The controversy over compensation for Air India over delay in supply of Boeing's Dreamliners

Syed Akbar
Hyderabad, March 14: The cash-strapped national carrier, Air India,
has now something to rejoice. Aircraft manufacturer Boeing has offered
to pay 500 million US dollar to Air India towards compensation for
delay in delivery of Dreamliner aircraft.

However, Boeing has denied that it has offered any compensation.

Boeing is showcasing Dreamliner aircraft at the ongoing Aviation Show
here. The company was originally scheduled to start the delivery of
the fuel-efficient Dreamliner 787 to Air India in 2008. But Boeing has
overshot the scheduled and the first Dreamliner may be handed over to
the national carrier in a couple of months.

Air India would have been the second airline to get the Dreamliner to
its fleet. The delay has robbed it of the privilege. Now Japan
Airlines Company may become the second operator of Boeing to get 787
aircraft as its delivery may take place next month.

Civil Aviation joint secretary Prashant Shukul told reporters on the
sidelines of India Aviation 2012 on Wednesday that Air India had
demanded one billion US dollars and Boeing had agreed to pay 500 US
dollars towards compensation for the delay in delivery of the
aircraft. The first of the Dreamliner aircraft is scheduled to be
inducted into the Air India fleet in May. He said the Central
government is negotiating for more compensation.

Air India had ordered 27 Dreamliners in 2006 with Boeing, which agreed
to deliver the first aircraft from September 2008.

Earlier, addressing a press conference Dinesh A Keskar, Boeing’s
senior vice-president (sales), Asia-Pacific and India, said the
quantum of compensation was to be decided by the two companies. He
refused to divulge the amount of compensation.