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24-May-2011 11:08 AM

Air India in negotiations with Boeing for B787 compensation

Air India stated it is in negotiations with Boeing for "just compensation" over delays to the carrier’s B787 order (Economic Times, 23-May-2011). Boeing confirmed it is in compensation talks with the airline. Air India has 27 B787s on order, which were originally scheduled to commence delivery in 4Q2010. The carrier had hoped to deploy the aircraft on new and existing international routes, helping it to regain international market share. B777 equipment was to have been redeployed on high-density domestic routes. A Directorate General of Civil Aviation committee is investigating the issue and is reportedly assessing whether the carrier should cancel some or all of the order (Times of India, 23-May-2011). The committee includes Air India board members.

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