boeing India is yet to respond on the matter.