AI Board discusses compensation claim from Boeing

The entire issue of compensation, including the amount to be claimed and how, has been forwarded to the government for approval, sources said, adding that matter came up for a thorough discussion at the meeting of the Board, sources said.

However, they did not disclose the amount to be claimed from Boeing on grounds of confidentiality in negotiations.

The first of the 27 Dreamliners ordered by Air India is ready for delivery and a team of pilots is likely to visit Boeing headquarters in Seattle, US, shortly to fly it down.

The national carrier had placed order to buy 27 B-787s and 41 B-777s in 2005 and as per the original schedule, the US aircraft maker had to commence the delivery of these aircraft from September, 2008. Delivery of the Dreamliners was delayed due to various factors, including labour trouble in Boeing.

The sources said the issue of the pilots' strike which entered the 21st day, was briefly reviewed by the Board. The issue of a voluntary retirement scheme (VRS) for Air India staffers was not on the agenda, they said.

Asked whether the national carrier would take delivery of the B-787s before the compensation amount was finalised, the sources indicated that technically all issues should be firmed up before the delivery papers were signed between an airline and the manufacturer.

Two years ago, while deposing before the Parliamentary Standing Committee headed by CPI(M) leader Sitaram Yechury, Air India's then CMD Arvind Jadhav had said, "we have slapped a compensation claim of USD 710 million. Obviously, they have confirmed USD 145 million they will pay as compensation for the delay and so we have tried to push the entire delivery."

However, the sources said this was the estimation as of March 2010 and the figures could vary now. (MORE)