Boeing to pay only $145-mn compensation to Air India

$710 million was sought for delayed deliveries.

Boeing, the world’s second-largest aircraft maker, will pay a $145-million (Rs 660-crore) compensation to National Aviation Company Ltd (Nacil), which runs Air India (AI), for delay in deliveries of the Dreamliner B787-800. AI had sought a compensation of $710 million (Rs 3,233 crore) from Boeing. A senior Air India official confirmed the development. “We will receive the money next year,” he said.

“The deliveries of Dreamliner 787 should have been complete by now. But, it got delayed completely and we have slapped a compensation claim of $710 million. They have confirmed $145 million they will pay as compensation for the delay and so we have tried to push the entire delivery...,” Air India Chairman & Managing Director Arvind Jadhav was quoted in a recently-released parliamentary committee report.

A senior Boeing executive refused to comment.

Nacil was formed after the merger of erstwhile Indian Airlines and Air India in 2007. In 2004, they ordered for 111 aircraft — 68 from Boeing and 43 from Airbus. The Boeing order included 27 B787-800 Dreamliners.

According to the original schedule, Boeing was to deliver the first Dreamliner in May 2008. Air India is likely to receive the first delivery only in April next year. Of the 27 Dreamliners, while 15 aircraft are expected to be delivered in 2011, two may join the fleet in 2012. The remaining 10 Dreamliners would be delivered to Air India between July 2013 and September 2014.