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'Air India won't take Dreamliners till compensation fixed'

Last Updated: Tuesday, May 29, 2012 - 16:26

New Delhi: Civil Aviation Minister Ajit Singh Tuesday said Air India would not take delivery of its first batch of Boeing 787 Dreamliner until both the airline and the aircraft manufacturer decide upon the compensation package for the delay.

"We will not be in a position to take delivery of the aircraft, as the compensation package for the delay in the delivery of the plane has not been decided as of now," Singh told reporters at his residence here.

According to Singh, Air India's board has decided a compensation amount and is seeking legal opinion on how to go about obtaining the same.

The national carrier had ordered 27 Boeing 787 aircraft in 2005-06. However, the first batch of two aircraft would only be delivered at the end of this month.

Overall the delivery of the aircraft has been delayed by three years causing the airline to lose several opportunities to deploy the aircraft on long haul international routes.

The minister said all possible legal recourses were available to the airline including that of arbitration.

The development comes a day after the airline's board in a meeting here decided a ballpark figure of USD 750 – USD800 million from Boeing for the delay in the delivery of the aircraft.


First Published: Tuesday, May 29, 2012 - 16:26
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